Tags:

This strategy is based on the price channel indicator. By setting a momentum parameter, it calculates the mean value of the highest and lowest prices in different cycles to form the median line of the price channel, and sets long and short lines based on this. When the price breaks through the long line, it goes long; when the price breaks through the short line, it goes short. The closing condition is that the price regresses to the channel midline.

This strategy uses the price channel indicator to calculate the mean value of the highest and lowest prices in different cycles to form the channel midline. Based on the midline, long and short lines are set through the shift parameter. Specifically, the long line calculation formula is: midline + (midline × long line parameter%); the short line calculation formula is: midline + (midline × short line parameter%).

When the price is lower than the long line, open long positions with limit orders; when the price is higher than the short line, open short positions with limit orders. The stop loss method for long and short positions is the price regressing to the channel midline.

The strategy has the following advantages:

- Using the price channel indicator can effectively capture price trends and key support/resistance levels.
- Opening positions on breakouts can reduce losses from false breakouts.
- The stop loss method directly takes the price channel midline as the standard to avoid excessive losses from chase stops.

The strategy also has some risks:

- Improper parameter settings of the price channel may miss active trends or generate too many false breakouts.
- Breakout opening methods incur a certain degree of slippage costs.
- Unable to stop loss in time during rapid price retracements.

The above risks can be mitigated by optimizing parameters, setting stop loss orders, or combining other indicators for judgment.

The strategy can be optimized in the following aspects:

- Optimize the parameters of the price channel to find the best combination.
- Try different opening methods such as candlestick patterns and indicator signals.
- Add stop loss order settings to prevent losses from rapid price drops.
- Combine trading volume, volatility and other indicators to avoid false breakouts in the stock market.

The design idea of this strategy based on the price channel indicator is clear. Using breakout to open positions can effectively control risks. But there are also large parameter optimization spaces and stop loss mechanisms that need to be improved. Overall, the strategy has a certain practical value and is worth further testing and optimization.

/*backtest start: 2022-11-29 00:00:00 end: 2023-12-05 00:00:00 period: 1d basePeriod: 1h exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //Noro //2018 //@version=3 strategy(title = "Noro's PCMA Strategy v1.0", shorttitle = "PCMA 1.0", overlay = true, default_qty_type = strategy.percent_of_equity, default_qty_value = 100, pyramiding = 0) //Settings needlong = input(true, defval = true, title = "Long") needshort = input(true, defval = true, title = "Short") capital = input(100, defval = 100, minval = 1, maxval = 10000, title = "Lot, %") per = input(3, title = "Length") shortlevel = input(10.0, title = "Short line (red)") longlevel = input(-5.0, title = "Long line (lime)") fromyear = input(1900, defval = 1900, minval = 1900, maxval = 2100, title = "From Year") toyear = input(2100, defval = 2100, minval = 1900, maxval = 2100, title = "To Year") frommonth = input(01, defval = 01, minval = 01, maxval = 12, title = "From Month") tomonth = input(12, defval = 12, minval = 01, maxval = 12, title = "To Month") fromday = input(01, defval = 01, minval = 01, maxval = 31, title = "From day") today = input(31, defval = 31, minval = 01, maxval = 31, title = "To day") //Price Channel h = highest(high, per) l = lowest(low, per) c = (h + l) / 2 ll = c + ((c / 100) * longlevel) sl = c + ((c / 100) * shortlevel) //Lines shortcolor = needshort ? red : na longcolor = needlong ? lime : na plot(sl, linewidth = 2, color = shortcolor, title = "Short line") plot(c, linewidth = 2, color = blue, title = "SMA line") plot(ll, linewidth = 2, color = longcolor, title = "Long line") //Trading size = strategy.position_size lot = 0.0 lot := size == 0 ? strategy.equity / close * capital / 100 : lot[1] if (not na(close[per])) and size == 0 and needlong strategy.entry("L", strategy.long, lot, limit = ll, when = (time > timestamp(fromyear, frommonth, fromday, 00, 00) and time < timestamp(toyear, tomonth, today, 23, 59))) if (not na(close[per])) and size == 0 and needshort strategy.entry("S", strategy.short, lot, limit = sl, when = (time > timestamp(fromyear, frommonth, fromday, 00, 00) and time < timestamp(toyear, tomonth, today, 23, 59))) if (not na(close[per])) and size > 0 strategy.entry("Close", strategy.short, 0, limit = c, when = (time > timestamp(fromyear, frommonth, fromday, 00, 00) and time < timestamp(toyear, tomonth, today, 23, 59))) if (not na(close[per])) and size < 0 strategy.entry("Close", strategy.long, 0, limit = c, when = (time > timestamp(fromyear, frommonth, fromday, 00, 00) and time < timestamp(toyear, tomonth, today, 23, 59))) if time > timestamp(toyear, tomonth, today, 23, 59) strategy.close_all()

- Dual EMA Crossover Strategy
- Momentum Breakout Camarilla Support Strategy
- Honey Trend ATR Breakout Strategy
- Trend Following Strategy with EMA
- Double Reversal Percentage Change Bar Quantitative Strategy
- Bollinger Bands Reversal with MA Trend Filter
- RSI Based Quantitative Trading Strategy
- Multi Moving Average Crossover Trading Strategy
- Moving Average Crossover Strategy
- Auto S/R Breakout Strategy
- Improved Moving Average Crossover Strategy with Market Trend Guidance
- Dynamic Candlestick Big Yang Line Trading Strategy
- SSL Hybrid Exit Arrow Quant Strategy
- Dual Moving Average ADX Timing Strategy
- BB Percentage Index Trend Fading Strategy
- MACD Bollinger Turtle Trading Strategy
- Triple SuperTrend and Stoch RSI Strategy
- 1% Profit Moving Average Cross Strategy
- Weighted Quantitative Moving Average Crossover Trading Strategy
- multiple auxiliary RSI indicator strategy