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Multi-Indicator Confirmation

Require multiple indicators to agree before trading.

Strategy Overview​

  • Type: Technical
  • Indicators: RSI, Stochastic, Bollinger Bands, MACD
  • Risk Level: Low
  • Assets: Single asset (BTC)

Complete Code​

package main

import (
	"github.com/backtesting-org/kronos-sdk/pkg/types/connector"
	"github.com/backtesting-org/kronos-sdk/pkg/types/kronos"
	"github.com/backtesting-org/kronos-sdk/pkg/types/strategy"
	"github.com/shopspring/decimal"
)

type MultiConfirmation struct {
	strategy.BaseStrategy
	k kronos.Kronos
}

func NewMultiConfirmation(k kronos.Kronos) strategy.Strategy {
	return &MultiConfirmation{k: k}
}

func (s *MultiConfirmation) GetSignals() ([]*strategy.Signal, error) {
	btc := s.k.Asset("BTC")

	// Get all indicators
	rsi, _ := s.k.Indicators().RSI(btc, 14)
	stoch, _ := s.k.Indicators().Stochastic(btc, 14, 3)
	bb, _ := s.k.Indicators().BollingerBands(btc, 20, 2.0)
	macd, _ := s.k.Indicators().MACD(btc, 12, 26, 9)
	price, _ := s.k.Market().Price(btc)

	// Count bullish signals
	bullishSignals := 0

	if rsi.LessThan(decimal.NewFromInt(30)) {
		bullishSignals++
	}
	if stoch.K.LessThan(decimal.NewFromInt(20)) {
		bullishSignals++
	}
	if price.LessThan(bb.Lower) {
		bullishSignals++
	}
	if macd.MACD.GreaterThan(macd.Signal) {
		bullishSignals++
	}

	// Require at least 3 of 4 indicators to agree
	if bullishSignals >= 3 {
		s.k.Log().Opportunity("Multi-Confirmation", "BTC",
			"%d indicators confirm buy", bullishSignals)
		signal := s.k.Signal(s.GetName()).
			Buy(btc, connector.Binance, decimal.NewFromFloat(0.2)).
			Build()
		return []*strategy.Signal{signal}, nil
	}

	return nil, nil
}

func (s *MultiConfirmation) GetName() strategy.StrategyName { return "Multi-Confirmation" }
func (s *MultiConfirmation) GetDescription() string { return "Multi-indicator confirmation" }
func (s *MultiConfirmation) GetRiskLevel() strategy.RiskLevel { return strategy.RiskLevelLow }
func (s *MultiConfirmation) GetStrategyType() strategy.StrategyType { return strategy.StrategyTypeTechnical }

How It Works​

  1. Poll Indicators: Get RSI, Stochastic, Bollinger Bands, MACD
  2. Check Each: Count how many show bullish signals
  3. Require Consensus: Need 3 out of 4 to agree
  4. Trade with Confidence: Larger position size due to multiple confirmations

Key Concepts​

  • Consensus Approach: Multiple indicators reduce false signals
  • Lower Risk: Less likely to be wrong when multiple signals align
  • Larger Position: 0.2 BTC (more confident)
  • Flexible Threshold: Easy to adjust (2/4, 3/4, 4/4)

Backtesting​

Run with:

kronos backtest

Expected characteristics:

  • Low trade frequency (high bar for entry)
  • Higher win rate
  • Catches only the best setups
  • May miss some opportunities

Improvements​

Consider adding:

  • Bearish signal detection (for sells)
  • Weighted voting (some indicators more important)
  • Time-based confirmation (signals must persist)
  • Dynamic threshold based on market regime