Supertrend Advance Pullback StrategyHandbook for the Supertrend Advance Strategy
1. Introduction
Purpose of the Handbook:
The main purpose of this handbook is to serve as a comprehensive guide for traders and investors who are looking to explore and harness the potential of the Supertrend Advance Strategy. In the rapidly changing financial market, having the right tools and strategies at one's disposal is crucial. Whether you're a beginner hoping to dive into the world of trading or a seasoned investor aiming to optimize and diversify your portfolio, this handbook offers the insights and methodologies you need. By the end of this guide, readers should have a clear understanding of how the Supertrend Advance Strategy works, its benefits, potential pitfalls, and practical application in various trading scenarios.
Overview of the Supertrend Advance Pullback Strategy:
At its core, the Supertrend Advance Strategy is an evolution of the popular Supertrend Indicator. Designed to generate buy and sell signals in trending markets, the Supertrend Indicator has been a favorite tool for many traders around the world. The Advance Strategy, however, builds upon this foundation by introducing enhanced mechanisms, filters, and methodologies to increase precision and reduce false signals.
1. Basic Concept:
The Supertrend Advance Strategy relies on a combination of price action and volatility to determine the potential trend direction. By assessing the average true range (ATR) in conjunction with specific price points, this strategy aims to highlight the potential starting and ending points of market trends.
2. Methodology:
Unlike the traditional Supertrend Indicator, which primarily focuses on closing prices and ATR, the Advance Strategy integrates other critical market variables, such as volume, momentum oscillators, and perhaps even fundamental data, to validate its signals. This multidimensional approach ensures that the generated signals are more reliable and are less prone to market noise.
3. Benefits:
One of the main benefits of the Supertrend Advance Strategy is its ability to filter out false breakouts and minor price fluctuations, which can often lead to premature exits or entries in the market. By waiting for a confluence of factors to align, traders using this advanced strategy can increase their chances of entering or exiting trades at optimal points.
4. Practical Applications:
The Supertrend Advance Strategy can be applied across various timeframes, from intraday trading to swing trading and even long-term investment scenarios. Furthermore, its flexible nature allows it to be tailored to different asset classes, be it stocks, commodities, forex, or cryptocurrencies.
In the subsequent sections of this handbook, we will delve deeper into the intricacies of this strategy, offering step-by-step guidelines on its application, case studies, and tips for maximizing its efficacy in the volatile world of trading.
As you journey through this handbook, we encourage you to approach the Supertrend Advance Strategy with an open mind, testing and tweaking it as per your personal trading style and risk appetite. The ultimate goal is not just to provide you with a new tool but to empower you with a holistic strategy that can enhance your trading endeavors.
2. Getting Started
Navigating the financial markets can be a daunting task without the right tools. This section is dedicated to helping you set up the Supertrend Advance Strategy on one of the most popular charting platforms, TradingView. By following the steps below, you'll be able to integrate this strategy into your charts and start leveraging its insights in no time.
Setting up on TradingView:
TradingView is a web-based platform that offers a wide range of charting tools, social networking, and market data. Before you can apply the Supertrend Advance Strategy, you'll first need a TradingView account. If you haven't set one up yet, here's how:
1. Account Creation:
• Visit TradingView's official website.
• Click on the "Join for free" or "Sign up" button.
• Follow the registration process, providing the necessary details and setting up your login credentials.
2. Navigating the Dashboard:
• Once logged in, you'll be taken to your dashboard. Here, you'll see a variety of tools, including watchlists, alerts, and the main charting window.
• To begin charting, type in the name or ticker of the asset you're interested in the search bar at the top.
3. Configuring Chart Settings:
• Before integrating the Supertrend Advance Strategy, familiarize yourself with the chart settings. This can be accessed by clicking the 'gear' icon on the top right of the chart window.
• Adjust the chart type, time intervals, and other display settings to your preference.
Integrating the Strategy into a Chart:
Now that you're set up on TradingView, it's time to integrate the Supertrend Advance Strategy.
1. Accessing the Pine Script Editor:
• Located at the top-center of your screen, you'll find the "Pine Editor" tab. Click on it.
• This is where custom strategies and indicators are scripted or imported.
2. Loading the Supertrend Advance Strategy Script:
• Depending on whether you have the script or need to find it, there are two paths:
• If you have the script: Copy the Supertrend Advance Strategy script, and then paste it into the Pine Editor.
• If searching for the script: Click on the “Indicators” icon (looks like a flame) at the top of your screen, and then type “Supertrend Advance Strategy” in the search bar. If available, it will show up in the list. Simply click to add it to your chart.
3. Applying the Strategy:
• After pasting or selecting the Supertrend Advance Strategy in the Pine Editor, click on the “Add to Chart” button located at the top of the editor. This will overlay the strategy onto your main chart window.
4. Configuring Strategy Settings:
• Once the strategy is on your chart, you'll notice a small settings ('gear') icon next to its name in the top-left of the chart window. Click on this to access settings.
• Here, you can adjust various parameters of the Supertrend Advance Strategy to better fit your trading style or the specific asset you're analyzing.
5. Interpreting Signals:
• With the strategy applied, you'll now see buy/sell signals represented on your chart. Take time to familiarize yourself with how these look and behave over various timeframes and market conditions.
3. Strategy Overview
What is the Supertrend Advance Strategy?
The Supertrend Advance Strategy is a refined version of the classic Supertrend Indicator, which was developed to aid traders in spotting market trends. The strategy utilizes a combination of data points, including average true range (ATR) and price momentum, to generate buy and sell signals.
In essence, the Supertrend Advance Strategy can be visualized as a line that moves with the price. When the price is above the Supertrend line, it indicates an uptrend and suggests a potential buy position. Conversely, when the price is below the Supertrend line, it hints at a downtrend, suggesting a potential selling point.
Strategy Goals and Objectives:
1. Trend Identification: At the core of the Supertrend Advance Strategy is the goal to efficiently and consistently identify prevailing market trends. By recognizing these trends, traders can position themselves to capitalize on price movements in their favor.
2. Reducing Noise: Financial markets are often inundated with 'noise' - short-term price fluctuations that can mislead traders. The Supertrend Advance Strategy aims to filter out this noise, allowing for clearer decision-making.
3. Enhancing Risk Management: With clear buy and sell signals, traders can set more precise stop-loss and take-profit points. This leads to better risk management and potentially improved profitability.
4. Versatility: While primarily used for trend identification, the strategy can be integrated with other technical tools and indicators to create a comprehensive trading system.
Type of Assets/Markets to Apply the Strategy:
1. Equities: The Supertrend Advance Strategy is highly popular among stock traders. Its ability to capture long-term trends makes it particularly useful for those trading individual stocks or equity indices.
2. Forex: Given the 24-hour nature of the Forex market and its propensity for trends, the Supertrend Advance Strategy is a valuable tool for currency traders.
3. Commodities: Whether it's gold, oil, or agricultural products, commodities often move in extended trends. The strategy can help in identifying and capitalizing on these movements.
4. Cryptocurrencies: The volatile nature of cryptocurrencies means they can have pronounced trends. The Supertrend Advance Strategy can aid crypto traders in navigating these often tumultuous waters.
5. Futures & Options: Traders and investors in derivative markets can utilize the strategy to make more informed decisions about contract entries and exits.
It's important to note that while the Supertrend Advance Strategy can be applied across various assets and markets, its effectiveness might vary based on market conditions, timeframe, and the specific characteristics of the asset in question. As always, it's recommended to use the strategy in conjunction with other analytical tools and to backtest its effectiveness in specific scenarios before committing to trades.
4. Input Settings
Understanding and correctly configuring input settings is crucial for optimizing the Supertrend Advance Strategy for any specific market or asset. These settings, when tweaked correctly, can drastically impact the strategy's performance.
Grouping Inputs:
Before diving into individual input settings, it's important to group similar inputs. Grouping can simplify the user interface, making it easier to adjust settings related to a specific function or indicator.
Strategy Choice:
This input allows traders to select from various strategies that incorporate the Supertrend indicator. Options might include "Supertrend with RSI," "Supertrend with MACD," etc. By choosing a strategy, the associated input settings for that strategy become available.
Supertrend Settings:
1. Multiplier: Typically, a default value of 3 is used. This multiplier is used in the ATR calculation. Increasing it makes the Supertrend line further from prices, while decreasing it brings the line closer.
2. Period: The number of bars used in the ATR calculation. A common default is 7.
EMA Settings (Exponential Moving Average):
1. Period: Defines the number of previous bars used to calculate the EMA. Common periods are 9, 21, 50, and 200.
2. Source: Allows traders to choose which price (Open, Close, High, Low) to use in the EMA calculation.
RSI Settings (Relative Strength Index):
1. Length: Determines how many periods are used for RSI calculation. The standard setting is 14.
2. Overbought Level: The threshold at which the asset is considered overbought, typically set at 70.
3. Oversold Level: The threshold at which the asset is considered oversold, often at 30.
MACD Settings (Moving Average Convergence Divergence):
1. Short Period: The shorter EMA, usually set to 12.
2. Long Period: The longer EMA, commonly set to 26.
3. Signal Period: Defines the EMA of the MACD line, typically set at 9.
CCI Settings (Commodity Channel Index):
1. Period: The number of bars used in the CCI calculation, often set to 20.
2. Overbought Level: Typically set at +100, denoting overbought conditions.
3. Oversold Level: Usually set at -100, indicating oversold conditions.
SL/TP Settings (Stop Loss/Take Profit):
1. SL Multiplier: Defines the multiplier for the average true range (ATR) to set the stop loss.
2. TP Multiplier: Defines the multiplier for the average true range (ATR) to set the take profit.
Filtering Conditions:
This section allows traders to set conditions to filter out certain signals. For example, one might only want to take buy signals when the RSI is below 30, ensuring they buy during oversold conditions.
Trade Direction and Backtest Period:
1. Trade Direction: Allows traders to specify whether they want to take long trades, short trades, or both.
2. Backtest Period: Specifies the time range for backtesting the strategy. Traders can choose from options like 'Last 6 months,' 'Last 1 year,' etc.
It's essential to remember that while default settings are provided for many of these tools, optimal settings can vary based on the market, timeframe, and trading style. Always backtest new settings on historical data to gauge their potential efficacy.
5. Understanding Strategy Conditions
Developing an understanding of the conditions set within a trading strategy is essential for traders to maximize its potential. Here, we delve deep into the logic behind these conditions, using the Supertrend Advance Strategy as our focal point.
Basic Logic Behind Conditions:
Every strategy is built around a set of conditions that provide buy or sell signals. The conditions are based on mathematical or statistical methods and are rooted in the study of historical price data. The fundamental idea is to recognize patterns or behaviors that have been profitable in the past and might be profitable in the future.
Buy and Sell Conditions:
1. Buy Conditions: Usually formulated around bullish signals or indicators suggesting upward price momentum.
2. Sell Conditions: Centered on bearish signals or indicators indicating downward price momentum.
Simple Strategy:
The simple strategy could involve using just the Supertrend indicator. Here:
• Buy: When price closes above the Supertrend line.
• Sell: When price closes below the Supertrend line.
Pullback Strategy:
This strategy capitalizes on price retracements:
• Buy: When the price retraces to the Supertrend line after a bullish signal and is supported by another bullish indicator.
• Sell: When the price retraces to the Supertrend line after a bearish signal and is confirmed by another bearish indicator.
Indicators Used:
EMA (Exponential Moving Average):
• Logic: EMA gives more weight to recent prices, making it more responsive to current price movements. A shorter-period EMA crossing above a longer-period EMA can be a bullish sign, while the opposite is bearish.
RSI (Relative Strength Index):
• Logic: RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions. Values above 70 are typically considered overbought, and values below 30 are considered oversold.
MACD (Moving Average Convergence Divergence):
• Logic: MACD assesses the relationship between two EMAs of a security’s price. The MACD line crossing above the signal line can be a bullish signal, while crossing below can be bearish.
CCI (Commodity Channel Index):
• Logic: CCI compares a security's average price change with its average price variation. A CCI value above +100 may mean the price is overbought, while below -100 might signify an oversold condition.
And others...
As the strategy expands or contracts, more indicators might be added or removed. The crucial point is to understand the core logic behind each, ensuring they align with the strategy's objectives.
Logic Behind Each Indicator:
1. EMA: Emphasizes recent price movements; provides dynamic support and resistance levels.
2. RSI: Indicates overbought and oversold conditions based on recent price changes.
3. MACD: Showcases momentum and direction of a trend by comparing two EMAs.
4. CCI: Measures the difference between a security's price change and its average price change.
Understanding strategy conditions is not just about knowing when to buy or sell but also about comprehending the underlying market dynamics that those conditions represent. As you familiarize yourself with each condition and indicator, you'll be better prepared to adapt and evolve with the ever-changing financial markets.
6. Trade Execution and Management
Trade execution and management are crucial aspects of any trading strategy. Efficient execution can significantly impact profitability, while effective management can preserve capital during adverse market conditions. In this section, we'll explore the nuances of position entry, exit strategies, and various Stop Loss (SL) and Take Profit (TP) methodologies within the Supertrend Advance Strategy.
Position Entry:
Effective trade entry revolves around:
1. Timing: Enter at a point where the risk-reward ratio is favorable. This often corresponds to confirmatory signals from multiple indicators.
2. Volume Analysis: Ensure there's adequate volume to support the movement. Volume can validate the strength of a signal.
3. Confirmation: Use multiple indicators or chart patterns to confirm the entry point. For instance, a buy signal from the Supertrend indicator can be confirmed with a bullish MACD crossover.
Position Exit Strategies:
A successful exit strategy will lock in profits and minimize losses. Here are some strategies:
1. Fixed Time Exit: Exiting after a predetermined period.
2. Percentage-based Profit Target: Exiting after a certain percentage gain.
3. Indicator-based Exit: Exiting when an indicator gives an opposing signal.
Percentage-based SL/TP:
• Stop Loss (SL): Set a fixed percentage below the entry price to limit potential losses.
• Example: A 2% SL on an entry at $100 would trigger a sell at $98.
• Take Profit (TP): Set a fixed percentage above the entry price to lock in gains.
• Example: A 5% TP on an entry at $100 would trigger a sell at $105.
Supertrend-based SL/TP:
• Stop Loss (SL): Position the SL at the Supertrend line. If the price breaches this line, it could indicate a trend reversal.
• Take Profit (TP): One could set the TP at a point where the Supertrend line flattens or turns, indicating a possible slowdown in momentum.
Swing high/low-based SL/TP:
• Stop Loss (SL): For a long position, set the SL just below the recent swing low. For a short position, set it just above the recent swing high.
• Take Profit (TP): For a long position, set the TP near a recent swing high or resistance. For a short position, near a swing low or support.
And other methods...
1. Trailing Stop Loss: This dynamic SL adjusts with the price movement, locking in profits as the trade moves in your favor.
