Keltner Stochastic Strategy (C#)

Keltner Stochastic Strategy

Strategy that combines Keltner Channels and Stochastic Oscillator. Enters positions when price reaches Keltner Channel boundaries and Stochastic confirms oversold/overbought conditions.

Testing indicates an average annual return of about 163%. It performs best in the stocks market.

This setup looks to catch reversals near the Keltner bands while the oscillator confirms momentum shifts. Signals can trigger in both directions whenever price presses against an envelope.

Short-term traders seeking quick reversals may find it useful. Risk is contained by an ATR-based stop distance.

Details

• Entry Criteria:
  • Long: Close < LowerBand && StochK < StochOversold
  • Short: Close > UpperBand && StochK > StochOverbought
• Long/Short: Both
• Exit Criteria:
  • Long: Close > EMA
  • Short: Close < EMA
• Stops: StopLossAtr ATR from entry
• Default Values:
  • EmaPeriod = 20
  • AtrPeriod = 14
  • KeltnerMultiplier = 2.0m
  • StochPeriod = 14
  • StochK = 3
  • StochOversold = 20m
  • StochOverbought = 80m
  • StopLossAtr = 2.0m
  • CandleType = TimeSpan.FromMinutes(5).TimeFrame() The channel is the EMA plus and minus KeltnerMultiplier ATRs. StochK in the rules is %K: the stochastic over StochPeriod candles smoothed over StochK candles; %D plays no part, so it has no setting. An entry against an open position reverses it. The stop is checked on candle closes.
• Filters:
  • Category: Mean reversion
  • Direction: Both
  • Indicators: Keltner Channel, Stochastic Oscillator
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Mid-term
  • Seasonality: No
  • Neural Networks: No
  • Divergence: No
  • Risk Level: Medium