Dual-Timeframe TMO Strategy for Trend-Filtered Entries

Summary

This strategy combines a higher-timeframe trend filter with a lower-timeframe entry trigger using the TMO oscillator. The TMO compares the current close with recent opens, then smooths the resulting signed comparisons using configurable moving-average types and lengths. A positive higher-timeframe TMO marks bullish conditions and a negative reading marks bearish conditions. The strategy buys when the entry-timeframe TMO crosses above zero during bullish conditions and sells when it crosses below zero during bearish conditions. Users can select both timeframes and allow or disable either trade direction.

Positions can close on an opposite signal or through optional stop-loss and take-profit orders, specified as percentages or pip distances from the actual average fill price. The script includes configurable dates, commission and slippage assumptions, plots, and alerts. It describes its multi-timeframe data requests as non-repainting on confirmed history, but the document supplies no backtest performance results. Outcomes will depend on selected timeframes, settings, instrument, and execution assumptions.

Key ideas

• The higher-timeframe TMO reading filters the direction of eligible trades.
• An entry-timeframe zero crossing triggers a trade when it agrees with the higher-timeframe direction.
• The oscillator and its smoothing averages have configurable lengths and moving-average types.
• Optional stop-loss and take-profit distances can be set in percentages or pips from the average fill price.
• The document describes backtest controls and alerts but reports no performance results.

Tags

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