Combining Momentum and Mean Reversion with a Multi-Model Price Projection

Summary

This strategy combines an EMA and MACD scoring engine with a BuySell oscillator using RSI, stochastic, MACD, trend, and volume signals. A separate short-RSI mean-reversion engine is available, and the automatic mode selects mean reversion for intraday charts and momentum for daily or higher timeframes. Entry modes let users require agreement, accept either signal, or select an engine. The script also includes trend and ADX filters, ATR-based stops and targets, optional scale-outs or trailing stops, time and session filters, position sizing, and daily loss and trade limits.

A forward projection blends linear-regression slope, the engine score, and recent momentum; its ATR-based uncertainty band widens with forecast horizon. The displayed confidence combines signal strength, trend strength, and regression fit, but is not a calibrated probability. The document describes features and intended use, not validated performance results. Its projection assumes current conditions continue and cannot anticipate news, gaps, or regime changes; backtest behavior may also differ from live execution, so the forecast and strategy require independent testing.

Key ideas

• The strategy offers momentum, mean-reversion, combined-signal, and selectable entry modes.
• Trend, volume, ADX, session, and date filters can restrict entries, while ATR rules manage exits and risk.
• The forecast blends regression slope, signal bias, and recent momentum into a projected path.
• An ATR-based cone represents increasing uncertainty with horizon, while the confidence score is not a guarantee.
• The document provides no performance evidence and warns that changing conditions can invalidate projections.

Tags

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