Percentage Price Oscillator Trade

Entry Logic

• Exact Entry Trigger: The PPO is identical to MACD but expressed as a percentage. Use the same signals: histogram reversals, zero line crosses, and signal line crosses.
• Confirmation: Varies by signal type.
• Timeframe: Any.
• Market Condition: Trending or reversing.

Exit Logic

• Profit Targets: Varies by signal type.

Stop Loss Structure

• Hard Stop: Varies by signal type.

Risk Management Framework

• Risk Per Trade: 1% of account capital.

Position Sizing Model

• Sizing Approach: Fixed fractional.

Trade Filtering

• Market Conditions to Avoid: Low volatility.

Context Framework

• Advantage: The percentage-based nature allows for comparing PPO values across different securities.

Trade Management Rules

• See MACD strategies.

Time Rules

• See MACD strategies.

Setup Classification

• See MACD strategies.

Market Selection Criteria

• Instruments: Any.

Statistical Edge Metrics

• Similar to MACD.

Failure Conditions

• Similar to MACD.

Psychological Rules

• Similar to MACD.

Advanced Components

• Relative Strength: Use PPO to identify which of two stocks is stronger (the one with the higher PPO reading).

Location

• Similar to MACD.