Open Close Cross Strategy R5 revised by JustUncleL

The Open Close Cross Strategy R5 indicator provides a versatile trading framework based on moving average crossovers of open and close price series, often utilizing higher timeframes to filter noise. It is designed to capture trend momentum while offering extensive customization through various moving average types and risk management settings.

Usage

The Usage section focuses on identifying trend shifts through the interaction of open and close price ribbons. When the calculated close series crosses above the open series, a bullish signal is generated; conversely, a cross under indicates a bearish shift.

• Higher Timeframe Analysis: Users can apply an "Alternate Resolution" multiplier (typically 3x to 5x the base chart) to smooth out price action. This allows the strategy to enter trades based on broader trend confirmation while remaining on a lower timeframe for execution.
• Trend Filtering: Selecting smoothed moving averages like SMMA or SSMA can help reduce false positives in choppy markets.
• Trade Execution: The script allows for Long-only, Short-only, or Bi-directional trading. It includes built-in Stop Loss and Target Profit inputs to automate exit logic.
• Visual Aids: Optional bar coloring provides immediate visual feedback on the current trend status relative to the crossover logic.

Details

The strategy calculates two distinct series based on a selected moving average type: one for the "Open" and one for the "Close." The core logic relies on the relationship between these two smoothed lines.

• Multi-Resolution Handling: The script uses a multiplier approach to determine the alternate resolution (e.g., if on a 15m chart with a 3x multiplier, the logic calculates based on a 45m timeframe). This ensures compatibility across daily, weekly, and monthly intervals.
• Moving Average Library: The tool integrates 12 different MA types, including SMA, EMA, DEMA, TEMA, WMA, VWMA, SMMA, HullMA, LSMA, ALMA, SSMA, and TMA.
• Non-Repainting Design: By utilizing calc_on_every_tick=false and optional delay offsets, the strategy aims to provide consistency between backtesting results and real-time execution.
• Backtesting Constraints: Users can limit the historical scope of the strategy using the "Number of Bars" setting to prevent "too many trades" errors on deep historical data.

Settings

General Settings

• Use Alternate Resolution?: Toggles the use of a higher timeframe for the crossover logic.
• Multiplier for Alternate Resolution: Sets the scale for the higher timeframe relative to the current chart.
• MA Type: Determines the mathematical smoothing method used for the open and close series.
• MA Period: The lookback length for the selected moving averages.
• Offset for LSMA / Sigma for ALMA: Specific parameters used only when LSMA or ALMA is selected.
• Offset for ALMA: Adjusts the ALMA distribution curve.
• Show coloured Bars: Enables or disables trend-based bar coloring on the chart.
• Delay Open/Close MA: Shifts the calculation to help ensure signals do not repaint.
• What trades should be taken: Filters entries to Long, Short, Both, or None.

Risk Management

• Initial Stop Loss Points: Sets a fixed point-based stop loss; set to zero to disable.
• Initial Target Profit Points: Sets a fixed point-based take profit; set to zero to disable.

Backtesting

• Number of Bars for Back Testing: Limits the strategy execution to a specific number of historical bars.

FAQ

How do I reduce false signals in a sideways market?
Using a higher resolution multiplier (e.g., 4 or 5) and selecting a smoothed moving average type like SMMA or SSMA can help filter out minor price fluctuations.

Why are no trades appearing on my chart?
Ensure the "What trades should be taken" setting is not set to "NONE" and check that your "Number of Bars for Back Testing" is high enough to cover the visible chart area.

How can I access the Open Close Cross Strategy R5?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.