2. Multiple Take Profits: Divide the position into segments and set multiple TP levels, securing profits in stages.
3. Opposite Signal Exit: Exit when another reliable indicator gives an opposite signal.
Trade execution and management are as much an art as they are a science. They require a blend of analytical skill, discipline, and intuition. Regularly reviewing and refining your strategies, especially in light of changing market conditions, is crucial to maintaining consistent trading performance.
7. Visual Representations
Visual tools are essential for traders, as they simplify complex data into an easily interpretable format. Properly analyzing and understanding the plots on a chart can provide actionable insights and a more intuitive grasp of market conditions. In this section, we’ll delve into various visual representations used in the Supertrend Advance Strategy and their significance.
Understanding Plots on the Chart:
Charts are the primary visual aids for traders. The arrangement of data points, lines, and colors on them tell a story about the market's past, present, and potential future moves.
1. Data Points: These represent individual price actions over a specific timeframe. For instance, a daily chart will have data points showing the opening, closing, high, and low prices for each day.
2. Colors: Used to indicate the nature of price movement. Commonly, green is used for bullish (upward) moves and red for bearish (downward) moves.
Trend Lines:
Trend lines are straight lines drawn on a chart that connect a series of price points. Their significance:
1. Uptrend Line: Drawn along the lows, representing support. A break below might indicate a trend reversal.
2. Downtrend Line: Drawn along the highs, indicating resistance. A break above might suggest the start of a bullish trend.
Filled Areas:
These represent a range between two values on a chart, usually shaded or colored. For instance:
1. Bollinger Bands: The area between the upper and lower band is filled, giving a visual representation of volatility.
2. Volume Profile: Can show a filled area representing the amount of trading activity at different price levels.
Stop Loss and Take Profit Lines:
These are horizontal lines representing pre-determined exit points for trades.
1. Stop Loss Line: Indicates the level at which a trade will be automatically closed to limit losses. Positioned according to the trader's risk tolerance.
2. Take Profit Line: Denotes the target level to lock in profits. Set according to potential resistance (for long trades) or support (for short trades) or other technical factors.
Trailing Stop Lines:
A trailing stop is a dynamic form of stop loss that moves with the price. On a chart:
1. For Long Trades: Starts below the entry price and moves up with the price but remains static if the price falls, ensuring profits are locked in.
2. For Short Trades: Starts above the entry price and moves down with the price but remains static if the price rises.
Visual representations offer traders a clear, organized view of market dynamics. Familiarity with these tools ensures that traders can quickly and accurately interpret chart data, leading to more informed decision-making. Always ensure that the visual aids used resonate with your trading style and strategy for the best results.
8. Backtesting
Backtesting is a fundamental process in strategy development, enabling traders to evaluate the efficacy of their strategy using historical data. It provides a snapshot of how the strategy would have performed in past market conditions, offering insights into its potential strengths and vulnerabilities. In this section, we'll explore the intricacies of setting up and analyzing backtest results and the caveats one must be aware of.
Setting Up Backtest Period:
1. Duration: Determine the timeframe for the backtest. It should be long enough to capture various market conditions (bullish, bearish, sideways). For instance, if you're testing a daily strategy, consider a period of several years.
2. Data Quality: Ensure the data source is reliable, offering high-resolution and clean data. This is vital to get accurate backtest results.
3. Segmentation: Instead of a continuous period, sometimes it's helpful to backtest over distinct market phases, like a particular bear or bull market, to see how the strategy holds up in different environments.
Analyzing Backtest Results:
1. Performance Metrics: Examine metrics like the total return, annualized return, maximum drawdown, Sharpe ratio, and others to gauge the strategy's efficiency.
2. Win Rate: It's the ratio of winning trades to total trades. A high win rate doesn't always signify a good strategy; it should be evaluated in conjunction with other metrics.
3. Risk/Reward: Understand the average profit versus the average loss per trade. A strategy might have a low win rate but still be profitable if the average gain far exceeds the average loss.
4. Drawdown Analysis: Review the periods of losses the strategy could incur and how long it takes, on average, to recover.
9. Tips and Best Practices
Successful trading requires more than just knowing how a strategy works. It necessitates an understanding of when to apply it, how to adjust it to varying market conditions, and the wisdom to recognize and avoid common pitfalls. This section offers insightful tips and best practices to enhance the application of the Supertrend Advance Strategy.
When to Use the Strategy:
1. Market Conditions: Ideally, employ the Supertrend Advance Strategy during trending market conditions. This strategy thrives when there are clear upward or downward trends. It might be less effective during consolidative or sideways markets.
2. News Events: Be cautious around significant news events, as they can cause extreme volatility. It might be wise to avoid trading immediately before and after high-impact news.
3. Liquidity: Ensure you are trading in assets/markets with sufficient liquidity. High liquidity ensures that the price movements are more reflective of genuine market sentiment and not due to thin volume.
Adjusting Settings for Different Markets/Timeframes:
1. Markets: Each market (stocks, forex, commodities) has its own characteristics. It's essential to adjust the strategy's parameters to align with the market's volatility and liquidity.
2. Timeframes: Shorter timeframes (like 1-minute or 5-minute charts) tend to have more noise. You might need to adjust the settings to filter out false signals. Conversely, for longer timeframes (like daily or weekly charts), you might need to be more responsive to genuine trend changes.
3. Customization: Regularly review and tweak the strategy's settings. Periodic adjustments can ensure the strategy remains optimized for the current market conditions.
10. Frequently Asked Questions (FAQs)
Given the complexities and nuances of the Supertrend Advance Strategy, it's only natural for traders, both new and seasoned, to have questions. This section addresses some of the most commonly asked questions regarding the strategy.
1. What exactly is the Supertrend Advance Strategy?
The Supertrend Advance Strategy is an evolved version of the traditional Supertrend indicator. It's designed to provide clearer buy and sell signals by incorporating additional indicators like EMA, RSI, MACD, CCI, etc. The strategy aims to capitalize on market trends while minimizing false signals.
2. Can I use the Supertrend Advance Strategy for all asset types?
Yes, the strategy can be applied to various asset types like stocks, forex, commodities, and cryptocurrencies. However, it's crucial to adjust the settings accordingly to suit the specific characteristics and volatility of each asset type.
3. Is this strategy suitable for day trading?
Absolutely! The Supertrend Advance Strategy can be adjusted to suit various timeframes, making it versatile for both day trading and long-term trading. Remember to fine-tune the settings to align with the timeframe you're trading on.
4. How do I deal with false signals?
No strategy is immune to false signals. However, by combining the Supertrend with other indicators and adhering to strict risk management protocols, you can minimize the impact of false signals. Always use stop-loss orders and consider filtering trades with additional confirmation signals.
5. Do I need any prior trading experience to use this strategy?
While the Supertrend Advance Strategy is designed to be user-friendly, having a foundational understanding of trading and market analysis can greatly enhance your ability to employ the strategy effectively. If you're a beginner, consider pairing the strategy with further education and practice on demo accounts.
6. How often should I review and adjust the strategy settings?
There's no one-size-fits-all answer. Some traders adjust settings weekly, while others might do it monthly. The key is to remain responsive to changing market conditions. Regular backtesting can give insights into potential required adjustments.
7. Can the Supertrend Advance Strategy be automated?
Yes, many traders use algorithmic trading platforms to automate their strategies, including the Supertrend Advance Strategy. However, always monitor automated systems regularly to ensure they're operating as intended.
8. Are there any markets or conditions where the strategy shouldn't be used?
The strategy might generate more false signals in markets that are consolidative or range-bound. During significant news events or times of unexpected high volatility, it's advisable to tread with caution or stay out of the market.
9. How important is backtesting with this strategy?
Backtesting is crucial as it allows traders to understand how the strategy would have performed in the past, offering insights into potential profitability and areas of improvement. Always backtest any new setting or tweak before applying it to live trades.
10. What if the strategy isn't working for me?
No strategy guarantees consistent profits. If it's not working for you, consider reviewing your settings, seeking expert advice, or complementing the Supertrend Advance Strategy with other analysis methods. Remember, continuous learning and adaptation are the keys to trading success.
Other comments
Value of combining several indicators in this script and how they work together
Diversification of Signals: Just as diversifying an investment portfolio can reduce risk, using multiple indicators can offer varied perspectives on potential price movements. Each indicator can capture a different facet of the market, ensuring that traders are not overly reliant on a single data point.
Confirmation & Reduced False Signals: A common challenge with many indicators is the potential for false signals. By requiring confirmation from multiple indicators before acting, the chances of acting on a false signal can be significantly reduced.
Flexibility Across Market Conditions: Different indicators might perform better under different market conditions. For example, while moving averages might excel in trending markets, oscillators like RSI might be more useful during sideways or range-bound conditions. A mashup strategy can potentially adapt better to varying market scenarios.
Comprehensive Analysis: With multiple indicators, traders can gauge trend strength, momentum, volatility, and potential market reversals all at once, providing a holistic view of the market.
How do the different indicators in the Supertrend Advance Strategy work together?
Supertrend: This is primarily a trend-following indicator. It provides traders with buy and sell signals based on the volatility of the price. When combined with other indicators, it can filter out noise and give more weight to strong, confirmed trends.
EMA (Exponential Moving Average): EMA gives more weight to recent price data. It can be used to identify the direction and strength of a trend. When the price is above the EMA, it's generally considered bullish, and vice versa.
RSI (Relative Strength Index): An oscillator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions. By cross-referencing with other indicators like EMA or MACD, traders can spot potential reversals or confirmations of a trend.
MACD (Moving Average Convergence Divergence): This indicator identifies changes in the strength, direction, momentum, and duration of a trend in a stock's price. When the MACD line crosses above the signal line, it can be a bullish sign, and when it crosses below, it can be bearish. Pairing MACD with Supertrend can provide dual confirmation of a trend.
CCI (Commodity Channel Index): Initially developed for commodities, CCI can indicate overbought or oversold conditions. It can be used in conjunction with other indicators to determine entry and exit points.
In essence, the synergy of these indicators provides a balanced, comprehensive approach to trading. Each indicator offers its unique lens into market conditions, and when they align, it can be a powerful indication of a trading opportunity. This combination not only reduces the potential drawbacks of each individual indicator but leverages their strengths, aiming for more consistent and informed trading decisions.
Backtesting and Default Settings
• This indicator has been optimized to be applied for 1 hour-charts. However, the underlying principles of this strategy are supply and demand in the financial markets and the strategy can be applied to all timeframes. Daytraders can use the 1min- or 5min charts, swing-traders can use the daily charts.
• 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 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.
• Default properties: RSI on (length 14, RSI buy level 50, sell level 50), EMA, RSI, MACD on, type of strategy pullback, SL/TP type: ATR (length 10, factor 3), trade direction both, quantity 5, take profit swing hl 5.1, highest / lowest lookback 2, enable ATR trail (ATR length 10, SL ATR multiplier 1.4, TP multiplier 2.1, lookback = 4, trade direction = both).
在腳本中搜尋"take profit"
Backtesting & Trading Engine [PineCoders]The PineCoders Backtesting and Trading Engine is a sophisticated framework with hybrid code that can run as a study to generate alerts for automated or discretionary trading while simultaneously providing backtest results. It can also easily be converted to a TradingView strategy in order to run TV backtesting. The Engine comes with many built-in strats for entries, filters, stops and exits, but you can also add you own.
If, like any self-respecting strategy modeler should, you spend a reasonable amount of time constantly researching new strategies and tinkering, our hope is that the Engine will become your inseparable go-to tool to test the validity of your creations, as once your tests are conclusive, you will be able to run this code as a study to generate the alerts required to put it in real-world use, whether for discretionary trading or to interface with an execution bot/app. You may also find the backtesting results the Engine produces in study mode enough for your needs and spend most of your time there, only occasionally converting to strategy mode in order to backtest using TV backtesting.
As you will quickly grasp when you bring up this script’s Settings, this is a complex tool. While you will be able to see results very quickly by just putting it on a chart and using its built-in strategies, in order to reap the full benefits of the PineCoders Engine, you will need to invest the time required to understand the subtleties involved in putting all its potential into play.
Disclaimer: use the Engine at your own risk.
Before we delve in more detail, here’s a bird’s eye view of the Engine’s features:
More than 40 built-in strategies,
Customizable components,
Coupling with your own external indicator,
Simple conversion from Study to Strategy modes,
Post-Exit analysis to search for alternate trade outcomes,
Use of the Data Window to show detailed bar by bar trade information and global statistics, including some not provided by TV backtesting,
Plotting of reminders and generation of alerts on in-trade events.
By combining your own strats to the built-in strats supplied with the Engine, and then tuning the numerous options and parameters in the Inputs dialog box, you will be able to play what-if scenarios from an infinite number of permutations.
USE CASES
You have written an indicator that provides an entry strat but it’s missing other components like a filter and a stop strategy. You add a plot in your indicator that respects the Engine’s External Signal Protocol, connect it to the Engine by simply selecting your indicator’s plot name in the Engine’s Settings/Inputs and then run tests on different combinations of entry stops, in-trade stops and profit taking strats to find out which one produces the best results with your entry strat.
You are building a complex strategy that you will want to run as an indicator generating alerts to be sent to a third-party execution bot. You insert your code in the Engine’s modules and leverage its trade management code to quickly move your strategy into production.
You have many different filters and want to explore results using them separately or in combination. Integrate the filter code in the Engine and run through different permutations or hook up your filtering through the external input and control your filter combos from your indicator.
You are tweaking the parameters of your entry, filter or stop strat. You integrate it in the Engine and evaluate its performance using the Engine’s statistics.
You always wondered what results a random entry strat would yield on your markets. You use the Engine’s built-in random entry strat and test it using different combinations of filters, stop and exit strats.
You want to evaluate the impact of fees and slippage on your strategy. You use the Engine’s inputs to play with different values and get immediate feedback in the detailed numbers provided in the Data Window.
You just want to inspect the individual trades your strategy generates. You include it in the Engine and then inspect trades visually on your charts, looking at the numbers in the Data Window as you move your cursor around.
You have never written a production-grade strategy and you want to learn how. Inspect the code in the Engine; you will find essential components typical of what is being used in actual trading systems.
You have run your system for a while and have compiled actual slippage information and your broker/exchange has updated his fees schedule. You enter the information in the Engine and run it on your markets to see the impact this has on your results.
FEATURES
Before going into the detail of the Inputs and the Data Window numbers, here’s a more detailed overview of the Engine’s features.
Built-in strats
The engine comes with more than 40 pre-coded strategies for the following standard system components:
Entries,
Filters,
Entry stops,
2 stage in-trade stops with kick-in rules,
Pyramiding rules,
Hard exits.
While some of the filter and stop strats provided may be useful in production-quality systems, you will not devise crazy profit-generating systems using only the entry strats supplied; that part is still up to you, as will be finding the elusive combination of components that makes winning systems. The Engine will, however, provide you with a solid foundation where all the trade management nitty-gritty is handled for you. By binding your custom strats to the Engine, you will be able to build reliable systems of the best quality currently allowed on the TV platform.
