TEMA OBOS Strategy PakunTEMA OBOS Strategy
Overview
This strategy combines a trend-following approach using the Triple Exponential Moving Average (TEMA) with Overbought/Oversold (OBOS) indicator filtering.
By utilizing TEMA crossovers to determine trend direction and OBOS as a filter, it aims to improve entry precision.
This strategy can be applied to markets such as Forex, Stocks, and Crypto, and is particularly designed for mid-term timeframes (5-minute to 1-hour charts).
Strategy Objectives
Identify trend direction using TEMA
Use OBOS to filter out overbought/oversold conditions
Implement ATR-based dynamic risk management
Key Features
1. Trend Analysis Using TEMA
Uses crossover of short-term EMA (ema3) and long-term EMA (ema4) to determine entries.
ema4 acts as the primary trend filter.
2. Overbought/Oversold (OBOS) Filtering
Long Entry Condition: up > down (bullish trend confirmed)
Short Entry Condition: up < down (bearish trend confirmed)
Reduces unnecessary trades by filtering extreme market conditions.
3. ATR-Based Take Profit (TP) & Stop Loss (SL)
Adjustable ATR multiplier for TP/SL
Default settings:
TP = ATR × 5
SL = ATR × 2
Fully customizable risk parameters.
4. Customizable Parameters
TEMA Length (for trend calculation)
OBOS Length (for overbought/oversold detection)
Take Profit Multiplier
Stop Loss Multiplier
EMA Display (Enable/Disable TEMA lines)
Bar Color Change (Enable/Disable candle coloring)
Trading Rules
Long Entry (Buy Entry)
ema3 crosses above ema4 (Golden Cross)
OBOS indicator confirms up > down (bullish trend)
Execute a buy position
Short Entry (Sell Entry)
ema3 crosses below ema4 (Death Cross)
OBOS indicator confirms up < down (bearish trend)
Execute a sell position
Take Profit (TP)
Entry Price + (ATR × TP Multiplier) (Default: 5)
Stop Loss (SL)
Entry Price - (ATR × SL Multiplier) (Default: 2)
TP/SL settings are fully customizable to fine-tune risk management.
Risk Management Parameters
This strategy emphasizes proper position sizing and risk control to balance risk and return.
Trading Parameters & Considerations
Initial Account Balance: $7,000 (adjustable)
Base Currency: USD
Order Size: 10,000 USD
Pyramiding: 1
Trading Fees: $0.94 per trade
Long Position Margin: 50%
Short Position Margin: 50%
Total Trades (M5 Timeframe): 128
Deep Test Results (2024/11/01 - 2025/02/24)BTCUSD-5M
Total P&L：+1638.20USD
Max equity drawdown：694.78USD
Total trades：128
Profitable trades:44.53
Profit factor:1.45
These settings aim to protect capital while maintaining a balanced risk-reward approach.
Visual Support
TEMA Lines (Three EMAs)
Trend direction is indicated by color changes (Blue/Orange)
ema3 (short-term) and ema4 (long-term) crossover signals potential entries
OBOS Histogram
Green → Strong buying pressure
Red → Strong selling pressure
Blue → Possible trend reversal
Entry & Exit Markers
Blue Arrow → Long Entry Signal
Red Arrow → Short Entry Signal
Take Profit / Stop Loss levels displayed
Strategy Improvements & Uniqueness
This strategy is based on indicators developed by "l_lonthoff" and "jdmonto0", but has been significantly optimized for better entry accuracy, visual clarity, and risk management.
Enhanced Trend Identification with TEMA
Detects early trend reversals using ema3 & ema4 crossover
Reduces market noise for a smoother trend-following approach
Improved OBOS Filtering
Prevents excessive trading
Reduces unnecessary risk exposure
Dynamic Risk Management with ATR-Based TP/SL
Not a fixed value → TP/SL adjusts to market volatility
Fully customizable ATR multiplier settings
(Default: TP = ATR × 5, SL = ATR × 2)
Summary
The TEMA + OBOS Strategy is a simple yet powerful trading method that integrates trend analysis and oscillators.
TEMA for trend identification
OBOS for noise reduction & overbought/oversold filtering
ATR-based TP/SL settings for dynamic risk management
Before using this strategy, ensure thorough backtesting and demo trading to fine-tune parameters according to your trading style.
Temas
Triple EMA Distance IndicatorTriple EMA Distance Indicator
The Triple EMA Distance indicator comprises two sets of triple exponential moving averages (EMAs). One set uses the same smoothing length for all EMAs, while the other set doubles the length for the last EMA. This indicator provides visual cues based on the relationship between these EMAs and candlestick patterns.
Blue Condition:
Indicates when the fast EMA is above the slow EMA.
The distance between the two EMAs is increasing.
Candlesticks and EMAs are colored light blue.
Orange Condition:
Activates when the fast EMA is below the slow EMA.
The distance between the two EMAs is increasing.
Candlesticks and EMAs are colored orange.
Beige Condition:
Occurs when the fast EMA is below the slow EMA.
The distance between the two EMAs is decreasing.
Candlesticks and EMAs are colored beige.
Light Blue Condition:
Represents when the fast EMA is above the slow EMA.
The distance between the two EMAs is decreasing.
Candlesticks and EMAs are colored light blue.
