Multi-Timeframe Lorenzian EMA Signals with Percentage Targets and Stops

Summary

This strategy constructs a Lorenzian line from triple-smoothed EMAs and a normalized difference between the first two EMA stages. It calculates the indicator on the current chart timeframe and a user-selected higher timeframe. Price crossovers, together with a lookback check for an opposite move, are intended to confirm entries. A configurable percentage target and a matching adverse price move provide exit and stop conditions.

The source gives a one-year BTC/USDT futures backtest configuration but no performance results. Although the description presents the higher-timeframe line as part of cross-timeframe confirmation, the visible entry signals are based on the current-timeframe line. The formula combines an EMA price value with a scaled index, so its units and interpretation deserve scrutiny. The document also notes sensitivity to parameters, false signals in choppy markets, slippage, and the risk of overfitting; forward testing and execution-aware evaluation are needed.

Key ideas

• The Lorenzian line combines triple-smoothed EMAs with a normalized EMA difference index.
• The indicator is calculated for both the chart timeframe and a selected higher timeframe.
• Crossover signals use a lookback check intended to confirm prior price movement.
• Percentage-based targets and adverse moves define exits and stops.
• The published backtest settings report no performance results, and the visible entry logic does not use the higher-timeframe line.

Tags

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