GandalfProjectResearchSystem

Description

GandalfProjectResearchSystem is a trading strategy developed by Domenico D'Errico and Giovanni Trombetta. This strategy uses such data as candle average price (ohlc4), median price, and mid-body value to spot the points of price weakness to add entry signals. Sell signals are added after a certain time or price condition is met.

A simulated buy to open order is added if either all of the following is true:

• The previous ohlc4 is less than the previous median price.
• The median price from 2 bars ago is less than or equal to the previous ohlc4.
• The median price from 2 bars ago is less than or equal to the ohlc4 from 3 bars ago.

OR if all of the following is true:

• The previous ohlc4 is less than the median price from 3 bars ago.
• The current mid-body price is less than the median price from 2 bars ago.
• The previous mid-body price is less than the mid-body price from 2 bars ago.

A sell to close simulated order is added if any of the following is true:

• A specified exit number of bars elapses after an entry.
• A specified gain-exit number of bars elapses after an entry while the close price is greater than the entry price.
• Close price is less than the entry price and either of the additional conditions is true.

An additional condition is either all of the following:

• The previous ohlc4 is less than the previous mid-body price.
• The median price from 2 bars ago equals to the mid-body price from 3 bars ago.
• The previous mid-body price is less than or equal to the mid-body price from 4 bars ago.

OR if all of the following:

• The ohlc4 from 2 bars ago is less than the current mid-body price.
• The median price from 4 bars ago is less than the ohlc4 from 3 bars ago.
• The previous mid-body price is less than the previous ohlc4.

Input Parameters

Further Reading

1. "System Development Using Artificial Intelligence" by Domenico D'Errico and Giovanni Trombetta, PhD. Technical Analysis of Stocks & Commodities, August 2017.