Combining DMI Directional Crosses with Hull Moving Average Filters

Summary

This strategy combines Directional Movement Index components with two Hull moving averages. It calculates smoothed positive and negative directional movement relative to true range, then signals long when the positive DI crosses above the negative DI while the first HMA is above the second. The short condition reverses those relationships. An ADX series is also calculated and plotted, but the shown entry rules do not use it as a filter. The published parameters include HMA lengths of 29 and 2 and a DI length of 76.

The document lists BTC/USDT futures backtest settings from late 2022 to early 2024, but supplies no performance results. Despite claims in the prose about HMA crossovers, the source checks whether one HMA is already above or below the other; only the DI lines must cross. It places opposing orders without explicit stop-loss or take-profit logic, and uses full-equity position sizing in the strategy settings. The write-up itself identifies uncontrolled losses during large moves as a key risk and suggests testing ATR trailing stops, alternative HMA periods, and additional filters.

Key ideas

• A long signal requires positive DI to cross above negative DI while the first HMA is above the second.
• A short signal requires negative DI to cross above positive DI while the first HMA is below the second.
• ADX is calculated and displayed but does not filter the entries in the source.
• The source checks the relative position of the two HMAs, not a crossover between them.
• The published BTC/USDT futures backtest settings include no reported results, and the shown strategy has no explicit stop-loss logic.

Tags

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