Elder Ray Bull Power Signals with Fixed Stops and Targets

Summary

This strategy draws on Elder Ray's bull and bear power concept, measuring the day's high and low relative to an exponential moving average used as a value reference. The article describes using these differences to represent buying and selling pressure, then applying a threshold to generate directional trades with fixed percentage stop-loss and take-profit levels. It also notes the indicator's association with the Triple Screen approach.

The document lists example stop, target, EMA length, and trigger inputs and provides a short BTC_USDT futures backtest window, but gives no performance statistics. There is a notable mismatch between the explanation and the supplied implementation: the code computes a running daily high minus the EMA, uses a single threshold condition, and does not implement the described bear-power signal. Its default reversal setting further changes the apparent direction. Parameter sensitivity, misleading signals, and market dependence are acknowledged, so the stated rationale should not be treated as validation of the coded strategy.

Key ideas

• Elder Ray bull and bear power compare price extremes with an exponential moving average.
• The article describes threshold-based entries paired with fixed percentage stops and targets.
• The source code implements a running daily-high measure and a single threshold signal rather than both powers.
• A reversal option affects trade direction, and the brief backtest setup reports no results.
• Market, timeframe, threshold, and stop settings can materially affect behavior.

Tags

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