Multi Indicator Dynamic Equilibrium Quantitative Trading System

Pine ScriptMean reversion Trend following Volatility RSI MACD EMA SMA Bollinger Bands

Author: ChaoZhang
Complexity: Starter · 77 lines
Parameters: 0
Backtest bar: 1d · swing
Tested on: BTC/USDT · futures

Jump to code View in vault Original on FMZ

Overview

This strategy is a dynamic equilibrium trading system based on multiple technical indicators. It integrates various technical analysis tools including Relative Strength Index (RSI), Bollinger Bands (BB), Exponential Moving Average (EMA), and Moving Average Convergence Divergence (MACD) to identify market opportunities through cross-validation between indicators. The strategy employs percentage-based position management, defaulting to 10% of total assets per trade, which helps control risk.

Strategy Principles

The core logic of the strategy is to enhance trading signal reliability through multiple indicator confirmation. Specifically:

Uses 14-period RSI to monitor market overbought/oversold conditions
Employs 20-period, 2-standard deviation Bollinger Bands to determine price volatility ranges
Utilizes 50 and 200-period EMAs to judge medium and long-term trends
Adopts MACD(12,26,9) parameter combination to capture trend reversal points

Buy signals require at least two of the following conditions:

RSI below 30 (oversold zone)
Price touching lower Bollinger Band
Fast EMA crossing above slow EMA
MACD line crossing above signal line

Sell signals trigger when either:

RSI above 70 (overbought zone)
Price breaking above upper Bollinger Band

Strategy Advantages

Multiple indicator cross-validation improves signal reliability
Percentage-based position management effectively controls risk
Combines benefits of trend following and range trading
Flexible signal conditions with strong adaptability
Graphical interface provides intuitive signal display

Strategy Risks

Multiple indicators may lead to signal lag
May generate excessive false signals in ranging markets
Fixed parameters may not adapt to changing market conditions
Lack of volume consideration might affect judgment accuracy
Relatively simple money management approach may impact returns

Strategy Optimization Directions

Incorporate volume indicators as auxiliary confirmation
Develop adaptive parameter adjustment mechanisms
Refine money management strategy
Add stop-loss and trailing stop mechanisms
Include market environment recognition module
Optimize signal filtering mechanism

Summary

This strategy constructs a relatively complete trading system through the combined application of multiple technical indicators. Cross-validation between indicators enhances trading signal reliability. While adopting conservative position management to control risk, there are aspects requiring optimization, but the overall framework design is reasonable and has practical application value.

Source Pine Script

/*backtest
start: 2024-02-19 00:00:00
end: 2025-02-16 08:00:00
period: 1d
basePeriod: 1d
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

//@version=5
strategy("ETH/USDT Multi-Indicator Strategy", overlay=true, default_qty_type=strategy.percent_of_equity, default_qty_value=250)

// Parametri za RSI
rsiPeriod = 14
rsiOversold = 30
rsiOverbought = 70

// Parametri za Bollinger Bands
bbLength = 20
bbStdDev = 2

// Parametri za EMA
emaShort = 50
emaLong = 200

// Parametri za MACD
[macdLine, signalLine, _] = ta.macd(close, 12, 26, 9)

// RSI izračun
rsi = ta.rsi(close, rsiPeriod)

// Bollinger Bands izračun
basis = ta.sma(close, bbLength)
upperBand = basis + bbStdDev * ta.stdev(close, bbLength)
lowerBand = basis - bbStdDev * ta.stdev(close, bbLength)

// EMA izračun
emaFast = ta.ema(close, emaShort)
emaSlow = ta.ema(close, emaLong)

// Pravilo 1: RSI prelazi iznad 30 nakon preprodatosti
rsiSignal = rsi < rsiOversold

// Pravilo 2: Cena dotakne donju Bollinger traku
bbSignal = close < lowerBand

// Pravilo 3: EMA crossover (zlatni krst)
emaSignal = emaFast > emaSlow

// Pravilo 4: MACD prelazak iznad signalne linije
macdSignal = macdLine > signalLine

// Kombinovani signal za kupovinu (bar dva uslova ispunjena)
buySignal = (rsiSignal and bbSignal) or (emaSignal and macdSignal)

// Pravilo za prodaju (RSI prekupljen ili cena iznad gornje Bollinger trake)
sellSignal = rsi > rsiOverbought or close > upperBand

// Vizualizacija signala
plotshape(series=buySignal, title="Buy Signal", location=location.belowbar, color=color.green, style=shape.labelup, text="BUY")
plotshape(series=sellSignal, title="Sell Signal", location=location.abovebar, color=color.red, style=shape.labeldown, text="SELL")

// Strategija: Otvaranje i zatvaranje pozicija
if (buySignal)
    strategy.entry("Buy", strategy.long)

if (sellSignal)
    strategy.close("Buy")

// Bollinger Bands vizualizacija
plot(upperBand, color=color.new(color.blue, 50), title="Upper Band")
plot(lowerBand, color=color.new(color.blue, 50), title="Lower Band")
plot(basis, color=color.blue, title="Basis")

// EMA vizualizacija
plot(emaFast, color=color.orange, title="EMA Short")
plot(emaSlow, color=color.red, title="EMA Long")

Published by ChaoZhang on the FMZ strategy square · last modified 2025-02-18. Collected in the Quant Trading Vault. Unvalidated research: re-test with your own data and costs before trusting it.

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