Choppiness Index Entries with DMI and Parabolic SAR Exits

Summary

This open-source strategy combines the Choppiness Index with Directional Movement Index and Parabolic Stop and Reverse tools. The visible code calculates the index from the sum of true ranges over a lookback window relative to that window’s high-low span, then smooths it with a moving average. It divides readings into zones using thresholds around 38.2, 45, 55, and 61.8, with additional bands around 30 and 70. Inputs allow adjustment of lookback and smoothing, trade direction, display, and DMI and PSAR settings.

The source shown is incomplete: it ends while introducing momentum-state calculations, before the full entry, exit, and position rules are visible. Thus the title indicates CHOP-based entries and DMI/PSAR exits, but the available excerpt does not establish the precise signal mapping or provide backtest evidence. The script presents tunable indicator settings rather than validated performance, and any use would require reviewing the complete strategy and testing it across instruments and market regimes.

Key ideas

• The Choppiness Index compares recent true-range accumulation with the full high-low range.
• The strategy smooths the index and classifies readings into several threshold zones.
• DMI and PSAR are named as exit components, with configurable indicator parameters.
• The supplied source excerpt omits the full signal and trade-management logic.
• No performance evidence is included in the visible material.

Tags

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