The DEMA trend following strategy is designed based on the DEMA indicator. It generates buy signals when the price breaks through the lower band of the DEMA and sell signals when the price breaks through the upper band. This strategy belongs to the trend following system.
This strategy uses the DEMA indicator to determine the price trend. DEMA is the Double Exponential Moving Average, which is calculated with two EMA lines and can capture price changes faster. The strategy calculates the percentage difference between the price and DEMA, and then generates trading signals.
When the percentage difference crosses above the buyper parameter, a buy signal is generated. When the percentage difference crosses below the sellper parameter, a sell signal is generated. The buyper and sellper parameters represent the strength to generate signals, which can be adjusted based on market conditions.
In addition, the strategy also sets date ranges as filter conditions. Trading signals are only generated within the specified date range.
Risks can be mitigated by combining other indicators for signal verification, optimizing parameters, and adding stop loss.
The DEMA trend following strategy is reasonably designed with stable profitability. It successfully uses the DEMA indicator to determine trend direction and works well on various stocks and medium-to-long-term timeframes. Further improvements on parameters, additional indicators, stop loss can enhance return and risk control. This strategy has practical value for live trading but needs continuous testing and optimization for long-term stability.
/*backtest start: 2023-09-16 00:00:00 end: 2023-10-16 00:00:00 period: 30m basePeriod: 15m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version= 2 strategy("DEMA PRICE DİFFERENCE Strategy ",shorttitle="DPD% STR " ,overlay=false) buyper =input(-1) sellper=input(1) demalen = input(50,title="Dema Length") e1= ema(close,demalen) e2=ema(e1,demalen) demaprice = 2 * e1 - e2 price=close demadifper = ((price-demaprice)/price)*100 plot(demadifper, color=red) OverDemaPer = input(1, title="Band for OverBought") UnderDemaPer= input(-1,title="Band for OverSold") band1 = hline(OverDemaPer) band0 = hline(UnderDemaPer) zeroline=0 fill(band1, band0, color=green, transp=90) yearfrom = input(2018) yearuntil =input(2019) monthfrom =input(6) monthuntil =input(12) dayfrom=input(1) dayuntil=input(31) if ( crossover(demadifper,buyper)) strategy.entry("BUY", strategy.long, stop=close, oca_name="TREND", comment="BUY") else strategy.cancel(id="BUY") if ( crossunder(demadifper,sellper) ) strategy.entry("SELL", strategy.short,stop=close, oca_name="TREND", comment="SELL") else strategy.cancel(id="SELL")template: strategy.tpl:40:21: executing "strategy.tpl" at <.api.GetStrategyListByName>: wrong number of args for GetStrategyListByName: want 7 got 6