This is three moving average based strategy focused on trend-following. Targets and stops are set based on ATR. Following image pictures the strategy with all mas plotted:
Buying conditions are:
►A smoothened moving average (red) is above the exponential moving average (yellow) ►An exponential moving average is above simple moving average (black)
►Low five candles ago was still above the exponential moving average ►Low two candles ago reached below the exponential moving average ►Close of the previous candle was above the exponential moving average ►Ema force is disabled or exponential moving average set candles ago (orange) is still above simple moving average now.
If these conditions are met, Dazzling Bolts will always give you a signal. However, it holds only one position at a time and it will not buy again until it is closed or exited.
There are two ways exiting may happen. Smoothened moving average crosses below simple moving average or it reaches value based on your settings of average true range and its multiplier.
Settings 10/76/200/true/50/true/true/5/5 shows perfect results on EURUSD 15m chart but it does not guarantee the results. It is only 62 trades which is barely a useful statistical source. It is also highly optimized which means its settings filters out bad trades that may be bad only because of randomnation rather than set market behaviour. You need to test it on 200 trades + before using.
@raghavsangal3, As far as I know, it does not. But it's highly optimized for this currency pair in this case, so the real result is likely to be worse.
amzcristians
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Hey @greenmask9, this is a great piece of work! I tried it on some alts and it looks very promising.
Do you plan to release a study version too? I tried to convert it with no luck. Thanks!
OrcChieftain
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@amzcristians, Remove anything below plot shape orders and it should work.