TEMA Crossover Strategy with Channel and SAR Trend Filters

Summary

The document describes a stock-oriented trend strategy that combines fast and slow moving averages, a price channel, and a Parabolic SAR direction filter. Its stated approach is to transform exponential averages into triple exponential moving averages, use their crossover for trade direction, and require a channel breakout to reduce weak signals. It also proposes SAR as a check against trading against the broader trend. The parameter section lists fast and slow periods, while the accompanying source instead enters long when price is above a fast TEMA and short when it is below it.

No measured performance evidence is given. The published backtest settings cover a short BTC/USDT futures interval, which does not match the stock framing, and the source does not implement the described channel or SAR filters. It also computes the purported slow TEMA using the fast period, so the code does not clearly realize the stated dual-average method. The document notes risks from whipsaws, gaps, and poorly chosen parameters; the description and source should be reconciled before evaluating the strategy.

Key ideas

• The described method uses fast and slow TEMA crossovers, channel breakouts, and SAR as trend confirmation.
• The source instead trades according to price relative to a fast TEMA and does not implement the channel or SAR filters.
• The code’s slow TEMA calculation uses the fast period, leaving the intended dual-average comparison unclear.
• The published backtest covers a short cryptocurrency futures interval despite the stock-focused description.
• Whipsaws, price gaps, and parameter choices are identified as risks, and no performance statistics are provided.

Tags

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