Long-Only Momentum Strategy with Dual Zero-Line Confirmation

Summary

This long-only system combines a lookback momentum measure with a second momentum series and acts when both have the same sign. The main calculation compares the chosen price source with its value a configurable number of bars earlier. The companion series can be either the change in that momentum measure or a one-bar change in the source; both can be expressed as percentages or absolute differences.

When both measures are positive within the chosen date window, the script places a stop entry just above the bar's high. When both are negative, it submits an opposing stop order intended to exit the long position, while restricting entries to the long direction. The document explains the indicator plots, configurable date range, and alert messages, but provides no backtest results. Its sample settings use zero commission, so users should include realistic transaction costs and slippage; historical performance and live execution may differ.

Key ideas

• A long entry requires both selected momentum measures to be positive.
• A long exit is signaled when both measures become negative.
• The second momentum measure can use either a one-step change in momentum or in price.
• Stop orders are placed beyond the signal bar's high for entries and low for exits.
• The example does not report results and its default costs do not reflect realistic trading expenses.

Tags

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