Moving Average Slope Angles and Rate of Change for Trend Signals

Summary

This two-sided trend strategy gauges direction from the slope angles of a Jurik moving average and an EMA, with angles normalized by ATR. It also calculates a rate of change over a configurable recent window and smooths that measure; the stated logic uses the filter to avoid signals during low movement. The source forms long or short states from the EMA angle and movement condition, then enters when the latest state changes relative to the opposite state. Stops and targets are set as percentages of average entry price, with the published defaults including a 2% stop and a very distant 900% target.

The text argues that the faster Jurik average and steadier EMA can complement each other, but offers no performance statistics to substantiate its claims. It warns that choppy markets can cause false or frequent signals and that gaps can pass through stops. The code’s actual entries rely on the EMA slope and movement filter; the Jurik slope is calculated but not used in those conditions. Its date-window function always returns true, so the listed backtest dates do not constrain trading as described.

Key ideas

• The strategy measures moving average slopes as angles normalized by ATR.
• A smoothed rate-of-change measure is used to require meaningful price movement.
• The source enters when EMA slope and movement conditions switch between long and short states.
• Stops and targets are expressed as percentages of average entry price, with the example target set unusually far away.
• The source calculates the Jurik slope but does not use it in its entry conditions.

Tags

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