Overview
This strategy is a quantitative trading system that combines the G-Channel and the Exponential Moving Average (EMA). The core of the strategy is to capture the market trend direction through the G-Channel, and use EMA for signal confirmation and risk control, so as to obtain profits in the two-way fluctuations of the market. The strategy adopts a fully automated trading mode and does not require manual intervention.

Strategy Principle
The strategy operates based on two core indicators: G-channel and EMA. G-channel identifies price trends by dynamically calculating upper and lower tracks, and sends out trading signals when prices break through the channel. Specifically, the strategy uses a 100-period G-channel calculation, and continuously updates the upper and lower boundaries of the channel through mathematical formulas. At the same time, the strategy introduces a 50-period EMA as a secondary confirmation, and only executes a transaction when the relative position of the price and EMA meets expectations. The buying condition is that the G-channel sends a long signal and the closing price is below the EMA, and the selling condition is that the G-channel sends a short signal and the closing price is above the EMA.

Strategy Advantages

1. Combined with trend tracking and mean reversion features, it can maintain stable performance in different market environments
2. Using EMA as auxiliary confirmation effectively reduces the risk of false breakthroughs
3. Use fully automated transactions to avoid human emotional interference
4. The calculation logic is simple and clear, easy to understand and maintain
5. Parameters are highly adjustable to adapt to different market characteristics

Strategy Risks

1. Frequent trading may occur in volatile markets, increasing transaction costs
2. Improper setting of G channel parameters may cause signal lag
3. Improper selection of EMA period may miss important trend turning points
4. When the market fluctuates violently, a large retracement may occur . Countermeasures: a). Introducing a stop-loss mechanism to control risk; b). Optimize parameter configuration to improve system stability; c). Add market environment filtering mechanism; d). Set up a reasonable position management strategy.

Strategy Optimization Direction

1. Introduce volatility indicators, adjust strategy parameters or suspend trading in a high volatility environment
2. Add volume analysis to improve signal reliability
3. Added trend strength filter to avoid frequent trading in weak trending markets
4. Optimize EMA parameter adaptive mechanism to improve system adaptability
5. Build a multi-time period signal confirmation mechanism to improve trading stability

Summary
This strategy builds a robust quantitative trading system by combining the two technical indicators of G channel and EMA. The strategy has clear logic, simple implementation and good scalability. Through reasonable parameter optimization and risk control measures, this strategy is expected to achieve stable returns in real trading. It is recommended to carry out targeted optimization in combination with market characteristics when applying it in real trading, and strictly implement the risk management system.

Strategy source code

/*backtest
start: 2019-12-23 08:00:00
end: 2024-12-18 08:00:00
period: 1d
basePeriod: 1d
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

// This Pine Script™ code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © stanleygao01


//@version=5
strategy('G-Channel with EMA Strategy', overlay=true)

// G-Channel parameters
length = input(100, title='G-Channel Length')
src = input(close, title='Source')

a = 0.0
b = 0.0
a := math.max(src, nz(a[1])) - nz(a[1] - b[1]) / length
b := math.min(src, nz(b[1])) + nz(a[1] - b[1]) / length
avg = math.avg(a, b)

crossup = b[1] < close[1] and b > close
crossdn = a[1] < close[1] and a > close
bullish = ta.barssince(crossdn) <= ta.barssince(crossup)

// EMA parameters
emaLength = input(50, title='EMA Length')
ema = ta.ema(close, emaLength)

// Buy and Sell Conditions
buyCondition = bullish and close < ema
sellCondition = not bullish and close > ema

// Plot G-Channel
c = bullish ? color.lime : color.red
p1 = plot(avg, title='Average', color=c, linewidth=1, transp=90)
p2 = plot(close, title='Close Price', color=c, linewidth=1, transp=100)
fill(p1, p2, color=c, transp=90)

// Plot EMA
plot(ema, title='EMA', color=color.new(color.blue, 0), linewidth=2)

// Strategy Entries and Exits
if buyCondition
    strategy.entry('Buy', strategy.long)
if sellCondition
    strategy.close('Buy')

// Plot Buy/Sell Labels
plotshape(buyCondition, title='Buy Signal', location=location.belowbar, color=color.new(color.lime, 0), style=shape.labelup, text='Buy')
plotshape(sellCondition, title='Sell Signal', location=location.abovebar, color=color.new(color.red, 0), style=shape.labeldown, text='Sell')

Strategy parameters

The original address: https://www.fmz.com/strategy/475598