Two-Pole Smoothed Oscillator with Threshold Entries and Signal Exits
Summary
This strategy standardizes price deviation from a moving average, then smooths the result twice to create a two-pole oscillator. It opens long or short positions when the oscillator crosses specified thresholds, with signals evaluated at bar close. An opposing threshold signal closes an open position, and entries are permitted only while the strategy is flat.
A fixed point stop is checked at bar close during a limited entry window. The source also tracks trade counts, failed stops, average recorded moves, and point-based P&L estimates, and plots entry and exit markers. Published settings describe a BTC/USDT futures backtest over a specified period, but no outcomes are reported. The text warns that oscillators can struggle in strong trends and that fixed thresholds may not transfer across market regimes. The stop logic and stated five-period protection are code-specific, so results depend on execution assumptions and instrument details.
Key ideas
- The oscillator is formed by normalizing price deviation from a moving average and applying two smoothing stages.
- Threshold crossings at confirmed bar closes generate directional entry signals.
- An opposite signal exits an open position, while a fixed point stop is checked within a limited number of bars.
- The script records trade statistics and plots entries and exits, but the document provides no backtest results.
- Strong trends and fixed thresholds can make oscillator signals unreliable across changing conditions.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.