Mean Reversion AFL

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

Amibroker Settings 

To start Algo trading with Mean Reversion AFL on Amibroker to trade in options, simply follow the steps given below.

1: Make sure you have completed Jump Start setup 

2: Download Mean reversion AFL from here. In Amibroker, Go to Formula editor and paste the AFL here.   

3: Add Separate Entry Exit Automation AFL after the strategy AFL and hit Apply. 

4: Right Click on the chart and go Parameters to adjust the inputs of the strategy.