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This article mainly introduces "how to achieve a waterfall strategy in My language". In daily operation, I believe many people have doubts about how to implement a waterfall strategy in My language. The editor consulted all kinds of materials and sorted out simple and easy-to-use operation methods. I hope it will be helpful to answer the doubts about "how to realize a waterfall strategy in My language". Next, please follow the editor to study!

Definition of waterfall line

The waterfall line is a moving average line drawn with the similarities and differences moving average (MACD) index, which is used to generate buy and sell signals in securities. The waterfall line or signal line is the nine-cycle exponential moving average (EMA) of the MACD index line used by traders to predict future price trends. Although nine-cycle EMA is the default setting for waterfall lines, traders can adjust the length of the EMA to suit their trading targets and strategies.

The significance of Waterfall Line

Waterfall lines provide technical insights into when to open long or short positions. When the waterfall line crosses or falls below the (EMA) target, traders will use it to enter and close their positions. When EMA crosses the waterfall line, a buy signal is generated indicating that the trader should buy and open the position. Conversely, if EMA falls below the waterfall line, it indicates a bearish trend and traders should go short.

Benefits of using waterfall lines

Quick response: the waterfall line helps to detect trend reversals early, making it a particularly useful tool for short-term traders. Because the waterfall line uses a nine-cycle EMA, it can respond to price changes relatively quickly. This helps to offset the lagging nature of the indicators.

Systematize transaction decisions with waterfall lines. Traders can stay in one direction until the waterfall line crosses the MACD in the opposite direction. For example, if you take a long position when EMA crosses the waterfall line, traders can only trade long positions in these positions until MACD crosses below the waterfall line. The signals generated by the waterfall line to enter and exit the market will prevent traders from making second guesses or making random decisions.

In volatile markets, waterfall lines often cross EMA and generate a lot of fake buy and sell signals. In order to avoid this situation, traders can try to add other technical indicators to support it. For example, when an EMA crosses the waterfall line, the volume index (MFI) must be oversold. For example, when using a random oscillator with a waterfall line, the trader needs to make sure that the K line crosses the D line before the MACD crosses the waterfall line.

Implement a waterfall strategy

Now that we know the basic definition and principle of waterfall line, let's implement this strategy on the inventor quantitative platform, and choose the easy-to-understand my language as the programming language. Readers can expand or improve according to the following code.

Strategy name: waterfall Line PUBU Trading Strategy

Data cycle: 15m

Support: commodity futures, digital currency

Main picture

Waterfall Line 1, Formula: PUBU1 ^ (EMA (CMagneN1) + EMA (CMagneN12) + EMA (CMagneN14)) / 3; Falls Line 2, Formula: PUBU2 ^ ^ (EMA (CMagneN2) + EMA (CMagneN22) + EMA (CMagneN24)) / 3; Falls Line 3, Formula: PUBU3 ^ (EMA (CMagneN3) + EMA (CJN32) + EMA (CMagneN34)) / 3

My language source code:

/ / Metrics PUBU1 ^ (EMA (CMagneN1) + EMA (CMagne2) + EMA (CmaeN1F4)) / 3; PUBU2 ^ (EMA (CMagneN2) + EMA (CmaeN2fu2) + EMA (CmaeN2fu4)) / 3; PUBU3 ^ (EMA (Cpenn3) + EMA (CMagneN3room2) + EMA (CJN N3room4)) / 3 + BKVOLIN0 AND BARPOS > N3 AND C > PUBU1 AND PUBU1 > PUBU2 AND PUBU2 > PUBU3,BPK;SKVOL=0 AND BARPOS > N3 AND C

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