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Contrarian MACD and VWMA Entries with Choppiness and ADX Filters

Article Strategy library · Author: BVLabs
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Summary

This script describes a contrarian trading strategy that inverts a set of directional entry conditions. It calculates MACD, VWMA, Choppiness Index, ADX, and ATR. A short entry is triggered by conditions associated with the original long setup, while the long setup uses the original short triggers; entries also require a MACD crossover, qualifying trend and choppiness readings, and an elapsed cooldown after the previous position closes.

Risk controls include ATR percentage-based profit and stop levels, plus a separate maximum hard stop. The script allows long-only, short-only, or two-way trading and sets position size as a fraction of equity. The excerpt ends partway through the trigger logic, so it does not show all entry conditions, exits, or the complete implementation. It provides no backtest results or performance evidence, and its default indicator thresholds and risk settings are parameters rather than demonstrated optimal values.

Key ideas

  • The strategy reverses the direction of the original MACD and VWMA entry conditions.
  • Choppiness and ADX thresholds filter entries according to market conditions.
  • A cooldown period delays new entries after a position closes.
  • ATR-based profit and stop levels are paired with a hard maximum stop setting.
  • The excerpt is incomplete and supplies no evidence of historical performance.

Tags

CryptoTechnical indicatorsMean reversionRisk managementPosition sizing

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