Short term Trend Tracking Strategy Based on Gann Me Analysis Indicator

This strategy constructs multiple EMA indicators with different cycles and calculates their difference to form the Gann Me indicator for judging price trends and generating trading signals. It is suitable for…

Pine ScriptTrend following Breakout EMA

Author: ChaoZhang
Complexity: Intermediate · 91 lines
Parameters: 24
Backtest bar: 1h · intraday
Tested on: BTC/USDT · futures

Jump to code View in vault Original on FMZ

Overview

Principles

The strategy first constructs 6 short-cycle EMA indicators and 6 long-cycle EMA indicators. The short-cycle EMA includes 3-day, 5-day, 8-day, 10-day, 12-day and 15-day lines. The long-cycle EMA includes 30-day, 35-day, 40-day, 45-day, 50-day and 60-day lines.

Then calculate the sum of short-cycle EMAs (g) and the sum of long-cycle EMAs (mae). The difference between long and short cycle EMAs (gmae = mae - g) forms the Gann Me difference indicator. This difference indicator can judge price trends.

When the difference crosses above the 0 axis, it means that the short-term moving average rises faster than the long-term one, which is a bullish signal to go long. When the difference crosses below the 0 axis, it means that the short-term moving average falls faster than the long-term one, which is a bearish signal to go short.

Advantages

Using dual EMA lines strategy can effectively track short-term trends
Building multiple EMAs avoids false breakthroughs and improves signal accuracy
Difference indicator intuitively judges long and short term trends
Simple parameter settings, easy for live trading

Risks

Short-term operations have certain stop-loss risks
Multi-EMA parameter settings need testing and optimization
Only suitable for short-term operations, not suitable for long-term holds

Optimization

Test and optimize EMA parameters to improve trading efficiency
Increase stop loss strategy to control single loss
Combine with other indicators to filter entry signals
Optimize capital management, adjust position management

Summary

This strategy captures short-term price trend changes by constructing the Gann Me difference indicator. It belongs to a short-term tracking strategy. The advantages are sensitive reaction and suitability for high-frequency trading. The disadvantages are sensitivity to market variables and higher stop loss risks. Overall, the strategy performs well and is worth testing and applying in real trading.

Parameters

Name	Default	What it controls
v_input_1	3	Length
v_input_2_close	0	Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4
v_input_3	5	Length
v_input_4_close	0	Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4
v_input_5	8	Length
v_input_6_close	0	Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4
v_input_7	10	Length
v_input_8_close	0	Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4
v_input_9	12	Length
v_input_10_close	0	Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4
v_input_11	15	Length
v_input_12_close	0	Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4
v_input_13	30	Length
v_input_14_close	0	Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4
v_input_15	35	Length
v_input_16_close	0	Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4
v_input_17	40	Length
v_input_18_close	0	Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4
v_input_19	45	Length
v_input_20_close	0	Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4
v_input_21	50	Length
v_input_22_close	0	Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4
v_input_23	60	Length
v_input_24_close	0	Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4

Source Pine Script

/*backtest
start: 2023-12-03 00:00:00
end: 2024-01-02 00:00:00
period: 1h
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

//@version=2
strategy(title="GMAE Original (By Kevin Manrrique)", overlay=false)
/// This indicator was built and scripted by Kevin Manrrique. Please leave this copyright to the script at all times, if rebuilt please add your name onto the script.
/// If you have any questions, please message me directly. Thank you.
/// Sincerely,
///
/// Kevin Manrrique

            ///ONE///
len = input(3, minval=1, title="Length")
src = input(close, title="Source")
out = ema(src, len)
//plot(out, title="EMA", color=blue)

len2 = input(5, minval=1, title="Length")
src2 = input(close, title="Source")
out2 = ema(src2, len2)
//plot(out2, title="EMA", color=blue)

len3 = input(8, minval=1, title="Length")
src3 = input(close, title="Source")
out3 = ema(src3, len3)
//plot(out3, title="EMA", color=blue)

len4 = input(10, minval=1, title="Length")
src4 = input(close, title="Source")
out4 = ema(src4, len4)
//plot(out4, title="EMA", color=blue)

len5 = input(12, minval=1, title="Length")
src5 = input(close, title="Source")
out5 = ema(src5, len5)
//plot(out5, title="EMA", color=blue)

len6 = input(15, minval=1, title="Length")
src6 = input(close, title="Source")
out6 = ema(src6, len6)
//plot(out6, title="EMA", color=blue)
        ///TWO///
len7 = input(30, minval=1, title="Length")
src7 = input(close, title="Source")
out7 = ema(src7, len7)
//plot(out7, title="EMA", color=red)

len8 = input(35, minval=1, title="Length")
src8 = input(close, title="Source")
out8 = ema(src8, len8)
//plot(out8, title="EMA", color=red)

len9 = input(40, minval=1, title="Length")
src9 = input(close, title="Source")
out9 = ema(src9, len9)
//plot(out9, title="EMA", color=red)

len10 = input(45, minval=1, title="Length")
src10 = input(close, title="Source")
out10 = ema(src10, len10)
//plot(out10, title="EMA", color=red)

len11 = input(50, minval=1, title="Length")
src11 = input(close, title="Source")
out11 = ema(src11, len11)
//plot(out11, title="EMA", color=red)

len12 = input(60, minval=1, title="Length")
src12 = input(close, title="Source")
out12 = ema(src12, len12)
//plot(out12, title="EMA", color=red)

g=out+out2+out3+out4+out5+out6
mae=out7+out8+out9+out10+out11+out12
gmae=mae-g
plot(gmae, style=columns, color=green)
baseline=0
plot(baseline, style=line, color=black)

longCondition = crossover(gmae, baseline)
if (longCondition)
    strategy.entry("long", strategy.long)

shortCondition = crossunder(gmae, baseline)
if (shortCondition)
    strategy.entry("short", strategy.short)

Published by ChaoZhang on the FMZ strategy square · last modified 2024-01-03. Collected in the Quant Trading Vault. Unvalidated research: re-test with your own data and costs before trusting it.

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