Grid Trading with Moving Average [PUCHON]

Grid Trading with Moving Average [PUCHON]

This strategy enhances the classic Grid Trading approach by incorporating a Moving Average (MA) filter to reduce drawdown and trade in the direction of the trend.

Key Features:

• Moving Average Filter: The strategy uses a Moving Average (SMA or EMA) to determine the trend direction.
  Trend Following: Buy orders are only placed when the price is above the Moving Average.
  Drawdown Reduction: If the price falls below the Moving Average, the strategy stops placing new buy orders and cancels any pending orders below the MA line. This prevents buying into a strong downtrend.
  
• Dynamic Visualization: The Moving Average line changes color based on the trend: Green when bullish (Body Middle > MA) and Red when bearish (Body Middle < MA).
  A background fill indicates the trend zone: Green for uptrend and Red for downtrend.
  
• Grid Trading Logic: Places a grid of Buy Limit orders at defined levels. Each order has a Take Profit at the next grid level up.
  
• Performance Dashboard: A real-time dashboard displays key metrics such as Initial Capital, Avg. Profit per Grid, Cashflow, Max Drawdown, Avg Monthly Return, and CAGR.
  

Settings:

• Grid Settings: Configure Upper Price, Lower Price, Number of Grid Lines, and Grid Type (Arithmetic/Geometric).
  
• Moving Average Filter: Enable/Disable the filter, choose MA Type (SMA/EMA), Length, and Source.
  
• Dashboard Settings: Toggle visibility and adjust the position of the dashboard.
  

How it Works:

The strategy continuously monitors the price relative to the Moving Average. When the price is in a "Safe Zone" (above MA), it actively trades the grid. When the price enters the "Danger Zone" (below MA), it pauses buying to protect capital, effectively using the MA as a dynamic risk management tool.