The Universal Oscillator strategy is based upon the eponymous technical indicator created by John Ehlers. This strategy analyzes the behavior of the white spectrum-based oscillator and adds simulated orders upon its crossovers with zero line.

The strategy allows for two interpretations of the oscillator: trend following and reversal based. In the trend-following mode, the strategy adds a simulated Buy order when the Universal Oscillator crosses above the zero level, and a simulated Sell order when it crosses below. For the reversal mode, the signals are the opposite: Buy orders are added upon crossing below the zero level, and Sell orders upon crossing above.

Input Parameters

cutoff length Used in the calculation of EhlersSuperSmootherFilter; defines the maximum period for a wave to be considered undesirable noise.
mode Defines the mode of adding simulated orders: trend following or reversal.

Further Reading

1. "Whiter is Brighter" by John Ehlers, PhD. Technical Analysis of Stocks & Commodities, January 2015.

Backtesting is the evaluation of a particular trading strategy using historical data. Results presented are hypothetical, and there is no guarantee that the same strategy implemented today would produce similar results.

Technical analysis is not recommended as a sole means of investment research.

For educational purposes only. Not a recommendation of a specific security or investment strategy.

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