ACD Indicator [TradingFinder] M Fisher Pivots Methodology Signal🔵 Introduction
The book "The Logical Trader" begins with a comprehensive review of the ACD Methodology principles, which include identifying specific price points related to the opening range.
This method allows you to set reference points for trading and use points "A" and "C" for trade entry. You will also learn about the "Pivot Range" and how to combine them with the ACD method to maximize position size and minimize risk.
In this indicator, the strategy is implemented to make it easier to use.
🔵 How to Use
The "ACD" strategy can be applied to various markets such as stocks, commodities, or forex, providing buy and sell signals that allow you to set your price targets and stop losses.
This strategy is based on the assumption that the opening range of trades is statistically significant each day, meaning the initial market fluctuations influence the market until the end of the day.
The ACD trading strategy is known as a breakout strategy and performs best in volatile or strongly trending markets, such as crude oil and stocks.
Some of the rules for using the ACD strategy include the following :
Consider points A and C as reference points and continuously pay attention to these points during trades. These points serve as entry and exit points for trades.
Examine daily and multi-day pivot ranges to analyze market trends. If the price is above the pivots, the trend is upward, and if below the pivots, the trend is downward.
Trading with the ACD strategy in forex is possible using the ACD indicator. This indicator is a technical tool used to measure the balance between supply and demand in the market. By analyzing trading volume and price, this indicator helps traders identify trend strength and suitable entry and exit points.
To use the ACD indicator, consider the following :
Identifying strong trends: The ACD indicator can help you identify strong and stable trends in the market.
Determining entry and exit points: ACD provides buy and sell signals to enter or exit trades at the best possible time.
Bullish Setup :
When the "A up" line is broken, it is advisable to wait for some time to ensure that this is not a "Fake Breakout" and that the price stabilizes above this line.
After entering the trade, the best stop loss you can choose is below the "A down" line. However, it is recommended to test this in backtests to achieve the best results. The suitable reward-to-risk ratio for this strategy is 1, which should also be backtested.
Bearish Setup :
When the "A down" line is broken, it is advisable to wait for some time to ensure that this is not a "Fake Breakout" and that the price stabilizes below this line.
After entering the trade, the best stop loss you can choose is above the "A up" line. However, it is recommended to test this in backtests to achieve the best results. The suitable reward-to-risk ratio for this strategy is 1, which should also be backtested.
🔵 Setting
NDay Pivot Range Period : Using this entry you can specify the number of days to calculate NDay Pivot Range.
Show Daily Pivot Range : Set the Daily Pivot color and displayed or not.
Show NDay Pivot Range : Set the NDay Pivot color and displayed or not.
ATR Period Levels : Determining the period of the ATR indicator, which is used to determine the A and C levels.
Show Tokyo ACD Setup : Set the Tokyo ACD Setup color and displayed or not.
Tokyo Opening Range Time : The amount of time taken to determine the opening range. You can set this number between 5 and 60 minutes.
Tokyo Session : Market start and end time.
A Level Multiplier : The coefficient that is multiplied by ATR to determine the distance of line A up and A down.
C Level Multiplier : The coefficient that is multiplied by ATR to determine the distance of line C up and C down.
The same settings exist for the London and New York sessions.
在腳本中搜尋"stop loss"
Multi Timeframe Relative Strength Index {DCAquant}Overview
The Multi Timeframe Relative Strength Index (MTF RSI) is a powerful technical analysis tool designed to provide insights into market momentum and potential trend reversals across multiple timeframes. Leveraging the Relative Strength Index (RSI) formula, this indicator offers traders a comprehensive view of market sentiment and identifies overbought and oversold conditions.
Key Features
RSI Calculation:
Utilizes the standard RSI calculation formula to measure the magnitude of recent price changes and assess the strength of market trends.
Employs a user-defined length parameter to customize the sensitivity of the RSI calculation based on trading preferences.
Multiple Timeframe Analysis:
Allows traders to analyze RSI values across up to six different timeframes, ranging from minutes to days, providing a holistic perspective on market dynamics.
Calculates RSI values independently for each selected timeframe, enabling comparison and trend identification.
Threshold Levels:
Defines overbought and oversold levels to highlight potential reversal points in market trends.
Offers flexibility in adjusting threshold levels based on individual risk tolerance and trading strategies.
Neutral Zone:
Establishes upper and lower neutral thresholds to identify periods of consolidation or sideways movement in price.
Helps traders distinguish between trending and ranging market conditions for more accurate analysis.
Moving Average Smoothing:
Provides the option to apply moving average smoothing to aggregated RSI values for enhanced clarity and reduced noise.
Enables smoother visualization of RSI trends, facilitating easier interpretation for traders.
Visual Representation:
Plots the aggregated MTF RSI values on the price chart, allowing traders to visually assess market momentum and potential reversal points.
Utilizes color-coded backgrounds to indicate Long, Short, or Neutral conditions for quick identification.
Dynamic Table Display:
Displays trading signals alongside graphical indicators (rocket for Long, snowflake for Short, and star for Neutral) in a customizable table format.
Offers flexibility in table placement and size to accommodate user preferences.
How to Use:
Parameter Configuration:
Adjust the length parameter to fine-tune the sensitivity of the RSI calculation based on the desired timeframe and trading strategy.
Define overbought and oversold levels to identify potential reversal points in market trends.
Customize upper and lower neutral thresholds to differentiate between trending and ranging market conditions.
Interpretation:
Monitor the aggregated MTF RSI values plotted on the price chart for signals of overbought or oversold conditions.
Pay attention to color-coded backgrounds and graphical indicators in the table for actionable trading insights.
Trading Strategy:
Consider entering Long positions when the aggregated MTF RSI is above the upper neutral threshold, indicating potential bullish momentum.
Evaluate Short opportunities when the aggregated MTF RSI falls below the lower neutral threshold, signaling possible bearish momentum.
Exercise caution during Neutral conditions, as there may be uncertainty in market direction.
Risk Management:
Combine MTF RSI analysis with robust risk management strategies, including stop-loss and take-profit levels, to manage trading risks effectively.
Practice prudent risk management and trade within your risk tolerance to minimize potential losses.
Disclaimer
Trading in financial markets involves risk, and past performance is not indicative of future results. The use of the MTF RSI indicator does not guarantee profits or prevent losses. Traders should conduct their own analysis, exercise caution, and seek advice from qualified financial professionals before making trading decisions.
PA Helper - Lots calculatorThe tool helps you figure out how many units (lots) of a financial instrument you should trade to keep your risk within a specific dollar amount.
It considers the entry price, stop-loss (SL) price, and the amount of money you're willing to risk.
How It Works
To use the indicator you need to select:
- Entry Price: The price at which you plan to enter the trade.
- Stop-Loss Price: The price level where you'll exit the trade to prevent further losses.
Additional parameters:
Risk Amount ($): The maximum amount of money you are willing to risk on this trade.
For a simpler usage, you can add it to Favorites, and always select it from your Indicators drowdown list.
Triple EMA + QQE Trend Following Strategy [TradeDots]The "Triple EMA + QQE Trend Following Strategy" harnesses the power of two sophisticated technical indicators, the Triple Exponential Moving Average (TEMA) and the Qualitative Quantitative Estimation (QQE), to generate precise buy and sell signals. This strategy excels in capturing shifts in trends by identifying short-term price momentum and dynamic overbought or oversold conditions.
HOW IT WORKS
This strategy integrates two pivotal indicators:
Triple Exponential Moving Average (TEMA): TEMA enhances traditional moving averages by reducing lag and smoothing the data more effectively. It achieves this by applying the EMA formula three times onto the price, as follows:
tema(src, length) =>
ema1 = ta.ema(src, length)
ema2 = ta.ema(ema1, length)
ema3 = ta.ema(ema2, length)
tema = 3*ema1 - 3*ema2 + ema3
This computation helps to sharpen the sensitivity to price movements.
