Double AI Super Trend Trading - Strategy [PresentTrading]

2023년 10월 7일

█ Introduction and How It is Different
The Double AI Super Trend Trading Strategy is a cutting-edge approach that leverages the power of not one, but two AI algorithms, in tandem with the SuperTrend technical indicator. The strategy aims to provide traders with enhanced precision in market entry and exit points. It is designed to adapt to market conditions dynamically, offering the flexibility to trade in both bullish and bearish markets.
*The KNN part is mainly referred from @Zeiierman.

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█ Strategy, How It Works: Detailed Explanation

1. SuperTrend Calculation
The SuperTrend is a popular indicator that captures market trends through a combination of the Volume-Weighted Moving Average (VWMA) and the Average True Range (ATR). This strategy utilizes two sets of SuperTrend calculations with varying lengths and factors to capture both short-term and long-term market trends.

2. KNN Algorithm
The strategy employs k-Nearest Neighbors (KNN) algorithms, which are supervised machine learning models. Two sets of KNN algorithms are used, each focused on different lengths of historical data and number of neighbors. The KNN algorithms classify the current SuperTrend data point as bullish or bearish based on the weighted sum of the labels of the k closest historical data points.

3. Signal Generation
Based on the KNN classifications and the SuperTrend indicator, the strategy generates signals for the start of a new trend and the continuation of an existing trend.

4. Trading Logic
The strategy uses these signals to enter long or short positions. It also incorporates dynamic trailing stops for exit conditions.

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█ Trade Direction
The strategy allows traders to specify their trading direction: long, short, or both. This enables the strategy to be versatile and adapt to various market conditions.

█ Usage
ToolTips: Comprehensive tooltips are provided for each parameter to guide the user through the customization process.

Inputs: Traders can customize numerous parameters including the number of neighbors in KNN, ATR multiplier, and types of moving averages.

Plotting: The strategy also provides visual cues on the chart to indicate bullish or bearish trends.

Order Execution: Based on the generated signals, the strategy will execute buy or sell orders automatically.

█ Default Settings
The default settings are configured to offer a balanced approach suitable for most scenarios:

Initial Capital: $10,000
Default Quantity Type: 10% of equity
Commission: 0.1%
Slippage: 1
Currency: USD
These settings can be modified to suit various trading styles and asset classes.