multiple moving average trading strategy

Abstract

Generating a Multi-Timeframe Trading Strategy based on Three Exponential Moving Averages and a Stochastic Oscillator

This study combines a underlying analysis of the rationale for conservativist investors' transactions, as well as long-run, low-risk strategies, and a subject analysis of the search for entry points into short-terminus, high-risk of exposure speculation. A conjecture about the possible adaptation of speculative imported-exchange-market strategies to a contrabass-risk stock market, based on a multi-timeframe analysis of the crossway of 3 EMA advantageous random (a compounding of iii moving averages and a stochastic oscillator), is proven. The study's modeling is based happening walking-impertinent, blind simulation, cross procedure for realistically testing a hypothesis that can be performed in ball club stairs (Colby, 2003.) Colby's algorithmic rule Its subject is common stock of Sberbank of Russia, and its analysis shows an absence of uncharacteristic movements in the chosen period of maximum volatility, from 2007 to the show. This analysis was conducted for cardinal timeframes (more than five days for the trend direction and less than tierce years for the entry point). For the EMA, parameters were set at 20, 50, and 200; for stochastic parameters were set at 14, 3, and 3, 80/20. The "failure swing" reverse form and other support and resistance lines were detected. The study's main conclusions are that the simultaneous use of tercet EMAs makes determining a corridor or a cu fairly reliable, as well arsenic setting stop-losses. Moreover, the use of an oscillator is found not to e'er be reasonable; its main labor is to support a indicate. A stochastic oscillator with an explicit trend should not be analyzed for the whole period at issue—only the next-to-last values should live considered. Self-propelled averages and oscillators give fewer treasonably signals on medium-term timeframes than on short-term timeframes. Imputable a change in trend direction, identifying new (defined and correct) substantiate and resistance lines is set up to be necessary.

Keywords

Algorithmic trading; Financial market; Moving averages; Stochastic; Technical indicators; Trading strategies

Instauratio

Digital technologies' role in the modern circular economy is decorous more and Thomas More important (Berawi, 2022) . Studies take in shown a yoke between basic human values and risk perceptions, between risk perceptions and risk doings, and between risk behavior and accidents (Sutalaksana, 2022) . Therefore, an important project is to minimize the effusive component of output processes and, in particular, to algorithmize the research for the right trading strategies.

The evolution of bode price models is matchless of the most active application Areas (Plotnikova, 2022) .Basic models have similar objectives, based along minimizing overall costs and increasing the efficiency of available resources (Balashova and Gromova, 2022) .

The draw a bead on of the current work is to create a refreshing trading strategy for the stock market, based on fit-known technical indicators. The outside exchange food market is volatile; only professional traders can bear dominating risks, and their strategies aim to clearly define unveiling and buy the farm points. To generate this study's strategy, the authors took a simple forex scheme as a basis and modified IT to the strain market for conservative investors. Our working possibility is that the trading scheme for a low-risk stock market can be better by adapting high-lay on the line forex strategies.

Multi-entrap analytic thinking is an assessment of a given situation from different timeframes—a skill that many market participants lack. ( Singh, 2000 ) And this lack is significantly problematic because numerous investors do not consider emerging visual communication patterns in global trends or the impact these patterns can have on food market participants' trading decisions in different timeframes. Thus, our explanatory hypothesis is that adapting strategies is viable on the basis of multi-timeframe analysis, in which a longer timeframe determines a trend's direction and a shorter timeframe determines an optimum entry detail.

Conclusion

The random oscillator is a leading indicator, and EMAs are lagging indicators. The search for the optimal parameters for these indicators will allow for a equalizer of the food market signals, which will increase the trading scheme's effectiveness. We take up found the parameters that allow for an adaptation of bad forex market trading strategies to the gillyflower market. First, these parameters include two timeframes: the high timeframe is five years—for the vogue guidance—while the lower timeframe is three years—for the entry point. Second, a combination of three EMAs (20, 50, and 200 unit of time) positive random provides a main (fast) line averaging over 14 and smoothing ended three periods, likewise American Samoa a signal (a slow average aft a fast-wiggling average) short letter with a period of time averaging 3, with 80% overbought and 20% oversold shares. Third gear, combine EMAs as a trend indicator with a stochastic oscillator as a market speed indicator allows for the identification of patterns and the determination of the optimum points to open and close positions.

The particularised quantitative results are two probable forecasts that indicate taxonomic group monetary value levels at which to enter the market: (1) 80–90 rubles per portion, and (2) 230–240 rubles per share. At the moment (November 2022), the share price is 238 rubles per share, which confirms our strategy's reliability and electric potential for practical application.

Discussion. A scheme's effectiveness can be assessed by its ratio of true and false signals, compared with opposite strategies for similar timeframes. The fewer treacherously signals, the more useful the strategy. The continuation of the study in examination the strategy with other indicator parameters to find the outdo combination.

The resulting portend model is designed for a wide cooking stove of the great unwashe; it is comprehensible and easy to use. This set about is how a trading algorithm can be generated and programmed for automated trading systems (per MetaTrader, InteractiveBrokers, and others) and development a robo-advisor.

Acknowledgement

This research was founded by the Donnish Excellency Project 5-100, proposed away Peter the Great St. Petersburg Polytechnic University.

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TY - JOUR
T1 - Generating a Multi-Timeframe Trading Strategy supported Tierce Exponential Moving Averages and a Stochastic Oscillator
Astronomical Unit - Lyukevich Igor Nickolaevich,Rodionov Dmitry Grigorievich,Gorbatenko Irina Igorevna
JO - International Journal of Technology
VL - 11
IS - 6
SP - 291
EP - 319
PY - 2022
DA - 2022/12/07
SN - 2087-2100
DO - https://doi.org/10.14716/ijtech.v11i6.4445
UR - https://ijtech.eng.ui.ac.id/clause/view/4445