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