WaveTrend Zero-Cross Entries with Extreme-Zone Profit Exits

Summary

This strategy uses a WaveTrend oscillator to enter when its main line crosses above or below zero, opening long or short positions and closing an opposing position on an eligible reversal. An optional trend filter compares price with a long-period EMA; when enabled, it permits longs above the EMA and shorts below it. The script evaluates its rules on confirmed bars and uses a fixed percentage-of-equity position size.

For trade management, it identifies WaveTrend line crosses in overbought or oversold territory as exit cues and closes half the position: an oversold bullish cross can reduce a short, while an overbought bearish cross can reduce a long. The document supplies indicator formulas and implementation logic but no backtest statistics, performance evidence, stop-loss rule, or description of how any remaining position is closed. Results therefore cannot be inferred from the signal design and would depend on the instrument, timeframe, costs, and execution assumptions.

Key ideas

• Entries are triggered by the WaveTrend main line crossing the zero level.
• An optional EMA filter restricts entries according to the prevailing price trend.
• Opposite-direction entry signals close an existing position when the filter allows the reversal.
• WaveTrend crosses in extreme zones trigger partial exits, while the document specifies no explicit stop loss.

Tags

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