On-chart trade information
As you move over the bars in a trade, you will see trade numbers in the Data Window change at each bar. The engine calculates the P&L at every bar, including slippage and fees that would be incurred were the trade exited at that bar’s close. If the trade includes pyramided entries, those will be taken into account as well, although for those, final fees and slippage are only calculated at the trade’s exit.
You can also see on-chart markers for the entry level, stop positions, in-trade special events and entries/exits (you will want to disable these when using the Engine in strategy mode to see TV backtesting results).
Customization
You can couple your own strats to the Engine in two ways:
1. By inserting your own code in the Engine’s different modules. The modular design should enable you to do so with minimal effort by following the instructions in the code.
2. By linking an external indicator to the engine. After making the proper selections in the engine’s Settings and providing values respecting the engine’s protocol, your external indicator can, when the Engine is used in Indicator mode only:
Tell the engine when to enter long or short trades, but let the engine’s in-trade stop and exit strats manage the exits,
Signal both entries and exits,
Provide an entry stop along with your entry signal,
Filter other entry signals generated by any of the engine’s entry strats.
Conversion from strategy to study
TradingView strategies are required to backtest using the TradingView backtesting feature, but if you want to generate alerts with your script, whether for automated trading or just to trigger alerts that you will use in discretionary trading, your code has to run as a study since, for the time being, strategies can’t generate alerts. From hereon we will use indicator as a synonym for study.
Unless you want to maintain two code bases, you will need hybrid code that easily flips between strategy and indicator modes, and your code will need to restrict its use of strategy() calls and their arguments if it’s going to be able to run both as an indicator and a strategy using the same trade logic. That’s one of the benefits of using this Engine. Once you will have entered your own strats in the Engine, it will be a matter of commenting/uncommenting only four lines of code to flip between indicator and strategy modes in a matter of seconds.
Additionally, even when running in Indicator mode, the Engine will still provide you with precious numbers on your individual trades and global results, some of which are not available with normal TradingView backtesting.
Post-Exit Analysis for alternate outcomes (PEA)
While typical backtesting shows results of trade outcomes, PEA focuses on what could have happened after the exit. The intention is to help traders get an idea of the opportunity/risk in the bars following the trade in order to evaluate if their exit strategies are too aggressive or conservative.
After a trade is exited, the Engine’s PEA module continues analyzing outcomes for a user-defined quantity of bars. It identifies the maximum opportunity and risk available in that space, and calculates the drawdown required to reach the highest opportunity level post-exit, while recording the number of bars to that point.
Typically, if you can’t find opportunity greater than 1X past your trade using a few different reasonable lengths of PEA, your strategy is doing pretty good at capturing opportunity. Remember that 100% of opportunity is never capturable. If, however, PEA was finding post-trade maximum opportunity of 3 or 4X with average drawdowns of 0.3 to those areas, this could be a clue revealing your system is exiting trades prematurely. To analyze PEA numbers, you can uncomment complete sets of plots in the Plot module to reveal detailed global and individual PEA numbers.
Statistics
The Engine provides stats on your trades that TV backtesting does not provide, such as:
Average Profitability Per Trade (APPT), aka statistical expectancy, a crucial value.
APPT per bar,
Average stop size,
Traded volume .
It also shows you on a trade-by-trade basis, on-going individual trade results and data.
In-trade events
In-trade events can plot reminders and trigger alerts when they occur. The built-in events are:
Price approaching stop,
Possible tops/bottoms,
Large stop movement (for discretionary trading where stop is moved manually),
Large price movements.
Slippage and Fees
Even when running in indicator mode, the Engine allows for slippage and fees to be included in the logic and test results.
Alerts
The alert creation mechanism allows you to configure alerts on any combination of the normal or pyramided entries, exits and in-trade events.
Backtesting results
A few words on the numbers calculated in the Engine. Priority is given to numbers not shown in TV backtesting, as you can readily convert the script to a strategy if you need them.
We have chosen to focus on numbers expressing results relative to X (the trade’s risk) rather than in absolute currency numbers or in other more conventional but less useful ways. For example, most of the individual trade results are not shown in percentages, as this unit of measure is often less meaningful than those expressed in units of risk (X). A trade that closes with a +25% result, for example, is a poor outcome if it was entered with a -50% stop. Expressed in X, this trade’s P&L becomes 0.5, which provides much better insight into the trade’s outcome. A trade that closes with a P&L of +2X has earned twice the risk incurred upon entry, which would represent a pre-trade risk:reward ratio of 2.
The way to go about it when you think in X’s and that you adopt the sound risk management policy to risk a fixed percentage of your account on each trade is to equate a currency value to a unit of X. E.g. your account is 10K USD and you decide you will risk a maximum of 1% of it on each trade. That means your unit of X for each trade is worth 100 USD. If your APPT is 2X, this means every time you risk 100 USD in a trade, you can expect to make, on average, 200 USD.
By presenting results this way, we hope that the Engine’s statistics will appeal to those cognisant of sound risk management strategies, while gently leading traders who aren’t, towards them.
We trade to turn in tangible profits of course, so at some point currency must come into play. Accordingly, some values such as equity, P&L, slippage and fees are expressed in currency.
Many of the usual numbers shown in TV backtests are nonetheless available, but they have been commented out in the Engine’s Plot module.
Position sizing and risk management
All good system designers understand that optimal risk management is at the very heart of all winning strategies. The risk in a trade is defined by the fraction of current equity represented by the amplitude of the stop, so in order to manage risk optimally on each trade, position size should adjust to the stop’s amplitude. Systems that enter trades with a fixed stop amplitude can get away with calculating position size as a fixed percentage of current equity. In the context of a test run where equity varies, what represents a fixed amount of risk translates into different currency values.
Dynamically adjusting position size throughout a system’s life is optimal in many ways. First, as position sizing will vary with current equity, it reproduces a behavioral pattern common to experienced traders, who will dial down risk when confronted to poor performance and increase it when performance improves. Second, limiting risk confers more predictability to statistical test results. Third, position sizing isn’t just about managing risk, it’s also about maximizing opportunity. By using the maximum leverage (no reference to trading on margin here) into the trade that your risk management strategy allows, a dynamic position size allows you to capture maximal opportunity.
To calculate position sizes using the fixed risk method, we use the following formula: Position = Account * MaxRisk% / Stop% [, which calculates a position size taking into account the trade’s entry stop so that if the trade is stopped out, 100 USD will be lost. For someone who manages risk this way, common instructions to invest a certain percentage of your account in a position are simply worthless, as they do not take into account the risk incurred in the trade.
The Engine lets you select either the fixed risk or fixed percentage of equity position sizing methods. The closest thing to dynamic position sizing that can currently be done with alerts is to use a bot that allows syntax to specify position size as a percentage of equity which, while being dynamic in the sense that it will adapt to current equity when the trade is entered, does not allow us to modulate position size using the stop’s amplitude. Changes to alerts are on the way which should solve this problem.
In order for you to simulate performance with the constraint of fixed position sizing, the Engine also offers a third, less preferable option, where position size is defined as a fixed percentage of initial capital so that it is constant throughout the test and will thus represent a varying proportion of current equity.
Let’s recap. The three position sizing methods the Engine offers are:
1. By specifying the maximum percentage of risk to incur on your remaining equity, so the Engine will dynamically adjust position size for each trade so that, combining the stop’s amplitude with position size will yield a fixed percentage of risk incurred on current equity,
2. By specifying a fixed percentage of remaining equity. Note that unless your system has a fixed stop at entry, this method will not provide maximal risk control, as risk will vary with the amplitude of the stop for every trade. This method, as the first, does however have the advantage of automatically adjusting position size to equity. It is the Engine’s default method because it has an equivalent in TV backtesting, so when flipping between indicator and strategy mode, test results will more or less correspond.
3. By specifying a fixed percentage of the Initial Capital. While this is the least preferable method, it nonetheless reflects the reality confronted by most system designers on TradingView today. In this case, risk varies both because the fixed position size in initial capital currency represents a varying percentage of remaining equity, and because the trade’s stop amplitude may vary, adding another variability vector to risk.
Note that the Engine cannot display equity results for strategies entering trades for a fixed amount of shares/contracts at a variable price.
SETTINGS/INPUTS
Because the initial text first published with a script cannot be edited later and because there are just too many options, the Engine’s Inputs will not be covered in minute detail, as they will most certainly evolve. We will go over them with broad strokes; you should be able to figure the rest out. If you have questions, just ask them here or in the PineCoders Telegram group.
Display
The display header’s checkbox does nothing.
For the moment, only one exit strategy uses a take profit level, so only that one will show information when checking “Show Take Profit Level”.
Entries
You can activate two simultaneous entry strats, each selected from the same set of strats contained in the Engine. If you select two and they fire simultaneously, the main strat’s signal will be used.
The random strat in each list uses a different seed, so you will get different results from each.
The “Filter transitions” and “Filter states” strats delegate signal generation to the selected filter(s). “Filter transitions” signals will only fire when the filter transitions into bull/bear state, so after a trade is stopped out, the next entry may take some time to trigger if the filter’s state does not change quickly. When you choose “Filter states”, then a new trade will be entered immediately after an exit in the direction the filter allows.
If you select “External Indicator”, your indicator will need to generate a +2/-2 (or a positive/negative stop value) to enter a long/short position, providing the selected filters allow for it. If you wish to use the Engine’s capacity to also derive the entry stop level from your indicator’s signal, then you must explicitly choose this option in the Entry Stops section.
Filters
You can activate as many filters as you wish; they are additive. The “Maximum stop allowed on entry” is an important component of proper risk management. If your system has an average 3% stop size and you need to trade using fixed position sizes because of alert/execution bot limitations, you must use this filter because if your system was to enter a trade with a 15% stop, that trade would incur 5 times the normal risk, and its result would account for an abnormally high proportion in your system’s performance.
Remember that any filter can also be used as an entry signal, either when it changes states, or whenever no trade is active and the filter is in a bull or bear mode.
Entry Stops
An entry stop must be selected in the Engine, as it requires a stop level before the in-trade stop is calculated. Until the selected in-trade stop strat generates a stop that comes closer to price than the entry stop (or respects another one of the in-trade stops kick in strats), the entry stop level is used.
It is here that you must select “External Indicator” if your indicator supplies a +price/-price value to be used as the entry stop. A +price is expected for a long entry and a -price value will enter a short with a stop at price. Note that the price is the absolute price, not an offset to the current price level.
In-Trade Stops
The Engine comes with many built-in in-trade stop strats. Note that some of them share the “Length” and “Multiple” field, so when you swap between them, be sure that the length and multiple in use correspond to what you want for that stop strat. Suggested defaults appear with the name of each strat in the dropdown.
In addition to the strat you wish to use, you must also determine when it kicks in to replace the initial entry’s stop, which is determined using different strats. For strats where you can define a positive or negative multiple of X, percentage or fixed value for a kick-in strat, a positive value is above the trade’s entry fill and a negative one below. A value of zero represents breakeven.
Pyramiding
What you specify in this section are the rules that allow pyramiding to happen. By themselves, these rules will not generate pyramiding entries. For those to happen, entry signals must be issued by one of the active entry strats, and conform to the pyramiding rules which act as a filter for them. The “Filter must allow entry” selection must be chosen if you want the usual system’s filters to act as additional filtering criteria for your pyramided entries.
Hard Exits
You can choose from a variety of hard exit strats. Hard exits are exit strategies which signal trade exits on specific events, as opposed to price breaching a stop level in In-Trade Stops strategies. They are self-explanatory. The last one labelled When Take Profit Level (multiple of X) is reached is the only one that uses a level, but contrary to stops, it is above price and while it is relative because it is expressed as a multiple of X, it does not move during the trade. This is the level called Take Profit that is show when the “Show Take Profit Level” checkbox is checked in the Display section.
While stops focus on managing risk, hard exit strategies try to put the emphasis on capturing opportunity.
Slippage
You can define it as a percentage or a fixed value, with different settings for entries and exits. The entry and exit markers on the chart show the impact of slippage on the entry price (the fill).
Fees
Fees, whether expressed as a percentage of position size in and out of the trade or as a fixed value per in and out, are in the same units of currency as the capital defined in the Position Sizing section. Fees being deducted from your Capital, they do not have an impact on the chart marker positions.
In-Trade Events
These events will only trigger during trades. They can be helpful to act as reminders for traders using the Engine as assistance to discretionary trading.
Post-Exit Analysis
It is normally on. Some of its results will show in the Global Numbers section of the Data Window. Only a few of the statistics generated are shown; many more are available, but commented out in the Plot module.
Date Range Filtering
Note that you don’t have to change the dates to enable/diable filtering. When you are done with a specific date range, just uncheck “Date Range Filtering” to disable date filtering.
Alert Triggers
Each selection corresponds to one condition. Conditions can be combined into a single alert as you please. Just be sure you have selected the ones you want to trigger the alert before you create the alert. For example, if you trade in both directions and you want a single alert to trigger on both types of exits, you must select both “Long Exit” and “Short Exit” before creating your alert.
Once the alert is triggered, these settings no longer have relevance as they have been saved with the alert.
When viewing charts where an alert has just triggered, if your alert triggers on more than one condition, you will need the appropriate markers active on your chart to figure out which condition triggered the alert, since plotting of markers is independent of alert management.
Position sizing
You have 3 options to determine position size:
1. Proportional to Stop -> Variable, with a cap on size.
2. Percentage of equity -> Variable.
3. Percentage of Initial Capital -> Fixed.
External Indicator
This is where you connect your indicator’s plot that will generate the signals the Engine will act upon. Remember this only works in Indicator mode.
DATA WINDOW INFORMATION
The top part of the window contains global numbers while the individual trade information appears in the bottom part. The different types of units used to express values are:
curr: denotes the currency used in the Position Sizing section of Inputs for the Initial Capital value.
quote: denotes quote currency, i.e. the value the instrument is expressed in, or the right side of the market pair (USD in EURUSD ).
X: the stop’s amplitude, itself expressed in quote currency, which we use to express a trade’s P&L, so that a trade with P&L=2X has made twice the stop’s amplitude in profit. This is sometimes referred to as R, since it represents one unit of risk. It is also the unit of measure used in the APPT, which denotes expected reward per unit of risk.
X%: is also the stop’s amplitude, but expressed as a percentage of the Entry Fill.
The numbers appearing in the Data Window are all prefixed:
“ALL:” the number is the average for all first entries and pyramided entries.
”1ST:” the number is for first entries only.
”PYR:” the number is for pyramided entries only.
”PEA:” the number is for Post-Exit Analyses
Global Numbers
Numbers in this section represent the results of all trades up to the cursor on the chart.
