This is the strategy script relating to the already-published MA-SS Indicator Study.
Backtest properties for the strategy tester results shown below are; - 10k initial capital - 50% of equity - 0.0075% commission - zero values on everything else
The MA-SS Indicator is a simple yet effective indicator using a combination of EMAs and SSL channel, utilising higher time frame data to help confirm trend/ price direction.
How does it work?
The Indicator consists of; - 3 x EMAs – The 3rd EMA being a filter EMA - Multi Time Frame EMA (This is an additional filter EMA which can be switched on and off) - Multi Time Frame SSL Channel (This acts as a filter and can also be switched on and off)
The concept initially began as a simple EMA crossing indicator, but adding an MTF EMA plus a MTF SSL channel for additional filtering, helped to give a better indication of trend and ultimately filter out several bad trades.
- EXAMPLE: If price is …
o below the MTF EMA filter o The MTF SSL Channel is red o White and blue EMAs cross below the yellow (filter) EMA in the red SSL channel > …a short is fired! - (Opposite scenario for longs)
- Your stop loss would ideally be the top/ bottom of the SSL channel (either the MTF SSL channel or a standard SSL channel added manually to the chart), or, go for a clear pivot point or support/ resistance level.
- Take profit is yours to decide but I opt for a 1:1.5 risk/reward ratio. You could also use the MTF SSL channel to gauge when you should exit your trade (i.e. if you're in a long, wait for the SSL channel to flip red).