Qualitative Quantitative Estimation (QQE): The QQE indicator improves upon the standard RSI by incorporating a smoothing mechanism. It starts with the standard RSI, overlays a 5-period EMA on this RSI, and then enhances the result using a double application of a 27-period EMA. A slow trailing line is then derived by multiplying the result with a factor number. This approach establishes a more refined and less jittery trend-following signal, complementing the TEMA to enhance overall market timing during fluctuating conditions.
APPLICATION
Referenced from insights on "Trading Tact," the strategy implementation follows:
First of all, we utilize two TEMA lines: one set at a 20-period and the other at a 40-period. Then following the rules below:
40-period TEMA is rising
20-period TEMA is above 40-period TEMA
Price closes above 20-period TEMA
Today is not Monday
RSI MA crosses the Slow trailing line
This strategy does not employ an active take profit mechanism; instead, it utilizes a trailing stop loss to allow the price to reach the stop loss naturally, thereby maximizing potential profit margins.
DEFAULT SETUP
Commission: 0.01%
Initial Capital: $10,000
Equity per Trade: 80%
Users are advised to adjust and personalize this trading strategy to better match their individual trading preferences and style.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
Reference:
Trading Tact. What Is the QQE Indicator? Retrieved from: tradingtact.com
Dual RSI Differential - Strategy [presentTrading]█ Introduction and How it is Different
The Dual RSI Differential Strategy introduces a nuanced approach to market analysis and trading decisions by utilizing two Relative Strength Index (RSI) indicators calculated over different time periods. Unlike traditional strategies that employ a single RSI and may signal premature or delayed entries, this method leverages the differential between a shorter and a longer RSI. This approach pinpoints more precise entry and exit points, providing a refined tool for traders to exploit market conditions effectively, particularly in overbought and oversold scenarios.
Most important: it is a good eductional code for swing trading.
For beginners, this Pine Script provides a complete function that includes crucial elements such as holding days and the option to configure take profit/stop loss settings:
- Hold Days: This feature ensures that trades are not exited too hastily, helping traders to ride out short-term market volatility. It's particularly valuable for swing trading where maintaining positions slightly longer can lead to capturing significant trends.
- TPSL Condition (None by default): This setting allows traders to focus solely on the strategy's robust entry and exit signals without being constrained by preset profit or loss limits. This flexibility is crucial for learning to adjust strategy settings based on personal risk tolerance and market observations.
BTCUSD 6h LS Performance
█ Strategy, How It Works: Detailed Explanation
🔶 RSI Calculation:
The RSI is a momentum oscillator that measures the speed and change of price movements. It is calculated using the formula:
RSI = 100 - (100 / (1 + RS))
Where RS (Relative Strength) = Average Gain of up periods / Average Loss of down periods.
🔶 Dual RSI Setup:
This strategy involves two RSI indicators:
RSI_Short (RSI_21): Calculated over a short period (21 days).
RSI_Long (RSI_42): Calculated over a longer period (42 days).
Differential Calculation:
The strategy focuses on the differential between these two RSIs:
RSI Differential = RSI_Long - RSI_Short
This differential helps to identify when the shorter-term sentiment diverges from longer-term trends, signaling potential trading opportunities.
BTCUSD Local picuture
🔶 Signal Triggers:
Entry Signal: A buy (long) signal is triggered when the RSI Differential exceeds -5, suggesting strengthening short-term momentum. Conversely, a sell (short) signal occurs when the RSI Differential falls below +5, indicating weakening short-term momentum.
Exit Signal: Trades are generally exited when the RSI Differential reverses past these thresholds, indicating a potential momentum shift.
█ Trade Direction
This strategy accommodates various trading preferences by allowing selections among long, short, or both directions, thus enabling traders to capitalize on diverse market movements and volatility.
█ Usage
The Dual RSI Differential Strategy is particularly suited for:
Traders who prefer a systematic approach to capture market trends.
Those who seek to minimize risks associated with rapid and unexpected market movements.
Traders who value strategies that can be finely tuned to different market conditions.
█ Default Settings
- Trading Direction: Both — allows capturing of upward and downward market movements.
- Short RSI Period: 21 days — balances sensitivity to market movements.
- Long RSI Period: 42 days — smoothens out longer-term fluctuations to provide a clearer market trend.
- RSI Difference Level: 5 — minimizes false signals by setting a moderate threshold for action.
Use Hold Days: True — introduces a temporal element to trading strategy, holding positions to potentially enhance outcomes.
- Hold Days: 5 — ensures that trades are not exited too hastily, helping to ride out short-term volatility.
- TPSL Condition: None — enables traders to focus solely on the strategy's entry and exit signals without preset profit or loss limits.
- Take Profit Percentage: 15% — aims for significant market moves to lock in profits.
- Stop Loss Percentage: 10% — safeguards against large losses, essential for long-term capital preservation.
MCOTs Intuition StrategyInitial Capital: The strategy starts with an initial capital of $50,000.
Execution: Trades are executed on every price tick to capture all potential movements.
Contract Size: The default position size is one contract per trade.
Timeframe: Although not explicitly mentioned, this strategy is intended for a one-minute timeframe.
RSI Calculation: The Relative Strength Index (RSI) is calculated over a user-defined period (default is 14 periods).
Standard Deviation: The script calculates the standard deviation of the change in RSI values to determine the threshold for entering trades.
Exhaustion Detection: Before entering a long or short position, the script checks for exhaustion in the RSI’s momentum. This is to avoid entering trades during extreme conditions where a reversal is likely.
Entry Conditions: A long position is entered when the current RSI momentum exceeds the standard deviation threshold and is less than the previous momentum multiplied by an exhaustion factor. A short position is entered under the opposite conditions.
Limit Orders for Exit: Instead of traditional stop loss and take profit orders, the strategy uses limit orders to exit positions. This means the strategy sets a desired price level to close the position and waits for the market to reach this price.
Profit Target and Stop Loss: The script allows setting a profit target and stop loss in terms of ticks, which are the smallest measurable increments in price movement for the traded asset.
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BabyShark VWAP Strategy What the code does:
This Pine Script implements a trading strategy based on two indicators: Volume Weighted Average Price (VWAP) and On Balance Volume (OBV) Relative Strength Index (RSI). The strategy aims to identify potential buy and sell signals based on deviations from VWAP and OBV RSI crossing certain threshold levels.
How it does it:
**VWAP Calculation**: The script calculates the VWAP using either standard deviation or average deviation over a specified length. It then plots the VWAP and its upper and lower deviation bands.
**OBV RSI Calculation**: It computes the OBV and then calculates the RSI using the cumulative changes in OBV. The RSI is plotted and compared against predefined levels.
**Table Visibility and Occurrence Counting**: It allows the user to display a table showing the number of occurrences where the price is above Upper Dev 2, below Lower Dev 2, crosses above a higher RSI level, or crosses below a lower RSI level.
**Entries**: Long and short entry conditions are defined based on the position of the price relative to the VWAP deviation bands and the color of the OBV RSI. Entries are made when specific conditions are met, and there hasn't been a recent entry.
**Exit Conditions**: The script includes stop-loss and take-profit mechanisms. It exits positions based on price crossing the VWAP or a certain percentage, and it prevents further trading after a certain number of consecutive losses.
What traders can use it for:
**Trend Identification**: Traders can use the VWAP and its deviation bands to identify potential trend reversals or continuations.
