This strategy is a buy-only trading system that generates buy signals based on moving average crossovers and the Weekly Commodity Channel Index (CCI) or Weekly Average Directional Index (ADX). It produces buy signals when the fast moving average crosses above the slow moving average and when the Weekly CCI and/or Weekly ADX meet specified conditions.
The strategy also allows for dynamic re-entry, which means it can open new long positions if the price goes above the three moving averages after an exit. However, the strategy will exit the long position if the price closes below the third moving average.
The script defines the conditions for generating buy signals. It checks two conditions for a valid buy signal:
Dynamic Re-entry: If there is no active long position and the price is above all three moving averages, a new long position is opened.
Exit Condition: If the closing price drops below the third moving average, the script closes the long position.
The advantages of this strategy include:
The risks of this strategy include:
Solutions:
This strategy can be optimized by:
This dynamic re-entry buy-only strategy integrates multiple technical indicators to determine entry timing and adopts a dynamic re-entry design to track trends in real-time. Being long-only avoids shorting risks. Through parameter optimization, stop losses, and position sizing, this strategy can be implemented in live trading to control risk while capturing excess returns.
/*backtest start: 2022-12-12 00:00:00 end: 2023-12-18 00:00:00 period: 1d basePeriod: 1h exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=5 strategy("Buy Only Strategy with Dynamic Re-Entry and Exit", overlay=true) // Input Parameters fast_length = input(20, title="Fast Moving Average Length") slow_length = input(30, title="Slow Moving Average Length") third_ma_length = input(100, title="Third Moving Average Length") cci_period = input(14, title="CCI Period for Weekly CCI") use_cci = input(true, title="Use CCI for Entry") use_adx = input(true, title="Use ADX for Entry") adx_length = input(14, title="ADX Length") adx_threshold = input(25, title="ADX Threshold") // Calculate Moving Averages fast_ma = ta.sma(close, fast_length) slow_ma = ta.sma(close, slow_length) third_ma = ta.sma(close, third_ma_length) // Weekly Commodity Channel Index (CCI) with user-defined period weekly_cci = request.security(syminfo.tickerid, "W", ta.cci(close, cci_period)) // Weekly Average Directional Index (ADX) dirmov = hlc3 plus = ta.change(dirmov) > 0 ? ta.change(dirmov) : 0 minus = ta.change(dirmov) < 0 ? -ta.change(dirmov) : 0 trur = ta.rma(ta.tr, adx_length) plusDI = ta.rma(plus, adx_length) / trur * 100 minusDI = ta.rma(minus, adx_length) / trur * 100 sum = plusDI + minusDI DX = sum == 0 ? 0 : math.abs(plusDI - minusDI) / sum * 100 ADX = ta.rma(DX, adx_length) // Entry Conditions (Buy Only and Weekly CCI > 100 and/or Weekly ADX > 25) cci_condition = use_cci ? (weekly_cci > 100) : false adx_condition = use_adx ? (ADX > adx_threshold) : false long_condition = ta.crossover(fast_ma, slow_ma) and (cci_condition or adx_condition) // Exit Condition and Dynamic Re-Entry exit_condition = close < third_ma re_entry_condition = close > fast_ma and close > slow_ma and close > third_ma and weekly_cci > 100 // Entry and Exit Signals strategy.entry("Long", strategy.long, when=long_condition) strategy.close("Long", when=exit_condition) // Dynamic Re-Entry and Exit if strategy.position_size == 0 and re_entry_condition strategy.entry("Long", strategy.long) if strategy.position_size > 0 and close < third_ma strategy.close("Long") // Plot Weekly CCI and ADX for reference plot(weekly_cci, title="Weekly CCI", color=color.orange) plot(ADX, title="Weekly ADX", color=color.blue)template: strategy.tpl:40:21: executing "strategy.tpl" at <.api.GetStrategyListByName>: wrong number of args for GetStrategyListByName: want 7 got 6