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Strategy StochEMA Cross

This document describes a trading strategy that combines stochastic crosses in overbought/oversold areas with a trend determined by two exponential moving averages (EMAs). It uses stochastic, fast EMA, and slow EMA indicators to determine when to enter long or short positions. The strategy opens long positions when stochastic crosses into the oversold area and the EMA trend is up. It opens short positions when stochastic crosses into the overbought area and the EMA trend is down. It exits positions when stochastic exits the overbought/oversold areas or the EMA trend changes. It also includes optional take profit and stop loss levels.

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henry
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243 views3 pages

Strategy StochEMA Cross

This document describes a trading strategy that combines stochastic crosses in overbought/oversold areas with a trend determined by two exponential moving averages (EMAs). It uses stochastic, fast EMA, and slow EMA indicators to determine when to enter long or short positions. The strategy opens long positions when stochastic crosses into the oversold area and the EMA trend is up. It opens short positions when stochastic crosses into the overbought area and the EMA trend is down. It exits positions when stochastic exits the overbought/oversold areas or the EMA trend changes. It also includes optional take profit and stop loss levels.

Uploaded by

henry
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as TXT, PDF, TXT or read online on Scribd
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//@version=2

//Strategy combining Stochastic Crosses in the Overbought/Oversold Area with a


trend determined by two EMAs
//Default setup seems to work best on 4HR timeframe for BTC

strategy(title = "Strategy Stoch/EMA Cross", shorttitle = "Strategy Stoch/EMA


Cross", overlay = true, pyramiding = 0, default_qty_type =
strategy.percent_of_equity, default_qty_value = 100, currency = currency.USD,
commission_value=0.01,commission_type=strategy.commission.percent,
initial_capital=1000)

// === GENERAL INPUTS ===


SectionInd = input(defval = true ,title = "------------ INDICATORS
------------")
maFastLength = input(defval = 55, title = "Fast MA Period", minval = 1)
maSlowLength = input(defval = 89, title = "Slow MA Period", minval = 1)
StochLength = input(defval = 14, title = "Stochastic Length", minval=1)
smoothK = input(defval = 6, title = "%K Smooth", minval=1)
smoothD = input(defval = 3, title = "%D Smooth", minval=1)
overbought = 80
oversold = 20
HighlightOBOS = input(defval = true, title = "Highlight Stoch Cross?")
HighlightTrend = input(defval = true ,title = "Highlight Trend?")

//DATE AND TIME


SectionFrom = input(defval = true ,title = "--------------- FROM
---------------")
fromDay = input(defval = 01, title = "From day", minval=1)
fromMonth = input(defval = 1, title = "From month", minval=1)
fromYear = input(defval = 2019, title = "From year", minval=2014)
SectionTo = input(defval = true, title = "---------------- TO
----------------")
toDay = input(defval = 31, title = "To day", minval=1)
toMonth = input(defval = 12, title = "To month", minval=1)
toYear = input(defval = 2020, title = "To year", minval=2014)

// === STRATEGY RELATED INPUTS ===


SectionStra = input(defval = true ,title = "------------- STRATEGY
-------------")

// Include Shorts or only trade Long Positions?


includeShorts = input(defval = true, title = "Include Short Positions?")

// === RISK MANAGEMENT INPUTS ===

inpTakeProfit = input(defval = 8, title = "Take Profit % (0 to deactivate)",


minval = 0)
inpStopLoss = input(defval = 0, title = "Stop Loss % (0 to deactivate)",
minval = 0)

StopLossPerc = inpStopLoss * 0.01


TakeProfitPerc = inpTakeProfit * 0.01

StopLossV = close * StopLossPerc / syminfo.mintick


TakeProfitV = close * TakeProfitPerc / syminfo.mintick

// === RISK MANAGEMENT VALUE PREP ===


// if an input is less than 1, assuming not wanted so we assign 'na' value to
disable it.
TakeProfitVal = inpTakeProfit >= 1 ? TakeProfitV : na
StopLossVal = inpStopLoss >= 1 ? StopLossV : na

