Best MA Pair Finder (Crossover Strategy)

16 mars

This indicator automatically identifies the optimal pair of moving averages (MAs) for a crossover strategy using all available historical data. It offers several MA options—including SMA, EMA, and TEMA—allowing users to select the desired type in the settings. The indicator supports two strategy modes: “Long Only” and “Buy & Sell”, which can be chosen via the options.

For each MA pair combination, the indicator performs a backtest and calculates the profit factor, considering only those pairs where the total number of trades meets or exceeds the user-defined "Minimum Trades" threshold. This parameter ensures that the selected optimal pair is based on a statistically meaningful sample rather than on a limited number of trades.

The results provided by this indicator are based on historical data and backtests, which may not guarantee future performance. Users should conduct their own analysis and use proper risk management before making trading decisions.

20 mars

Notes de version

Update: This update does not modify the script’s functionality. It is only an improvement of the description to provide a clearer explanation of how the indicator works, its originality, and how traders can use it effectively.

Best MA Pair Finder (Crossover Strategy)

Overview
This indicator automatically identifies the optimal pair of moving averages (MAs) for a crossover strategy by analyzing all available historical data. It performs a comprehensive backtest on multiple MA pairs and evaluates their effectiveness using the profit factor metric. The goal is to provide traders with a data-driven approach to selecting the most efficient moving average combination for trend-following strategies.

Why This Indicator?
Traditional crossover strategies rely on manually selected moving average values, which may not be optimal for all market conditions. This script enhances the process by:
- Automatically testing various MA combinations.
- Calculating the profit factor to assess performance.
- Allowing users to filter results based on a minimum number of trades for statistical significance.

How It Works
1. The script evaluates multiple **fast MA / slow MA** combinations by backtesting their crossover signals.
2. It supports three moving average types:
- SMA (Simple Moving Average)
- EMA (Exponential Moving Average)
- TEMA (Triple Exponential Moving Average)
3. The strategy can operate in two modes:
- "Long Only" (Only considers long trades)
- "Buy & Sell" (Includes both long and short trades)
4. Each combination is assessed based on:
- Total number of trades (ensuring a meaningful statistical sample).
- Profit factor (a measure of profitability by comparing total gains to total losses).
5. The optimal MA pair is displayed based on the highest profit factor while meeting the minimum trade requirement set by the user.

Customization Options
- **MA Type:** Select between SMA, EMA, and TEMA.
- **Strategy Type:** Choose between "Long Only" or "Buy & Sell."
- **Minimum Trades Threshold:** Ensures results are based on a statistically significant sample size.

How to Use It
1. Adjust the settings in the input panel to match your trading style.
2. The script will automatically analyze all possible combinations and display:
- The best-performing **fast and slow MA pair**.
- The **total number of trades** executed for that pair.
- The **profit factor** calculated from the backtest.
3. Use the results to refine your trading strategy by applying the identified moving averages to your trading setup.

Ideal For Traders Who:
- Want to optimize their moving average crossover strategy.
- Need a **data-driven approach** instead of manually selecting MA values.
- Trade using **trend-following or mean-reversion strategies**.
- Prefer **statistically backed** decision-making in trading.

Important Considerations
- The backtest is based on historical price action and does not guarantee future results.
- Market conditions change, so regular re-evaluation of the optimal MA pair is recommended.
- Proper risk management should always be used when implementing any trading strategy.

Final Thoughts
This indicator simplifies the process of **finding the best moving average pair** for crossover strategies by performing automated backtests on multiple combinations. It helps traders make more **informed** decisions based on **statistical performance metrics**, reducing guesswork in strategy development.