Dual-Momentum Signals for Long and Short Trading
Summary
This strategy combines fast and slow momentum readings to classify price action as bullish, bearish, or mixed. It enters long when both momentum values are above zero and closes the position if either falls below zero. In short-enabled mode, it enters short when both are below zero and exits when either rises above zero. Mixed readings therefore prompt exits rather than new positions.
The script allows users to choose long-only or long-and-short operation and optionally add a percentage stop loss. Its description characterizes it as fast-reacting and suggests daily or four-hour charts for trending instruments, while noting that long-only operation may suit some assets better. The document gives no measured performance evidence, despite making a profitability claim; it supplies no supporting results, market comparisons, or risk analysis. Treat the rules as a strategy idea that requires independent testing and risk controls.
Key ideas
- Long entries require both fast and slow momentum to be positive.
- Short entries require both momentum readings to be negative when shorting is enabled.
- A position closes when either momentum reading crosses to the opposite side of zero.
- A fixed percentage stop loss is optional, and the strategy can run long-only.
- The document recommends evaluating the method on trending markets but provides no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.