MA + ADX Strategy Diagram
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A trend diagram with a strength filter. The ExponentialMovingAverage says which side of the market to be on, the directional index DX says whether the move deserves a position at all, and the position is given up as soon as the close returns to the other side of the average.
Strategy Overview
- The candle close is compared against an ExponentialMovingAverage; above the average means long, below it means short.
- DirectionalIndex delivers the DX value calculated from +DM and -DM, and an entry is allowed only while DX is above the threshold.
- Entries are taken from a flat position only, and each exit closes exactly the open position, so the diagram never pyramids.
- The exit ignores trend strength: once the close is back on the other side of the average, the position goes, no matter what DX says.
Entry and Exit Rules
- Long entry: The close is above the EMA, DX is above the trend strength threshold and the position is flat. The order buys the base volume and opens a long.
- Short entry: The close is below the EMA, DX is above the trend strength threshold and the position is flat. The order sells the base volume and opens a short.
- Exit: A long is closed as soon as a candle closes below the EMA, a short as soon as a candle closes above it; the closing blocks take their volume from the open position. The diagram has no stop loss or take profit.
Parameters
| Parameter | Default | Description |
|---|---|---|
| EMA Length | 20 | Length of the ExponentialMovingAverage that sets the direction. |
| DX Length | 14 | Length of the directional index that measures trend strength. |
| Trend Strength | 25 | Value of DX above which a new position is allowed. |
| Volume | 1 | Order volume, in lots. |
| Candles | 00:05:00 | Candle time frame the whole diagram works on. |
Diagram Details
- The candle block feeds the two indicators and a converter that extracts the close price.
- Two comparison blocks place the close relative to the EMA and are reused: the same signal opens one side and closes the other.
- The position block feeds three comparisons against zero: flat guards both entries, long and short guard the two exits.
- The entry blocks work with the open-position condition and take their volume from a shared constant; the exit blocks use the close-position condition and compute the volume themselves.
Usage
Import the .json file into Designer, run it in the backtester on historical data, then adjust the parameters or the blocks themselves to fit your instrument before trading it live.