Gandalf Price-Comparison Trend Strategy with Conditional Entries

Summary

The Gandalf strategy compares a weighted price, the bar midpoint, and the midpoint of the candle body to identify possible trend starts and reversals. Its stated short-entry example uses the weighted price below the high-low midpoint and the body midpoint below the weighted price. The source also defines entry conditions using values from several prior bars, places a limit order near the low, and exits after a bar limit, a count of profitable closes, or a reversal condition.

The document describes a BTC/USDT futures backtest setup over a short, specified period, but reports no performance results. It presents the method as trend following with rapid exits, while acknowledging that sideways or frequently reversing markets can cause repeated losses and that conditional orders may not fill. Parameters include trade size, maximum bars, profit-close count, and entry offset. The source’s implementation and prose do not fully align: it describes both directions, but the shown entry code submits long orders only. Martingale is suggested as a risk measure, though it can increase exposure and losses.

Key ideas

• The method compares weighted price, the high-low midpoint, and candle-body midpoint to assess trend conditions.
• Its source uses prior-bar relationships for entry and places a limit order near the current low.
• Exit triggers include a maximum holding period, a count of profitable closes, and price-pattern conditions.
• The published backtest settings identify BTC/USDT futures and a short test window but provide no performance results.
• The source code enters long positions only, despite the description discussing short opportunities.

Tags

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