Gann Model Trend Filter for Buying Bullish Corrections

Summary

This short-term strategy uses a Gann Market Model style filter to enter long positions when price is above levels derived from exponential averages of highs and lows over three lookback periods. It scores each period as bullish or not, then buys when all three scores are bullish. Position size is calculated from stated capital plus strategy profit divided by the closing price, and the code disables order cumulation.

The exit condition sells whenever fewer than all three bullish conditions hold, so the position is maintained only while the full trend filter remains positive. The document offers code but no backtest results, market, chart interval, transaction cost assumptions, or risk controls. Its description frames entries as buying after a short correction, though the shown conditions do not separately identify a correction or its end. The code also relies on a custom close series whose definition is not provided, so the strategy cannot be fully assessed from the document alone.

Key ideas

• The method compares closing price with directional levels built from exponential averages of highs and lows over three periods.
• A long entry occurs only when all three trend checks are bullish.
• The exit condition closes the position as soon as any of the three checks turns bearish or neutral.
• Position size is linked to stated capital plus accumulated strategy profit.
• The document supplies no performance evidence, risk controls, or definition for its custom close series.

Tags

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