FlexiMA Variance Tracker - Strategy [presentTrading]

2023年12月18日

█ Introduction and How It Is Different

The FlexiMA Variance Tracker by PresentTrading introduces a novel approach to technical trading strategies. Unlike traditional methods, it calculates deviations between a chosen indicator source (such as price or average) and a moving average with a variable length. This flexibility is achieved through a unique combination of a starting factor and an increment factor, allowing the moving average to adapt dynamically within a specified range. This strategy provides a more responsive and nuanced view of market trends, setting it apart from standard trading methodologies.

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█ Strategy, How It Works: Detailed Explanation

The FlexiMA Variance Tracker, developed by PresentTrading, stands at the forefront of trading strategies, distinguished by its adaptive and multifaceted approach to market analysis. This strategy intricately weaves various technical elements to construct a comprehensive trading logic. Here's an in-depth professional breakdown:

🔶Foundation on Variable-Length Moving Averages:

Central to this strategy is the concept of variable-length Moving Averages (MAs). Unlike traditional MAs with a fixed period, this strategy dynamically adjusts the length of the MA based on a starting factor and an incremental factor. This approach allows the strategy to adapt to market volatility and trend strength more effectively.



Each MA iteration offers a distinct temporal perspective, capturing short-term price movements to long-term trends. This aggregation of various time frames provides a richer and more nuanced market analysis, essential for making informed trading decisions.


🔶Deviation Analysis and Normalization:

The strategy calculates deviations of the price (or the chosen indicator source) from each of these MAs. These deviations are pivotal in identifying the immediate market direction relative to the average trend captured by each MA.

To standardize these deviations for comparability, they undergo a normalization process. The choice of normalization method (Max-Min or Absolute Sum) can significantly influence the interpretation of market conditions, offering distinct insights into price movements and trend strength.

🔹Normalization: Absolute Sum


🔶Composite Oscillator Construction:

A composite oscillator is derived from the median of these normalized deviations. The median serves as a balanced and robust central trend indicator, minimizing the impact of outliers and market noise.
Additionally, the standard deviation of these deviations is computed, providing a measure of market volatility. This volatility indicator is crucial for assessing market risk and can guide traders in setting appropriate stop-loss and take-profit levels.

🔶Integration with SuperTrend Indicator:

The FlexiMA strategy integrates the SuperTrend indicator, renowned for its effectiveness in identifying trend direction and reversals. The SuperTrend's incorporation enhances the strategy's ability to filter out false signals and confirm genuine market trends.
* The SuperTrend Toolkit is made by @QuantiLuxe
This combination of the variable-length MA oscillator with the SuperTrend indicator forms a potent duo, offering traders a dual-confirmation mechanism for trade signals.

🔹Supertrend's incorporation


🔶Strategic Trade Signal Generation:

Trade signals are generated when there is a confluence between the composite oscillator and the SuperTrend indicator. For example, a long position signal might be considered when the oscillator suggests an uptrend, and the SuperTrend flips to bullish.
The strategy's parameters are fully customizable, enabling traders to tailor the signal generation process to their specific trading style, risk tolerance, and market conditions.

█ Usage

To effectively employ the FlexiMA Variance Tracker strategy:
Traders should set their desired trade direction and fine-tune the starting and increment factors according to their market analysis and risk tolerance.
Indicator Length: 5


Indicator Length: 40


The strategy is suitable for a wide range of markets and can be adapted to different time frames, making it a versatile tool for various trading scenarios.

█ Default Settings Impact on Performance: FlexiMA Variance Tracker

1. Trade Direction (Configurable: Long, Short, Both): Determines trade types. 'Long' for buying, 'Short' for selling, 'Both' adapts to market trends.

2. Indicator Source: HLC3: Balances market sentiment by considering high, low, and close, providing comprehensive period analysis.

4. Indicator Length (Default: 10): Baseline for moving averages. Shorter lengths increase responsiveness but add noise, while longer lengths favor trends.

5. Starting and Increment Factor (Default: 1.0): Adjusts MA lengths range. Higher values capture broad market dynamics, lower values focus analysis.

6. Normalization Method (Options: None, Max-Min, Absolute Sum): Standardizes deviations. 'None' for raw deviations, 'Max-Min' for relative scaling, 'Absolute Sum' emphasizes relative strength.

7. SuperTrend Settings (ATR Length: 10, Multiplier: 15.0): Influences indicator sensitivity. Short ATR or high multiplier for short-term, long ATR or low multiplier for long-term trends.

8. Additional Settings (Mesh Style, Color Customization): Enhances visual clarity. Mesh style for detailed deviation view, colors for quick market condition identification.