Average Profitability Per Trade (X): This value is the most important gauge of your strat’s worthiness. It represents the returns that can be expected from your strat for each unit of risk incurred. E.g.: your APPT is 2.0, thus for every unit of currency you invest in a trade, you can on average expect to obtain 2 after the trade. APPT is also referred to as “statistical expectancy”. If it is negative, your strategy is losing, even if your win rate is very good (it means your winning trades aren’t winning enough, or your losing trades lose too much, or both). Its counterpart in currency is also shown, as is the APPT/bar, which can be a useful gauge in deciding between rivalling systems.
Profit Factor: Gross of winning trades/Gross of losing trades. Strategy is profitable when >1. Not as useful as the APPT because it doesn’t take into account the win rate and the average win/loss per trade. It is calculated from the total winning/losing results of this particular backtest and has less predictive value than the APPT. A good profit factor together with a poor APPT means you just found a chart where your system outperformed. Relying too much on the profit factor is a bit like a poker player who would think going all in with two’s against aces is optimal because he just won a hand that way.
Win Rate: Percentage of winning trades out of all trades. Taken alone, it doesn’t have much to do with strategy profitability. You can have a win rate of 99% but if that one trade in 100 ruins you because of poor risk management, 99% doesn’t look so good anymore. This number speaks more of the system’s profile than its worthiness. Still, it can be useful to gauge if the system fits your personality. It can also be useful to traders intending to sell their systems, as low win rate systems are more difficult to sell and require more handholding of worried customers.
Equity (curr): This the sum of initial capital and the P&L of your system’s trades, including fees and slippage.
Return on Capital is the equivalent of TV’s Net Profit figure, i.e. the variation on your initial capital.
Maximum drawdown is the maximal drawdown from the highest equity point until the drop . There is also a close to close (meaning it doesn’t take into account in-trade variations) maximum drawdown value commented out in the code.
The next values are self-explanatory, until:
PYR: Avg Profitability Per Entry (X): this is the APPT for all pyramided entries.
PEA: Avg Max Opp . Available (X): the average maximal opportunity found in the Post-Exit Analyses.
PEA: Avg Drawdown to Max Opp . (X): this represents the maximum drawdown (incurred from the close at the beginning of the PEA analysis) required to reach the maximal opportunity point.
Trade Information
Numbers in this section concern only the current trade under the cursor. Most of them are self-explanatory. Use the description’s prefix to determine what the values applies to.
PYR: Avg Profitability Per Entry (X): While this value includes the impact of all current pyramided entries (and only those) and updates when you move your cursor around, P&L only reflects fees at the trade’s last bar.
PEA: Max Opp . Available (X): It’s the most profitable close reached post-trade, measured from the trade’s Exit Fill, expressed in the X value of the trade the PEA follows.
PEA: Drawdown to Max Opp . (X): This is the maximum drawdown from the trade’s Exit Fill that needs to be sustained in order to reach the maximum opportunity point, also expressed in X. Note that PEA numbers do not include slippage and fees.
EXTERNAL SIGNAL PROTOCOL
Only one external indicator can be connected to a script; in order to leverage its use to the fullest, the engine provides options to use it as either an entry signal, an entry/exit signal or a filter. When used as an entry signal, you can also use the signal to provide the entry’s stop. Here’s how this works:
For filter state: supply +1 for bull (long entries allowed), -1 for bear (short entries allowed).
For entry signals: supply +2 for long, -2 for short.
For exit signals: supply +3 for exit from long, -3 for exit from short.
To send an entry stop level with an entry signal: Send positive stop level for long entry (e.g. 103.33 to enter a long with a stop at 103.33), negative stop level for short entry (e.g. -103.33 to enter a short with a stop at 103.33). If you use this feature, your indicator will have to check for exact stop levels of 1.0, 2.0 or 3.0 and their negative counterparts, and fudge them with a tick in order to avoid confusion with other signals in the protocol.
Remember that mere generation of the values by your indicator will have no effect until you explicitly allow their use in the appropriate sections of the Engine’s Settings/Inputs.
An example of a script issuing a signal for the Engine is published by PineCoders.
RECOMMENDATIONS TO ASPIRING SYSTEM DESIGNERS
Stick to higher timeframes. On progressively lower timeframes, margins decrease and fees and slippage take a proportionally larger portion of profits, to the point where they can very easily turn a profitable strategy into a losing one. Additionally, your margin for error shrinks as the equilibrium of your system’s profitability becomes more fragile with the tight numbers involved in the shorter time frames. Avoid <1H time frames.
Know and calculate fees and slippage. To avoid market shock, backtest using conservative fees and slippage parameters. Systems rarely show unexpectedly good returns when they are confronted to the markets, so put all chances on your side by being outrageously conservative—or a the very least, realistic. Test results that do not include fees and slippage are worthless. Slippage is there for a reason, and that’s because our interventions in the market change the market. It is easier to find alpha in illiquid markets such as cryptos because not many large players participate in them. If your backtesting results are based on moving large positions and you don’t also add the inevitable slippage that will occur when you enter/exit thin markets, your backtesting will produce unrealistic results. Even if you do include large slippage in your settings, the Engine can only do so much as it will not let slippage push fills past the high or low of the entry bar, but the gap may be much larger in illiquid markets.
Never test and optimize your system on the same dataset , as that is the perfect recipe for overfitting or data dredging, which is trying to find one precise set of rules/parameters that works only on one dataset. These setups are the most fragile and often get destroyed when they meet the real world.
Try to find datasets yielding more than 100 trades. Less than that and results are not as reliable.
Consider all backtesting results with suspicion. If you never entertained sceptic tendencies, now is the time to begin. If your backtest results look really good, assume they are flawed, either because of your methodology, the data you’re using or the software doing the testing. Always assume the worse and learn proper backtesting techniques such as monte carlo simulations and walk forward analysis to avoid the traps and biases that unchecked greed will set for you. If you are not familiar with concepts such as survivor bias, lookahead bias and confirmation bias, learn about them.
Stick to simple bars or candles when designing systems. Other types of bars often do not yield reliable results, whether by design (Heikin Ashi) or because of the way they are implemented on TV (Renko bars).
Know that you don’t know and use that knowledge to learn more about systems and how to properly test them, about your biases, and about yourself.
Manage risk first , then capture opportunity.
Respect the inherent uncertainty of the future. Cleanse yourself of the sad arrogance and unchecked greed common to newcomers to trading. Strive for rationality. Respect the fact that while backtest results may look promising, there is no guarantee they will repeat in the future (there is actually a high probability they won’t!), because the future is fundamentally unknowable. If you develop a system that looks promising, don’t oversell it to others whose greed may lead them to entertain unreasonable expectations.
Have a plan. Understand what king of trading system you are trying to build. Have a clear picture or where entries, exits and other important levels will be in the sort of trade you are trying to create with your system. This stated direction will help you discard more efficiently many of the inevitably useless ideas that will pop up during system design.
Be wary of complexity. Experienced systems engineers understand how rapidly complexity builds when you assemble components together—however simple each one may be. The more complex your system, the more difficult it will be to manage.
Play! . Allow yourself time to play around when you design your systems. While much comes about from working with a purpose, great ideas sometimes come out of just trying things with no set goal, when you are stuck and don’t know how to move ahead. Have fun!
@LucF
NOTES
While the engine’s code can supply multiple consecutive entries of longs or shorts in order to scale positions (pyramid), all exits currently assume the execution bot will exit the totality of the position. No partial exits are currently possible with the Engine.
Because the Engine is literally crippled by the limitations on the number of plots a script can output on TV; it can only show a fraction of all the information it calculates in the Data Window. You will find in the Plot Module vast amounts of commented out lines that you can activate if you also disable an equivalent number of other plots. This may be useful to explore certain characteristics of your system in more detail.
When backtesting using the TV backtesting feature, you will need to provide the strategy parameters you wish to use through either Settings/Properties or by changing the default values in the code’s header. These values are defined in variables and used not only in the strategy() statement, but also as defaults in the Engine’s relevant Inputs.
If you want to test using pyramiding, then both the strategy’s Setting/Properties and the Engine’s Settings/Inputs need to allow pyramiding.
If you find any bugs in the Engine, please let us know.
THANKS
To @glaz for allowing the use of his unpublished MA Squize in the filters.
To @everget for his Chandelier stop code, which is also used as a filter in the Engine.
To @RicardoSantos for his pseudo-random generator, and because it’s from him that I first read in the Pine chat about the idea of using an external indicator as input into another. In the PineCoders group, @theheirophant then mentioned the idea of using it as a buy/sell signal and @simpelyfe showed a piece of code implementing the idea. That’s the tortuous story behind the use of the external indicator in the Engine.
To @admin for the Volatility stop’s original code and for the donchian function lifted from Ichimoku .
To @BobHoward21 for the v3 version of Volatility Stop .
To @scarf and @midtownsk8rguy for the color tuning.
To many other scripters who provided encouragement and suggestions for improvement during the long process of writing and testing this piece of code.
To J. Welles Wilder Jr. for ATR, used extensively throughout the Engine.
To TradingView for graciously making an account available to PineCoders.
And finally, to all fellow PineCoders for the constant intellectual stimulation; it is a privilege to share ideas with you all. The Engine is for all TradingView PineCoders, of course—but especially for you.
Look first. Then leap.
Dskyz (DAFE) Adaptive Regime - Quant Machine ProDskyz (DAFE) Adaptive Regime - Quant Machine Pro:
Buckle up for the Dskyz (DAFE) Adaptive Regime - Quant Machine Pro, is a strategy that’s your ultimate edge for conquering futures markets like ES, MES, NQ, and MNQ. This isn’t just another script—it’s a quant-grade powerhouse, crafted with precision to adapt to market regimes, deliver multi-factor signals, and protect your capital with futures-tuned risk management. With its shimmering DAFE visuals, dual dashboards, and glowing watermark, it turns your charts into a cyberpunk command center, making trading as thrilling as it is profitable.
Unlike generic scripts clogging up the space, the Adaptive Regime is a DAFE original, built from the ground up to tackle the chaos of futures trading. It identifies market regimes (Trending, Range, Volatile, Quiet) using ADX, Bollinger Bands, and HTF indicators, then fires trades based on a weighted scoring system that blends candlestick patterns, RSI, MACD, and more. Add in dynamic stops, trailing exits, and a 5% drawdown circuit breaker, and you’ve got a system that’s as safe as it is aggressive. Whether you’re a newbie or a prop desk pro, this strat’s your ticket to outsmarting the markets. Let’s break down every detail and see why it’s a must-have.
Why Traders Need This Strategy
Futures markets are a gauntlet—fast moves, volatility spikes (like the April 28, 2025 NQ 1k-point drop), and institutional traps that punish the unprepared. Meanwhile, platforms are flooded with low-effort scripts that recycle old ideas with zero innovation. The Adaptive Regime stands tall, offering:
Adaptive Intelligence: Detects market regimes (Trending, Range, Volatile, Quiet) to optimize signals, unlike one-size-fits-all scripts.
Multi-Factor Precision: Combines candlestick patterns, MA trends, RSI, MACD, volume, and HTF confirmation for high-probability trades.
Futures-Optimized Risk: Calculates position sizes based on $ risk (default: $300), with ATR or fixed stops/TPs tailored for ES/MES.
Bulletproof Safety: 5% daily drawdown circuit breaker and trailing stops keep your account intact, even in chaos.
DAFE Visual Mastery: Pulsing Bollinger Band fills, dynamic SL/TP lines, and dual dashboards (metrics + position) make signals crystal-clear and charts a work of art.
Original Craftsmanship: A DAFE creation, built with community passion, not a rehashed clone of generic code.
Traders need this because it’s a complete, adaptive system that blends quant smarts, user-friendly design, and DAFE flair. It’s your edge to trade with confidence, cut through market noise, and leave the copycats in the dust.
Strategy Components
1. Market Regime Detection
The strategy’s brain is its ability to classify market conditions into five regimes, ensuring signals match the environment.
How It Works:
Trending (Regime 1): ADX > 20, fast/slow EMA spread > 0.3x ATR, HTF RSI > 50 or MACD bullish (htf_trend_bull/bear).
Range (Regime 2): ADX < 25, price range < 3% of close, no HTF trend.
Volatile (Regime 3): BB width > 1.5x avg, ATR > 1.2x avg, HTF RSI overbought/oversold.
Quiet (Regime 4): BB width < 0.8x avg, ATR < 0.9x avg.
Other (Regime 5): Default for unclear conditions.
Indicators: ADX (14), BB width (20), ATR (14, 50-bar SMA), HTF RSI (14, daily default), HTF MACD (12,26,9).
Why It’s Brilliant:
Regime detection adapts signals to market context, boosting win rates in trending or volatile conditions.
HTF RSI/MACD add a big-picture filter, rare in basic scripts.
Visualized via gradient background (green for Trending, orange for Range, red for Volatile, gray for Quiet, navy for Other).
2. Multi-Factor Signal Scoring
Entries are driven by a weighted scoring system that combines candlestick patterns, trend, momentum, and volume for robust signals.
Candlestick Patterns:
Bullish: Engulfing (0.5), hammer (0.4 in Range, 0.2 else), morning star (0.2), piercing (0.2), double bottom (0.3 in Volatile, 0.15 else). Must be near support (low ≤ 1.01x 20-bar low) with volume spike (>1.5x 20-bar avg).
Bearish: Engulfing (0.5), shooting star (0.4 in Range, 0.2 else), evening star (0.2), dark cloud (0.2), double top (0.3 in Volatile, 0.15 else). Must be near resistance (high ≥ 0.99x 20-bar high) with volume spike.
Logic: Patterns are weighted higher in specific regimes (e.g., hammer in Range, double bottom in Volatile).
Additional Factors:
Trend: Fast EMA (20) > slow EMA (50) + 0.5x ATR (trend_bull, +0.2); opposite for trend_bear.
RSI: RSI (14) < 30 (rsi_bull, +0.15); > 70 (rsi_bear, +0.15).
MACD: MACD line > signal (12,26,9, macd_bull, +0.15); opposite for macd_bear.
Volume: ATR > 1.2x 50-bar avg (vol_expansion, +0.1).
HTF Confirmation: HTF RSI < 70 and MACD bullish (htf_bull_confirm, +0.2); RSI > 30 and MACD bearish (htf_bear_confirm, +0.2).
Scoring:
bull_score = sum of bullish factors; bear_score = sum of bearish. Entry requires score ≥ 1.0.
Example: Bullish engulfing (0.5) + trend_bull (0.2) + rsi_bull (0.15) + htf_bull_confirm (0.2) = 1.05, triggers long.
Why It’s Brilliant:
Multi-factor scoring ensures signals are confirmed by multiple market dynamics, reducing false positives.
Regime-specific weights make patterns more relevant (e.g., hammers shine in Range markets).
HTF confirmation aligns with the big picture, a quant edge over simplistic scripts.
3. Futures-Tuned Risk Management
The risk system is built for futures, calculating position sizes based on $ risk and offering flexible stops/TPs.
Position Sizing:
Logic: Risk per trade (default: $300) ÷ (stop distance in points * point value) = contracts, capped at max_contracts (default: 5). Point value = tick value (e.g., $12.5 for ES) * ticks per point (4) * contract multiplier (1 for ES, 0.1 for MES).
