Product Information

Tetrad Elektro v1

 

This is a mean reversion strategy that uses custom indicators to enter long trades when it detects potential oversold conditions, then exits those trades when price appears overbought:

 

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1.  Volatility Extremes

   - The script calculates a longer-period to get more time tested signals.

   - When the price moves below the determined threshold, it suggests a strong downward deviation that might soon reverse.

 

2. Dual Confirmation Check

   - It uses two versions of the same indicator with different look back periods.

   - Both must be below certain thresholds for an entry signal, indicating a potential oversold market, eliminating false signals.

 

3. Clear Exit Points  

   - The strategy waits until price crosses above the target and both indicators exceed their upper thresholds before exiting the position.  

   - This indicates a potential overbought situation where the upward move may be losing momentum.

 

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Why It’s Unique

1. Multi-Indicator Confirmation  

   The script requires alignment between several triggers. This can filter out weaker signals that rely on a single indicator.

 

2. Mean Reversion Focus  

   By buying at what it deems an “extreme” oversold level and selling at an “extreme” overbought level, it aims to capitalize on market snap-backs or reversals.

 

3. Simplicity in Execution  

   All rules—when to get in and out—are coded into the strategy. Once it’s turned on, it operates based on these predefined conditions, reducing on-the-fly decision-making.

 

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Why It Can Be Effective

1. Identifies Potential Reversals

   Entering near the lower levels may capture big moves if the market bounces back from oversold conditions.

 

2. Limits Overexposure 

   The strategy only holds a position while conditions remain in its favor. It closes trades once the market appears overbought, potentially locking in gains.

 

3. Systematic Approach* 

   Because the entry and exit criteria are clearly defined, the strategy aims to remove emotional bias and guesswork during volatile market swings.

 

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Overall, Tetrad Elektro v1 uses a dual trigger to spot and exploit potential oversold-to-overbought movements. By combining these indicators, it provides a structured way to buy low, sell high, and manage risk in trending or choppy markets—primarily on the long side.