Custom Signal Oscillator Using Zero Crosses Between Two Inputs

Summary

The Custom Signal Oscillator creates a signal by subtracting one user-selected input series from another. When the resulting oscillator crosses above zero, the strategy opens a long position; a cross below zero opens a short unless long-only mode is enabled, in which case it closes the long. The inputs can be price fields such as open, close, or typical-price variants. Optional chart glow effects and signal markers aid visualization but do not change the trading logic.

The document presents the strategy as a way to test combinations of signals, but the supplied implementation uses selected price series and contains no indicator calculation, stop-loss, or profit target. A backtest configuration is given for BTC/USDT futures from May 21 to June 20, 2024, with two-hour strategy bars and a fifteen-minute base period; no performance outcomes are included. Zero-cross systems can generate repeated reversals in choppy conditions, and behavior depends on the chosen inputs. The description recommends testing and adding separate risk controls rather than treating the crossover itself as evidence of an edge.

Key ideas

• The oscillator is the difference between two user-selected input series.
• A cross above zero opens a long position, while a cross below zero opens a short or closes a long in long-only mode.
• The script includes visualization options, but they do not affect signal generation.
• The described implementation has no built-in stop-loss or profit target.
• The listed BTC futures backtest settings are not accompanied by performance results.

Tags

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