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This strategy combines double exponential moving average and ALMA indicator to achieve trend following and entry. ALMA line serves as the main trend filter, going long when price is above ALMA line and going short when price is below ALMA line. Double EMA is used to give early trend signals for timely entry.

- Calculate fast EMA1 and slow EMA2 of double exponential moving average.
- Calculate ALMA line.
- When EMA1 and EMA2 form golden cross, go long if price is above ALMA line; when EMA1 and EMA2 form dead cross, go short if price is below ALMA line.
- So ALMA line serves as the main filter to avoid whipsaws during ranging market. And double EMA gives early trend signals for timely entry.

- Double EMA can reflect price trend ahead of time, avoiding entering ranging zone.
- ALMA line can dynamically capture trends with adaptive smoothness, which is a great trend filtering indicator.
- The combination considers both timeliness of trend and reliability of entry.

- Double EMA may give false signals during violent price fluctuations.
- ALMA line has the issue of lagging behind prices, resulting in some trends being filtered out.
- Inappropriate parameter settings can also lead to poor strategy performance.

Solutions:

- Adjust periods of double EMA properly to reduce false signals.
- Tune parameters of ALMA line to decrease lagging.
- Do parameter optimization to find the best parameter combination.

- Test double EMA with different period combinations to find the optimal parameters.
- Test ALMA line with different window size, offset and sigma values for parameter optimization.
- Incorporate other indicators like volatility index for further signal filtering.
- Optimize stop loss strategy to control single trade loss.

This strategy combines double EMA and ALMA indicator to achieve timely trend following and reliable entry filtering. By improving parameter optimization and stop loss strategy, it can further reduce false signals, control risks and improve strategy performance. It is suitable for trending markets and medium-long term trading especially.

/*backtest start: 2022-12-15 00:00:00 end: 2023-12-21 00:00:00 period: 1d basePeriod: 1h exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=3 //Author: HighProfit //Lead-In strategy("Double Exponential Moving Avarage & Arnoud Legoux Moving Avarage Strategy", shorttitle="ST-DEMA+ALMA", overlay=true) //Arnoud Legoux Moving Avarage Inputs source = close windowsize = input(title="Window Size", defval=50) offset = input(title="Offset", type=float, defval=0.85) sigma = input(title="Sigma", type=float, defval=6) //Exponential Moving Avarage Inputs L1= input(5,"EMA-1") L2= input(10,"EMA-2") //Exponential Moving Avarage Calculations e1= ema(close, L1) e2= ema(close, L2) //Conditions longCondition = e1 and e2 > alma(source, windowsize, offset, sigma) if (longCondition) strategy.entry("Long", strategy.long) shortCondition = e1 and e2 < alma(source, windowsize, offset, sigma) if (shortCondition) strategy.entry("Short", strategy.short) //Plots plot(alma(source, windowsize, offset, sigma), color=lime, linewidth=1, title="ALMA") plot(e1, color=orange, linewidth=1, title="EMA-1") plot(e2, color=blue, linewidth=1, title="EMA-2")

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