A simple crossover with sophisticated strategy
Overview
This algorithm is a momentum-driven trading strategy that combines technical indicators and adaptive risk controls to capitalize on trending opportunities across various stocks. It employs a carefully structured approach to identify, enter, and manage trades, dynamically adjusting based on market conditions to optimize returns while managing risk.
How it works
Stock Selection
The algorithm continuously assesses stocks based on momentum scores to identify those with strong upward trends. Only top-ranked stocks meeting predefined momentum criteria are selected for potential entry.
Entry and Exit Points
Leveraging Keltner Channels and volatility-based adjustments, the algorithm identifies key entry and exit points when significant price movements occur. Each trade is monitored with an adaptive stop-loss and take-profit strategy, adjusting thresholds based on real-time volatility and price behavior.
Dynamic Risk Management
A breather mechanism is integrated to allow for minor price retracements, reducing the likelihood of premature exits. This, along with a dynamic stop-loss based on ATR, enables the algorithm to remain agile in volatile conditions while protecting gains.
Trade Lifecycle
Trades are held for a defined minimum period, allowing trends to develop fully. Positions are exited based on the stop-loss, take-profit, or the end of the holding period, facilitating effective capital rotation.
Explore the performance
The chart below showcases the cumulative returns generated by the algorithm over time. For a closer look at individual stock performance, you can select specific stocks from the chart. This interactive feature allows you to see how the algorithm adapts its approach to varying stock behaviors and market environments, providing a deeper insight into its performance dynamics.