Introduction to Combo Strategies
What are Combo Strategies?
Section titled “What are Combo Strategies?”Combo strategies combine signals from multiple individual strategies to make trading decisions. Instead of relying on a single strategy, you aggregate signals for more robust decision-making.
Benefits
Section titled “Benefits”- Reduce False Signals - Multiple confirmations filter noise
- Improve Win Rate - Consensus-based entries
- Diversify Risk - Not dependent on single indicator
Signal Aggregation Methods
Section titled “Signal Aggregation Methods”Unanimous (AND)
Section titled “Unanimous (AND)”All strategies must agree before taking action.
Strategy A: BUYStrategy B: BUYStrategy C: BUY→ Result: BUYMajority Voting
Section titled “Majority Voting”More than half must agree.
Strategy A: BUYStrategy B: BUYStrategy C: HOLD→ Result: BUY (2/3 agree)Weighted Voting
Section titled “Weighted Voting”Strategies have different weights based on confidence.
Strategy A (weight 0.5): BUYStrategy B (weight 0.3): BUYStrategy C (weight 0.2): HOLD→ Score: 0.8 → BUY (threshold: 0.6)When to Use Combos
Section titled “When to Use Combos”Good candidates:
- Strategies that perform well in different market conditions
- Strategies using different indicator types (trend + momentum)
- Strategies with similar holding periods
Avoid combining:
- Strategies that are highly correlated
- Strategies with vastly different timeframes
Next Steps
Section titled “Next Steps”- Creating Combos - Build your first combo
- Examples - Sample configurations