Coppock Curve Zero-Cross Signals with a SPY Proxy

Summary

This strategy uses the Coppock Curve, calculated as a weighted moving average of two rates of change, to generate long and exit signals. It derives the indicator from daily SPY closes and enters when the curve rises above zero, closing when it falls below. A trailing stop is available as an additional way to manage open positions, and SPY can serve as a broad-market signal for trades in other ETFs or stocks.

The document gives the indicator formula, configurable lookback periods, and conceptual risks, but reports no performance results. It cautions that the signal may lag, a single indicator can generate false entries, and a loose stop may not protect against pullbacks. It recommends validating parameters across markets and combining the curve with filters such as volume. The published test configuration uses BTC perpetual futures, while the described signal source is SPY, so the relationship between the example market and intended application is unclear.

Key ideas

• The Coppock Curve sums two rate-of-change measures and smooths them with a weighted moving average.
• A cross above zero triggers a long entry, while a cross below zero closes the position.
• Daily SPY prices are used as a proxy signal for trades in other securities.
• A trailing stop is optional, and the document gives no backtest performance evidence.
• The strategy may lag or produce false signals, so its parameters and usefulness require validation.

Tags

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