Strategy Tester Sample Strategy (Python)

This example illustrates how momentum and trend strength can be combined to form a basic discretionary system. A linear regression slope measures short term momentum while the Average Directional Index gauges the persistence of a move. Two independent rules trigger entries: a momentum pivot accompanied by a drop in ADX, or a new ADX high with momentum turning up from negative values. The strategy is intentionally simple and focuses on long positions. It is meant as a template for testing ideas such as ATR‑based risk levels and optional exit controls. Developers can expand the exit logic or add stop‑loss handling to turn it into a full trading model.

• Entry Criteria:

• Momentum pivot high and ADX declining.

• ADX pivot high with momentum rising from below zero. []Long/Short: Long only by default. []Exit Criteria:

• Momentum pivot high (if momentum exit is enabled).

• Custom strategy exit placeholder. []Stops: None; ATR values are available for external use. []Default Values:

• Momentum length = 20, DI length = 14.

• ADX key level = 25, ATR length = 14. [*]Filters:

• Category: Momentum

• Direction: Long

• Indicators: Linear Regression, ADX, ATR

• Stops: No

• Complexity: Low

• Timeframe: Short/medium

• Seasonality: No

• Neural networks: No

• Divergence: Yes (momentum pivots)

• Risk level: Medium