#trading #strategy #technicalanalysis #investing ![[Pasted image 20230328185431.png]] # Rules Basic idea taken from: <https://www.quantifiedstrategies.com/alexander-elder-triple-screen-strategy/> 1. The close must be higher than the close 250 days ago (the long-term trend filter). 2. The close must be higher than the close 22 days ago (the intermediate trend filter). 3. The close today must be a three-day low (of the close). 4. If 1-3 are true, then go long at the close. 5. We sell at the close when the close is higher than yesterday’s close. ```js //@version=5 strategy("Trend Filter Strategy", overlay=true) // Calculate the required indicators tide = ta.sma(close, 250) long_term_filter = close > tide wave = ta.sma(close, 22) intermediate_filter = close > wave ripple = ta.lowest(low, 3) three_day_low = low == ripple // Define the entry and exit conditions enter_long = long_term_filter and intermediate_filter and three_day_low exit_long = close > close[1] plot(tide, title="tide", color=color.olive, linewidth=2) plot(wave, title="wave", color=color.green, linewidth=2) plot(ripple, title="ripple", color=color.purple, linewidth=2) // Submit the long order if the entry condition is true if enter_long strategy.entry("Long", strategy.long, comment="buy") // Exit the long position if the exit condition is true if strategy.position_size > 0 and exit_long strategy.close("Long", comment = "sell") ```