PMA Strategy Idea

2021년 6월 21일

This strategy idea uses three EMAs on HLC/3 data, know as PMA(Pivot Moving Average). This strategy is very useful in trending instruments on 1W and 1D timeframes. This is the implementation used in QuantCT app. The study version of this idea is published in public library as ACD PMA.

You can set operation mode to be Long/Short or long-only.
You also can set a fixed stop-loss or ignore it so that the strategy act solely based on entry and exit signals.

Trade Idea

• When all EMAs are rising, market is considered rising (bullish) and the plotted indicator becomes green.
  
• When all EMAs are falling, market is considered falling (bearish) and the plotted indicator becomes red.
  
• Otherwise, market is considered ranging and the plotted indicator becomes orange.
  

Entry/Exit rules

• Enter LONG if all EMAs are rising (i.e. when the plotted indicator becomes green).
  
• Enter SHORT if all EMAs are falling (i.e. when the plotted indicator becomes red).
  
• EXIT market if none of the above (i.e. when the plotted indicator becomes orange).
  

CAUTION

• It's just a bare trading idea - a profitable one. However, you can enhance this idea and turn it into a full trading strategy with enhanced risk/money management and optimizing it, and you ABSOLUTELY should do this!
  
• DON'T insist on using Long/Short mode on all instruments! This strategy performs much better in Long-Only mode on many (NOT All) trending instruments (Like BTC , ETH, etc.).