Multi-Timeframe Momentum Alignment with Stochastic Entry Signals

Summary

This strategy seeks agreement among momentum readings on three timeframes, then uses stochastic signals to time entries. Momentum can be measured with RSI relative to a neutral band around 50 or with the slope of an exponential moving average. Long entries require bullish alignment across all three timeframes and a local stochastic crossover, with confirmation from a smoothed stochastic on the slow timeframe; short entries use the inverse conditions. A direction setting can restrict trades to longs or shorts.

Risk controls in the visible source calculate position quantity from a chosen percentage of equity and an ATR-based stop distance, then set stop and target levels using ATR multiples. The excerpt ends during this risk-management section, and provides no backtest settings or performance evidence, so exit handling and overall results cannot be assessed from the supplied material. The strategy exposes many timeframe and indicator parameters, whose robustness would need separate evaluation.

Key ideas

• Momentum can be scored using either RSI thresholds or the slope of an exponential moving average.
• Entries require all three timeframe momentum scores to align and a stochastic trigger with slow-timeframe confirmation.
• The strategy includes settings to enable both trade directions or restrict trading to one side.
• Visible risk controls size positions from equity risk and ATR stop distance, with ATR-based targets.
• The supplied source is incomplete and includes no backtest results.

Tags

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