Since 2022 Sort Finance

WMA 20 50 ADX Filtered

How this strategy trades, what it scored, and the measurements the score was read from: every symbol and timeframe, on real and resampled history.

How It Trades

  1. Compute the 20- and 50-bar weighted moving averages, plus the 14-bar ADX: a measure of how strong the trend is, regardless of which way it points.
  2. Buy when the 20 crosses above the 50, but only if ADX is above 25 at that bar. In a sideways market the two averages sit on top of each other and cross repeatedly for nothing; ADX stays low through exactly those stretches, so the filter drops them.
  3. Sell when the 20 crosses back below the 50. The exit is deliberately unfiltered: gating it on ADX as well would leave a position stuck open whenever trend strength faded while price was rolling over.

Example Strategy

Pine Script

Paste it into TradingView’s Pine Editor to run these rules on any chart.

//@version=6
// WMA 20 50 ADX Filtered — sort.finance. Fills at the signal bar's close, 0.02% fee a side,
// whole account per trade, as the backtest. History and indicator warm-up
// differ from the site's, so expect close to the same trades, not identical.
strategy("WMA 20 50 ADX Filtered", overlay=false,
     initial_capital=100, default_qty_type=strategy.percent_of_equity,
     default_qty_value=100, commission_type=strategy.commission.percent,
     commission_value=0.02, process_orders_on_close=true, pyramiding=0)

// The bar the current position opened on, and the bar the last one closed on.
var int entryBar = na
var int exitBar = -1

// ── Signals ──────────────────────────────────────────────────────────────
fast = ta.wma(close, 20)
slow = ta.wma(close, 50)
[diPlus, diMinus, adx] = ta.dmi(14, 14)
above = fast > slow
// Only the entry needs a trend behind it.
enterNow = above and not above[1] and adx > 25
exitNow = not above and above[1]

// ── Orders ───────────────────────────────────────────────────────────────
// Open on the first bar the entry holds while flat; close on the first
// later bar the exit holds; never reopen on the bar a position closed.
inTrade = strategy.position_size != 0
if inTrade and bar_index > entryBar and exitNow
    strategy.close("Long")
    exitBar := bar_index
else if not inTrade and bar_index > exitBar and enterNow
    strategy.entry("Long", strategy.long)
    entryBar := bar_index

// ── Drawing ──────────────────────────────────────────────────────────────
plot(fast, "WMA 20", color=#4d8dff, force_overlay=true)
plot(slow, "WMA 50", color=#e0a03a, force_overlay=true)
plot(adx, "ADX 14", color=#8a92a0)
hline(25, "Trend 25", color=color.new(#8a92a0, 40), linestyle=hline.style_dashed)