⚡Titan Protocol : Cerberus [MarktQuant]

Apr 19

The Titan Protocol: Cerberus is a comprehensive multi-factor trend-following strategy designed to identify high-probability long and short opportunities using a combination of volatility-adjusted trend signals, momentum filters, and market structure. The strategy dynamically adapts to market conditions by leveraging multiple trend models, ensuring robust performance across different market regimes.

Core Components & Methodology

Adaptive Trend Calculation
The strategy combines four independent trend following indicators equally weighted.
Each component contributes to the final trend signal, allowing for a diversified approach to trend identification.

ADX Confirmation Filter
The Average Directional Index (ADX) ensures that trend entries are only taken in environments with sufficient directional strength.
A threshold is applied to confirm trend validity.

Dynamic Strategy Styles
Users can select from three execution styles:

• Long/Cash: Only takes long positions and exits to cash on trend reversals.
  
• Long/Short: Allows both long and short positions based on the trend signal.
  
• Short/Cash: Only takes short positions and exits to cash on trend reversals.
  

Signal Aggregation & Trend Smoothing

• The trend score is computed by averaging the individual indicator signals.
  
• A smoothing mechanism helps reduce noise and improve signal stability.
  

Backtesting & Performance Metrics

• Integrated performance tracking displays such as return percentage, maximum drawdown, equity curves, average win/lose returns in % directly on the chart.
  
• A comparison against the buy&hold returns of the asset helps evaluate strategy efficiency.
  

Custom Visualization

1. Color-coded bars and trend plots provide clear visual guidance.
   
2. Supports custom table placement for optimized display of strategy metrics.
   

Entry & Exit Conditions

• Long Entry: When the trend score crosses above the bullish threshold and ADX confirms strength.
  
• Short Entry: When the trend score crosses below the bearish threshold.
  
• Exit to Cash: When the trend reverses under a Long/Cash or Short/Cash configuration.
  

May 6

Release Notes

Improved script's speed.
Updated the backtest table.