Combining a Two-Line Price Position Signal with a Bandpass Filter

Summary

This combined strategy seeks agreement between two signals before taking a directional position. One component tracks price relative to a moving average and recent highs and lows to assign a bullish or bearish state. The other applies a recursive bandpass filter to the midpoint of each bar and compares its output with configurable upper and lower zones. A long or short position is opened only when both components agree; otherwise, the strategy closes open positions. A reverse-trading option flips the resulting direction, and a start date can restrict when trading begins.

The document provides source logic and default filter settings, but no market, timeframe, backtest results, or performance evidence. The description says the first component plots a 2/20 EMA, while the displayed source uses a single configurable EMA length, defaulting to 14. The filter’s thresholds and response depend on its length and delta settings, so the combination requires evaluation across instruments and periods before its behavior or usefulness can be assessed.

Key ideas

• The strategy requires agreement between a price-versus-average state and a bandpass-filter zone before entering.
• The filter compares its recursive output with configurable upper and lower thresholds.
• When the combined signal is neutral, the strategy closes positions; an option can reverse the signal direction.
• The source uses one configurable EMA length, despite the description referring to a 2/20 EMA.
• No backtest results or tested market context are supplied.

Tags

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