Combining a Three-Day Reversal Signal with Elder Bear Power

Summary

This strategy combines a 123 Reversal signal with an Elder-style power measure. It takes a long position when both components signal long, a short position when both signal short, and closes positions when they disagree. The reversal component uses recent closing-price changes and a smoothed stochastic comparison around a level. The second component compares a daily high-based measure with an exponential moving average and a trigger; despite the label Bear Power, the supplied calculation uses the day's high.

The document presents factor agreement as a way to filter trades, but provides no reported performance results. Its published configuration specifies BTC/USDT futures, a daily strategy period with hourly base data, and a historical test window; settings alone do not demonstrate profitability. The text flags parameter tuning, indicator disagreement, and potential instability as concerns. The signal definitions and their interpretation should be checked against the implementation before drawing conclusions or reproducing results.

Key ideas

• A trade is opened only when the reversal and power indicators agree on direction.
• The reversal component combines recent closing-price movement with a stochastic condition.
• The supplied power calculation uses the daily high relative to an exponential moving average, despite being labeled Bear Power.
• Disagreement between components closes positions according to the described logic.
• The published test settings provide context but no performance evidence.

Tags

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