OPEN-SOURCE SCRIPT

Enhanced MA and RSI Strategy

155
Overview: Trend following is a strategy that attempts to capture gains through the analysis of an asset's momentum in a particular direction. One of the simplest and most effective ways to implement a trend-following strategy is using moving averages.

Key Components
Indicators Used:

Moving Averages: Typically, a combination of a short-term and a long-term moving average (e.g., 50-day and 200-day simple moving averages).
Entry Signals:

Buy Signal: When the short-term moving average crosses above the long-term moving average (Golden Cross).
Sell Signal: When the short-term moving average crosses below the long-term moving average (Death Cross).
Exit Signals:

Close the position when the opposite signal occurs (i.e., sell when a death cross happens after a buy).
Risk Management:

Set stop-loss orders below the most recent swing low (for long positions) or above the swing high (for short positions).
Use a risk-to-reward ratio of at least 1:2.
Example of the Strategy in Action
Assumptions:

We will use a 50-day moving average as the short-term and a 200-day moving average as the long-term.
Buy Signal Example:

Date: March 1, 2023
Short MA (50-day): $100
Long MA (200-day): $98
Action: Buy when the 50-day MA crosses above the 200-day MA.
Sell Signal Example:

Date: June 1, 2023
Short MA (50-day): $120
Long MA (200-day): $119
Action: Sell when the 50-day MA crosses below the 200-day MA.
Advantages of the Strategy
Simplicity: Easy to understand and implement.
Objective: Removes emotional decision-making by relying on predefined

면책사항

이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.