Momentum Trend Signals with a Decision Point Oscillator and ROC Filter

Summary

This strategy uses a Decision Point oscillator built from smoothed price changes to identify directional momentum, then filters signals with a rate-of-change measure. The oscillator compares a faster and slower smoothed series: positive spread indicates a long bias and negative spread a short bias. A 30-day rate of change, smoothed with an exponential moving average, is used to require sufficient market activity before taking signals. The source also includes stop-loss and take-profit exits.

The document describes the method and its intended use for medium-term trend following, but it provides no reported performance results or comparison against a benchmark. Its narrative claims that the activity filter may reduce signals in sideways markets, while also acknowledging exposure to sharp moves, stop-loss slippage, and sensitivity to parameter choices. The published backtest settings use BTC/USDT futures over a stated period, but no outcome statistics are included; moreover, the code’s date filter is not applied to entries.

Key ideas

• The oscillator derives momentum from price changes smoothed with two exponential filters.
• A positive oscillator spread sets a long bias, while a negative spread sets a short bias.
• A smoothed rate-of-change threshold filters signals when price movement is limited.
• The strategy includes stop-loss and take-profit order logic.
• Published settings name a BTC/USDT futures backtest, but the document gives no performance results.

Tags

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