Machine Learning + EMA Strategy

Machine Learning + EMA Strategy (kNN Algorithm)

📌 Overview

This strategy combines Exponential Moving Averages (EMA) with a Machine Learning-based k-Nearest Neighbors (kNN) algorithm to enhance trade accuracy. It dynamically adjusts entry and exit points based on market trends and historical price action.

🛠️ How It Works

✅ Uses 9 EMAs (8, 14, 20, 26, 32, 38, 44, 50, 200) to identify trends.
✅ Employs kNN (k-Nearest Neighbors) classification to predict price movement.
✅ Auto-closes previous trades before opening a new one to prevent overlap.
✅ Plots a real-time prediction indicator to visualize market conditions.

🎯 Trade Logic

🔵 Buy Signal → When EMA 8 crosses above EMA 50, and the kNN prediction is positive.
🔴 Sell Signal → When EMA 8 crosses below EMA 50, and the kNN prediction is negative.

🚀 Why Use This Strategy?

✅ Machine Learning-Powered: Uses kNN for data-driven decisions.
✅ Trend-Following & Adaptive: EMAs filter out market noise.
✅ Automatic Position Management: No overlapping trades.
✅ Customizable Parameters: Suitable for multiple asset classes.

⚠️ Disclaimer

This strategy is for educational purposes only and should be backtested before live trading. Past performance does not guarantee future results.