SigmaTrend Prime | QuantEdgeB

3月10日

Introducing SigmaTrend Prime (STP) by QuantEdgeB

🛠️ Overview
SigmaTrend Prime (STP) is an advanced trend-following indicator that combines double exponential moving averages (DEMA) with a volatility-adjusted SuperTrend framework.
Unlike traditional ATR-based SuperTrends, STP dynamically adjusts trend thresholds using a standard deviation filter derived from price percentiles. This ensures that the trend signals remain highly adaptive, filtering out short-term noise while maintaining robustness across different market conditions.
By leveraging a DEMA core, STP minimizes lag while preserving strong trend identification, making it a powerful tool for traders looking to capture directional moves with enhanced precision.
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✨ Key Features
🔹 DEMA-Driven Trend Filtering
SigmaTrend Prime minimizes lag and enhances responsiveness using a double exponential moving average (DEMA) core.
🔹 Volatility-Adaptive SuperTrend
STP applies a percentile-based price smoothing technique, ensuring that the trend filter dynamically adjusts to market conditions.
🔹 Standard Deviation (SD) Filtering for Noise Reduction
By applying a rolling standard deviation derived from smoothed price action, STP eliminates false breakouts and enhances trend clarity.
🔹 Customizable Visual & Signal Settings
Includes multiple color modes, backtest metrics, and signal labels, making it highly adaptable for different trading styles.

📊 How It Works
1️⃣ DEMA-Based Trend Smoothing
SigmaTrend Prime uses DEMA (Double Exponential Moving Average) as its trend foundation, offering a smoother and more responsive trend structure:
🔹 Why DEMA?
✔ Minimizes lag compared to standard EMA.
✔ Maintains trend sensitivity while reducing market noise.
✔ Stronger confirmation of directional moves in volatile environments.

2️⃣ Adaptive Volatility Filtering with Standard Deviation (SD)
Unlike conventional SuperTrend indicators that rely on ATR for trend filtering, SigmaTrend Prime applies an SD-based smoothing mechanism.
📌 How it Works?
✔ Price Percentile Calculation → Uses percentile price ranking for better trend representation.
✔ Rolling Standard Deviation Calculation → Applies a volatility-adjusted filter to prevent false signals.
✔ Dynamic Trend Band Expansion → Factors (Factor1 & Factor2) multipliers to adjust trend sensitivity based on current price behavior.
🔹 Why SD-Based Filtering?
✔ More adaptive to different volatility regimes.
✔ Improves trend accuracy in both trending and ranging markets.
✔ Avoids excessive whipsaws common with ATR-based models.

3️⃣ Signal Generation & Trend Confirmation
SigmaTrend Prime detects trend shifts based on SD-filtered breakouts:
✅ Long Signal → Triggered when price crosses above the SuperTrend upper band.
❌ Short Signal → Triggered when price crosses below the SuperTrend lower band.

📌 Additional Features:
✔ Adaptive Signal Labels → Shows "Long" or "Short" trade signals dynamically.
✔ Trend-Following Mode → Stays in position until a confirmed reversal signal occurs.
✔ Customizable Sensitivity → Traders can adjust Factor1 & Factor2 multipliers and other settings to refine signal responsiveness.

👥 Who Should Use It?
✅ Trend Traders & Momentum Followers → Identify strong directional trends with greater accuracy.
✅ Swing & Position Traders → Gain precise trend confirmation signals for optimized entries/exits.
✅ Volatility-Aware Traders → Benefit from adaptive trend filtering based on real-time market conditions.
✅ Systematic & Quant Traders → Implement STP within automated trading systems for improved trend detection.

⚙️ Customization & Default Settings
🔧 Key Custom Inputs:
• DEMA Source (Default: HLC3) → Defines the price input for DEMA calculations.
• DEMA Length (Default: 30) → Controls the smoothing period for trend calculation.
• Percentile SD Length (Default: 10) → Determines historical percentile ranking for volatility
assessment.
• Volatility SD Length (Default: 30) → Defines rolling SD length for dynamic filtering.
• Trend Sensitivity Factors:
🔹 Factor1 (Default: 25) → Adjusts lower SD band responsiveness.
🔹 Factor2 (Default: 40) → Controls upper SD band expansion.
• Visual Customizations → Multiple color modes, backtest metrics, and trend labels available.

🚀 By default, STP is optimized for adaptive trend-following while remaining flexible for customization.
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📌 How to Use SigmaTrend Prime in Trading
1️⃣ Trend-Following Strategy (Momentum Confirmation)
✔ Enter long positions when STP confirms a bullish trend shift above its upper trend band.
✔ Enter short positions when STP confirms a bearish trend shift below its lower trend band.
✔ Stay in trades as long as STP maintains trend direction, filtering out false reversals.

2️⃣ Volatility-Adaptive Strategy (Dynamic Trend Adjustments)
✔ Use Factor1 & Factor2 adjustments to fine-tune STP’s sensitivity to price movements.
✔ Increase Factor1 for slower trend shifts and reduce Factor2 for more aggressive trend detection.

📌 Why?
• In high-volatility conditions, adjust trend bands wider to prevent whipsaws.
• In low-volatility conditions, tighten trend bands for faster signal responsiveness.

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📊 Backtest Mode
SigmaTrend Prime includes an optional backtest table, enabling traders to assess its historical effectiveness before applying it in live trading conditions.
🔹 Backtest Metrics Displayed:
• Equity Max Drawdown → Largest historical loss from peak equity.
• Profit Factor → Ratio of total profits to total losses, measuring system efficiency.
• Sharpe Ratio → Assesses risk-adjusted return performance.
• Sortino Ratio → Focuses on downside risk-adjusted returns.
• Omega Ratio → Evaluates return consistency & performance asymmetry.
• Half Kelly → Optimal position sizing based on risk/reward analysis.
• Total Trades & Win Rate → Assess STP’s historical success rate.

📌 Disclaimer:
Backtest results are based on past performance and do not guarantee future success. Always incorporate real-time validation and risk management in live trading.

🚀 Why This Matters?
✅ Strategy Validation → Gain insight into historical trend accuracy.
✅ Customization Insights → See how different STP settings impact performance.
✅ Risk Awareness → Understand potential drawdowns before deploying capital.

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📌 Conclusion
SigmaTrend Prime (STP) is an advanced trend-following solution that merges DEMA-based trend smoothing with standard deviation-adaptive filtering. By utilizing percentile-based price smoothing, STP enhances trend accuracy while ensuring that signals remain adaptive to different market environments.

🔹 Key Takeaways:
1️⃣ Lag-Minimized Trend Filtering – DEMA enhances trend responsiveness while reducing noise.
2️⃣ SD-Based Volatility Adaptation – More reliable than ATR-based trend models, reducing false breakouts.
3️⃣ Customizable & Dynamic – Easily fine-tune sensitivity settings for various market conditions.

📌 Master the market with precision and confidence | QuantEdgeB

🔹 Disclaimer: Past performance is not indicative of future results. No trading strategy can guarantee success in financial markets.
🔹 Strategic Advice: Always backtest, optimize, and align parameters with your trading objectives and risk tolerance before live trading.

3月13日

發行說明

Backtest Mode Update.

Behavior Across Crypto Majors:

BTC


ETH


SOL


📌 Disclaimer: Backtest results are based on historical data and past market behavior. Performance is not indicative of future results and should not be considered financial advice. Always conduct your own backtests and research before making any investment decisions. 🚀