Combining a Reversal Setup with the Three-Ten Oscillator

Summary

This futures strategy combines a reversal signal with the Three-Ten oscillator and trades only when both signals agree. The reversal component looks for two consecutive closes moving in the same direction, with a stochastic condition around the 50 level. The oscillator subtracts a 10-period exponential moving average from a 3-period one, then compares that difference with its 16-period simple moving average. Agreement produces a long or short position; disagreement closes positions.

The document explains the rationale for combining reversal and trend signals, and suggests majority voting, stop losses, market filters, and adjustable signal weights as possible extensions. It supplies parameters and a short published BTC/USDT futures backtest window, but gives no performance statistics or evidence that the combination improves results. There is also a mismatch between the prose description and the source logic: the code uses both fast and slow stochastic values for the reversal conditions, and the oscillator is calculated from daily prices. Treat the claimed noise reduction as a hypothesis to test, especially given parameter and signal disagreement risks.

Key ideas

• The strategy opens positions only when the reversal and Three-Ten oscillator signals point in the same direction.
• The reversal component combines consecutive price moves with stochastic conditions near a 50 threshold.
• The Three-Ten oscillator compares the difference between 3- and 10-period exponential averages with a 16-period simple average of that difference.
• The source calculates the oscillator from daily prices, even when the displayed chart uses another interval.
• The document gives no reported returns, and its written rules do not fully match the supplied source logic.

Tags

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