ADX + CCI + MA - Uncle Sam — Strategy by UncleSamTrading
By UncleSamTrading
Performance Metrics
- Author: UncleSamTrading
- Symbol: BITGET:BTCUSDT
- Timeframe: 1 hour
- Net P&L: +452.53 USDT (+45.24%)
- Win Rate: 58.0%
- Profit Factor: 1.256
- Max Drawdown: 395.28 USDT (29.49%)
- Total Trades: 569
- Sharpe Ratio: 0.195
Description
Strategy Name: ADX + CCI + MA - Uncle SamOverviewThis strategy aims to capitalize on trending markets by combining the Average Directional Index (ADX), Commodity Channel Index (CCI), and a customizable Moving Average (MA). It's designed for traders seeking a balanced approach to both long (buy) and short (sell) opportunities. Special thanks to the creators of the ADX and CCI indicators for their invaluable contributions to technical analysis.Strategy ConceptThe core idea is to identify strong trends with the ADX, confirm potential entry points with the CCI, and use the MA to filter trades in the direction of the broader trend. This approach seeks to avoid entering positions during periods of consolidation or when the trend is weak.Indicator LogicADX (Average Directional Index): The ADX measures the strength of a trend, regardless of its direction. A value above the customizable adx_threshold (default 20) signals a strong trend, making it a prime environment for this strategy.CCI (Commodity Channel Index): The CCI is a momentum oscillator that helps identify overbought (above 100) and oversold (below -100) conditions. We use CCI crossovers to time entries in the direction of the prevailing trend.MA (Moving Average): The MA acts as a trend filter, ensuring we only enter trades aligned with the overall market direction. You have flexibility in choosing the MA type (SMA, EMA, etc.) and its length to suit your trading style and timeframe.Entry ConditionsLong (Buy):ADX is above the adx_threshold.CCI crosses above 100.Price is above the chosen Moving Average (if MA trend filtering is enabled).Short (Sell):ADX is above the adx_threshold.CCI crosses below -100.Price is below the chosen Moving Average (if MA trend filtering is enabled).Exit ConditionsStop Loss (SL): Each position has a customizable stop-loss percentage to manage risk. The default setting is 1%.Take Profit (TP): Each position has a customizable take-profit percentage to secure gains. The default setting is 5%.MA-Based Risk Management (Optional): This feature allows for early exits if the price closes against the MA trend for a specified number of candles. The default setting is 2 candles.Default SettingsCCI Period: 15ADX Length: 10ADX Threshold: 20MA Type: HMAMA Length: 200MA Source: CloseCommission Fee: $0.0A commission fee is not added, add your trading/platform commission for realistic trading costs.Backtest ResultsThe strategy has been backtested on [specify timeframe(s) and market(s)] with the default settings and a starting capital of $1000, with 0.0% commission fee. It shows promising results.Disclaimer: Backtesting is hypothetical and does not guarantee future performance.Important Considerations:Customization: The strategy offers extensive customization to tailor it to your preferences. Experiment with different parameters and settings to find what works best for your trading style.Risk Management: Always use proper risk management techniques, including position sizing and stop losses, to protect your capital.