Combining Reversal Signals with ADXR Trend Strength

Summary

This document presents a combined strategy that requires agreement between a stochastic price-reversal signal and an ADXR-based regime signal before taking a position. The reversal component compares recent closes and fast and slow stochastic values around a threshold. The ADXR component averages current ADX with an earlier reading, then assigns directional states when it is below or above two configured levels. A trade is opened only when both components indicate the same direction; otherwise, the strategy closes open positions. A reverse-trading option swaps the resulting signals.

The prose accompanying the source describes a different set of indicators—moving averages, volume-price flow, and Bollinger Bands—so it does not reliably explain the implemented rules. The source and published settings instead point to a one-month BTC/USDT futures backtest using hourly bars, with 15-minute base data. No performance results are reported. Stochastic and ADXR thresholds are configurable, and the strategy offers no explicit stop-loss or position-sizing method in the shown logic.

Key ideas

• The implemented strategy combines a stochastic reversal signal with an ADXR state.
• Positions are taken only when both components agree on direction.
• The strategy closes positions when the combined signal is neutral and can optionally reverse signals.
• The accompanying prose describes indicators that do not match the source logic.
• Published backtest settings include no performance results or explicit risk-sizing rules.

Tags

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