APIBridge, Amibroker
This tutorial shows how mean reversion AFL can be used on charts of Amibroker to Trade in Index Option.
Strategy Premise
Mean reversion strategies attempt to capture profits as the price of an asset returns to more normal levels, or the average. This AFL uses a combination of EMA and Bollinger Bands.
Buy happens when prices are in uptrend and cross above lower Bollinger Band
Sell happens when prices are crossing below upper Bollinger band or stop loss condition is met
Strategy Logic
Buy: When EMA1 > EMA 2
and Price crossing above lower Bollinger Band
Sell: When EMA1 < EMA 2
and Price crossing below the upper Bollinger Band
When Strategy gives Buy, it will send LE in Call and LX in Put. When Strategy gives Sell, it will send LE in Put and LX in Call.
Amibroker Settings
Step 1: Make sure you have completed Jump Start setup
Step 2: Download AFL from here. In Amibroker, Go to Formula editor and paste the AFL here.
Step 3: Right Click on the chart and go to Parameters to adjust the inputs of the strategy.
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