**Volume Confirmation**: The inclusion of OBV RSI provides confirmation of price movements based on volume changes.
**Entry and Exit Signals**: The script generates buy and sell signals based on the specified conditions, allowing traders to enter and exit positions with defined stop-loss and take-profit levels.
**Statistical Analysis**: The visibility of occurrence counts in the table allows traders to perform statistical analysis on the frequency of price movements relative to the VWAP and OBV RSI levels.
Ichimoku Clouds Strategy Long and ShortOverview:
The Ichimoku Clouds Strategy leverages the Ichimoku Kinko Hyo technique to offer traders a range of innovative features, enhancing market analysis and trading efficiency. This strategy is distinct in its combination of standard methodology and advanced customization, making it suitable for both novice and experienced traders.
Unique Features:
Enhanced Interpretation: The strategy introduces weak, neutral, and strong bullish/bearish signals, enabling detailed interpretation of the Ichimoku cloud and direct chart plotting.
Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions.
Dual Trading Modes: Long and Short modes are available, allowing alignment with market trends.
Flexible Risk Management: Offers three styles in each mode, combining fixed risk management with dynamic indicator states for versatile trade management.
Indicator Line Plotting: Enables plotting of Ichimoku indicator lines on the chart for visual decision-making support.
Methodology:
The strategy utilizes the standard Ichimoku Kinko Hyo model, interpreting indicator values with settings adjustable through a user-friendly menu. This approach is enhanced by TradingView's built-in strategy tester for customization and market selection.
Risk Management:
Our approach to risk management is dynamic and indicator-centric. With data from the last year, we focus on dynamic indicator states interpretations to mitigate manual setting causing human factor biases. Users still have the option to set a fixed stop loss and/or take profit per position using the corresponding parameters in settings, aligning with their risk tolerance.
Backtest Results:
Operating window: Date range of backtests is 2023.01.01 - 2024.01.04. It is chosen to let the strategy to close all opened positions.
Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks.
Maximum Single Position Loss: -6.29%
Maximum Single Profit: 22.32%
Net Profit: +10 901.95 USDT (+109.02%)
Total Trades: 119 (51.26% profitability)
Profit Factor: 1.775
Maximum Accumulated Loss: 4 185.37 USDT (-22.87%)
Average Profit per Trade: 91.67 USDT (+0.7%)
Average Trade Duration: 56 hours
These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters. Backtest is calculated using deep backtest option in TradingView built-in strategy tester
How to Use:
Add the script to favorites for easy access.
Apply to the desired chart and timeframe (optimal performance observed on the 1H chart, ForEx or cryptocurrency top-10 coins with quote asset USDT).
Configure settings using the dropdown choice list in the built-in menu.
Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}}
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
Minervini Stage 2 AnalysisHandbook for Minervini Stage 2 Analysis Indicator
Introduction
This handbook provides detailed instructions and guidelines for using the Minervini Stage 2 Analysis Indicator based on Mark Minervini's swing trading methodology. This indicator is designed for traders focusing on US stocks, aiming to capture gains in medium to short-term uptrends (swing trading).
Understanding Stage 2
Stage 2 represents a bullish uptrend in a stock's price. Mark Minervini emphasizes entering long positions during this phase. The stage is identified using four key criteria related to moving averages (MAs).
Indicator Criteria
Stock Price Above MA 150 and 200: Indicates an overall uptrend.
MA 150 Above MA 200: Signals a stronger medium-term trend compared to the long-term trend.
MA 200 Trending Up for At Least 1 Month (22 Days): Confirms a stable uptrend.
MA 50 Above Both MA 150 and 200: Shows short-term strength and momentum.
Using the Indicator
Entering Trades: Consider long positions when all four criteria are met. This signifies that the stock is in a Stage 2 uptrend.
Monitoring Trades: Regularly check if the stock continues to meet these criteria. The indicator provides a clear visual and textual representation for ease of monitoring.
Alarm Signals and Exit Strategy
One Criterion Not Met: This serves as an alarm signal. Increased vigilance is required, and traders should prepare for a potential exit.
Two Criteria Not Met: Strong indication to close the trade. This suggests the stock may be transitioning out of Stage 2, increasing the risk of holding the position.
Risk Management
Stop-Loss Orders: Consider setting a trailing stop-loss to protect profits and minimize losses.
Position Sizing: Adjust position sizes according to your risk tolerance and portfolio strategy.
Volume and Relative Strength Analysis
Volume Analysis: Look for increased trading volume as confirmation when the stock price moves above key MAs.
Relative Strength (RS) Rating: Compare the stock's performance to the broader market to gauge its strength.
Limitations and Considerations
Market Conditions: The indicator's effectiveness may vary with market conditions. It is more reliable in a bullish market environment.
Supplementary Analysis: Combine this indicator with other analysis methods (fundamental, technical) for a holistic approach.
Continuous Learning: Stay updated with market trends and adjust your strategy accordingly.
Conclusion
The Minervini Stage 2 Analysis Indicator is a powerful tool for identifying potential long positions in uptrending stocks. Its reliance on specific criteria aligns with Mark Minervini's proven swing trading strategy. However, always exercise due diligence and risk management in your trading decisions.
NCI - Lot size (Forex)Description:
The "NCI - Lot Size (Forex)" is a comprehensive tool designed for Forex traders to optimise their risk management strategies. This indicator dynamically calculates and displays the ideal lot size for your trades based on real-time currency conversion rates and your predefined risk parameters.
Key Features:
1. Real-Time Data Integration: Leverages current Forex market data from OANDA for major currency pairs, including USDJPY, USDCHF, AUDUSD, GBPUSD, NZDUSD, USDCAD, and EURUSD, ensuring accurate lot size calculations.
2. Customizable Account Balances: Set up to five different account balances to simulate various trading scenarios.
3. Adjustable Risk Management: Define your risk tolerance with a customizable risk percentage, allowing you to align the lot size calculations with your individual trading strategy.
4. Stoploss Adjustment: Input your desired stop loss in pips, which directly influences the calculated lot size, ensuring that your trades stay within your risk parameters.
5. Currency-Specific Adjustments: The script automatically adjusts the lot size based on the currency pair being traded, accounting for differences in currency values and volatility.
6. Intuitive Display: A clear and concise table is displayed on your chart, presenting the calculated lot sizes for each account balance and risk setting, alongside your specified stop loss.
7. User-Friendly Interface: Easy-to-use inputs make setting up the indicator a breeze, allowing both novice and experienced traders to make the most of this tool.
How to Use:
- Set your account balances (up to five different accounts).
- Define your risk percentage.
- Input your stop loss in pips.
- The table will dynamically show the ideal lot size for each account based on the current Forex market data and your settings.
---
Please Note: Trading in Forex involves significant risk and may not be suitable for all investors. The use of this indicator does not guarantee profits and should be used as part of a comprehensive trading strategy.
simple pull back TJlv26This is a very simple strategy for swing trade in stock indexes.
this strategy only trade long position, recommend to use this in day chart of sp500 or nas100.
SPX
NDX
Buy condition:
close price above long term SMA(default period 200),close price under short term SMA(default period 10), RSI is under 30(default period 3)
Sell condition:
1:if close price is above short period SMA and current close price is lower than low price of previous bar
2:hit the take profit target(default value 10%)
3:hit the stop loss target(default value 5%)
from author:
As you can see, it's a very simple logic. You only start trading when the price is above long-term moving average, so you can avoid risk by taking positions only in the uptrend. You also use stop-loss, so even in situations where there is a significant downturn, you can minimize losses.
However, it's important to note that this strategy performs well only in markets where long-term (approximately 10 years) upward movements are expected. It often yields disappointing results during prolonged bear markets. This is where each user's fundamental analysis comes into play, as there is no such thing as a perfect trading logic.
