Simplest DeMarker Strategy Diagram
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DeMarker measures how far each candle reaches beyond the previous one, upwards against downwards, and returns a value between 0 and 1. This diagram does not buy the extreme, it buys the way back from it: a reading that climbs from below the oversold level up to it buys, a reading that falls from above the overbought level back to it sells. It uses five-minute candles, and the position guard blocks a second entry in the same direction.
Strategy Overview
- DeMarker is calculated on finished candles of a single instrument and lives entirely between 0 and 1, with 0.5 as the neutral middle.
- A previous-value block holds the reading of the candle before, so the diagram reacts to the return into the neutral zone rather than to sitting inside it.
- The current position joins both decisions: a buy is only sent while the position is not long and a sell only while it is not short.
Entry and Exit Rules
- Long entry: The previous DeMarker reading was below the oversold level, the current one is at or above it, and the position is not long. The order buys one lot, which opens a long from flat or closes an existing short.
- Short entry: The previous DeMarker reading was above the overbought level, the current one is at or below it, and the position is not short. The order sells one lot, which opens a short from flat or closes an existing long.
- Exit: There is no exit block and no protective stop: the opposite signal flattens the position, because every order carries the same volume.
Parameters
| Parameter | Default | Description |
|---|---|---|
| DeMarker Length | 14 | Averaging length of the DeMarker oscillator. |
| Oversold | 0.2 | Oversold level; returning up to it is the buy signal. |
| Overbought | 0.8 | Overbought level; returning down to it is the sell signal. |
| Volume | 1 | Order volume, in lots. |
| Candles | 00:05:00 | Five-minute candle time frame used by the whole diagram. |
Diagram Details
- The candle block feeds the indicator block with DeMarker, and the previous-value block takes the same output one candle back.
- Four comparison blocks build the two returns: the previous reading beyond a level and the current reading back at it.
- Two more comparison blocks test the position against a zero constant, and each logical AND joins three conditions into one signal.
- Both position modify blocks send market orders and take their volume from a single shared constant.
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.