The ADXMomentum strategy is a trading strategy that uses the Average Directional Index (ADX) and Momentum indicators to generate buy and sell signals. Here's a breakdown of how the strategy works:
The strategy requires a minimum of 20 candles before producing valid signals. Indicators:
ADX: Calculates the strength of a trend.
PLUS_DI: Calculates the positive directional indicator.
MINUS_DI: Calculates the negative directional indicator.
SAR: Calculates the stop and reverse (SAR) indicator. MOM: Calculates the momentum indicator. Buy Signal:
The strategy generates a buy signal when the following conditions are met:
ADX value is greater than 25. Momentum indicator (MOM) is positive. Positive directional indicator (PLUS_DI) is greater than 25. PLUS_DI is greater than MINUS_DI. Sell Signal:
The strategy generates a sell signal when the following conditions are met:
ADX value is greater than 25. Momentum indicator (MOM) is negative. Negative directional indicator (MINUS_DI) is greater than 25. PLUS_DI is less than MINUS_DI. Risk Management:
Minimal ROI (Return on Investment): The strategy is designed to achieve a minimum ROI of 0.01. Stop Loss: The optimal stop loss for the strategy is set at -0.25. Timeframe: The strategy is optimized for a 1-hour timeframe. Note: This strategy was converted from a C# implementation available on GitHub.