OPEN-SOURCE SCRIPT

ADX | DMI Trend Strategy

Updated

This strategy takes the ADX Indicator I wrote and applies it to a strategy for back testing purposes.

I've also applied a date filter so you can back test specific date ranges and a moving average filter so you can choose whether to filter your longs/shorts based on a moving average.

Release Notes

Added a checkbox option to disable short trades if a long-only strategy is desired and cleaned up the code a bit.

Release Notes

Added the ability to filter the signals based on volume compared to average volume. The theory is that you'd only take trades that had abnormal volume. You can turn this on or off with a checkbox to see the results.

Release Notes

Added the ability to select different kinds of volume filtering. The current bar's volume must be greater than
1) Average Volume * some user defined multiplier (use this if you want to track above average volume as a filter)
2) Manually input level for volume (use this if you want to wait for a specific volume threshold)
3) The greater of the manual level AND the average volume * multiplier

Release Notes

Added the ability to set a protective stop based on a trailing ATR.

Release Notes

For manual volume input, set increments to 1000.

Release Notes

Added alerts for Long, Short, and Sell/Cover (when ADX starts turning down).

Release Notes

Updates to add parity to the ADX Study in terms of adding separate lookback periods for entry and exit for the slope of the ADX.
Added Parabolic SAR as an alternate exit signal. If you select both ATR and SAR as an exit option, it will pick whichever comes first.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

Want to use this script on a chart?

millerrh

Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.