Double ZigZag Strategy with EMA Turning Points and Stop Entries

Summary

This strategy derives two sets of turning points from smoothed price series. For each set, it applies three sequential exponential moving averages, then identifies a local turn and associates it with a recent high or low over a configurable detection window. The resulting levels are plotted and used as stop-entry prices for long and short positions. Separate settings control long and short lengths, direction enablement, sizing, and the active date range.

A strict-position option tracks a virtual position to suppress repeat entries in the same direction until an opposing level is reached. The script also includes fixed or equity-based sizing and an input for pyramiding. The supplied text cuts off during the exit logic, so the complete order management cannot be determined. No backtest findings are provided. Because turning-point systems can rely on later price data to confirm pivots, users should check how signals behave in real time and account for execution costs before drawing conclusions from historical results.

Key ideas

• The strategy smooths price with three sequential EMAs to identify turning points.
• Recent highs and lows define separate long and short stop-entry levels.
• Long and short settings can be configured independently, including their lengths and detection windows.
• A virtual-position filter can prevent repeated entries in the same direction.
• The excerpt omits the complete exit logic and gives no performance evidence.

Tags

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