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Guppy Multiple MA strategy

Are you a long term investor in DAX40 and want to overperform a buy&hold strategy with 30% and have the chance to do something else with your money 50% of the time? Then you should take a look at this strategy.


Let's start with what the GMMA indicator is

The Guppy Multiple Moving Average (GMMA) is a technical indicator that aims to anticipate a potential breakout in the price of an asset.


  • The GMMA consists of a short-term group of MAs and a long-term group of MAs, both containing six MAs, for a total of 12, and is overlaid on the price chart of an asset.

  • The short-term MAs are typically set at 3, 5, 8, 10, 12, and 15 periods. The longer-term MAs are typically set at 30, 35, 40, 45, 50, and 60.

  • When the short-term group of averages moves above the longer-term group, it indicates a price uptrend in the asset could be emerging.

  • Conversely, when the short-term group falls below the longer-term group of MAs, a price downtrend in the asset could be starting.


And how do we use it? The trading rules are simple:


Entry conditions

  • ema7 < ema8 and ema8 < ema9 and ema9 < ema10 and ema10 < ema11 and ema11 < ema12

  • Todays bar closes in the upper 90% of todays trading range

  • Enter at next days open


Exit condition

  • (ema1 > ema2 and ema2 > ema3 and ema3 > ema4 and ema4 > ema5 and ema5 > ema6) AND colfastS = (ema1 < ema2 and ema2 < ema3 and ema3 < ema4 and ema4 < ema5 and ema5 < ema6)



The ProRealTime™ code

defparam CUMULATEORDERS = false

src = customclose
//Fast EMA
ema1 = average[3,1](src)
ema2 = average[5,1](src)
ema3 = average[8,1](src)
ema4 = average[10,1](src)
ema5 = average[12,1](src)
ema6 = average[15,1](src)
//Slow EMA
ema7 = average[30,1](src)
ema8 = average[35,1](src)
ema9 = average[40,1](src)
ema10 = average[45,1](src)
ema11 = average[50,1](src)
ema12 = average[60,1](src)

//Fast EMA Color Rules
colfastL = (ema1 > ema2 and ema2 > ema3 and ema3 > ema4 and ema4 > ema5 and ema5 > ema6)
colfastS = (ema1 < ema2 and ema2 < ema3 and ema3 < ema4 and ema4 < ema5 and ema5 < ema6)
//Slow EMA Color Rules
colslowL = ema7 > ema8 and ema8 > ema9 and ema9 > ema10 and ema10 > ema11 and ema11 > ema12
colslowS = ema7 < ema8 and ema8 < ema9 and ema9 < ema10 and ema10 < ema11 and ema11 < ema12

STO =  (Close - Low) / (High - Low) * 100

if colfastS and colslowS then
sell at market
endif

if colslowS and STO > 90 then
buy 1 contract at market
endif

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