Another noteworthy point is that, as seen in the results of back testing, this strategy tends to underperform buy-and-hold in most cases. As mentioned earlier, it's a strategy focused on risk mitigation and starting trades at the most advantageous prices, so I believe that using leverage of 2-4 times can maximize profits. However, trading with leverage is highly risky, so it should be assessed based on each individual's risk tolerance.
W and M Pattern Indicator- SwaGThis is a TradingView indicator script that identifies potential buy and sell signals based on ‘W’ and ‘M’ patterns in the Relative Strength Index (RSI). It provides visual alerts and draws horizontal lines to indicate potential trade entry points.
User Manual:
Inputs: The script takes two inputs - an upper limit and a lower limit. The default values are 70 and 40, respectively.
RSI Calculation: The script calculates the RSI based on the closing prices of the last 14 periods.
Pattern Identification: It identifies ‘W’ patterns when the RSI makes a higher low within the lower limit, and ‘M’ patterns when the RSI makes a lower high within the upper limit.
Visual Alerts: The script plots these patterns on the chart. ‘W’ patterns are marked with small green triangles below the bars, and ‘M’ patterns are marked with small red triangles above the bars.
Trade Entry Points: A horizontal line is drawn at the high or low of the candle to represent potential trade entry points. The line starts from one bar to the left and extends 10 bars to the right.
Trading Strategy:
For investing, use a weekly timeframe.
For swing trading, use a daily timeframe.
For intraday trading, use a 5 or 15-minute timeframe. Only consider sell-side signals for intraday trading.
Take a buy position if the high breaks above the green line or sell if the low breaks below the red line.
Use recent signals only and avoid signals that are too old.
Swing highs or lows will be your stop-loss level.
Always think about your stop-loss before entering a trade, not your target.
Avoid trades with a large stop-loss.
Remember, this script is a tool to aid in your trading decisions. Always test your strategies thoroughly before live trading. Happy trading! 😊
Support & Resistance AI (K means/median) [ThinkLogicAI]█ OVERVIEW
K-means is a clustering algorithm commonly used in machine learning to group data points into distinct clusters based on their similarities. While K-means is not typically used directly for identifying support and resistance levels in financial markets, it can serve as a tool in a broader analysis approach.
Support and resistance levels are price levels in financial markets where the price tends to react or reverse. Support is a level where the price tends to stop falling and might start to rise, while resistance is a level where the price tends to stop rising and might start to fall. Traders and analysts often look for these levels as they can provide insights into potential price movements and trading opportunities.
█ BACKGROUND
The K-means algorithm has been around since the late 1950s, making it more than six decades old. The algorithm was introduced by Stuart Lloyd in his 1957 research paper "Least squares quantization in PCM" for telecommunications applications. However, it wasn't widely known or recognized until James MacQueen's 1967 paper "Some Methods for Classification and Analysis of Multivariate Observations," where he formalized the algorithm and referred to it as the "K-means" clustering method.
So, while K-means has been around for a considerable amount of time, it continues to be a widely used and influential algorithm in the fields of machine learning, data analysis, and pattern recognition due to its simplicity and effectiveness in clustering tasks.
█ COMPARE AND CONTRAST SUPPORT AND RESISTANCE METHODS
1) K-means Approach:
Cluster Formation: After applying the K-means algorithm to historical price change data and visualizing the resulting clusters, traders can identify distinct regions on the price chart where clusters are formed. Each cluster represents a group of similar price change patterns.
Cluster Analysis: Analyze the clusters to identify areas where clusters tend to form. These areas might correspond to regions of price behavior that repeat over time and could be indicative of support and resistance levels.
Potential Support and Resistance Levels: Based on the identified areas of cluster formation, traders can consider these regions as potential support and resistance levels. A cluster forming at a specific price level could suggest that this level has been historically significant, causing similar price behavior in the past.
Cluster Standard Deviation: In addition to looking at the means (centroids) of the clusters, traders can also calculate the standard deviation of price changes within each cluster. Standard deviation is a measure of the dispersion or volatility of data points around the mean. A higher standard deviation indicates greater price volatility within a cluster.
Low Standard Deviation: If a cluster has a low standard deviation, it suggests that prices within that cluster are relatively stable and less likely to exhibit sudden and large price movements. Traders might consider placing tighter stop-loss orders for trades within these clusters.
High Standard Deviation: Conversely, if a cluster has a high standard deviation, it indicates greater price volatility within that cluster. Traders might opt for wider stop-loss orders to allow for potential price fluctuations without getting stopped out prematurely.
Cluster Density: Each data point is assigned to a cluster so a cluster that is more dense will act more like gravity and
2) Traditional Approach:
Trendlines: Draw trendlines connecting significant highs or lows on a price chart to identify potential support and resistance levels.
Chart Patterns: Identify chart patterns like double tops, double bottoms, head and shoulders, and triangles that often indicate potential reversal points.
Moving Averages: Use moving averages to identify levels where the price might find support or resistance based on the average price over a specific period.
Psychological Levels: Identify round numbers or levels that traders often pay attention to, which can act as support and resistance.
Previous Highs and Lows: Identify significant previous price highs and lows that might act as support or resistance.
The key difference lies in the approach and the foundation of these methods. Traditional methods are based on well-established principles of technical analysis and market psychology, while the K-means approach involves clustering price behavior without necessarily incorporating market sentiment or specific price patterns.
It's important to note that while the K-means approach might provide an interesting way to analyze price data, it should be used cautiously and in conjunction with other traditional methods. Financial markets are influenced by a wide range of factors beyond just price behavior, and the effectiveness of any method for identifying support and resistance levels should be thoroughly tested and validated. Additionally, developments in trading strategies and analysis techniques could have occurred since my last update.
█ K MEANS ALGORITHM
The algorithm for K means is as follows:
Initialize cluster centers
assign data to clusters based on minimum distance
calculate cluster center by taking the average or median of the clusters
repeat steps 1-3 until cluster centers stop moving
█ LIMITATIONS OF K MEANS
There are 3 main limitations of this algorithm:
Sensitive to Initializations: K-means is sensitive to the initial placement of centroids. Different initializations can lead to different cluster assignments and final results.
Assumption of Equal Sizes and Variances: K-means assumes that clusters have roughly equal sizes and spherical shapes. This may not hold true for all types of data. It can struggle with identifying clusters with uneven densities, sizes, or shapes.
Impact of Outliers: K-means is sensitive to outliers, as a single outlier can significantly affect the position of cluster centroids. Outliers can lead to the creation of spurious clusters or distortion of the true cluster structure.
█ LIMITATIONS IN APPLICATION OF K MEANS IN TRADING
Trading data often exhibits characteristics that can pose challenges when applying indicators and analysis techniques. Here's how the limitations of outliers, varying scales, and unequal variance can impact the use of indicators in trading:
Outliers are data points that significantly deviate from the rest of the dataset. In trading, outliers can represent extreme price movements caused by rare events, news, or market anomalies. Outliers can have a significant impact on trading indicators and analyses:
Indicator Distortion: Outliers can skew the calculations of indicators, leading to misleading signals. For instance, a single extreme price spike could cause indicators like moving averages or RSI (Relative Strength Index) to give false signals.
Risk Management: Outliers can lead to overly aggressive trading decisions if not properly accounted for. Ignoring outliers might result in unexpected losses or missed opportunities to adjust trading strategies.