Example: $300 risk, 8-point stop, ES ($50/point) → 0.75 contracts, rounded to 1.
Impact: Precise sizing prevents over-leverage, critical for micro contracts like MES.
Stops and Take-Profits:
Fixed: Default stop = 8 points, TP = 16 points (2:1 reward/risk).
ATR-Based: Stop = 1.5x ATR (default), TP = 3x ATR, enabled via use_atr_for_stops.
Logic: Stops set at swing low/high ± stop distance; TPs at 2x stop distance from entry.
Impact: ATR stops adapt to volatility, while fixed stops suit stable markets.
Trailing Stops:
Logic: Activates at 50% of TP distance. Trails at close ± 1.5x ATR (atr_multiplier). Longs: max(trail_stop_long, close - ATR * 1.5); shorts: min(trail_stop_short, close + ATR * 1.5).
Impact: Locks in profits during trends, a game-changer in volatile sessions.
Circuit Breaker:
Logic: Pauses trading if daily drawdown > 5% (daily_drawdown = (max_equity - equity) / max_equity).
Impact: Protects capital during black swan events (e.g., April 27, 2025 ES slippage).
Why It’s Brilliant:
Futures-specific inputs (tick value, multiplier) make it plug-and-play for ES/MES.
Trailing stops and circuit breaker add pro-level safety, rare in off-the-shelf scripts.
Flexible stops (ATR or fixed) suit different trading styles.
4. Trade Entry and Exit Logic
Entries and exits are precise, driven by bull_score/bear_score and protected by drawdown checks.
Entry Conditions:
Long: bull_score ≥ 1.0, no position (position_size <= 0), drawdown < 5% (not pause_trading). Calculates contracts, sets stop at swing low - stop points, TP at 2x stop distance.
Short: bear_score ≥ 1.0, position_size >= 0, drawdown < 5%. Stop at swing high + stop points, TP at 2x stop distance.
Logic: Tracks entry_regime for PNL arrays. Closes opposite positions before entering.
Exit Conditions:
Stop-Loss/Take-Profit: Hits stop or TP (strategy.exit).
Trailing Stop: Activates at 50% TP, trails by ATR * 1.5.
Emergency Exit: Closes if price breaches stop (close < long_stop_price or close > short_stop_price).
Reset: Clears stop/TP prices when flat (position_size = 0).
Why It’s Brilliant:
Score-based entries ensure multi-factor confirmation, filtering out weak signals.
Trailing stops maximize profits in trends, unlike static exits in basic scripts.
Emergency exits add an extra safety layer, critical for futures volatility.
5. DAFE Visuals
The visuals are pure DAFE magic, blending function with cyberpunk flair to make signals intuitive and charts stunning.
Shimmering Bollinger Band Fill:
Display: BB basis (20, white), upper/lower (green/red, 45% transparent). Fill pulses (30–50 alpha) by regime, with glow (60–95 alpha) near bands (close ≥ 0.995x upper or ≤ 1.005x lower).
Purpose: Highlights volatility and key levels with a futuristic glow.
Visuals make complex regimes and signals instantly clear, even for newbies.
Pulsing effects and regime-specific colors add a DAFE signature, setting it apart from generic scripts.
BB glow emphasizes tradeable levels, enhancing decision-making.
Chart Background (Regime Heatmap):
Green — Trending Market: Strong, sustained price movement in one direction. The market is in a trend phase—momentum follows through.
Orange — Range-Bound: Market is consolidating or moving sideways, with no clear up/down trend. Great for mean reversion setups.
Red — Volatile Regime: High volatility, heightened risk, and larger/faster price swings—trade with caution.
Gray — Quiet/Low Volatility: Market is calm and inactive, with small moves—often poor conditions for most strategies.
Navy — Other/Neutral: Regime is uncertain or mixed; signals may be less reliable.
Bollinger Bands Glow (Dynamic Fill):
Neon Red Glow — Warning!: Price is near or breaking above the upper band; momentum is overstretched, watch for overbought conditions or reversals.
Bright Green Glow — Opportunity!: Price is near or breaking below the lower band; market could be oversold, prime for bounce or reversal.
Trend Green Fill — Trending Regime: Fills between bands with green when the market is trending, showing clear momentum.
Gold/Yellow Fill — Range Regime: Fills with gold/aqua in range conditions, showing the market is sideways/oscillating.
Magenta/Red Fill — Volatility Spike: Fills with vivid magenta/red during highly volatile regimes.
Blue Fill — Neutral/Quiet: A soft blue glow for other or uncertain market states.
Moving Averages:
Display: Blue fast EMA (20), red slow EMA (50), 2px.
Purpose: Shows trend direction, with trend_dir requiring ATR-scaled spread.
Dynamic SL/TP Lines:
Display: Pulsing colors (red SL, green TP for Trending; yellow/orange for Range, etc.), 3px, with pulse_alpha for shimmer.
Purpose: Tracks stops/TPs in real-time, color-coded by regime.
6. Dual Dashboards
Two dashboards deliver real-time insights, making the strat a quant command center.
Bottom-Left Metrics Dashboard (2x13):
Metrics: Mode (Active/Paused), trend (Bullish/Bearish/Neutral), ATR, ATR avg, volume spike (YES/NO), RSI (value + Oversold/Overbought/Neutral), HTF RSI, HTF trend, last signal (Buy/Sell/None), regime, bull score.
Display: Black (29% transparent), purple title, color-coded (green for bullish, red for bearish).
Purpose: Consolidates market context and signal strength.
Top-Right Position Dashboard (2x7):
Metrics: Regime, position side (Long/Short/None), position PNL ($), SL, TP, daily PNL ($).
Display: Black (29% transparent), purple title, color-coded (lime for Long, red for Short).
Purpose: Tracks live trades and profitability.
Why It’s Brilliant:
Dual dashboards cover market context and trade status, a rare feature.
Color-coding and concise metrics guide beginners (e.g., green “Buy” = go).
Real-time PNL and SL/TP visibility empower disciplined trading.
7. Performance Tracking
Logic: Arrays (regime_pnl_long/short, regime_win/loss_long/short) track PNL and win/loss by regime (1–5). Updated on trade close (barstate.isconfirmed).
Purpose: Prepares for future adaptive thresholds (e.g., adjust bull_score min based on regime performance).
Why It’s Brilliant: Lays the groundwork for self-optimizing logic, a quant edge over static scripts.
Key Features
Regime-Adaptive: Optimizes signals for Trending, Range, Volatile, Quiet markets.
Futures-Optimized: Precise sizing for ES/MES with tick-based risk inputs.
Multi-Factor Signals: Candlestick patterns, RSI, MACD, and HTF confirmation for robust entries.
Dynamic Exits: ATR/fixed stops, 2:1 TPs, and trailing stops maximize profits.
Safe and Smart: 5% drawdown breaker and emergency exits protect capital.
DAFE Visuals: Shimmering BB fill, pulsing SL/TP, and dual dashboards.
Backtest-Ready: Fixed qty and tick calc for accurate historical testing.
How to Use
Add to Chart: Load on a 5min ES/MES chart in TradingView.
Configure Inputs: Set instrument (ES/MES), tick value ($12.5/$1.25), multiplier (1/0.1), risk ($300 default). Enable ATR stops for volatility.
Monitor Dashboards: Bottom-left for regime/signals, top-right for position/PNL.
Backtest: Run in strategy tester to compare regimes.
Live Trade: Connect to Tradovate or similar. Watch for slippage (e.g., April 27, 2025 ES issues).
Replay Test: Try April 28, 2025 NQ drop to see regime shifts and stops.
Disclaimer
Trading futures involves significant risk of loss and is not suitable for all investors. Past performance does not guarantee future results. Backtest results may differ from live trading due to slippage, fees, or market conditions. Use this strategy at your own risk, and consult a financial advisor before trading. Dskyz (DAFE) Trading Systems is not responsible for any losses incurred.
Backtesting:
Frame: 2023-09-20 - 2025-04-29
Slippage: 3
Fee Typical Range (per side, per contract)
CME Exchange $1.14 – $1.20
Clearing $0.10 – $0.30
NFA Regulatory $0.02
Firm/Broker Commis. $0.25 – $0.80 (retail prop)
TOTAL $1.60 – $2.30 per side
Round Turn: (enter+exit) = $3.20 – $4.60 per contract
Final Notes
The Dskyz (DAFE) Adaptive Regime - Quant Machine Pro is more than a strategy—it’s a revolution. Crafted with DAFE’s signature precision, it rises above generic scripts with adaptive regimes, quant-grade signals, and visuals that make trading a thrill. Whether you’re scalping MES or swinging ES, this system empowers you to navigate markets with confidence and style. Join the DAFE crew, light up your charts, and let’s dominate the futures game!
(This publishing will most likely be taken down do to some miscellaneous rule about properly displaying charting symbols, or whatever. Once I've identified what part of the publishing they want to pick on, I'll adjust and repost.)
Use it with discipline. Use it with clarity. Trade smarter.
**I will continue to release incredible strategies and indicators until I turn this into a brand or until someone offers me a contract.
Created by Dskyz, powered by DAFE Trading Systems. Trade smart, trade bold.
Gap Filling Strategy Gaps are market prices structures that appear frequently in the stock market, and can be detected when the opening price is different from the previous closing price, this is why gaps are also called "opening price jumps". While gaps can occur frequently, some of them are more significant than others, and can be observed when looking at a long term chart.
The following strategy is based on the exploitation of significant gaps occurring during a new session, and posses various options that can return a wide variety of results.
Type Of Gaps And Occurence
I'am not a professional when it comes to gaps, but as you know the stock market close for the day, however it is still possible to place orders, your broker will hold them until the market open back. Once the market reopen the broker execute the pending orders, and when many orders where pending the market register really high volume and the price might differ from the precedent close.
Gaps are generally broken down into four types:
Common : Gaps occurring within a certain price range, mostly occurs during ranging markets.
Break Away : Gaps breaking a support and resistance, making a new higher high/lower low.
Runaway : Gaps occurring within a trend, followed by a continuation of the trend.
Exhaustion : Gaps occurring at the end of a trend, followed by a reversal.
As said before, some gaps are more significant than others, the significance of a gap can be determined by comparing the opening price with the previous high/low price and by looking at volume. Significant up gaps will have an opening price greater than the previous high, while significant down gap will have an opening price lower than the previous low with both high volume accompanying them.
After a gap, when the price go back to the point previous to the gap we say that it has been "filled", this characteristic is what will be exploited in this strategy.
Strategy Rules & Logic
In this strategy, the significance of a gap is determined by the position of the opening price relative to the previous high/low and make sure the bar following the gap don't fill it.
When the setting invert is set to false the strategy interpret the detected gaps as being exhaustion gaps, therefore when an up gap occur a short position is opened, when a down gap occur a long position is opened. When invert is set to true gaps are considered to be runaway or break away gaps, therefore the contrary positions are opened. Positions are exited when the gap has been filled, which in the chart is show'n when the price cross the red level who act as either a take profit (invert = false) or as a stop loss (invert = true).
There are various closing conditions available that the user can select from the "close when" setting.
New Session : This option close all previous positions when the market is in a new session.
New Gap : This option close all previous position when a new gap has been detected.
Reverse Position : This option close all previous position when a contrary position to the current one is opened. This option would reduce the number of trades.
Testing On Some Stocks
The analysis will be tested in different tech stocks with a main TF of 15 minutes with no spread and commissions applied. Default settings will be used. We'll be making our first analysis using AMD, who has recently formed a full reverse HS pattern, where the neckline has been crossed by the price. (by the way i have a bad feeling about it, hey ! feeling filling ! Lame jokes!)
Profit: $ -12.22
Trades: 272
Profitability: 65.07 %
We can see negative results, with an heavily decreasing balance. Using invert would return positive results.
We will now test the strategy on NVDA, the company is one of the biggest when it comes to the Gpu market.
Profit: $ -215.54
Trades: 297
Profitability: 60.27 %
Not better, using invert would of course create better results. Like AMD the balance is heavily decreasing.
Finally we will test the strategy on Seagate technology, a company mostly known for their mechanical hard drives.
Profit: $ -4.32
Trades: 261
Profitability: 65.9 %
Here the balance does not appear so heavily decreasing and even managed to reach back the initial balance before going down again.
Summary
A strategy based on gap filling has been briefly introduced and tested with 3 tech stocks. The results show that using invert option might be better. The advantage of this strategy against ones using technical indicators is that this one does not heavily depend on user settings, which make it way more efficient, this a big advantage of patterns based strategies.
Thx to LucF for helping with the "process_orders_on_close" element, since i had to use closing price i had to remove it tho, was afraid results would differ even more from a more realistic backtest. And thx for those who continuously support me, more cool stuff is coming up.
Thx for reading and i hope you'll have learned something new today !
Bitcoin CME-Spot Z-Spread - Strategy [presentTrading]This time is a swing trading strategy! It measures the sentiment of the Bitcoin market through the spread of CME Bitcoin Futures and Bitfinex BTCUSD Spot prices. By applying Bollinger Bands to the spread, the strategy seeks to capture mean-reversion opportunities when prices deviate significantly from their historical norms
█ Introduction and How it is Different
The Bitcoin CME-Spot Bollinger Bands Strategy is designed to capture mean-reversion opportunities by exploiting the spread between CME Bitcoin Futures and Bitfinex BTCUSD Spot prices. The strategy uses Bollinger Bands to detect when the spread between these two correlated assets has deviated significantly from its historical norm, signaling potential overbought or oversold conditions.
What sets this strategy apart is its focus on spread trading between futures and spot markets rather than price-based indicators. By applying Bollinger Bands to the spread rather than individual prices, the strategy identifies price inefficiencies across markets, allowing traders to take advantage of the natural reversion to the mean that often occurs in these correlated assets.
BTCUSD 8hr Performance
█ Strategy, How It Works: Detailed Explanation
The strategy relies on Bollinger Bands to assess the volatility and relative deviation of the spread between CME Bitcoin Futures and Bitfinex BTCUSD Spot prices. Bollinger Bands consist of a moving average and two standard deviation bands, which help measure how much the spread deviates from its historical mean.
🔶 Spread Calculation:
The spread is calculated by subtracting the Bitfinex spot price from the CME Bitcoin futures price:
Spread = CME Price - Bitfinex Price
This spread represents the difference between the futures and spot markets, which may widen or narrow based on supply and demand dynamics in each market. By analyzing the spread, the strategy can detect when prices are too far apart (potentially overbought or oversold), indicating a trading opportunity.
🔶 Bollinger Bands Calculation:
The Bollinger Bands for the spread are calculated using a simple moving average (SMA) and the standard deviation of the spread over a defined period.
1. Moving Average (SMA):
The simple moving average of the spread (mu_S) over a specified period P is calculated as:
mu_S = (1/P) * sum(S_i from i=1 to P)
Where S_i represents the spread at time i, and P is the lookback period (default is 200 bars). The moving average provides a baseline for the normal spread behavior.
