TEMA OBOS Strategy PakunTEMA OBOS Strategy
Overview
This strategy combines a trend-following approach using the Triple Exponential Moving Average (TEMA) with Overbought/Oversold (OBOS) indicator filtering.
By utilizing TEMA crossovers to determine trend direction and OBOS as a filter, it aims to improve entry precision.
This strategy can be applied to markets such as Forex, Stocks, and Crypto, and is particularly designed for mid-term timeframes (5-minute to 1-hour charts).
Strategy Objectives
Identify trend direction using TEMA
Use OBOS to filter out overbought/oversold conditions
Implement ATR-based dynamic risk management
Key Features
1. Trend Analysis Using TEMA
Uses crossover of short-term EMA (ema3) and long-term EMA (ema4) to determine entries.
ema4 acts as the primary trend filter.
2. Overbought/Oversold (OBOS) Filtering
Long Entry Condition: up > down (bullish trend confirmed)
Short Entry Condition: up < down (bearish trend confirmed)
Reduces unnecessary trades by filtering extreme market conditions.
3. ATR-Based Take Profit (TP) & Stop Loss (SL)
Adjustable ATR multiplier for TP/SL
Default settings:
TP = ATR × 5
SL = ATR × 2
Fully customizable risk parameters.
4. Customizable Parameters
TEMA Length (for trend calculation)
OBOS Length (for overbought/oversold detection)
Take Profit Multiplier
Stop Loss Multiplier
EMA Display (Enable/Disable TEMA lines)
Bar Color Change (Enable/Disable candle coloring)
Trading Rules
Long Entry (Buy Entry)
ema3 crosses above ema4 (Golden Cross)
OBOS indicator confirms up > down (bullish trend)
Execute a buy position
Short Entry (Sell Entry)
ema3 crosses below ema4 (Death Cross)
OBOS indicator confirms up < down (bearish trend)
Execute a sell position
Take Profit (TP)
Entry Price + (ATR × TP Multiplier) (Default: 5)
Stop Loss (SL)
Entry Price - (ATR × SL Multiplier) (Default: 2)
TP/SL settings are fully customizable to fine-tune risk management.
Risk Management Parameters
This strategy emphasizes proper position sizing and risk control to balance risk and return.
Trading Parameters & Considerations
Initial Account Balance: $7,000 (adjustable)
Base Currency: USD
Order Size: 10,000 USD
Pyramiding: 1
Trading Fees: $0.94 per trade
Long Position Margin: 50%
Short Position Margin: 50%
Total Trades (M5 Timeframe): 128
Deep Test Results (2024/11/01 - 2025/02/24)BTCUSD-5M
Total P&L：+1638.20USD
Max equity drawdown：694.78USD
Total trades：128
Profitable trades:44.53
Profit factor:1.45
These settings aim to protect capital while maintaining a balanced risk-reward approach.
Visual Support
TEMA Lines (Three EMAs)
Trend direction is indicated by color changes (Blue/Orange)
ema3 (short-term) and ema4 (long-term) crossover signals potential entries
OBOS Histogram
Green → Strong buying pressure
Red → Strong selling pressure
Blue → Possible trend reversal
Entry & Exit Markers
Blue Arrow → Long Entry Signal
Red Arrow → Short Entry Signal
Take Profit / Stop Loss levels displayed
Strategy Improvements & Uniqueness
This strategy is based on indicators developed by "l_lonthoff" and "jdmonto0", but has been significantly optimized for better entry accuracy, visual clarity, and risk management.
Enhanced Trend Identification with TEMA
Detects early trend reversals using ema3 & ema4 crossover
Reduces market noise for a smoother trend-following approach
Improved OBOS Filtering
Prevents excessive trading
Reduces unnecessary risk exposure
Dynamic Risk Management with ATR-Based TP/SL
Not a fixed value → TP/SL adjusts to market volatility
Fully customizable ATR multiplier settings
(Default: TP = ATR × 5, SL = ATR × 2)
Summary
The TEMA + OBOS Strategy is a simple yet powerful trading method that integrates trend analysis and oscillators.
TEMA for trend identification
OBOS for noise reduction & overbought/oversold filtering
ATR-based TP/SL settings for dynamic risk management
Before using this strategy, ensure thorough backtesting and demo trading to fine-tune parameters according to your trading style.