Different Scales: Trading data often includes multiple indicators with varying units and scales. For example, prices are typically in dollars, volume in units traded, and oscillators have their own scale. Mixing indicators with different scales can complicate analysis:
Normalization: Indicators on different scales need to be normalized or standardized to ensure they contribute equally to the analysis. Failure to do so can lead to one indicator dominating the analysis due to its larger magnitude.
Comparability: Without normalization, it's challenging to directly compare the significance of indicators. Some indicators might have a larger numerical range and could overshadow others.
Unequal Variance: Unequal variance in trading data refers to the fact that some indicators might exhibit higher volatility than others. This can impact the interpretation of signals and the performance of trading strategies:
Volatility Adjustment: When combining indicators with varying volatility, it's essential to adjust for their relative volatilities. Failure to do so might lead to overemphasizing or underestimating the importance of certain indicators in the trading strategy.
Risk Assessment: Unequal variance can impact risk assessment. Indicators with higher volatility might lead to riskier trading decisions if not properly taken into account.
█ APPLICATION OF THIS INDICATOR
This indicator can be used in 2 ways:
1) Make a directional trade:
If a trader thinks price will go higher or lower and price is within a cluster zone, The trader can take a position and place a stop on the 1 sd band around the cluster. As one can see below, the trader can go long the green arrow and place a stop on the one standard deviation mark for that cluster below it at the red arrow. using this we can calculate a risk to reward ratio.
Calculating risk to reward: targeting a risk reward ratio of 2:1, the trader could clearly make that given that the next resistance area above that in the orange cluster exceeds this risk reward ratio.
2) Take a reversal Trade:
We can use cluster centers (support and resistance levels) to go in the opposite direction that price is currently moving in hopes of price forming a pivot and reversing off this level.
Similar to the directional trade, we can use the standard deviation of the cluster to place a stop just in case we are wrong.
In this example below we can see that shorting on the red arrow and placing a stop at the one standard deviation above this cluster would give us a profitable trade with minimal risk.
Using the cluster density table in the upper right informs the trader just how dense the cluster is. Higher density clusters will give a higher likelihood of a pivot forming at these levels and price being rejected and switching direction with a larger move.
█ FEATURES & SETTINGS
General Settings:
Number of clusters: The user can select from 3 to five clusters. A good rule of thumb is that if you are trading intraday, less is more (Think 3 rather than 5). For daily 4 to 5 clusters is good.
Cluster Method: To get around the outlier limitation of k means clustering, The median was added. This gives the user the ability to choose either k means or k median clustering. K means is the preferred method if the user things there are no large outliers, and if there appears to be large outliers or it is assumed there are then K medians is preferred.
Bars back To train on: This will be the amount of bars to include in the clustering. This number is important so that the user includes bars that are recent but not so far back that they are out of the scope of where price can be. For example the last 2 years we have been in a range on the sp500 so 505 days in this setting would be more relevant than say looking back 5 years ago because price would have to move far to get there.
Show SD Bands: Select this to show the 1 standard deviation bands around the support and resistance level or unselect this to just show the support and resistance level by itself.
Features:
Besides the support and resistance levels and standard deviation bands, this indicator gives a table in the upper right hand corner to show the density of each cluster (support and resistance level) and is color coded to the cluster line on the chart. Higher density clusters mean price has been there previously more than lower density clusters and could mean a higher likelihood of a reversal when price reaches these areas.
█ WORKS CITED
Victor Sim, "Using K-means Clustering to Create Support and Resistance", 2020, towardsdatascience.com
Chris Piech, "K means", stanford.edu
█ ACKNOLWEDGMENTS
@jdehorty- Thanks for the publish template. It made organizing my thoughts and work alot easier.
[OKX Signal Bot] Indicator Script Set Up TemplateDiscover the power of the Turtle Trade Channels Indicator (TUTCI), an innovative tool that integrates the time-tested principles of the legendary Turtle Trade system. This groundbreaking system shattered the belief that successful traders are born, not made, by transforming ordinary individuals into profitable traders.
The Turtle Trade Experiment, which achieved a remarkable 80% annual return over four years and amassed a staggering $150 million, showcased the immense potential of this trend-following strategy. Unlike the conventional "buy low and sell high" approach, the Turtle Trade system embraces a different philosophy—one of capturing substantial profits by following prevailing trends.
At the heart of the Turtle Trade Channels Indicator lies the concept of Donchian Channels, a powerful technical indicator developed by Richard Donchian. Building upon this foundation, the main rule of TUTCI is to identify 20-day breakouts and capitalize on them, while simultaneously utilizing a profit-taking strategy based on breaching 10-day highs or lows.
For long trades, the indicator signals a buying opportunity when the price breaks above the 20-day high. Conversely, for short trades, a selling opportunity arises when the price falls below the 20-day low. This systematic approach allows traders to align themselves with the prevailing momentum, capturing significant price movements.
To further enhance trading precision, TUTCI incorporates two key lines. The red line represents the trading line, indicating the direction of the trend. Price bars above the trend line suggest an uptrend, while those below indicate a downtrend. The dotted blue line serves as the exit line, guiding traders to close their positions when price action breaches the 10-day high or low. This rule safeguards profits and helps traders avoid potential trend reversals.
The Turtle Trade Channels Indicator (TUTCI) is a versatile tool applicable to various financial markets, including stocks, commodities, and forex. By harnessing the power of breakouts and integrating profit-taking rules, this indicator empowers traders to capitalize on favorable trading opportunities while managing risk effectively.
As with any trading strategy, it is crucial to conduct thorough backtesting and evaluation of the TUTCI system before implementing it in live trading. Traders can customize the indicator's parameters to align with their trading preferences and adapt to changing market conditions. Employing sound risk management techniques, such as position sizing and stop-loss orders, is paramount to protect capital and minimize potential losses.
Experience the transformational potential of the Turtle Trade Channels Indicator (TUTCI) and embark on a journey of trend following, capturing significant profits, and achieving trading success.
These scripts are only functioning as sample script templates to support okx alert standards. It is not intended to provide any investment, tax, or legal advice, nor should it be considered an offer to purchase, sell, hold or offer any services relating to digital assets. Digital assets, including stablecoins, involve a high degree of risk, can fluctuate greatly, and can even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition and risk tolerance. OKX does not provide investment or asset recommendations. You are solely responsible for your investment decisions, and OKX is not responsible for any potential losses. Past performance is not indicative of future results. Please consult your legal/tax/investment professional for questions about your specific circumstances.
A.I Fibonacci [Paradox]Description:
The A.I fibonacci is a tool designed to assist traders in identifying potential price levels following a retracement. Unlike many other Fibonacci indicators available, this script is tailored to highlight the most crucial levels for entries, take profits, and stop losses.
Key Features:
Automatic Calculation: The script automatically calculates and plots Fibonacci extension levels based on the price movement and the highs and the lows on the chart.
Optimal Levels: It emphasizes the most relevant levels for making informed trading decisions, ensuring traders focus on what specific levels.
Versatility: Suitable for all markets, making it a versatile tool for traders across different asset classes.
User-Friendly: Designed with both novice and experienced traders in mind, the script is easy to use and interpret.
How It Stands Out:
While there are numerous Fibonacci tools available, the A.I Fibonacci is distinct in its approach. It not only calculates potential price reversal areas but also pinpoints possible price levels after a retracement is completed. This dual functionality ensures traders have a comprehensive view of the market.
How to Use:
Apply the script to your desired chart.
Observe the plotted Fibonacci levels.
Use these levels to determine potential entry, exit, and stop-loss points.
Green - Entry levels
Red - Stop Loss Levels
Yellow - Take Profit Levels
Applicability:
A.I Fibonacci is designed for all markets, making it a versatile tool for forex, stocks, commodities, and more.
