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3 Down, 3 Up Strategy

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█ STRATEGY DESCRIPTION
The "3 Down, 3 Up Strategy" is a mean-reversion strategy designed to capitalize on short-term price reversals. It enters a long position after consecutive bearish closes and exits after consecutive bullish closes. This strategy is NOT optimized and can be used on any timeframes.

█ WHAT ARE CONSECUTIVE DOWN/UP CLOSES?
- Consecutive Down Closes: A sequence of trading bars where each close is lower than the previous close.
- Consecutive Up Closes: A sequence of trading bars where each close is higher than the previous close.

█ SIGNAL GENERATION
1. LONG ENTRY
A Buy Signal is triggered when:
  • The price closes lower than the previous close for Consecutive Down Closes for Entry (default: 3) consecutive bars.
  • The signal occurs within the specified time window (between Start Time and End Time).
  • If enabled, the close price must also be above the 200-period EMA (Exponential Moving Average).


2. EXIT CONDITION
  • A Sell Signal is generated when the price closes higher than the previous close for Consecutive Up Closes for Exit (default: 3) consecutive bars.


█ ADDITIONAL SETTINGS
  • Consecutive Down Closes for Entry: Number of consecutive lower closes required to trigger a buy. Default = 3.
  • Consecutive Up Closes for Exit: Number of consecutive higher closes required to exit. Default = 3.
  • EMA Filter: Optional 200-period EMA filter to confirm long entries in bullish trends. Default = disabled.
  • Start Time and End Time: Restrict trading to specific dates (default: 2014-2099).


█ PERFORMANCE OVERVIEW
  • Designed for volatile markets with frequent short-term reversals.
  • Performs best when price oscillates between clear support/resistance levels.
  • The EMA filter improves reliability in trending markets but may reduce trade frequency.
  • Backtest to optimize consecutive close thresholds and EMA period for specific instruments.

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