2. Standard Deviation:
The standard deviation (sigma_S) of the spread is calculated to measure the volatility of the spread:
sigma_S = sqrt((1/P) * sum((S_i - mu_S)^2 from i=1 to P))
3. Upper and Lower Bollinger Bands:
The upper and lower Bollinger Bands are derived by adding and subtracting a multiple of the standard deviation from the moving average. The number of standard deviations is determined by a user-defined parameter k (default is 2.618).
- Upper Band:
Upper Band = mu_S + (k * sigma_S)
- Lower Band:
Lower Band = mu_S - (k * sigma_S)
These bands provide a dynamic range within which the spread typically fluctuates. When the spread moves outside of these bands, it is considered overbought or oversold, potentially offering trading opportunities.
Local view
🔶 Entry Conditions:
- Long Entry: A long position is triggered when the spread crosses below the lower Bollinger Band, indicating that the spread has become oversold and is likely to revert upward.
Spread < Lower Band
- Short Entry: A short position is triggered when the spread crosses above the upper Bollinger Band, indicating that the spread has become overbought and is likely to revert downward.
Spread > Upper Band
🔶 Risk Management and Profit-Taking:
The strategy incorporates multi-step take profits to lock in gains as the trade moves in favor. The position is gradually reduced at predefined profit levels, reducing risk while allowing part of the trade to continue running if the price keeps moving favorably.
Additionally, the strategy uses a hold period exit mechanism. If the trade does not hit any of the take-profit levels within a certain number of bars, the position is closed automatically to avoid excessive exposure to market risks.
█ Trade Direction
The trade direction is based on deviations of the spread from its historical norm:
- Long Trade: The strategy enters a long position when the spread crosses below the lower Bollinger Band, signaling an oversold condition where the spread is expected to narrow.
- Short Trade: The strategy enters a short position when the spread crosses above the upper Bollinger Band, signaling an overbought condition where the spread is expected to widen.
These entries rely on the assumption of mean reversion, where extreme deviations from the average spread are likely to revert over time.
█ Usage
The Bitcoin CME-Spot Bollinger Bands Strategy is ideal for traders looking to capitalize on price inefficiencies between Bitcoin futures and spot markets. It’s especially useful in volatile markets where large deviations between futures and spot prices occur.
- Market Conditions: This strategy is most effective in correlated markets, like CME futures and spot Bitcoin. Traders can adjust the Bollinger Bands period and standard deviation multiplier to suit different volatility regimes.
- Backtesting: Before deployment, backtesting the strategy across different market conditions and timeframes is recommended to ensure robustness. Adjust the take-profit steps and hold periods to reflect the trader’s risk tolerance and market behavior.
█ Default Settings
The default settings provide a balanced approach to spread trading using Bollinger Bands but can be adjusted depending on market conditions or personal trading preferences.
🔶 Bollinger Bands Period (200 bars):
This defines the number of bars used to calculate the moving average and standard deviation for the Bollinger Bands. A longer period smooths out short-term fluctuations and focuses on larger, more significant trends. Adjusting the period affects the responsiveness of the strategy:
- Shorter periods (e.g., 100 bars): Makes the strategy more reactive to short-term market fluctuations, potentially generating more signals but increasing the risk of false positives.
- Longer periods (e.g., 300 bars): Focuses on longer-term trends, reducing the frequency of trades and focusing only on significant deviations.
🔶 Standard Deviation Multiplier (2.618):
The multiplier controls how wide the Bollinger Bands are around the moving average. By default, the bands are set at 2.618 standard deviations away from the average, ensuring that only significant deviations trigger trades.
- Higher multipliers (e.g., 3.0): Require a more extreme deviation to trigger trades, reducing trade frequency but potentially increasing the accuracy of signals.
- Lower multipliers (e.g., 2.0): Make the bands narrower, increasing the number of trade signals but potentially decreasing their reliability.
🔶 Take-Profit Levels:
The strategy has four take-profit levels to gradually lock in profits:
- Level 1 (3%): 25% of the position is closed at a 3% profit.
- Level 2 (8%): 20% of the position is closed at an 8% profit.
- Level 3 (14%): 15% of the position is closed at a 14% profit.
- Level 4 (21%): 10% of the position is closed at a 21% profit.
Adjusting these take-profit levels affects how quickly profits are realized:
- Lower take-profit levels: Capture gains more quickly, reducing risk but potentially cutting off larger profits.
- Higher take-profit levels: Let trades run longer, aiming for bigger gains but increasing the risk of price reversals before profits are locked in.
🔶 Hold Days (20 bars):
The strategy automatically closes the position after 20 bars if none of the take-profit levels are hit. This feature prevents trades from being held indefinitely, especially if market conditions are stagnant. Adjusting this:
- Shorter hold periods: Reduce the duration of exposure, minimizing risks from market changes but potentially closing trades too early.
- Longer hold periods: Allow trades to stay open longer, increasing the chance for mean reversion but also increasing exposure to unfavorable market conditions.
By understanding how these default settings affect the strategy’s performance, traders can optimize the Bitcoin CME-Spot Bollinger Bands Strategy to their preferences, adapting it to different market environments and risk tolerances.
Smart MA Crossover BacktesterSmart MA Crossover Backtester - Strategy Overview
Strategy Name: Smart MA Crossover Backtester
Published on: TradingView
Applicable Markets: Works well on crypto (tested profitably on ETH)
Strategy Concept
The Smart MA Crossover Backtester is an improved Moving Average (MA) crossover strategy that incorporates a trend filter and an ATR-based stop loss & take profit mechanism for better risk management. It aims to capture trends efficiently while reducing false signals by only trading in the direction of the long-term trend.
Core Components & Logic
Moving Averages (MA) for Entry Signals
Fast Moving Average (9-period SMA)
Slow Moving Average (21-period SMA)
A trade signal is generated when the fast MA crosses the slow MA.
Trend Filter (200-period SMA)
Only enters long positions if price is above the 200-period SMA (bullish trend).
Only enters short positions if price is below the 200-period SMA (bearish trend).
This helps in avoiding counter-trend trades, reducing whipsaws.
ATR-Based Stop Loss & Take Profit
Uses the Average True Range (ATR) with a multiplier of 2 to calculate stop loss.
Risk-Reward Ratio = 1:2 (Take profit is set at 2x ATR).
This ensures dynamic stop loss and take profit levels based on market volatility.
Trading Rules
✅ Long Entry (Buy Signal):
Fast MA (9) crosses above Slow MA (21)
Price is above the 200 MA (bullish trend filter active)
Stop Loss: Below entry price by 2× ATR
Take Profit: Above entry price by 4× ATR
✅ Short Entry (Sell Signal):
Fast MA (9) crosses below Slow MA (21)
Price is below the 200 MA (bearish trend filter active)
Stop Loss: Above entry price by 2× ATR
Take Profit: Below entry price by 4× ATR
Why This Strategy Works Well for Crypto (ETH)?
🔹 Crypto markets are highly volatile – ATR-based stop loss adapts dynamically to market conditions.
🔹 Long-term trend filter (200 MA) ensures trading in the dominant direction, reducing false signals.
🔹 Risk-reward ratio of 1:2 allows for profitable trades even with a lower win rate.
This strategy has been tested on Ethereum (ETH) and has shown profitable performance, making it a strong choice for crypto traders looking for trend-following setups with solid risk management. 🚀
Martingale with MACD+KDJ opening conditionsStrategy Overview:
This strategy is based on a Martingale trading approach, incorporating MACD and KDJ indicators. It features pyramiding, trailing stops, and dynamic profit-taking mechanisms, suitable for both long and short trades. The strategy increases position size progressively using a Multiplier, a key feature of Martingale systems.
Key Concepts:
Martingale Strategy: A trading system where positions are doubled or increased after a loss to recover previous losses with a single successful trade. In this script, the position size is incremented using a Multiplier for each addition.
Pyramiding: Allows adding to existing trades when market conditions are favorable, enhancing profitability during trends.
Settings:
Basic Inputs:
Initial Order: Defines the starting size of the position.
Default: 150.0
MACD Settings: Customize the fast, slow, and signal smoothing lengths.
Default: Fast Length: 9, Slow Length: 26, Signal Smoothing: 9
KDJ Settings: Customize the length and smoothing parameters for KDJ.
Default: Length: 14, Smooth K: 3, Smooth D: 3
Max Additions: Sets the number of additional positions (pyramiding).
Default: 5 (Min: 1, Max: 10)
Position Sizing: Percent to add to positions on favorable conditions.
Default: 1.0%
Martingale Multiplier:
Add Multiplier: This value controls the scaling of additional positions according to the Martingale principle. After each loss, a new position is added, and its size is increased by the Multiplier factor. For example, with a multiplier of 2, each new addition will be twice as large as the previous one, accelerating recovery if the price moves favorably.
Default: 1.0 (no multiplication)
Can be adjusted up to 10x to aggressively increase position size after losses.
Trade Execution:
Long Trades:
Entry Condition: A long position is opened when the MACD line crosses over the signal line, and the KDJ’s %K crosses above %D.
Additions (Martingale): After the initial long position, new positions are added if the price drops by the defined percentage, and each new addition is increased using the Multiplier. This continues up to the set Max Additions.
Short Trades:
Entry Condition: A short position is opened when the MACD line crosses under the signal line, and the KDJ’s %K crosses below %D.
Additions (Martingale): After the initial short position, new positions are added if the price rises by the defined percentage, and each new addition is increased using the Multiplier.
Exit Conditions:
Take Profit: Exits are triggered when the price reaches the take-profit threshold.
Stop Loss: If the price moves unfavorably, the position will be closed at the set stop-loss level.
Trailing Stop: Adjusts dynamically as the price moves in favor of the trade to lock in profits.
On-Chart Visuals:
Long Signals: Blue triangles below the bars indicate long entries, and green triangles mark additional long positions.
Short Signals: Red triangles above the bars indicate short entries, and orange triangles mark additional short positions.
Information Table:
The strategy displays a table with key metrics:
Open Price: The entry price of the trade.
Average Price: The average price of the current position.
Additions: The number of additional positions taken.
Next Add Price: The price level for the next position.
Take Profit: The price at which profits will be taken.
Stop Loss: The stop-loss level to minimize risk.
Usage Instructions:
Adjust the parameters to your trading style using the input settings.
The Multiplier amplifies your position size after each addition, so use it cautiously, especially in volatile markets.
Monitor the signals and table on the chart for entry/exit decisions and trade management.
SL ManagerSTOP LOSS MANAGER
Overview:
The "SL Manager" indicator is designed to assist traders in managing their stop loss (SL) and take profit (TP) levels for both long and short positions. This tool helps you visualize intermediate levels, enhancing your trading decisions by providing crucial information on the chart.
Usage:
This indicator is particularly useful for traders who want to manage their trades more effectively by visualizing potential adjustment points for their stop loss and take profit levels. It helps in making informed decisions to maximize profits and minimize risks by providing clear levels to take partial profits and adjust stop losses.
Features:
Position Input: Select between "long" and "short" positions.
Entry Price: Specify the entry price of your trade.
Take Profit: Define the price level at which you want to take profit.
Stop Loss: Set the stop loss price level to manage your risk.
Intermediate Levels:
For both long and short positions, the indicator calculates and plots the following intermediate levels:
50% Take Profit (TP 50%): Midway between the entry price and the take profit level, where you can take partial profits and move your SL up to the 25% mark.
75% Take Profit (TP 75%): Three-quarters of the way from the entry price to the take profit level, where you can take partial profits and move your SL to breakeven.
Stop Loss Move to 25% (SL Move to 25%): A level where the stop loss can be adjusted to lock in profits.
Visualization:
The indicator plots the calculated levels directly on the chart, provided the data for the current day is available. Different color codes and line styles distinguish between the various levels:
TP 50% and TP 75% are plotted in green.
SL Move to 25% is plotted in red .
Entry/Breakeven is plotted in blue.
Machine Learning: SuperTrend Strategy TP/SL [YinYangAlgorithms]The SuperTrend is a very useful Indicator to display when trends have shifted based on the Average True Range (ATR). Its underlying ideology is to calculate the ATR using a fixed length and then multiply it by a factor to calculate the SuperTrend +/-. When the close crosses the SuperTrend it changes direction.
This Strategy features the Traditional SuperTrend Calculations with Machine Learning (ML) and Take Profit / Stop Loss applied to it. Using ML on the SuperTrend allows for the ability to sort data from previous SuperTrend calculations. We can filter the data so only previous SuperTrends that follow the same direction and are within the distance bounds of our k-Nearest Neighbour (KNN) will be added and then averaged. This average can either be achieved using a Mean or with an Exponential calculation which puts added weight on the initial source. Take Profits and Stop Losses are then added to the ML SuperTrend so it may capitalize on Momentum changes meanwhile remaining in the Trend during consolidation.
By applying Machine Learning logic and adding a Take Profit and Stop Loss to the Traditional SuperTrend, we may enhance its underlying calculations with potential to withhold the trend better. The main purpose of this Strategy is to minimize losses and false trend changes while maximizing gains. This may be achieved by quick reversals of trends where strategic small losses are taken before a large trend occurs with hopes of potentially occurring large gain. Due to this logic, the Win/Loss ratio of this Strategy may be quite poor as it may take many small marginal losses where there is consolidation. However, it may also take large gains and capitalize on strong momentum movements.
Tutorial:
In this example above, we can get an idea of what the default settings may achieve when there is momentum. It focuses on attempting to hit the Trailing Take Profit which moves in accord with the SuperTrend just with a multiplier added. When momentum occurs it helps push the SuperTrend within it, which on its own may act as a smaller Trailing Take Profit of its own accord.
We’ve highlighted some key points from the last example to better emphasize how it works. As you can see, the White Circle is where profit was taken from the ML SuperTrend simply from it attempting to switch to a Bullish (Buy) Trend. However, that was rejected almost immediately and we went back to our Bearish (Sell) Trend that ended up resulting in our Take Profit being hit (Yellow Circle). This Strategy aims to not only capitalize on the small profits from SuperTrend to SuperTrend but to also capitalize when the Momentum is so strong that the price moves X% away from the SuperTrend and is able to hit the Take Profit location. This Take Profit addition to this Strategy is crucial as momentum may change state shortly after such drastic price movements; and if we were to simply wait for it to come back to the SuperTrend, we may lose out on lots of potential profit.
If you refer to the Yellow Circle in this example, you’ll notice what was talked about in the Summary/Overview above. During periods of consolidation when there is little momentum and price movement and we don’t have any Stop Loss activated, you may see ‘Signal Flashing’. Signal Flashing is when there are Buy and Sell signals that keep switching back and forth. During this time you may be taking small losses. This is a normal part of this Strategy. When a signal has finally been confirmed by Momentum, is when this Strategy shines and may produce the profit you desire.
