Coppock Curve and Parabolic SAR trading strategy
Strategy template description
The strategy enters long when a bullish trend is identified by an ascending Coppock Curve and Parabolic SAR crosses below the Close Price.
The strategy exits when the Parabolic SAR goes above the Close Price.
Step 1: Login and click on Create Strategy
Once logged in to the Vestinda app, click Create Strategy from the left menu.
Step 2: Use a strategy Template
Click on Use a Strategy Template from the overlay.
Find the template in the list and click on "Use this Template" button
Template name inside Vestinda app is " Template Coppock Curve Parabolic SAR". You can find it in the Templates page from here: https://app.vestinda.com/templates
✅ Everyone has access to templates. You can use it to create trading strategies without coding skills and jump-start learning.
Step 3: Learn how the strategy works
Once you reach the template page, you have the entire strategy code ready to be used.
You can see the parameters for each indicator, but also modify the timeframe and all parameters.
Step 4: Backtest strategy or Demo Trade
Before any execution, backtesting the strategy is the best place to start from. You can do it on thousands of assets and many years of historical data.
This is helping you learn how to use these indicators, in what market conditions they work best, and what assets to trade using this strategy and indicators. Read more about Backtesting.
Demo Trading is another way to simulate the strategy without risking real money. This allows you to start using the strategy on the market moving forward on any available asset. Read more about Demo Trading.
Step 5: Results
This is the result of backtesting this template on BTCUSDT over a 7 month period from Aug 2022 to Feb 2023.
With a simple strategy like this, we got an outcome that returned better than the benchmark. Profitability is not great, but adding more filters to the entries can help.
Once you're confident enough, you can start Real Trading.
Indicators in the strategy
Coppock Curve
The Coppock Curve is a technical analysis indicator that is used to identify long-term buying opportunities in the stock market. It was created by economist Edwin Coppock in 1965 and is based on the idea that stock market bottoms are characterized by a period of emotional exhaustion followed by a period of quiet accumulation.
The Coppock Curve is calculated by adding a 10-month weighted moving average of the sum of the 14-month rate of change and the 11-month rate of change. The resulting value is then plotted on a chart with the zero line acting as a buy signal.
When the Coppock Curve crosses above the zero line, it is considered a buy signal, indicating that the stock market has bottomed out and is poised for a long-term rally. The Coppock Curve is a lagging indicator, meaning that it is slow to respond to changes in market conditions, but it is highly regarded by some technical analysts for its ability to identify major market bottoms.
Parabolic SAR
Parabolic SAR (Stop and Reverse) is a technical analysis indicator used to determine the direction of an asset's trend and to set stop-loss orders. The Parabolic SAR indicator is represented by a series of dots that appear above or below the price of an asset.
When the dots are below the price, they are indicating a bullish trend, while dots above the price indicate a bearish trend. The dots move closer to the price over time, and if the price crosses the dots, it can be considered a potential trend reversal signal.
The Parabolic SAR is often used in conjunction with other technical analysis indicators to confirm trends and identify entry and exit points for trades. It is a versatile indicator that can be applied to a variety of financial markets, including stocks, commodities, and forex.
Congrats! 🎉
This template is inspired by the following video: