Combining Multi-Timeframe Moving Averages in a Renko Strategy
Summary
This strategy combines moving averages from four selectable timeframes into a composite price-like signal. Users can choose simple, weighted, or consensus aggregation; the consensus option uses the direction of the averages to decide whether to use a simple mean or weighted mean. A Renko-style process compares changes in that composite signal with a fixed or ATR-based brick size, requiring a larger move to reverse direction. Direction changes trigger long or short entries, with optional limit orders and position additions.
The script also includes percentage-based stop and target settings, optional trailing exits, reversal closes, and chart annotations. These are implementation features rather than evidence of an effective strategy: the document supplies no performance results or robustness analysis. Its Renko bricks are calculated from the aggregated moving-average signal, and the visible excerpt includes complex position-management logic; users would need to inspect and validate the full implementation, execution assumptions, and behavior across instruments and timeframes before drawing conclusions.
Key ideas
- Four moving averages from different timeframes are combined into a composite signal.
- Aggregation can use a simple average, user-weighted average, or a direction-based consensus rule.
- Renko-style direction changes occur when the composite signal moves by a brick threshold, with a larger threshold for reversals.
- Entries can use limit orders, and the strategy supports adding to positions up to its configured pyramiding limit.
- Stops, targets, and trailing exits are configurable, but no trading results or robustness evidence are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.