Since 2022 Sort Finance

WMA 20 50 Proximity Crossover

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 and their relative gap, (WMA20 − WMA50) / WMA50.
  2. Buy when the gap, rising from below, comes within 0.5% of zero: the fast average is about to overtake the slow one, so this acts one step before the actual crossover.
  3. Sell when the gap, falling from above, drops back within 0.5% of zero: exiting just before the bearish cross completes.

Example Strategy

Pine Script

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

//@version=6
// WMA 20 50 Proximity Crossover — 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 Proximity Crossover", overlay=true,
     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)
gap = (fast - slow) / slow
// In when the gap rises into the 0.5% band around zero, out when it
// falls into it from above; the side holds until the next of those.
risingIn = gap[1] <= -0.005 and gap > -0.005
fallingIn = gap[1] >= 0.005 and gap < 0.005
var float held = 0.0
if risingIn
    held := 1
if fallingIn
    held := -1
inBand = held > 0
enterNow = inBand and not inBand[1]
exitNow = not inBand and inBand[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)
plot(slow, "WMA 50", color=#e0a03a)