Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Modified Triple Momentum Strategy – Amibroker AFL code

1 min read

Triple Momentum Strategy is from Gerald Appel, introduced in his 2005 book, “Technical Analysis: Power Tools for Active Investors.” It’s included on pages 58-63 of his book. That section is headed, “The Triple Momentum Nasdaq Index Trading Model.” Gerald Appel, is also probably best known for his creation – Moving Average Convergence Divergence (MACD).

Mr. Appel’s Says, “There is only one buy rule and only one sell rule: You buy when the Triple Momentum Level, the sum of the 5-, 15-, and 25-day rates of change, crosses from below to above 4%. You sell when the Triple Momentum Level, the sum of the 5-, 15-, and 25-day rates of change, crosses from above to below 4%.“

 

Here is a slightly modified Triple Momentum Strategy which works good with Equities and Commodities for Positional Trading and one can consider this as a low risk strategy.

“There is only one buy rule and only one exit rule: You buy when the Triple Momentum Level, the sum of the 5-, 15-, and 25-day rates of change, crosses from below to above 4%. You Exit Longs when the Triple Momentum Level, the sum of the 5-, 15-, and 25-day rates of change, crosses from above to below 0%.“

Nifty Hourly Charts

Nifty Spot Hourly

Steps to Install the Indicator

1)Download Triple Momentum Timing Model
2)Unzip the files Triple Momentum Timing Model.afl and Triple Momentum Indicator.afl to //amibroker//formulas//system// folder
3)Apply both the indicators to the New Blank charts

Backtesting with Nifty hourly Charts
Backtested the strategy on the Nifty Hourly Charts(Spot) since June 2009 with 2lots of Nifty and Rs100 per leg as a brokerage (i.e Rs200 per buy and sell transaction). Here are the results

Triple Momentum Backtesting

Equity Curve
Equity

Profit Table
Profit Table

Underwater Equity
Underwater Equity

Recent Momentum Signals from Nifty50 pack

Sunpharma and TCS(Cash market) turned to Buy mode as the Triple momentum indicator crossed above the 4 level. One can hold the stock until the indicator hold above Zero. Cover your longs if the momentum enters the negative zone.

Sunpharma Hourly Charts
Sunpharma Hourly Charts

TCS Hourly Charts
TCS Hourly Charts

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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12 Replies to “Modified Triple Momentum Strategy – Amibroker AFL code”

  1. This is very useful site for traders (who uses algo). Thanks for designing such site and disclosing afl codes.

  2. what is your opinion of using this code for trading on commodities for positional trading?

  3. hi rajandran r, i’ve been using amibroker since last 1.5 years and i tried to run back test report many times without any success. so could you please help me how to run back test report in amibroker? thanks in advance!

  4. Hi…is it imperative to use this strategy on hourly charts only or can be used on 5-min chart

  5. hello sir iam a new trader, i want to trade with amybroker afl signal..is it correct to follow signal ..is it profitable or not..kindly help me if u have good afl

    1. One have to choose their AFL based on their risk profile. Go and test the afl statistically and then figure it out. Its a Do it on your own concept.
      You have to sit, test and explore based on your risk profile.

  6. Hi,
    When I test this strategy with NSE EOD data, it seems buy and sell in report is just the opposite, I mean, it’s asking to sell when price is low and in next few days, when price is high, it’s asking to buy. Can you please help me by explaining this?

  7. Hi
    How many days history needed to view the complete biography of buy and sell signals.

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