A Multi-Period Price Change Strategy with Smoothed Directional Signals

Summary

This strategy measures whether the selected price is above or below its value at the start of each four-hour, daily, weekly, and monthly period. Each comparison becomes a positive, negative, or neutral vote, and the four votes are summed. A 60-bar simple moving average smooths that combined score. The strategy opens a long position when the smoothed score crosses above 2 and closes it once the score falls below zero; it opens short below −2 and closes short above zero. Background colors visualize directional conditions.

The logic is a multi-horizon trend-following approach, but the document offers no performance statistics, cost assumptions, asset-specific analysis, or validation procedure. Its signals can lag because they use a moving average, while thresholds and period definitions may behave differently across chart timeframes and instruments. The source sizes positions at 100 percent of equity and includes no explicit stop-loss or volatility-based sizing, so the code alone does not establish suitable risk controls or expected returns.

Key ideas

• The strategy compares price with the start of four different calendar periods.
• Each comparison contributes a directional vote, and their sum is smoothed with a moving average.
• Long and short entries require threshold crossovers, with exits triggered at less extreme levels.
• Background coloring displays the smoothed directional state.
• No performance validation or explicit stop-loss and volatility-based sizing is provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.