You may be wondering, what causes these jagged like patterns in the SuperTrend? It's due to the ML logic, and it may be a little confusing, but essentially what is happening is the Fast Moving SuperTrend and the Slow Moving SuperTrend are creating KNN Min and Max distances that are extreme due to (usually) parabolic movement. This causes fewer values to be added to and averaged within the ML and causes less smooth and more exponential drastic movements. This is completely normal, and one of the perks of using k-Nearest Neighbor for ML calculations. If you don’t know, the Min and Max Distance allowed is derived from the most recent(0 index of data array) to KNN Length. So only SuperTrend values that exhibit distances within these Min/Max will be allowed into the average.
Since the KNN ML logic can cause these exponential movements in the SuperTrend, they likewise affect its Take Profit. The Take Profit may benefit from this movement like displayed in the example above which helped it claim profit before then exhibiting upwards movement.
By default our Stop Loss Multiplier is kept quite low at 0.0000025. Keeping it low may help to reduce some Signal Flashing while not taking extra losses more so than not using it at all. However, if we increase it even more to say 0.005 like is shown in the example above. It can really help the trend keep momentum. Please note, although previous results don’t imply future results, at 0.0000025 Stop Loss we are currently exhibiting 69.27% profit while at 0.005 Stop Loss we are exhibiting 33.54% profit. This just goes to show that although there may be less Signal Flashing, it may not result in more profit.
We will conclude our Tutorial here. Hopefully this has given you some insight as to how Machine Learning, combined with Trailing Take Profit and Stop Loss may have positive effects on the SuperTrend when turned into a Strategy.
Settings:
SuperTrend:
ATR Length: ATR Length used to create the Original Supertrend.
Factor: Multiplier used to create the Original Supertrend.
Stop Loss Multiplier: 0 = Don't use Stop Loss. Stop loss can be useful for helping to prevent false signals but also may result in more loss when hit and less profit when switching trends.
Take Profit Multiplier: Take Profits can be useful within the Supertrend Strategy to stop the price reverting all the way to the Stop Loss once it's been profitable.
Machine Learning:
Only Factor Same Trend Direction: Very useful for ensuring that data used in KNN is not manipulated by different SuperTrend Directional data. Please note, it doesn't affect KNN Exponential.
Rationalized Source Type: Should we Rationalize only a specific source, All or None?
Machine Learning Type: Are we using a Simple ML Average, KNN Mean Average, KNN Exponential Average or None?
Machine Learning Smoothing Type: How should we smooth our Fast and Slow ML Datas to be used in our KNN Distance calculation? SMA, EMA or VWMA?
KNN Distance Type: We need to check if distance is within the KNN Min/Max distance, which distance checks are we using.
Machine Learning Length: How far back is our Machine Learning going to keep data for.
k-Nearest Neighbour (KNN) Length: How many k-Nearest Neighbours will we account for?
Fast ML Data Length: What is our Fast ML Length?? This is used with our Slow Length to create our KNN Distance.
Slow ML Data Length: What is our Slow ML Length?? This is used with our Fast Length to create our KNN Distance.
If you have any questions, comments, ideas or concerns please don't hesitate to contact us.
HAPPY TRADING!
Red and Green Ignored Bar by Oliver VelezOn this occasion I present a script that detects Ignored Red Candles and Ignored Green Candles, basically it is a Price Action event that indicates a possible continuation of the current trend and gives the opportunity to climb it with a Very tight risk, before delving into detail I would like to leave this note:
Note: the detection of this event does not guarantee that the signal will be good, the trader must have the ability to determine its quality based on aspects such as trend, maturity, support / resistance levels, expansion / contraction of the market, risk / benefit, etc, if you do not have knowledge about this you should not use this indicator since using it without a robust trading plan and experience could cause you to partially or totally lose your money, if this is your case you should train before If you try to extract money from the market, this script was created to be another tool in your trading plan in order to configure the rules at your discretion, execute them consistently and have AUTOMATIC ALERTS when the event occurs, which is where I find more value because you can have many instruments waiting for the event to be generated, in the time frame you want and without having to observe the mer When the alert is generated, the Trader should evaluate the quality of the alert and define whether or not to execute it (higher timeframes, they can give you more time to execute the operation correctly).
Let's continue….
This event was created by Oliver Velez recognized trader / mentor of price action, the event has a very interesting particularity since it allows to take a position with a very limited risk in trend movements, this achieves favorable operations of good ratio and small losses when taking An adjusted risk, if the trade works, a good ratio is quickly achieved and we agree with a key point in the “Keep small losses and big profits” trading, this makes it easier to have a positive mathematical hope when your level of Success is not very high, so leave you in the field of profitability.
THE EVENT:
The event has a bullish configuration (Ignored Red Candle) and a bearish configuration (Ignored Green Candle), below I detail the “Hard” rules (later I explain why “Hard”):
1- Last 3 bars have to be GREEN-RED-GREEN (possible bullish configuration) or RED-GREEN-RED (possible bearish configuration), the first bar is called Control Bar, the second is called Ignored Bar and the third Signal Bar as shown in the following image:
2- Be in a trend determined by simple moving averages (Slow of 20 periods and Fast of 8 periods), as a general rule you can take the direction of MA20 but the Trader has to determine if there is a trend movement or not.
3- Control bar of good range, little tail and with a body greater than 55%.
4- Ignored bar preferably narrow range, little tail and that is located in the upper 1/3 of the control bar.
5- Signal bar cannot override the minimum of the ignored bar.
6- Activation / Confirmation of event by means of signal bar in overcoming the body of the ignored bar.
Some examples of ignored bars (with “Hard” and “Flexible” rules):
Features and configuration of the indicator:
To access the indicator settings, press the wheel next to the indicator name VVI_VRI "Configuration options".
- Operation mode (Filtering Type):
• Filtering Complete: all filters activated according to the configuration below.
• Without Filtering: all filters deactivated, all VRI / VVI are displayed without any selection criteria.
• Trend Filter only: shows only VRI / VVI that are in accordance with what is set in “Trend Settings”
- Configuration Moving Averages:
• See Slow Media: slow moving average display with direction detection and color change.
• See Fast Media: display of fast moving average with direction detection and color change.
• Type: possibility to choose the type of media: DEMA, EMA, HullMA, SMA, SSMA, SSMA, TEMA, TMA, VWMA, WMA, ZEMA)
• Period: number of previous bars.
• Source: possibility to choose the type of source, open, close, high, low, hl2 hlc3, ohlc4.
• Reaction: this configuration affects the color change before a change of direction, 1 being an immediate reaction and higher values, a more delayed reaction obtaining les false "changes of direction", a value of 3 filters the direction quite well.
- Trend Configuration
• Uptrend Condition P / VRI: possibility to select any of these conditions:
o Bullish MA direction
o Quick bullish MA direction
o Slow and fast bullish MA direction
o Price higher than slow MA
o Price higher than fast MA
o Price higher than slow and fast MA
o Price higher than slow MA and bullish direction
o Price higher than fast MA and bullish direction
o Price higher than slow, fast MA and bullish direction
o No condition
• Condition P / VVI bear trend: possibility of selecting any of these conditions:
o Slow bearish MA direction
o Fast bearish MA direction
o Slow and fast bearish MA direction
o Price less than slow MA
o Price less than fast MA
o Price less than slow and fast MA
o Price lower than slow MA and bearish direction
o Price less than fast MA and bearish direction
o Price less than slow, fast MA and bearish direction
o No condition
- Control bar configuration
• Minimum body percentage%: possibility to select what body percentage the bar must have.
• Paint control bar: when selected, paint the control bar.
• See control bar label: when selected, a label with the legend BC is plotted.
- Configuration bar ignored
• Above X% of the control bar: possibility to select above what percentage of the control bar the ignored bar must be located.
• Paint ignored bar: when selected, paint the ignored bar.
- Signal bar configuration
• You cannot override the minimum of the ignored bar: when selected, the condition is added that the signal bar cannot override the minimum of the ignored bar.
• Paint signal bar: when selected, paint the signal bar.
• See arrow: when selected it shows the direction arrow of the possible movement.
• See bear and arrow: when selected it shows bear and arrow label
• See bull and arrow: when selected it shows bull and arrow label
The following image shows the ignored bar and painted signal:
- Take profit / loss
The profit / loss taking varies depending on the trader and its risk / monetary plan, the proposal is a recommendation based on the nature of the event that is to have a small risk unit (stop below the minimum of the ignored bar), look for objectives in ratios greater than 2: 1 and eliminate the risk in 1: 1 by taking the stop to BE, all parameters are configurable and are the following:
• See recommended stop loss and take profit: trace the levels of Stop, BE, TP1 and TP2, as well as their prices to know them quickly based on the assumed risk
• To: select which event you want to draw the SL and TP (VRI, VVI)
• Extend stop loss line x bars: allows extending the stop line by x number of bars
• Extend take profit line x bars: allows extending the stop line by x number of bars
• Ratio to move to break even: allows you to select the minimum ratio to move stop to break even (default 1: 1)
• Take profit 1 ratio: allows you to select the ratio for take profit 1 (default 2: 1)
• Take profit 2 ratio: allows you to select the ratio for take profit 2 (default 4: 1)
- Alerts
• It is possible to configure the following alerts:
-VRI DETECTED
-VVI DETECTED
-VRI / VVI DETECTED
Final Notes:
- The term hard rules refers to the fact that an event is sought with the rules detailed above to obtain a high quality event but this brings 2 situations to consider, less
number of events and events that are generated in a strong impulse may be leaked, a very large control bar followed by an ignored narrow body away from moving averages, despite having a good chance of continuing, taking a stop very tight in a strong impulse you can touch it by the simple fact of the own volatility at that time.
- The setting of the parameters “Minimum body percentage% (control bar)”, “Above x% of the control bar (bar ignored)” and “Cannot override the minimum of the ignored bar” can bring large Benefits in terms of number of events and that can also be of high quality, feel free to find the best configuration for your instrument to operate.
- It is recommended to look for trending events, near moving averages and at an early stage of it.
- The display of several nearby VRIs or VVIs in an advanced trend may indicate a depletion of it.
- The alerts can be worked in 2 ways: at the closing of the candle (confirms event but the risk unit may be larger or smaller) or immediately the body of the ignored bar is exceeded, in case you are operating from the mobile and miss many events because of the short time I recommend that you operate in a superior time frame to have more time.
- The indicator is configured with “flexible” rules to have more events, but without any important criteria, each trader has to look for the best configuration that suits his instrument.
- It is recommended to partially close the operation based on the ratio and always keep a part of the position to apply manual trailing stop and try to maximize profits.
The code is open feel free to use and modify it, a mention in credits is appreciated.
If you liked this SCRIPT THUMB UP!
Greetings to all, I wish you much green!
Profit Guard ProProfitGuard Pro
ProfitGuard Pro is a risk management and profit calculation tool that helps traders optimize their trades by handling position sizing, risk management, leverage, and take profit calculations. With support for both cumulative and non-cumulative take profit strategies, this versatile indicator provides the insights you need to maximize your trading strategy.
How to Use ProfitGuard Pro:
Load the Indicator: Add ProfitGuard Pro to your chart in TradingView.
Set Your Entry Position: Input your desired entry price.
Define Your Stop Loss: Enter the price at which your trade will exit to minimize losses.
Add Take Profit Levels: Input your TP1, TP2, TP3, and TP4 levels, as needed.
If you want fewer take profit levels, adjust the number of TPs in the settings menu. You can choose between 1 to 4 take profit levels based on your strategy.
Adjust Risk Settings: Specify your account size and risk percentage to calculate position size and leverage.
Choose Cumulative or Non-Cumulative Mode: Toggle cumulative profit mode to either recalculate position sizes as each take profit is hit or keep position sizes static for each TP.
Once set up, ProfitGuard Pro will automatically calculate your position size, leverage, and potential profits for each take profit level, providing a clear visual on your chart to guide your trading decisions.
Key Features:
Risk Management:
Calculate your risk percentage based on account size and stop loss.
Visualize risk in dollar terms and percentage of your account.
Position Size & Leverage:
Automatically calculate the ideal position size and leverage for your trade based on your entry, stop loss, and risk settings.
Ensure you are trading with the appropriate leverage for your account size.
Cumulative vs Non-Cumulative Profit Mode:
Cumulative Mode: Adjusts position size after each take profit is reached, recalculating for remaining contracts.
Non-Cumulative Mode: Treats each take profit as a separate calculation using the full position size.
Take Profit Levels:
Set up to 4 customizable take profit levels.
Adjust percentage values for each TP target, and visualize them on your chart with easy-to-read lines.
Profit Calculation:
Displays potential profits for each take profit level based on whether cumulative or non-cumulative mode is selected.
Calculate your risk-reward ratio dynamically at each TP.
Customizable Visuals:
Easily customize the table's size, position, and color scheme to fit your chart.
Visualize key trade details like leverage, contracts, margin, and profits directly on your chart.
Short and Long Position Support:
Automatically adjusts calculations based on whether you're trading long or short.
Dskyz (DAFE) Quantum Sentiment Flux - Beginners Dskyz (DAFE) Quantum Sentiment Flux - Beginners:
Welcome to the Dskyz (DAFE) Quantum Sentiment Flux - Beginners , a strategy and concept that’s your ultimate wingman for trading futures like MNQ, NQ, MES, and ES. This gem combines lightning-fast momentum signals, market sentiment smarts, and bulletproof risk management into a system so intuitive, even newbies can trade like pros. With clean DAFE visuals, preset modes for every vibe, and a revamped dashboard that’s basically a market GPS, this strategy makes futures trading feel like a high-octane sci-fi mission.
Built on the Dskyz (DAFE) legacy of Aurora Divergence, the Quantum Sentiment Flux is designed to empower beginners while giving seasoned traders a lean, sentiment-driven edge. It uses fast/slow EMA crossovers for entries, filters trades with VIX, SPX trends, and sector breadth, and keeps your account safe with adaptive stops and cooldowns. Tuned for more action with faster signals and a slick bottom-left dashboard, this updated version is ready to light up your charts and outsmart institutional traps. Let’s dive into why this strat’s a must-have and break down its brilliance.
Why Traders Need This Strategy
Futures markets are a wild ride—fast moves, volatility spikes (like the April 28, 2025 NQ 1k-point drop), and institutional games that can wreck unprepared traders. Beginners often get lost in complex systems or burned by impulsive trades. The Quantum Sentiment Flux is the antidote, offering:
Dead-Simple Setup: Preset modes (Aggressive, Balanced, Conservative) auto-tune signals, risk, and sizing, so you can trade without a quant degree.
Sentiment Superpower: VIX filter, SPX trend, and sector breadth visuals keep you aligned with market health, dodging chop and riding trends.
Ironclad Safety: Tighter ATR-based stops, 2:1 take-profits, and preset cooldowns protect your capital, even in chaotic sessions.
Next-Level Visuals: Green/red entry triangles, vibrant EMAs, a sector breadth background, and a beefed-up dashboard make signals and context pop.
