Implementation and application of the inventor quantified platform in the fall line trading strategy

Definition of the waterfall line

A fall line is a moving average drawn with an asymmetric moving average (MACD) indicator, used to generate buy and sell signals in a security. A fall line or signal line is a nine-period EMA indicator moving average of the MACD indicator line used by traders to predict future price trends. Although the nine-period EMA is the default setting of the fall line, traders can adjust the length of the EMA to suit their trading indicator and strategy.

The meaning of the waterfall line

The fall line provides technical insight into when to enter a multi-head or blank position. When the fall line is above or below the EMA indicator, traders enter a peace position. When the EMA crosses the fall line, a buy signal is generated that indicates that the trader should buy the open position. Conversely, if the EMA breaks the fall line, it indicates a bearish trend, and the trader should do a short.

The Benefits of Waterfall Wire

Rapid response: The cascade helps to detect trend reversals at an early stage, which makes it a particularly useful tool for short-term traders. Since the cascade uses a nine-cycle EMA, it can respond relatively quickly to price changes. This helps to offset the lagging nature of the indicator.

Using the cascade systematizes trading decisions. Traders can stay in one direction until the cascade crosses the MACD in the opposite direction. For example, if a trader holds multiple positions when the EMA crosses the cascade, the trader can only make multiple trades at these positions until the MACD crosses below the cascade. Signals generated by the cascade to enter and exit the market prevent traders from second guessing or making random decisions.

In a volatile market, the cascade often crosses the EMA and produces many false sell signals. To avoid this, traders can try to add other technical indicators to prove it. For example, when the EMA crosses the cascade, the MFI must be asked to oversell.

Implementing a waterfall strategy

Now that we know the basic definition and principles of cascade, let's implement this strategy on the inventor quantification platform, programming language or choose a simple and easy to understand My language. Readers can expand or improve according to the following code.

• The name of the strategy: PUBU trading strategy on the waterfall
• Data cycle: 15M
• Supported by: Commodity Futures, Digital Currency

• Main chart

瀑布线1，公式：PUBU1^^(EMA(C,N1)+EMA(C,N12)+EMA(C,N14))/3;
瀑布线2，公式：PUBU2^^(EMA(C,N2)+EMA(C,N22)+EMA(C,N24))/3;
瀑布线3，公式：PUBU3^^(EMA(C,N3)+EMA(C,N32)+EMA(C,N34))/3;

My language source code:

// 指标
PUBU1^^(EMA(C,N1)+EMA(C,N1*2)+EMA(C,N1*4))/3;
PUBU2^^(EMA(C,N2)+EMA(C,N2*2)+EMA(C,N2*4))/3;
PUBU3^^(EMA(C,N3)+EMA(C,N3*2)+EMA(C,N3*4))/3;

BKVOL=0 AND BARPOS>N3 AND C>PUBU1 AND PUBU1>PUBU2 AND PUBU2>PUBU3,BPK;
SKVOL=0 AND BARPOS>N3 AND C<PUBU1 AND PUBU1<PUBU2 AND PUBU2<PUBU3,SPK;

C<PUBU3,SP(BKVOL);
C>PUBU3,BP(SKVOL);
C<PUBU2 AND PUBU1<PUBU2 AND C>BKPRICE,SP(BKVOL);
C>PUBU2 AND PUBU1>PUBU2 AND C<SKPRICE,BP(SKVOL);
AUTOFILTER;

For the source code of the policy, please see:https://www.fmz.com/strategy/128420