Empowering wise traders

The article by Rombout Kerstens in this issue, "Combining DMI and Moving Average for a EUR/USD trading system", has demonstrated how the combination of the moving average (MA) and the directional movement index (DMI) can limit the number of trades while delivering better results per trade.

Using Strategy Builder, you can create the strategy for the described method.

Here is the Tradecision code for the strategy:

Long:

Var

 ParamMA:=30;

 ParamDMI:=14;

 DMILong:=false;

 DMIShort:=false;

 MALong:=false;

 MAShort:=false;

 vDMIMinus:=0;

 vDMIPlus:=0;

 MA:=0;

 End_var

 

 vDMIMinus := DMIMinus(ParamDMI);

 vDMIPlus := DMIPlus(ParamDMI);

 MA := SMA(Close,ParamMA);

 

 if HISTORYSIZE > ParamMA then

    begin

         if CrossAbove(vDMIPlus,vDMIMinus)

         then

              begin

              DMILong := true;

              DMIShort := false;

              end;

         if CrossBelow(vDMIPlus,vDMIMinus)

         then

             begin

             DMILong := false;

             DMIShort := true;

             end;

         if CrossAbove(Close,MA)

         then

             begin

             MALong := true;

             MAShort := false;

             end;

         if CrossBelow(Close,MA)

         then

             begin

             MALong := false;

             MAShort := true;

             end;

 

 If dmilong = true and malong = true then

 return true;

end;

return false;

 

Short:

Var

 ParamMA:=30;

 ParamDMI:=14;

 DMILong:=false;

 DMIShort:=false;

 MALong:=false;

 MAShort:=false;

 vDMIMinus:=0;

 vDMIPlus:=0;

 MA:=0;

 End_var

 

 vDMIMinus := DMIMinus(ParamDMI);

 vDMIPlus := DMIPlus(ParamDMI);

 MA := SMA(Close,ParamMA);

 

 if HISTORYSIZE > ParamMA then

    begin

         if CrossAbove(vDMIPlus,vDMIMinus)

         then

              begin

              DMILong := true;

              DMIShort := false;

              end;

         if CrossBelow(vDMIPlus,vDMIMinus)

         then

             begin

             DMILong := false;

             DMIShort := true;

             end;

         if CrossAbove(Close,MA)

         then

             begin

             MALong := true;

             MAShort := false;

             end;

         if CrossBelow(Close,MA)

         then

             begin

             MALong := false;

             MAShort := true;

             end;

 

 If dmishort = true and mashort = true then

 return true;

end;

return false;