Conditions for Use:
The script performs optimally under various market conditions. However, as with all technical tools, it's recommended to use it in conjunction with other indicators and analysis methods for best results.
Bollinger Bands Modified (Stormer)This strategy is based and shown by trader and investor Alexandre Wolwacz "Stormer".
Overview
The strategy uses two indicators Bollinger Bands and EMA (optional for EMA).
Calculates Bollinger Bands, EMA, highest high, and lowest low values based on the input parameters, evaluating the conditions to determine potential long and short entry signals.
The conditions include checks for crossovers and crossunders of the price with the upper and lower Bollinger Bands, as well as the position of the price relative to the EMA.
The script also incorporates the option to add an inside bar pattern check for additional information.
Entry Position
Long Position:
Price cross over the superior band of bollinger bands.
The EMA is used to add support for trend analysis, it is an optional input, when used, it checks if price is above EMA.
Short Position:
Price cross under the inferior band of bollinger bands.
The EMA is used to add support for trend analysis, it is an optional input, when used, it checks if price is under EMA.
Risk Management
Stop Loss:
The stop loss is calculated based on the input highest high (for short position) and lowest low (for long position).
It gets the length based on the input from the last candles to set which is the highest high and which is the lowest low.
Take Profit:
According to the author, the profit target should be at least 1:1.6 the risk, so to have the strategy mathematically positive.
The profit target is configured input, can be increased or decreased.
It calculates the take profit based on the price of the stop loss with the profit target input.
Swing BoxesHey, folks!
Sorry for not posting anything for such a long time. Don't have enough ideas and resources to get inspiration, so trying to brainstorm good stuff in my free time from university studies.
But despite my absence more I now have 300+ people subscribed to me! Thanks, guys, for keeping interest for my work, as I still do value each boost on my script, for real :)
So here is new script , enjoy!
Swing Boxes is pretty simple indicator, which plots signals with "boxes", that help you determine price targets.
What is the idea behind?
I wanted to make indicator, that could help me make swing trades with nice accuracy (as all we want, lol), and for signal criteria I decided to use highs and lows of the price . Then I started coding some ideas to see which of them could be worthy. And, actually, Swing Boxes appeared to be good. But the thing is, that I didn't intend to build them, they appeared as an anomaly from my code :)
I started to explore this anomaly (it looked super cool, but was repainting hard) to fix it and I succeeded, now Swng Boxes don't repaint.
The main idea is that when price goes above it's highest value of p-bars back or below it's lowest value p-bars back, then there is a some god probability, that price will continue to follow current direction.
And the things about Swing Boxes is that when there is a good trend movement, the boxes become super small to track price movement and when price breaks out in the counter-trend direction, then you will be able to almost perfectly catch a top or a bottom! But most of the signals won't be so high-quality, so don't think that is this some holy grail to trade swing-trading, because it is not.
Signal logic
Quick hint:
- epsilon(variable e ) = ATR * ATR_Factor . It is used to determine box's sensitivity to price changes.
If previous close is higher than variable, which contains previous HIGHEST value (variable h in the code), then update the this variable by taking up-to-date highest value and add epsilon( e ) to it;
If previous close is lower than variable, which contains previous LOWEST value (variable l in the code), then update the this variable by taking up-to-date lowest value and substract epsilon( e ) from it.
Variables decribed above ( h and l ) are box's top and bottom respectively, so if price cross them, it is logical to update it is value.
Settings and what is what
Swing Box Period - numbers fo bars in the past to find highest and lowest price from. The bigger the input, the bigger the boxes will be;
ATR Period;
ATR Factor - multiplier for ATR, determines sensitivity for price changes. The bigger this input, the more accurate signals will be, but less the probability that the signal will be on the top or a bottom.
Show Boxes? - when chosen, plots box's top and bottom. Used to determine price targets.
Show Baseline? - when chosen, plot's baseline, which midline between box's top and bottom.
How to use?
This indicator plots green and red triangles by default.
- Green triangle --> Buy ;
- Red triangle --> Sell ;
As I've said before, many signals from indicator will probably be garbage, so you need to tune settings for youself, so it could satisfy you .
You can enable showing boxes to see box's top and bottom. Box's bottom --> your entry, top --> your profit target.
If you find a way to sort bad signals, you will be able to trade with super cool RR, because the signal from Swing Boxes appear to be a good one, there is almost 95% probability, that price will not even come close to your stop loss, so you can trade with super small stop-losses! Smaller stop-loss --> smaller risk --> smaller loss --> bigger profit, it is that easy.
Also you can enable baseline to use at as your 1st TP, and box's top/bottom as 2nd TP, closing 25% on TP1 and the rest on TP2 (but that is just mine recommendation, you can use different RM (risk-management), if you want).
Also you can use baseline as your S/R (Support/Resistance) line, test it out on your charts.
And please, hear me out: as all other indicators out here on the TradingView, Swing Boxes ARE NOT meant to be traded in solo! Many bad signal can go in a row, so PLEASE find your way to filter out bad signals with other indicators.
You can see here the example of a garabge-class signal in a row, so be don't be deluded!
I do hope that somebody will suggest and idea to improve this thing, as I personally don't have enough time to think about it because of my university studies, but I will probably try it make this thing better throughout the time.
And that's it for now, folks! If you have any ideas for scripts, strategies or anything else, feel free to DM me or leave a comment, I will check it.
Hope you will find this script useful.
Take your profits!
- Tarasenko Fyodor
Advanced VWAP_Pullback Strategy_Trend-Template QualifierGeneral Description and Unique Features of this Script
Introducing the Advanced VWAP Momentum-Pullback Strategy (long-only) that offers several unique features:
1. Our script/strategy utilizes Mark Minervini's Trend-Template as a qualifier for identifying stocks and other financial securities in confirmed uptrends. Mark Minervini, a 2x US Investment Champion, developed the Trend-Template, which covers eight different and independent characteristics that can be adjusted and optimized in this trend-following strategy to ensure the best results. The strategy will only trigger buy-signals in case the optimized qualifiers are being met.
2. Our strategy is based on the supply/demand balance in the market, making it timeless and effective across all timeframes. Whether you are day trading using 1- or 5-min charts or swing-trading using daily charts, this strategy can be applied and works very well.
3. We have also integrated technical indicators such as the RSI and the MA / VWAP crossover into this strategy to identify low-risk pullback entries in the context of confirmed uptrends. By doing so, the risk profile of this strategy and drawdowns are being reduced to an absolute minimum.
Minervini’s Trend-Template and the ‘Stage-Analysis’ of the Markets
This strategy is a so-called 'long-only' strategy. This means that we only take long positions, short positions are not considered.
The best market environment for such strategies are periods of stable upward trends in the so-called stage 2 - uptrend.
In stable upward trends, we increase our market exposure and risk.
In sideways markets and downward trends or bear markets, we reduce our exposure very quickly or go 100% to cash and wait for the markets to recover and improve. This allows us to avoid major losses and drawdowns.
This simple rule gives us a significant advantage over most undisciplined traders and amateurs!
'The Trend is your Friend'. This is a very old but true quote.
What's behind it???
• 98% of stocks made their biggest gains in a Phase 2 upward trend.
• If a stock is in a stable uptrend, this is evidence that larger institutions are buying the stock sustainably.
• By focusing on stocks that are in a stable uptrend, the chances of profit are significantly increased.
• In a stable uptrend, investors know exactly what to expect from further price developments. This makes it possible to locate low-risk entry points.
The goal is not to buy at the lowest price – the goal is to buy at the right price!
