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This article Xiaobian for you to introduce in detail "My language how to achieve DMI quantitative trading strategy", the content is detailed, the steps are clear, the details are handled properly, I hope that this "My language how to achieve DMI quantitative trading strategy" article can help you solve doubts, the following follow the editor's ideas slowly in-depth, together to learn new knowledge.

DMI index

The main goal of trend traders is to buy or sell assets in the trend direction. Reading direction signals only from asset prices can be difficult and often misleading because prices usually fluctuate in both directions and vary between low and high volatility.

Directional motion indicators (also known as orienteering indicators or DMI) are useful tools for evaluating price direction and intensity. It was founded in 1978 by J. Welles Wilder, who also created the popular relative strength Index (RSI). DMI is particularly useful for trend trading strategies because it distinguishes between strong and weak trends and allows traders to enter only those with real momentum trading targets. DMI applies to all time ranges and can be applied to any trading subject (stocks, mutual funds, exchange traded funds, futures, commodities, digital currencies and legal tender).

Although its calculation is a bit complex, DMI will tell you when to go long or short. Here, we will describe in detail how to analyze DMI metrics and show you what information it can reveal to help you make a better profit.

DMI trend line

DMI is the moving average of the range expansion over a given period (the default is 14 days). The positive movement indicator (+ DMI) measures the intensity of the upward movement of the price, while the negative movement indicator (- DMI) measures the intensity of the downward movement of the price. These two lines reflect the corresponding strength of cattle and bears.

Each DMI is represented by a separate line. First, see which of the two DMI lines is at the top. Some short-term traders call the top line the main DMI line. The main DMI is stronger and more likely to predict the price direction. In order for buyers and sellers to change their dominant position, the two lines must be gold or dead forks.

Crossover occurs when the DMI at the bottom passes through the main DMI at the top. Crossover seems to be a clear long / short signal, but many short-term traders will wait for other indicators to confirm entry or exit signals to increase their chances of making a profit. The crossover of DMI lines is usually unreliable because they often give error signals when volatility is low and lag signals when volatility is high. See crossover as the first sign of a potential change in direction. Coupled with the high and low prices mentioned in this strategy to assist verification, the use of DMI strategy for trading will greatly improve the success rate.

Deploy DMI strategy at high and low price in the phase of inventor quantitative platform cooperation

Strategy name: trend Index (DMI) and High and low Point Strategy

Time period: 5 minutes

Support: commodity futures, digital currency spot / futures

Main picture:

AMA1 indicator, formula: AMA1 ^ EMA (DMA (CLOSE,CQ1), 2); AMA2 metric, formula: AMA2 ^ DMA (CLOSE,CQ2), 2)

My language source code:

DIR1:=ABS (CLOSE-REF (CLOSE,N)); VIR1:=SUM (ABS (CLOSE-REF (CLOSE,1)), N); ER1:=DIR1/VIR1;CS1:=ER1* (2 / (N1x1)-2 / (N2y1)) + 2 / (N2y1); CQ1:=CS1*CS1; AMA1 ^ EMA (DMA (CLOSE,CQ1), 2); DIR2:=ABS (CLOSE-REF (CLOSE,M)); VIR2:=SUM (ABS (CLOSE-REF (CLOSE,1), M); ER2:=DIR2/VIR2 CS2:=ER2* (2 / (M _ 1)-2 / (M _ 2)) + 2 / (M _ 2)); CQ2:=CS2*CS2; AMA _ 2 ^ DMA (CLOSE,CQ2), 2); cq22:CQ2;aa:DMA (CLOSE,CQ2); BKVOL=0 AND REF (AMA1,1) AMA1,SPK After reading this, the article "how to realize the quantitative trading strategy of DMI in My language" has been introduced. If you want to master the knowledge of this article, you still need to practice and use it yourself. If you want to know more about the article, please follow the industry information channel.

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