Combining OBV, CMO, and Coppock Momentum for Trade Signals

Summary

This strategy combines On-Balance Volume (OBV), the Chande Momentum Oscillator (CMO), and the Coppock curve to align volume direction with shorter- and longer-horizon momentum. In the supplied logic, a buy requires rising OBV, a positive and rising Coppock value, and CMO above its buy threshold. A sell signal requires falling OBV, a negative and declining Coppock value, and CMO below its sell threshold. Although the narrative describes two-way signals, the code only opens long trades and closes that long position on a sell signal. The listed backtest settings identify BTC-USDT futures and a date range but report no performance results.

The three-indicator agreement is intended to filter trades, but the document notes that the longer rate-of-change inputs can delay signals and that OBV also reacts with a lag. It does not weight indicators, define a stop-loss, or specify position sizing. Proposed adaptive periods, indicator weighting, and volatility-based risk controls remain untested ideas. Since the rules combine correlated price-derived measures with volume direction, their incremental value would need evaluation across markets and regimes rather than being inferred from the strategy description.

Key ideas

• A buy requires rising OBV, a positive and rising Coppock curve, and strong positive CMO.
• A sell requires falling OBV, a negative and declining Coppock curve, and low CMO.
• The source code closes long positions on sell signals but does not open shorts.
• Indicator lag and the lack of weighting or explicit stop rules are limitations.
• The listed backtest configuration provides no evidence of strategy performance.

Tags

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