Four Moving Average Strategy Using Hull, Volume-Weighted, and Weighted Averages

Summary

This strategy combines a double Hull-style moving average, a volume-weighted moving average, and a longer weighted moving average. It compares the double Hull series with its prior-bar counterpart to establish direction, then uses the averages’ relative positions to qualify long and short entries. A long setup requires the directional comparison to be positive while the signal remains below the base weighted average and above the volume-weighted average; the short setup applies the corresponding opposite relationships. It permits only one open trade at a time.

Exit conditions use changes in the directional comparison together with the signal’s position relative to the other averages. The author mentions trying the script on a four-hour NZD/USD chart and invites experimentation across settings, but gives no documented performance results. A commenter warns that recalculating after order fills can create misleading backtests through lookahead-like behavior, so that setting and execution assumptions deserve particular scrutiny.

Key ideas

• The strategy combines a double Hull-style average, a volume-weighted average, and a base weighted average.
• The relative direction of the double Hull series helps define long and short conditions.
• Entries also depend on where the signal sits relative to the other two averages.
• A check for zero open trades prevents additional positions while one is active.
• The discussion flags order-fill recalculation as a possible source of misleading backtest results.

Tags

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