Each stock goes through the same maturity cycle – it starts at stage 1 and ends at stage 4
Stage 1 – Neglect Phase – Consolidation
Stage 2 – Progressive Phase – Accumulation
Stage 3 – Topping Phase – Distribution
Stage 4 – Downtrend – Capitulation
This strategy focuses on identifying stocks in confirmed stage 2 uptrends. This in itself gives us an advantage over long-term investors and less professional traders.
By focusing on stocks in a stage 2 uptrend, we avoid losses in downtrends (stage 4) or less profitable consolidation phases (stages 1 and 3). We are fully invested and put our money to work for us, and we are fully invested when stocks are in their stage 2 uptrends.
But how can we use technical chart analysis to find stocks that are in a stable stage 2 uptrend?
Mark Minervini has developed the so-called 'trend template' for this purpose. This is an essential part of our JS-TechTrading pullback strategy. For our watchlists, only those individual values that meet the tough requirements of Minervini's trend template are eligible.
The Trend Template
• 200d MA increasing over a period of at least 1 month, better 4-5 months or longer
• 150d MA above 200d MA
• 50d MA above 150d MA and 200d MA
• Course above 50d MA, 150d MA and 200d MA
• Ideally, the 50d MA is increasing over at least 1 month
• Price at least 25% above the 52w low
• Price within 25% of 52w high
• High relative strength according to IBD.
NOTE: In this basic version of the script, the Trend-Template has to be used as a separate indicator on TradingView (Public Trend-Template indicators are available in TradingView – community scripts). It is recommended to only execute buy signals in case the stock or financial security is in a stage 2 uptrend, which means that the criteria of the trend-template are fulfilled.
This strategy can be applied to all timeframes from 5 min to daily.
The VWAP Momentum-Pullback Strategy
For the JS-TechTrading VWAP Momentum-Pullback Strategy, only stocks and other financial instruments that meet the selected criteria of Mark Minervini's trend template are recommended for algorithmic trading with this startegy.
A further prerequisite for generating a buy signals is that the individual value is in a short-term oversold state (RSI).
When the selling pressure is over and the continuation of the uptrend can be confirmed by the MA / VWAP crossover after reaching a price low, a buy signal is issued by this strategy.
Stop-loss limits and profit targets can be set variably. You also have the option to make use of the trailing stop exit strategy.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a technical indicator developed by Welles Wilder in 1978. The RSI is used to perform a market value analysis and identify the strength of a trend as well as overbought and oversold conditions. The indicator is calculated on a scale from 0 to 100 and shows how much an asset has risen or fallen relative to its own price in recent periods.
The RSI is calculated as the ratio of average profits to average losses over a certain period of time. A high value of the RSI indicates an overbought situation, while a low value indicates an oversold situation. Typically, a value > 70 is considered an overbought threshold and a value < 30 is considered an oversold threshold. A value above 70 signals that a single value may be overvalued and a decrease in price is likely , while a value below 30 signals that a single value may be undervalued and an increase in price is likely.
For example, let's say you're watching a stock XYZ. After a prolonged falling movement, the RSI value of this stock has fallen to 26. This means that the stock is oversold and that it is time for a potential recovery. Therefore, a trader might decide to buy this stock in the hope that it will rise again soon.
The MA / VWAP Crossover Trading Strategy
This strategy combines two popular technical indicators: the Moving Average (MA) and the Volume Weighted Average Price (VWAP). The MA VWAP crossover strategy is used to identify potential trend reversals and entry/exit points in the market.
The VWAP is calculated by taking the average price of an asset for a given period, weighted by the volume traded at each price level. The MA, on the other hand, is calculated by taking the average price of an asset over a specified number of periods. When the MA crosses above the VWAP, it suggests that buying pressure is increasing, and it may be a good time to enter a long position. When the MA crosses below the VWAP, it suggests that selling pressure is increasing, and it may be a good time to exit a long position or enter a short position.
Traders typically use the MA VWAP crossover strategy in conjunction with other technical indicators and fundamental analysis to make more informed trading decisions. As with any trading strategy, it is important to carefully consider the risks and potential rewards before making any trades.
This strategy is applicable to all timeframes and the relevant parameters for the underlying indicators (RSI and MA/VWAP) can be adjusted and optimized as needed.
Backtesting
Backtesting gives outstanding results on all timeframes and drawdowns can be reduced to a minimum level. In this example, the hourly chart for MCFT has been used.
Settings for backtesting are:
- Period from Jan 2020 until March 2023
- Starting capital 100k USD
- Position size = 25% of equity
- 0.01% commission = USD 2.50.- per Trade
- Slippage = 2 ticks
Other comments
- This strategy has been designed to identify the most promising, highest probability entries and trades for each stock or other financial security.
- The combination of the Trend-Template and the RSI qualifiers results in a highly selective strategy which only considers the most promising swing-trading entries. As a result, you will normally only find a low number of trades for each stock or other financial security per year in case you apply this strategy for the daily charts. Shorter timeframes will result in a higher number of trades / year.
- Consequently, traders need to apply this strategy for a full watchlist rather than just one financial security.
Trend #4 - ATR+EMA channelOverview:
This strategy use ATR to take-profit, Red-EMA to stop-loss, Blue-EMA channel to judgment breakout.
This strategy use commission setting is 0.05%, slippage setting is 2 ticks, you can set the appropriate value size in the properties page.
What it does:
This strategy detects when a trend is emerging and buy or sell.
How it does it:
When the price breaks through the blue EMA channel, the trend is judged to be strong in the short term, strategy generates a buy or sell order.
After buying or selling,, if the price moves in the expected direction, uses ATR to determine the appropriate spread to take profit, otherwise use red EMA for stop loss.
How to use it:
Start Date and Stop Date - This parameter adjusts the time range used by the strategy.
Stoploss - This parameter adjusts the stop loss amount after each order is placed.
Blue EMA length - This parameter adjusts the length of the channel.
Blue EMA multy - This parameter adjusts the width of the top and bottom of the channel.
ATR Period - This parameter adjusts the number of candles used by the ATR.
ATR mult - This parameter adjusts the upper and lower widths of the ATR. Lowering this parameter can improve the win rate, but not necessarily the profitability.
Red EMA length - This parameter adjusts the number of candles used by the red EMA .
Long - This switch is used to turn Long position on or off.
Short - This switch is used to turn short position on or off.
Chews Opening Range Breakout - FibonacciVisual tool for taking a Fibonacci retracement-backed opening range breakout.
How it works:
Short a first red candle. Long a first green candle.
You decide which Fibonacci % you prefer your stop loss to be, the plot and label will represent your decision.
Fibonacci logic is close --> open.
Recommendations:
Use a lower time frame interval like 3m.
Extra Notes:
On higher priced stocks, you may see some discrepancy (~$0.1!) when plotting a Fibonacci Retracement compared to the suggested stop loss.
Since this discrepancy happens on inherently more volatile stocks, I have chosen to neglect the discrepancy instead of going for point perfect stop loss exits.
Realistically, it won't matter unless you get very unlucky.
Fibonacci drawing is not a feature of what this indicator plots. It's there for reference, but I can add if requested.
I drafted this simple code to help me visualize automating this strategy.
"That's spoicy!"
ToDo: Add an optional two-sided ORB. Higher chance of success since it is meant for reversals.
Coral Trend Pullback Strategy (TradeIQ)Description:
Strategy is taken from the TradeIQ YouTube video called "I Finally Found 80% Win Rate Trading Strategy For Crypto".
Check out the full video for further details/clarification on strategy entry/exit conditions.
The default settings are exactly as TradeIQ described in his video.
However I found some better results by some tweaking settings, increasing R:R ratio and by turning off confirmation indicators.
This would suggest that perhaps the current confirmation indicators are not the best options. I'm happy to try add some other optional confirmation indicators if they look to be more effective.
