DMI (Multi timeframe) DI Strategy [KL] by DojiEmoji
By DojiEmoji
Performance Metrics
- Author: DojiEmoji
- Symbol: NASDAQ:TQQQ
- Timeframe: 1 hour
- Net P&L: +50,783,580.44 USD (+5.08%)
- Win Rate: 53.6%
- Profit Factor: 2.118
- Max Drawdown: 7,375,306.69 USD (0.71%)
- Total Trades: 69
- Sharpe Ratio: 0.179
Description
Nov 30, 2021Directional Movement Index StrategyEntry conditions:- (a) when DI+ > DI- on timeframe #1, and - (b) Confirmation: when DI+ > DI- on timeframe #2In the shown example, timeframe1 was same as the chart (1H) and timeframe2 was 1D.Stop Loss: ATR based trailing stopAbout DMICan refer to Investopedia for general understanding.Applications of DMI in this strategy:- Assumes uptrend when DI+ is above DI- (when green DI+ lines above red DI-), vice versa for downtrend. This is checked in two different timeframes that can be set by user in settings.- DX is ignored, it doesn't give a direction of the trend. But if DX was applied, it would be a good indicator for quantifying the strength of uptrend/downtrend. This measurement would typically be read along a threshold (i.e. if below 20, then market is likely consolidating). All of these have been commented out (ignored by pinescript's interpreter via //) in the codes, as said; we are not using DX for sake of simplicity. VisualizationsTo make the chart look cleaner, DMI plots have been simplified to just down/up arrows placed at bottom of the chart.Referring to the example chart:- Green arrows : when DI+ > DI- for both timeframes, implies uptrend- Red arrows: other way around (DI+ < DI-), implies downtrendJan 24, 2022Release NotesEnsures non-repainting by ignoring developing bars from MTFs.