ALMA and Parabolic SAR Crossover Signals

Summary

This document describes a long and short strategy using an Arnaud Legoux moving average (ALMA), Parabolic SAR, and candle direction. A long signal requires a bullish candle, SAR below the bar’s low, and the close crossing above ALMA; the short rules reverse those conditions. ALMA’s offset and sigma settings adjust its responsiveness and smoothness, while SAR is used to indicate trend direction and potential reversals.

The article frames the approach as combining trend and breakout signals, but its listed entry rules and code do not define a Bollinger Band condition. It provides example parameter settings and a one-month BTC/USDT futures backtest configuration, but reports no performance results. It also notes that moving-average signals can struggle in choppy markets, that parameter choices affect trade frequency, and that the strategy lacks explicit position sizing and capital management. The backtest setup alone is not evidence of profitability.

Key ideas

• Long entries require an up candle, Parabolic SAR below the low, and a close crossing above ALMA.
• Short entries use the opposite candle, SAR, and ALMA crossover conditions.
• ALMA offset and sigma settings affect the moving average’s shape and smoothness.
• The document identifies choppy markets, parameter sensitivity, and absent position sizing as limitations.

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