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[PLUS] Short Term "Momentum Pinball" Trading Strategy Code & Results in Python

by CryptoDataDownload



Strategy Description
Another trading strategy detailed in the book "Street Smarts: High Probability Short-Term Trading Strategies" by Laurence A. Connors and Linda Bradford Raschke helps better define the "Taylor Trading Technique" by George Douglass Taylor. "Momentum Pinball" The Momentum Pinball strategy is a trading strategy that combines elements of momentum trading and mean reversion; and helps traders mechanically define whether or not a trading day should be a "buy day" or a "sell day". There is no long term directional significance to this indicator and is used mainly for 1-3 day flips. The strategy is best defined as a momentum strategy because it tracks the relative strength (RSI) of the change in difference of closing prices through time.

Strategy Rules and Conditions
  • Calculate the difference of the change in closing prices each day for the one period rate of change (ROC). This "momentum" is simply the difference between day 1 and day 2 closing price
  • Next calculate a 3 period RSI of this change through time
  • RSI values less than 30 indicate a "buy day"
  • RSI values greater than 70 indicate a "sell day"
  • Entries are placed slightly above the high of the 1st hour of trading of the following day, and stops placed below that first hour (you will need hourly OHLCV data to properly backtest)
  • If profitable at the close of an entry, carry the trade overnight and exit on day 3


    • The Code
    We use the same basic data loading functions as in other Plus+ members scripts in order to load the historical OHLCV data from our site into a Pandas DataFrame. Afterwards we apply the strategy logic and save a CSV file with all data and signals included called "momentumPinball_signals.csv". Of course, every line of code is commented and easily understood, so modify to fit your purpose. Less than 50 lines of total code (including comments). This code does not include entries on the day following (T+1) signal date.

    This is a premium post. Create Plus+ Account to view the live, working codebase for this article.




    Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Author does not own the any crypto currency discussed. The information and content are subject to change without notice. CryptoDataDownload and its affiliates do not provide investment, tax, legal or accounting advice.

    This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by CryptoDataDownload is not an endorsement whatsoever. CryptoDataDownload was not compensated to submit this article. Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.

    THE PERFORMANCE OF TRADING SYSTEMS IS BASED ON THE USE OF COMPUTERIZED SYSTEM LOGIC. IT IS HYPOTHETICAL. PLEASE NOTE THE FOLLOWING DISCLAIMER. CFTC RULE 4.41: HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. U.S. GOVERNMENT REQUIRED DISCLAIMER: COMMODITY FUTURES TRADING COMMISSION. FUTURES AND OPTIONS TRADING HAS LARGE POTENTIAL REWARDS, BUT ALSO LARGE POTENTIAL RISK. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES AND OPTIONS MARKETS. DON’T TRADE WITH MONEY YOU CAN’T AFFORD TO LOSE. THIS IS NEITHER A SOLICITATION NOR AN OFFER TO BUY/SELL FUTURES OR OPTIONS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED ON THIS WEBSITE. THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
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    Step into the full potential of your cryptocurrency research and market analysis with CryptoDataDownload. Access free historical data in CSV format, unlock unusual option activity signals, explore Plus+ Python code examples (where every line of code is commented), and tap premium aggregated file resources and bespoke data sets. Trusted by academics worldwide, we offer comprehensive data to empower traders, researchers, and enthusiasts alike.

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