Switching Trend Signals Between Predictive and MESA Adaptive Averages
Summary
This strategy changes which trend signal it follows according to a linear regression slope. When the slope lies within thresholds derived from its recent range, it treats the market as directionless and uses a shorter predictive moving average, built from weighted moving averages. Outside that band, it follows the longer Ehlers MESA adaptive moving average, with its MAMA and FAMA lines defining direction. Long and short conditions come from the selected pair’s relative values.
The script offers configurable source, lookback, threshold, MESA limits, trade direction, and date window. It includes percentage stop levels for single-direction modes, but no take-profit logic; in combined mode, opposite signals drive reversals. The document explains the switching rationale and includes example chart references, but supplies no performance statistics or comparative tests. The slope thresholds are scaled to the observed slope range, so the regime decision depends on the data and settings; the description does not establish that the switching method improves results or generalizes across markets.
Key ideas
- The strategy uses linear regression slope to choose between shorter and longer trend signals.
- Within the slope threshold band, predictive moving average direction determines long or short conditions.
- Outside the band, direction comes from the relationship between the MESA adaptive averages.
- Users can configure the data source, parameters, trade direction, and backtest date window.
- The document gives no measured performance evidence, and its stop handling differs by strategy mode.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.