The Adaptive Price-Crossing Moving Average Trading Strategy is a quantitative trading method based on the Hull Moving Average (HMA). This strategy generates buy and sell signals using price crossovers with the HMA, while implementing fixed stop-loss and take-profit levels to manage risk and reward. The strategy employs a 104-period HMA as its primary indicator, combined with price crossovers to trigger trades.
The core of this strategy is the use of the Hull Moving Average (HMA) as the primary indicator. HMA is an advanced moving average that responds quickly to price changes while reducing lag. The strategy logic is as follows:
The strategy tracks open positions to ensure no new positions are opened while an existing one is active. Once a trade is closed, the system resets flags to allow new trade signals to take effect.
The Adaptive Price-Crossing Moving Average Trading Strategy is a simple yet effective quantitative trading method. By leveraging the advantages of the Hull Moving Average, this strategy can capture market trends while protecting capital through fixed risk management measures. Although the strategy has some potential risks, it can be further improved and adapted through continuous optimization. For traders seeking automated trading solutions, this is a worthwhile basic strategy framework to consider.
/*backtest start: 2024-01-01 00:00:00 end: 2024-03-23 00:00:00 period: 1d basePeriod: 1d exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=5 strategy("SHIESTD", overlay=true) // Function to calculate Hull Moving Average (HMA) hma(src, length) => wma1 = ta.wma(src, length) wma2 = ta.wma(src, length / 2) hma = ta.wma(2 * wma2 - wma1, math.round(math.sqrt(length))) hma // Parameters hma_length = 104 // Calculate Hull Moving Average hma_value = hma(close, hma_length) // Plot HMA plot(hma_value, title="104-period Hull Moving Average", color=color.blue, linewidth=2) // Define SL and TP values in dollars long_sl_amount = 1.25 long_tp_amount = 37.5 short_sl_amount = 1.25 short_tp_amount = 37.5 // Number of contracts contracts = 2 // Function to calculate SL and TP prices based on entry price and dollar amounts long_sl_price(entry_price) => entry_price - long_sl_amount long_tp_price(entry_price) => entry_price + long_tp_amount short_sl_price(entry_price) => entry_price + short_sl_amount short_tp_price(entry_price) => entry_price - short_tp_amount // Trading conditions price_intersects_hma = ta.crossover(close, hma_value) or ta.crossunder(close, hma_value) // Long and Short Conditions based on price intersecting HMA long_condition = ta.crossover(close, hma_value) short_condition = ta.crossunder(close, hma_value) // Track open positions var bool long_open = false var bool short_open = false // Handle Long Positions if (long_condition and not long_open) entry_price = close strategy.entry("Long", strategy.long, qty=contracts) strategy.exit("Exit Long", from_entry="Long", stop=long_sl_price(entry_price), limit=long_tp_price(entry_price)) long_open := true // Handle Short Positions if (short_condition and not short_open) entry_price = close strategy.entry("Short", strategy.short, qty=contracts) strategy.exit("Exit Short", from_entry="Short", stop=short_sl_price(entry_price), limit=short_tp_price(entry_price)) short_open := true // Reset flags when the position is closed if (strategy.opentrades == 0) long_open := false short_open := falsetemplate: strategy.tpl:40:21: executing "strategy.tpl" at <.api.GetStrategyListByName>: wrong number of args for GetStrategyListByName: want 7 got 6