26 lines
1.0 KiB
Markdown
26 lines
1.0 KiB
Markdown
# Engulfing
|
|
|
|
A simple swing trading strategy based on the engulfing candle pattern.
|
|
|
|
Very similar to the [Bearish Engulfing strategy](https://moshferatu.dev/moshferatu/ninjatrader/src/branch/main/strategies/bearish-engulfing).
|
|
|
|
## Rules
|
|
|
|
1. Define an engulfing candle as one where the high is higher than the previous candle's high and the close is lower than the previous candle's low.
|
|
2. If the asset (e.g., SPY) is above its 200-day moving average, enter a long trade.
|
|
3. If below the 200-day moving average, enter a short trade.
|
|
4. Exit the trade following any close in profit or when the close is higher than the previous high (for longs) or lower than the previous low (for shorts).
|
|
|
|
## Parameters
|
|
|
|
**Long-Term Trend Period**: The period of the long-term trend as measured using a simple moving average. (Default: 200)
|
|
|
|
## Backtest Results
|
|
|
|
### SPY
|
|
|
|
|
|
|
|
|
|
|
|
--- |