Recommended timeframe: 1H
Strategy incorporates the following features:
Risk management:
Configurable X% loss per stop loss
Configurable R:R ratio
Trade entry:
Based on strategy conditions below
Trade exit:
Based on strategy conditions below
Backtesting:
Configurable backtesting range by date
Trade drawings:
Each entry condition indicator can be turned on and off
TP/SL boxes drawn for all trades. Can be turned on and off
Trade exit information labels. Can be turned on and off
NOTE: Trade drawings will only be applicable when using overlay strategies
Alerting:
Alerts on LONG and SHORT trade entries
Debugging:
Includes section with useful debugging techniques
Strategy conditions
Trade entry:
LONG
C1: Coral Trend is bullish
C2: At least 1 candle where low is above Coral Trend since last cross above Coral Trend
C3: Pullback happens and price closes below Coral Trend
C4: Coral Trend colour remains bullish for duration of pullback
C5: After valid pullback, price then closes above Coral Trend
C6: Optional confirmation indicators (choose either C6.1 or C6.2 or NONE):
C6.1: ADX and DI (Single indicator)
C6.1.1: Green line is above red line
C6.1.2: Blue line > 20
C6.1.3: Blue trending up over last 1 candle
C6.2: Absolute Strengeh Histogram + HawkEye Volume Indicator (Two indicators combined)
C6.2.1: Absolute Strengeh Histogram colour is blue
C6.2.2: HawkEye Volume Indicator colour is green
SHORT
C1: Coral Trend is bearish
C2: At least 1 candle where high is below Coral Trend since last cross below Coral Trend
C3: Pullback happens and price closes above Coral Trend
C4: Coral Trend colour remains bearish for duration of pullback
C5: After valid pullback, price then closes below Coral Trend
C6: Optional confirmation indicators (choose either C6.1 or C6.2 or NONE):
C6.1: ADX and DI (Single indicator)
C6.1.1: Red line is above green line
C6.1.2: Blue line > 20
C6.1.3: Blue trending up over last 1 candle
C6.2: Absolute Strengeh Histogram + HawkEye Volume Indicator (Two indicators combined)
C6.2.1: Absolute Strengeh Histogram colour is red
C6.2.2: HawkEye Volume Indicator colour is red
NOTE: All the optional confirmation indicators cannot be overlayed with Coral Trend so feel free to add each separately to the chart for visual purposes
Trade exit:
Stop Loss: Calculated by recent swing low over previous X candles (configurable with "Local High/Low Lookback")
Take Profit: Calculated from R:R multiplier * Stop Loss size
Credits
Strategy origin: TradeIQ's YouTube video called "I Finally Found 80% Win Rate Trading Strategy For Crypto"
It combines the following indicators for trade entry conditions:
Coral Trend Indicator by @LazyBear (Main indicator)
Absolute Strength Histogram | jh by @jiehonglim (Optional confirmation indicator)
Indicator: HawkEye Volume Indicator by @LazyBear (Optional confirmation indicator)
ADX and DI by @BeikabuOyaji (Optional confirmation indicator)
SSL + Wave Trend StrategyStrategy incorporates the following features:
Risk management:
Configurable X% loss per stop loss
Configurable R:R ratio
Trade entry:
Based on strategy conditions below
Trade exit:
Based on strategy conditions below
Backtesting:
Configurable backtesting range by date
Trade drawings:
Each entry condition indicator can be turned on and off
TP/SL boxes drawn for all trades. Can be turned on and off
Trade exit information labels. Can be turned on and off
NOTE: Trade drawings will only be applicable when using overlay strategies
Alerting:
Alerts on LONG and SHORT trade entries
Debugging:
Includes section with useful debugging techniques
Strategy conditions
Trade entry:
LONG
C1: SSL Hybrid baseline is BLUE
C2: SSL Channel crosses up (green above red)
C3: Wave Trend crosses up (represented by pink candle body)
C4: Entry candle height is not greater than configured threshold
C5: Entry candle is inside Keltner Channel (wicks or body depending on configuration)
C6: Take Profit target does not touch EMA (represents resistance)
SHORT
C1: SSL Hybrid baseline is RED
C2: SSL Channel crosses down (red above green)
C3: Wave Trend crosses down (represented by orange candle body)
C4: Entry candle height is not greater than configured threshold
C5: Entry candle is inside Keltner Channel (wicks or body depending on configuration)
C6: Take Profit target does not touch EMA (represents support)
Trade exit:
Stop Loss: Size configurable with NNFX ATR multiplier
Take Profit: Calculated from Stop Loss using R:R ratio
Credits
Strategy is based on the YouTube video "This Unique Strategy Made 47% Profit in 2.5 Months " by TradeSmart.
It combines the following indicators to determine trade entry/exit conditions:
Wave Trend: Indicator: WaveTrend Oscillator by @LazyBear
SSL Channel: SSL channel by @ErwinBeckers
SSL Hybrid: SSL Hybrid by @Mihkel00
Keltner Channels: Keltner Channels Bands by @ceyhun
Candle Height: Candle Height in Percentage - Columns by @FreeReveller
NNFX ATR: NNFX ATR by @sueun123
Short Swing Bearish MACD Cross (By Coinrule)This strategy is oriented towards shorting during downside moves, whilst ensuring the asset is trading in a higher timeframe downtrend, and exiting after further downside.
This script can work well on coins you are planning to hodl for long-term and works especially well whilst using an automated bot that can execute your trades for you. It allows you to hedge your investment by allocating a % of your coins to trade with, whilst not risking your entire holding. This mitigates unrealised losses from hodling as it provides additional cash from the profits made. You can then choose to hodl this cash, or use it to reinvest when the market reaches attractive buying levels. Alternatively, you can use this when trading contracts on futures markets where there is no need to already own the underlying asset prior to shorting it.
ENTRY
This script utilises the MACD indicator accompanied by the Exponential Moving Average (EMA) 450 to enter trades. The MACD is a trend following momentum indicator and provides identification of short-term trend direction. In this variation it utilises the 11-period as the fast and 26-period as the slow length EMAs, with signal smoothing set at 9.
The EMA 450 is used as additional confirmation to prevent the script from shorting when price is above this long-term moving average. Once price is above the EMA 450 the script will not open any shorts - preventing the rule from attempting to short uptrends. Due to this, this strategy is ideal for setting and forgetting.
The script will enter trades based on two conditions:
1) When the MACD signals a bearish cross. This occurs when the EMA 11 crosses below the EMA 26 within the MACD signalling the start of a potential downtrend.
2) Price has closed below the EMA 450. Price closing below this long-term EMA signals that the asset is in a sustained downtrend. Price breaking above this could indicate a bullish strength in which shorting would not be profitable.
EXIT
This script utilises a set take-profit and stop-loss from the entry of the trade. The take profit is set at 8% and the stop loss of 4%, providing a risk reward ratio of 2. This indicates the script will be profitable if it has a win ratio greater than 33%.
Take-Profit Exit: -8% price decrease from entry price.
OR
Stop-Loss Exit: +4% price increase from entry price.
Based on backtesting results across a selection of assets, the 45-minute and 1-hour timeframes are the best for this strategy.
The strategy assumes each order is using 30% of the available coins to make the results more realistic and to simulate you only ran this strategy on 30% of your holdings. A trading fee of 0.1% is also taken into account and is aligned to the base fee applied on Binance.
The backtesting data was recorded from December 1st 2021, just as the market was beginning its downtrend. We therefore recommend analysing the market conditions prior to utilising this strategy as it operates best on weak coins during downtrends and bearish conditions, however the EMA 450 condition should mitigate entries during bullish market conditions.
