DEMO QV | QuantEdgeB

18 Feb

Introducing DEMO QV by QuantEdgeB

Overview
The DEMO QV indicator is a dynamic momentum and volatility-based model, designed to identify high-probability trend shifts and breakout opportunities. By leveraging a double exponential moving average smoothing with percentile-based trend analysis, and ATR volatility filters, this tool adapts to market conditions efficiently and ensuring robust signal generation.

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Key Features

🔹 DEMA (Double Exponential Moving Average)
A faster and more responsive alternative to traditional EMAs, DEMA reduces lag, enhancing the ability to detect rapid market shifts.

🔹 Percentile-Based Trend Identification:
The system calculates 25th, 50th, and 75th percentile levels effectively segmenting price action into different regimes for trend confirmation and signal clarity.

🔹 ATR-Adjusted Volatility Filters:
By incorporating ATR multipliers the system adapts to different market conditions, ensuring that breakout signals are based on meaningful price movements rather than noise.

🔹 Momentum Confirmation (ROC-Based):
A rate-of-change (ROC) momentum filter is applied to validate trend strength, reducing false signals and aligning trades with prevailing market momentum.

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How It Works

✅ Long Signals:
- Price closes above the 75th DEMA Percentile level, adjusted with ATR for volatility filtering.
- Momentum is positive, confirming the trend shift.
- Shown by "Long" label

✅ Short Signals:
- Price closes above the 25th DEMA Percentile level, adjusted with ATR for volatility filtering.
- Momentum is negative, ensuring alignment with bearish trends.
- Shown by "Cash" label

This dual-layered signal mechanism makes the strategy smooth yet aggressive on shorts, quickly reacting to potential downturns.

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Use Cases

📌 Breakout & Trend-Following Strategy: Ideal for spotting breakout conditions based on percentile rank and ATR expansion.

📌 Momentum-Driven Trading: The ROC filter ensures signals align with price momentum, reducing premature entries.

📌 Adaptable Across Markets: Works across assets with different volatility, thanks to its ATR filtering and dual layer for signal confirmation.

📌 Smooth but Aggressive on Shorts:The dual-layered short logic enables reactive entries while maintaining a clean trend-following approach for longs.

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Behaviour across Crypto Majors:

BTC


ETH


SOL


Note: Past behaviour is not indicative of future results. Always conduct thorough testing and risk management before making trading decisions.

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Customization Options

⚙️ Color Mode Selection: Multiple preset themes for enhanced visualization.
⚙️ Long/Cash Signal Label: Default is turned off.
⚙️ DEMA Length: Adjustable to fine-tune sensitivity. (Default: 14)
⚙️ Percentile Calculation Length: Defines trend zones. (Default: 35)
⚙️ ATR Length & Multipliers: Controls the threshold for breakout confirmation. (Default: 14, 1.3x for longs, 2.5x for shorts)
⚙️ Momentum Length: Fine-tunes responsiveness to trend shifts. (Default: 8)

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Conclusion

The DEMO QV indicator is a powerful trend and volatility-based tool, balancing smooth trend-following logic with aggressive short entries for optimized breakout detection. Whether used for momentum trading, breakouts, or adaptive trend filtering, its combination of percentile-based analysis, ATR filtering, and momentum validation ensures a robust and reliable trading experience.

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🔹 Disclaimer: Past performance is not indicative of future results. No trading strategy can guarantee success in financial markets.
🔹 Strategic Advice: Always backtest, optimize, and align parameters with your trading objectives and risk tolerance before live trading.

20 Feb

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