Fisher Turnaround EMA Multi-Take Profit and Multi-Stop Strategy

Overview

The Fisher Turnaround EMA Multi-Take Profit and Multi-Stop Strategy combines the EMA indicator and a custom Fisher Turn signal to implement trend tracking trades. It generates buy signals when the short period EMA crosses above the long period EMA and the Fisher Turn signal is greater than 0. The strategy sets two take profit levels and one dynamic stop loss to lock in profits and control risks. The first take profit is 2xATR, the second 3xATR, and the stop loss is 1xATR. After the first take profit is triggered, the stop loss will move to the entry price. This strategy is suitable for the GDAX exchange to find potential trend trading opportunities.

Strategy Logic

The strategy is mainly based on two technical indicators:

1. EMA: Exponential Moving Average. The strategy uses 12 and 26 period EMAs.
2. Custom Fisher Turn signal. This signal is calculated based on the difference between the highs and lows over a certain period.

Buy signals are generated when the short period EMA crosses above the long period EMA. In addition, the Fisher Turn signal line must also be greater than 0, indicating the current uptrend.

The take profit and stop loss rules are as follows:

1. First take profit at 2xATR
2. Second take profit at 3xATR
3. Stop loss at 1xATR
4. After the first take profit is triggered, the stop loss will move to the entry price.

The strategy can be optimized by adjusting parameters like EMA periods, Fisher Turn signal periods, and ATR periods.

Advantages

By combining trend tracking indicators and risk management indicators, this strategy has the following advantages:

1. Using EMA to capture trend direction
2. Custom Fisher Turn signal filters fake breakouts
3. Multiple take profit levels to lock in profits
4. Dynamic stop loss to control risks
5. Adjustable parameters adapt to different market environments

Risks

There are also some risks to this strategy:

1. Trend reversal triggers stop loss
2. Improper parameter settings cause over-aggressive entries or premature exits
3. Custom Fisher Turn signal may fail in certain market environments

These risks can be reduced through parameter optimization, combining other indicators, manual intervention etc.

Optimization Directions

The strategy can be optimized in the following aspects:

1. Optimize EMA period parameters to adapt more market environments
2. Add other trend indicators to verify buy signals
3. Incorporate overall market filters to avoid uncertain environments
4. Optimize Fisher Turn signal parameters or try other custom indicators
5. Add more take profit levels to lock in more profits
6. Integrate auto trailing stop loss function

By testing different parameter settings and indicator combinations, the strategy performance can be continuously improved.

Conclusion

The Fisher Turnaround EMA Multi-Take Profit and Multi-Stop Strategy integrates the strengths of trend tracking and risk management. With great potential for long-term verification and optimization, it is a promising strategy. There is still ample room for optimizing parameters and combining indicators to achieve steady outperformance in live trading.