OBV Trend Signals with Pyramid Scaling and Exit Targets

Summary

This strategy uses On-Balance Volume to identify an upward trend, then builds a long position through repeated entries. A signal occurs when OBV, centered by its moving average, crosses above zero while the fast EMA is above the slow EMA. The source allows up to seven entries and sets profit and loss exits for each; direction can be configured, although the documented entry logic is long-only. Parameters include OBV length, EMA filters, and percentage exit targets.

The document explains the rationale that volume changes can help indicate buying or selling pressure, and recommends limiting additions and testing parameters. It supplies a short BTC/USDT futures backtest configuration, but no performance results, so it does not establish profitability. The source also differs from the prose: despite discussion of signals in both directions and a claim of up to seven additions, its implemented rules only enter long and allow seven total entries. Pyramiding can increase exposure, while OBV signals may be wrong or late.

Key ideas

• OBV is centered against its moving average, and an upward zero crossing is used as the long trigger.
• A fast EMA above a slow EMA acts as a trend filter for entries.
• The source permits up to seven long entries and attaches profit and loss exits to each entry.
• The prose recommends testing indicator settings, addition size, and exit levels, but provides no performance evidence.

Tags

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