DepthHouse Trading System [Gods Envelope] Backtest Strategy

2019年8月29日

Created for Bitcoin!
*All testing has been done on the 1 Day time frame of BTC USD pairs.
Use at your own risk.

DepthHouse Trading System [Gods Envelope] Basics

The Cloud:
The cloud is used in a very similar manner as the ichimoku cloud. A complete cross above or below the represents a macro trend change. The cloud then could be used as dynamic support and resistance zones.
By default there is no smoothing to the full cloud. If you wish to add smoothing, you can change the ‘Trend Base On’ option to ‘Modded Cloud Average’ to add price action and smoothing into the cloud’s calculations. The Modded Cloud can then be used in the same manner as the Full Cloud. Generally, the Full Cloud is more forgiving and has less Macro Trend changes. By default, this option is turned off. The support or resistance zone created will be shown on the info panel on the right.

Horizontal Levels:
A Horizonal zone is generated each time there is a micro level trend change. For example, as soon as a positive micro trend change occurs a green horizontal level will be plotted.
These levels then can be used as temporary support and resistance zones. The Horizontal Break Trading Strategy is entirely based on these levels. These levels are also shown on the info panel on the right.

The Envelope Itself: (by default this is off)
By selecting the Overbought and Oversold Ranges option, a cloud envelope will appear around the price action. This envelope represents the overbought and oversold ranges. If the price action should go into these zones, the info panel on the right will show ‘CAUTION’ beside the God Values as this signals that the pair is either overbought or oversold.

The God Values:
The God values are listed on the info panel on the right. These are the values created by the Godmode indicator. Generally, below 20 or above 80 it signals for caution as the price action has overextended itself.


The Back-Test Strategy Options:

⇅ - Child Fomo Positioning:
Child Fomo Positioning strategy is entirely based on the macro trend change with the center cloud. As soon as there is a complete candle close above or below the cloud and a trend change takes place. The back-test places a market order as soon as the next candle opens. By default, it then will not close this position until the price action fully crosses the cloud once again.


⇅ - Horizontal Break Trading:
Horizontal Break Trading Strategy is entirely based on the horizontal levels generated and the macro trend direction. For example, say the Macro Trend is up, and a green, positive horizontal level is formed. As soon as a complete candle closes above the upper level of the positive zone, a limit order is placed in hope that the price action comes back down and retests, filling the order. This long will not close then until a negative level is formed. As soon as a negative level is formed a stop/loss order is placed on the lower level of the horizontal support zone. It will then do the opposite in a bearish trend, and margin trading is turned on.


⇅ - Parent Positions [Increase Pyramiding]:
Parent Positioning Strategy is based on the overall trend and the center cloud levels. This strategy has limit orders waiting on the level of the cloud that is closest to the price action. Therefore, using this strategy alone, the back-test system waits for the trend to be confirmed, and then follows the price action with limit orders waiting on the cloud to be retested. By default this order does not close until a Marco trend change occurs.


⇅ - Take 50% Partial Profits:
This options allows the back-test to take 50% profit or loss when one of the two options occur.

• Horizontal Break: This would close 50% of the position in the same manner it would close a trade using the horizontal break trading system.
  
• God Values: Once the price action enters the oversold or overbought clouds, it would then place a close order as soon as the price action exits the cloud.
  

⟲ - Backtest Year Start Date [jan. 1]:
Start year of the back-testing. If set to ex. 2017, the back-test will not calculate any trades that took place before Jan. 1 of 2017.

⚖ - Margin Trading [Short Trading]:
By default, margin trading is turned off. Simply switch this option to on the enable ‘Short Trading’ into the strategy back-test.

Notes: If you are back testing multiple strategies at the same time, you must increase the pyramiding to correspond to the number or strategies.

My Favorite Settings:

• Margin = Off
  
• Pyramiding = 2 [Settings → Properties → Pyramiding → 2 orders
  
• Child Fomo Positioning = On
  
• Horizontal Break Trading = On
  
• Everything else off 😊
  
  DISCLAIMER: Past performance does not guarantee future results.
  Use at your own risk.

2023年4月15日

發布通知

Hotfix Update:

• Fixed price source issue
  
• Updated to v5