simple mean reversion strategy.pdf
its not as sophisticated and not in the same league as some of the strategies i have seen on the forum but its a simple one that works...
the only issue is that i normally trade this manually and i know i have human bias at play when trading it live, hopefully it can work if this is taken out.
the chart i have used for display purposes if the M5 but it can be applied to all time frames.
Volatility filter and 3 universal MA filters are ready.
The final step — is to enable closing by any filter (not on signal / on all filters like now).
Hi andrey, the only reason for the MOM indicator was to use it to set a benchmark of the strength to work out weather to let the trade continue past the point of the touching the MA or to exit the trade.
It can be another indicator that you already have but it’s purely used for a measure of strength.
I hope that makes sense
RSI filter already implemented.
BollingerBands - is a channel built from MA with distance calculated as StDev*Coeff. We already have MA filters, so all we need - is to enable calculate distance as Coeff*StDev. It will be more universal then BB filter.
Also we need to allow close by MA cross.
The only thing I can't understand - is how MOM should be used. Please, clarify this point.
Thanks.
Hi John,
He tried to build this strategy with CP version 2.48 in the following way.
For a Sell the RSI must be above designated level ( input to be adjustable) in this instance above 85.
Must touch the Top Bollinger band however It would be preferred for an input that allows the trade to enter if the price is close within a X value linked to the ATR of the band.
Additional trades to be allowed to enter if the same above rules are met input to allow a max amount of trades that can be entered in a trade series.
(The above multiple entry rule could be set as an option or you could just use the existing martingale settings as the re entry option in this strategy)
"Open martin on" => "Open on Collective signal"
As there are many other great indicators' already in the EA an idea could be that we also use the Identity trend indicator on a larger time frame as a filter .
The use of "Identity trend" did not give me good results. I have using an ADX(1Day) >= level(25)
Exit Rule
Exit upon touch of the MA (in red) however It would be preferred for an input that allows the trade to exit if the price is close within a X value linked to the ATR
SMA 50 Period
Momentum(14) > Level 100
Simple Mean Reversion With Bollinger Bands ....set
Maybe someone can improve the strategy 🙏