// === EMA SERIES SETUP ===


maFast = ema(close, maFastLength)
maSlow = ema(close, maSlowLength)
diff = maFast - maSlow

// === STOCHASTIC SETUP ===


k = sma(stoch(close, high, low, StochLength), smoothK)
d = sma(k, smoothD)

// Stochastic Long/Short Entry determination


stochLong = crossover(k,d) and (k < oversold)
stochShort = crossunder(k,d) and (k > overbought)

// Stochastic Long/Short Exit determination


stochLongEx = (crossover (d, overbought)) or (crossunder(maFast, maSlow))
stochShortEx = (crossunder(d, oversold)) or (crossover (maFast, maSlow))

// === PLOTTING EMAs ===


fast = plot(maFast, title = "Fast MA", color = yellow, linewidth = 1, style = line,
transp = 10)
slow = plot(maSlow, title = "Slow MA", color = white, linewidth = 1, style = line,
transp = 10)

// === Vertical Coloring for Crosses in Overbought/Oversold zone and for MA Trend
Zones ===
b_color = stochLong ? green : stochShort ? red : na
bgcolor(HighlightOBOS ? b_color : na, title="Overbought / Oversold",
transp=65) //Highlight the Overbought/Oversold Stoch Crossings
t_color = diff>=0 ? green : diff<0 ? red : na
bgcolor(HighlightTrend ? t_color : na, title="Trend up / Trend down",
transp=90) //Highlight the EMA Trend

// Show EMA Trend as symbols at the bottom


bullTrend = diff>=0
bearTrend = diff<0
plotchar(bullTrend, title = "BullTrend", char="_", location = location.bottom,
color=#0CAB07, transp = 0, size=size.tiny)
plotchar(bearTrend, title = "BearTrend", char="_", location = location.bottom,
color=#DE071C, transp = 0, size=size.tiny)

// Show EMA Convergence/Divergence Trend as symbols at the top


//bullTrendCD = (diff>=0 and diff>=diff[1]) or (diff<0 and diff>diff[1])
//bearTrendCD = (diff<0 and diff<=diff[1]) or (diff>=0 and diff<diff[1])
//plotchar(bullTrendCD, title = "BullTrend CD", char="o", location = location.top,
color=#0CAB07, transp = 0, size=size.tiny)
//plotchar(bearTrendCD, title = "BearTrend CD", char="x", location = location.top,
color=#DE071C, transp = 0, size=size.tiny)

// === STRATEGY LOGIC ===


// Time Restriction
timeInRange = (time > timestamp(fromYear, fromMonth, fromDay, 00, 00)) and (time <
timestamp(toYear, toMonth, toDay, 23, 59))
// === STRATEGY - LONG POSITION EXECUTION ===
if stochLong and (diff >=0) and timeInRange //Open Long when Stoch crossing in
Oversold area and EMA Trend is up
strategy.entry(id = "Long", long = true)
if stochLongEx and timeInRange //Close Long when Stoch is getting
Overbought or Trend changes to Bearish
strategy.close(id = "Long")

// === STRATEGY - SHORT POSITION EXECUTION ===


if stochShort and (diff <0) and timeInRange and includeShorts //Open Short when
Stoch crossing in Overbought area and EMA Trend is down
strategy.entry(id = "Short", long = false)
if stochShortEx and timeInRange //Close Short when
Stoch is getting Oversold or Trend changes to Bullish
strategy.close(id = "Short")

// === STRATEGY RISK MANAGEMENT EXECUTION ===


strategy.exit("Exit Long", from_entry = "Long", profit = TakeProfitVal, loss =
StopLossVal)
strategy.exit("Exit Short", from_entry = "Short", profit = TakeProfitVal, loss =
StopLossVal)

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