Extended Price Volume Trend Signals with Staged Profit Targets

Summary

The strategy builds an Extended Price Volume Trend (EPVT) series by cumulatively adding volume weighted by each period’s percentage price change. It centers that series using the midpoint of its rolling high and low, then derives a reference price from the latest zero crossing. Price crossing the reference price supplies long or short entries, while a short EMA and three percentage-based target levels contribute to exit conditions. A simple moving average is described as an additional trend confirmation tool.

The document gives parameter settings and a BTC/USDT Binance futures backtest configuration spanning roughly a year, but reports no performance results or comparison. Its discussion says unusual price patterns can produce false signals and unwanted reversals. It suggests testing different EPVT lookbacks, adding trend filters, and using fixed or ATR-based stops. The written account calls for staged profit taking, but the provided strategy logic does not clearly implement partial exits at each target; the targets are used in crossing conditions. No stop-loss rule or evidence of profitability is established.

Key ideas

• EPVT cumulatively weights percentage price changes by trading volume.
• The indicator is centered against the midpoint of its rolling high and low values.
• Price crossing the derived reference price triggers long or short entries.
• The described exits use percentage target levels and a short EMA, but do not clearly stage partial closes.
• The document identifies false reversals as a risk and proposes testing lookbacks, filters, and stop rules.

Tags

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