Bullish–Bearish Volume Moving Average Trend Strategy
Summary
This strategy assigns each bar’s volume to buyers when the close is above the open and to sellers when the close is below the open. It smooths each series with a configurable moving average and signals a long or short bias when the bullish and bearish averages cross. A rate-of-change filter requires price momentum to be sufficiently pronounced before taking a position. The method also specifies stop-loss and take-profit exits.
The document describes the indicator logic and lists parameters, but provides no performance results that establish profitability. Its published backtest settings specify BTC/USDT futures over a short period, while the parameter inputs include a different date range, so the evidence is not enough to assess results. The authors warn that volume parameters can produce false signals, a single indicator is not sufficient validation, and stops set too close may be triggered prematurely. Additional filters and careful risk management are suggested.
Key ideas
- Bullish and bearish volume are separated according to whether each bar closes above or below its open.
- Moving averages of those volume series determine directional signals when one crosses the other.
- A rate-of-change filter is intended to avoid trading when price lacks a clear trend.
- The document gives no performance evidence, and its published backtest dates conflict with the date inputs.
- Parameter sensitivity and tight stops are identified as potential sources of false signals or premature exits.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.