OPEN-SOURCE SCRIPT
Modulo Logic + EMA Strat
To understand this strategy first we need to look into the Modulo (%) operator. The modulo returns the remainder numerator
of a division's quotient (the result). If we do 5 / 3, we get 1 and 2/3 as a result, where the remainder is 2 (two thirds, in this case). This can be
used for many things, for example to determine when a number divides evenly into another number. If we divide 3/3, our result is 1,
with no remainder numerator, hence our modulo result is 0. In this strategy, we compare a given number (divisor, user defined) with the
the closing price of every candle (dividend, user defined) to determine if the result between their division is an even number.
If the answer is true, we have an entry signal. If this signal occurs below the EMA (length is defined by the user) we go short and
viceversa for longs. This logic can be reversed. In this case, the modulo works as a random-like filter for a moving average strategy
that usually struggles when the market is ranging and crosses are too often.
of a division's quotient (the result). If we do 5 / 3, we get 1 and 2/3 as a result, where the remainder is 2 (two thirds, in this case). This can be
used for many things, for example to determine when a number divides evenly into another number. If we divide 3/3, our result is 1,
with no remainder numerator, hence our modulo result is 0. In this strategy, we compare a given number (divisor, user defined) with the
the closing price of every candle (dividend, user defined) to determine if the result between their division is an even number.
If the answer is true, we have an entry signal. If this signal occurs below the EMA (length is defined by the user) we go short and
viceversa for longs. This logic can be reversed. In this case, the modulo works as a random-like filter for a moving average strategy
that usually struggles when the market is ranging and crosses are too often.
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.
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