This strategy is a dynamic moving average combination strategy that works on multiple timeframes. It usesExponential Moving Averages (EMAs) of different lengths for trend judgment and entry/exit signals. The “MAX” in the strategy name stands for multiple EMAs, and “Dynamic” means the EMA lengths are adjustable.
The strategy employs 7 EMAs moving at different speeds, from the fastest to the slowest: 3-period EMA, 15-period EMA, 19-period EMA, 50-period EMA, 100-period EMA, 150-period EMA and 200-period EMA. These 7 EMAs are arranged in a trapezoidal formation. To generate long and short signals, the close price needs to break through these EMAs successively to ensure a strong post-reversal trend entry.
In addition, the strategy also incorporates price breaking recent high and close price crossing historical highs to confirm long signals, and uses breaking recent low and close price crossing historical lows to confirm short signals. This helps avoid false breakouts.
The exit rules require the close price to break the faster EMAs successively towards the slower EMAs, indicating a trend reversal. Alternatively, if the latest bar’s low/high breaks more than 4 EMAs, it is also an exit signal for that position.
Solutions:
The strategy has a clear logic of using 7 EMAs of different speeds to determine trends and dual exit rules to detect reversals. But there is no stop loss mechanism leading to huge loss risk, and it may exit prematurely. Improvements can be made in aspects like adding stop loss, parameter tuning, indicator filtering to turn it into a solid trading system.
/*backtest start: 2023-12-01 00:00:00 end: 2023-12-31 23:59:59 period: 1h basePeriod: 15m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=4 strategy(title="Crypto MAX Trend", shorttitle="Crypto MAX", overlay = true ) Length = input(3, minval=1) Length2 = input(15, minval=1) Length3 = input(19, minval=1) //Length33 = input(25, minval=1) Length4 = input(50, minval=1) Length44 = input(100, minval=1) Length5 = input(150, minval=1) Length6 = input(171, minval=1) Length66 = input(172, minval=1) xPrice = input(close) xEMA1 = ema(xPrice, Length) xEMA2 = ema(xPrice, Length2) xEMA3 = ema(xPrice, Length3) //xEMA33 = ema(xPrice, Length33) xEMA4 = ema(xPrice, Length4) xEMA44 = ema(xPrice, Length44) xEMA5 = ema(xPrice, Length5) xEMA6 = ema(xPrice, Length6) xEMA66 = ema(xPrice, Length66) // plot(xEMA1, color=color.white) // plot(xEMA2, color=color.red) // plot(xEMA3, color=color.green) // plot(xEMA4, color=color.purple) // plot(xEMA44, color=color.gray) // plot(xEMA5, color=color.maroon) // plot(xEMA6, color=color.blue) // plot(xEMA66, color=color.orange) fromDay = input(defval = 1, title = "From Day", minval = 1, maxval = 31) fromMonth = input(defval = 1, title = "From Month", minval = 1, maxval = 12) fromYear = input(defval = 2000, title = "From Year", minval = 1970) //monday and session // To Date Inputs toDay = input(defval = 31, title = "To Day", minval = 1, maxval = 31) toMonth = input(defval = 12, title = "To Month", minval = 1, maxval = 12) toYear = input(defval = 2020, title = "To Year", minval = 1970) startDate = timestamp(fromYear, fromMonth, fromDay, 00, 00) finishDate = timestamp(toYear, toMonth, toDay, 00, 00) time_cond = true long = close > xEMA1 and xEMA1 > xEMA2 and xEMA2 > xEMA3 and xEMA3 > xEMA4 and xEMA4 > xEMA44 and xEMA44 > xEMA5 and xEMA5> xEMA6 and xEMA6> xEMA66 and close > high[1] and high[1] > high[2] and close > high[3] and close > high[4] and close > high[5] and high[5] > high[6] and time_cond short = close < xEMA1 and xEMA1 < xEMA2 and xEMA2 < xEMA3 and xEMA3 < xEMA4 and xEMA4 < xEMA44 and xEMA44 < xEMA5 and xEMA5< xEMA6 and xEMA6< xEMA66 and close < low[1] and low[1] < low[2] and close < low[3] and close < low[4] and close< low[5] and low[5] < low[6] and time_cond notlong = close < xEMA1 strategy.entry("long",1,when=long) strategy.entry("short",0,when=short) exitlong1 = xEMA1 < xEMA2 and xEMA2 < xEMA3 and xEMA3 < xEMA4 exitlong2 = crossunder(low,xEMA1) and crossunder(low,xEMA2) and crossunder(low,xEMA3) and crossunder(low,xEMA4) exitshort1 = xEMA1 > xEMA2 and xEMA2 > xEMA3 and xEMA3 > xEMA4 exitshort2 = crossover(high,xEMA1) and crossover(high,xEMA2) and crossover(high,xEMA3) and crossover(high,xEMA4) strategy.close("long", when = exitlong1 or exitlong2) strategy.close("short", when= exitshort1 or exitshort2)template: strategy.tpl:40:21: executing "strategy.tpl" at <.api.GetStrategyListByName>: wrong number of args for GetStrategyListByName: want 7 got 6