DAFE Swagger: The clean aesthetics, sleek dashboard—ties it to Dskyz’s elite brand, making your charts a work of art.
Traders need this because it’s a plug-and-play system that blends beginner-friendly simplicity with pro-level market awareness. Whether you’re just starting or scalping 5min MNQ, this strat’s your key to trading with confidence and style.
Strategy Components
1. Core Signal Logic (High-Speed Momentum)
The strategy’s engine is a momentum-based system using fast and slow Exponential Moving Averages (EMAs), now tuned for faster, more frequent trades.
How It Works:
Fast/Slow EMAs: Fast EMA (Aggressive: 5, Balanced: 7, Conservative: 9 bars) and slow EMA (12/14/18 bars) track short-term vs. longer-term momentum.
Crossover Signals:
Buy: Fast EMA crosses above slow EMA, and trend_dir = 1 (fast EMA > slow EMA + ATR * strength threshold).
Sell: Fast EMA crosses below slow EMA, and trend_dir = -1 (fast EMA < slow EMA - ATR * strength threshold).
Strength Filter: ma_strength = fast EMA - slow EMA must exceed an ATR-scaled threshold (Aggressive: 0.15, Balanced: 0.18, Conservative: 0.25) for robust signals.
Trend Direction: trend_dir confirms momentum, filtering out weak crossovers in choppy markets.
Evolution:
Faster EMAs (down from 7–10/21–50) catch short-term trends, perfect for active futures markets.
Lower strength thresholds (0.15–0.25 vs. 0.3–0.5) make signals more sensitive, boosting trade frequency without sacrificing quality.
Preset tuning ensures beginners get optimized settings, while pros can tweak via mode selection.
2. Market Sentiment Filters
The strategy leans hard into market sentiment with a VIX filter, SPX trend analysis, and sector breadth visuals, keeping trades aligned with the big picture.
VIX Filter:
Logic: Blocks long entries if VIX > threshold (default: 20, can_long = vix_close < vix_limit). Shorts are always allowed (can_short = true).
Impact: Prevents longs during high-fear markets (e.g., VIX spikes in crashes), while allowing shorts to capitalize on downturns.
SPX Trend Filter:
Logic: Compares S&P 500 (SPX) close to its SMA (Aggressive: 5, Balanced: 8, Conservative: 12 bars). spx_trend = 1 (UP) if close > SMA, -1 (DOWN) if < SMA, 0 (FLAT) if neutral.
Impact: Provides dashboard context, encouraging trades that align with market direction (e.g., longs in UP trend).
Sector Breadth (Visual):
Logic: Tracks 10 sector ETFs (XLK, XLF, XLE, etc.) vs. their SMAs (same lengths as SPX). Each sector scores +1 (bullish), -1 (bearish), or 0 (neutral), summed as breadth (-10 to +10).
Display: Green background if breadth > 4, red if breadth < -4, else neutral. Dashboard shows sector trends (↑/↓/-).
Impact: Faster SMA lengths make breadth more responsive, reflecting sector rotations (e.g., tech surging, energy lagging).
Why It’s Brilliant:
- VIX filter adds pro-level volatility awareness, saving beginners from panic-driven losses.
- SPX and sector breadth give a 360° view of market health, boosting signal confidence (e.g., green BG + buy signal = high-probability trade).
- Shorter SMAs make sentiment visuals react faster, perfect for 5min charts.
3. Risk Management
The risk controls are a fortress, now tighter and more dynamic to support frequent trading while keeping accounts safe.
Preset-Based Risk:
Aggressive: Fast EMAs (5/12), tight stops (1.1x ATR), 1-bar cooldown. High trade frequency, higher risk.
Balanced: EMAs (7/14), 1.2x ATR stops, 1-bar cooldown. Versatile for most traders.
Conservative: EMAs (9/18), 1.3x ATR stops, 2-bar cooldown. Safer, fewer trades.
Impact: Auto-scales risk to match style, making it foolproof for beginners.
Adaptive Stops and Take-Profits:
Logic: Stops = entry ± ATR * atr_mult (1.1–1.3x, down from 1.2–2.0x). Take-profits = entry ± ATR * take_mult (2x stop distance, 2:1 reward/risk). Longs: stop below entry, TP above; shorts: vice versa.
Impact: Tighter stops increase trade turnover while maintaining solid risk/reward, adapting to volatility.
Trade Cooldown:
Logic: Preset-driven (Aggressive/Balanced: 1 bar, Conservative: 2 bars vs. old user-input 2). Ensures bar_index - last_trade_bar >= cooldown.
Impact: Faster cooldowns (especially Aggressive/Balanced) allow more trades, balanced by VIX and strength filters.
Contract Sizing:
Logic: User sets contracts (default: 1, max: 10), no preset cap (unlike old 7/5/3 suggestion).
Impact: Flexible but risks over-leverage; beginners should stick to low contracts.
Built To Be Reliable and Consistent:
- Tighter stops and faster cooldowns make it a high-octane system without blowing up accounts.
- Preset-driven risk removes guesswork, letting newbies trade confidently.
- 2:1 TPs ensure profitable trades outweigh losses, even in volatile sessions like April 27, 2025 ES slippage.
4. Trade Entry and Exit Logic
The entry/exit rules are simple yet razor-sharp, now with VIX filtering and faster signals:
Entry Conditions:
Long Entry: buy_signal (fast EMA crosses above slow EMA, trend_dir = 1), no position (strategy.position_size = 0), cooldown passed (can_trade), and VIX < 20 (can_long). Enters with user-defined contracts.
Short Entry: sell_signal (fast EMA crosses below slow EMA, trend_dir = -1), no position, cooldown passed, can_short (always true).
Logic: Tracks last_entry_bar for visuals, last_trade_bar for cooldowns.
Exit Conditions:
Stop-Loss/Take-Profit: ATR-based stops (1.1–1.3x) and TPs (2x stop distance). Longs exit if price hits stop (below) or TP (above); shorts vice versa.
No Other Exits: Keeps it straightforward, relying on stops/TPs.
5. DAFE Visuals
The visuals are pure DAFE magic, blending clean function with informative metrics utilized by professionals, now enhanced by faster signals and a responsive breadth background:
EMA Plots:
Display: Fast EMA (blue, 2px), slow EMA (orange, 2px), using faster lengths (5–9/12–18).
Purpose: Highlights momentum shifts, with crossovers signaling entries.
Sector Breadth Background:
Display: Green (90% transparent) if breadth > 4, red (90%) if breadth < -4, else neutral.
Purpose: Faster breadth_sma_len (5–12 vs. 10–50) reflects sector shifts in real-time, reinforcing signal strength.
- Visuals are intuitive, turning complex signals into clear buy/sell cues.
- Faster breadth background reacts to market rotations (e.g., tech vs. energy), giving a pro-level edge.
6. Sector Breadth Dashboard
The new bottom-left dashboard is a game-changer, a 3x16 table (black/gray theme) that’s your market command center:
Metrics:
VIX: Current VIX (red if > 20, gray if not).
SPX: Trend as “UP” (green), “DOWN” (red), or “FLAT” (gray).
Trade Longs: “OK” (green) if VIX < 20, “BLOCK” (red) if not.
Sector Breadth: 10 sectors (Tech, Financial, etc.) with trend arrows (↑ green, ↓ red, - gray).
Placeholder Row: Empty for future metrics (e.g., ATR, breadth score).
Purpose: Consolidates regime, volatility, market trend, and sector data, making decisions a breeze.
- VIX and SPX metrics add context, helping beginners avoid bad trades (e.g., no longs if “BLOCK”).
Sector arrows show market health at a glance, like a cheat code for sentiment.
Key Features
Beginner-Ready: Preset modes and clear visuals make futures trading a breeze.
Sentiment-Driven: VIX filter, SPX trend, and sector breadth keep you in sync with the market.
High-Frequency: Faster EMAs, tighter stops, and short cooldowns boost trade volume.
Safe and Smart: Adaptive stops/TPs and cooldowns protect capital while maximizing wins.
Visual Mastery: DAFE’s clean flair, EMAs, dashboard—makes trading fun and clear.
Backtestable: Lean code and fixed qty ensure accurate historical testing.
How to Use
Add to Chart: Load on a 5min MNQ/ES chart in TradingView.
Pick Preset: Aggressive (scalping), Balanced (versatile), or Conservative (safe). Balanced is default.
Set Contracts: Default 1, max 10. Stick low for safety.
Check Dashboard: Bottom-left shows preset, VIX, SPX, and sectors. “OK” + green breadth = strong buy.
Backtest: Run in strategy tester to compare modes.
Live Trade: Connect to Tradovate or similar. Watch for slippage (e.g., April 27, 2025 ES issues).
Replay Test: Try April 28, 2025 NQ drop to see VIX filter and stops in action.
Why It’s Brilliant
The Dskyz (DAFE) Quantum Sentiment Flux - Beginners is a masterpiece of simplicity and power. It takes pro-level tools—momentum, VIX, sector breadth—and wraps them in a system anyone can run. Faster signals and tighter stops make it a trading machine, while the VIX filter and dashboard keep you ahead of market chaos. The DAFE visuals and bottom-left command center turn your chart into a futuristic cockpit, guiding you through every trade. For beginners, it’s a safe entry to futures; for pros, it’s a scalping beast with sentiment smarts. This strat doesn’t just trade—it transforms how you see the market.
Final Notes
This is more than a strategy—it’s your launchpad to mastering futures with Dskyz (DAFE) flair. The Quantum Sentiment Flux blends accessibility, speed, and market savvy to help you outsmart the game. Load it, watch those triangles glow, and let’s make the markets your canvas!
Official Statement from Pine Script Team
(see TradingView help docs and forums):
"This warning may appear when you call functions such as ta.sma inside a request.security in a loop. There is no runtime impact. If you need to loop through a dynamic list of tickers, this cannot be avoided in the present version... Values will still be correct. Ignore this warning in such contexts."
(This publishing will most likely be taken down do to some miscellaneous rule about properly displaying charting symbols, or whatever. Once I've identified what part of the publishing they want to pick on, I'll adjust and repost.)
Use it with discipline. Use it with clarity. Trade smarter.
**I will continue to release incredible strategies and indicators until I turn this into a brand or until someone offers me a contract.
Created by Dskyz, powered by DAFE Trading Systems. Trade fast, trade bold.
[3Commas] HA & MAHA & MA
🔷What it does: This tool is designed to test a trend-following strategy using Heikin Ashi candles and moving averages. It enters trades after pullbacks, aiming to let profits run once the risk-to-reward ratio reaches 1:1 while securing the position.
🔷Who is it for: It is ideal for traders looking to compare final results using fixed versus dynamic take profits by adjusting parameters and trade direction—a concept applicable to most trading strategies.
🔷How does it work: We use moving averages to define the market trend, then wait for opposite Heikin Ashi candles to form against it. Once these candles reverse in favor of the trend, we enter the trade, using the last swing created by the pullback as the stop loss. By applying the breakeven ratio, we protect the trade and let it run, using the slower moving average as a trailing stop.
A buy signal is generated when:
The previous candle is bearish (ha_bear ), indicating a pullback.
The fast moving average (ma1) is above the slow moving average (ma2), confirming an uptrend.
The current candle is bullish (ha_bull), showing trend continuation.
The Heikin Ashi close is above the fast moving average (ma1), reinforcing the bullish bias.
The real price close is above the open (close > open), ensuring bullish momentum in actual price data.
The signal is confirmed on the closed candle (barstate.isconfirmed) to avoid premature signals.
dir is undefined (na(dir)), preventing repeated signals in the same direction.
A sell signal is generated when:
The previous candle is bullish (ha_bull ), indicating a temporary upward move before a potential reversal.
The fast moving average (ma1) is below the slow moving average (ma2), confirming a downtrend.
The current candle is bearish (ha_bear), showing trend continuation to the downside.
The Heikin Ashi close is below the fast moving average (ma1), reinforcing bearish pressure.
The real price close is below the open (close < open), confirming bearish momentum in actual price data.
The signal is confirmed after the candle closes (barstate.isconfirmed), avoiding premature entries.
dir is undefined (na(dir)), preventing consecutive signals in the same direction.
In simple terms, this setup looks for trend continuation after a pullback, confirming entries with both Heikin Ashi and real price action, supported by moving average alignment to avoid false signals.
If the price reaches a 1:1 risk-to-reward ratio, the stop will be moved to the entry point. However, if the slow moving average surpasses this level, it will become the new exit point, acting as a trailing stop
🔷Why It’s Unique
Easily visualizes the benefits of using risk-to-reward ratios when trading instead of fixed percentages.
Provides a simple and straightforward approach to trading, embracing the "keep it simple" concept.
Offers clear visualization of DCA Bot entry and exit points based on user preferences.
Includes an option to review the message format before sending signals to bots, with compatibility for multi-pair and futures contract pairs.
🔷 Considerations Before Using the Indicator
⚠️Very important: The indicator must be used on charts with real price data, such as Japanese candlesticks, line charts, etc. Do not use it on Heikin Ashi charts, as this may lead to unrealistic results.
🔸Since this is a trend-following strategy, use it on timeframes above 4 hours, where market noise is reduced and trends are clearer. Also, carefully review the statistics before using it, focusing on pairs that tend to have long periods of well-defined trends.
🔸Disadvantages:
False Signals in Ranges: Consolidating markets can generate unreliable signals.
Lagging Indicator: Being based on moving averages, it may react late to sudden price movements.
🔸Advantages:
Trend Focused: Simplifies the identification of trending markets.
Noise Reduction: Uses Heikin Ashi candles to identify trend continuation after pullbacks.
Broad Applicability: Suitable for forex, crypto, stocks, and commodities.
🔸The strategy provides a systematic way to analyze markets but does not guarantee successful outcomes. Use it as an additional tool rather than relying solely on an automated system.
Trading results depend on various factors, including market conditions, trader discipline, and risk management. Past performance does not ensure future success, so always approach the market cautiously.
🔸Risk Management: Define stop-loss levels, position sizes, and profit targets before entering any trade. Be prepared for potential losses and ensure your approach aligns with your overall trading plan.
🔷 STRATEGY PROPERTIES
Symbol: BINANCE:BTCUSDT (Spot).
Timeframe: 4h.
Test Period: All historical data available.
Initial Capital: 10000 USDT.
Order Size per Trade: 1% of Capital, you can use a higher value e.g. 5%, be cautious that the Max Drawdown does not exceed 10%, as it would indicate a very risky trading approach.
Commission: Binance commission 0.1%, adjust according to the exchange being used, lower numbers will generate unrealistic results. By using low values e.g. 5%, it allows us to adapt over time and check the functioning of the strategy.
Slippage: 5 ticks, for pairs with low liquidity or very large orders, this number should be increased as the order may not be filled at the desired level.
Margin for Long and Short Positions: 100%.
Indicator Settings: Default Configuration.
MA1 Length: 9.
MA2 Length: 18.
MA Calculations: EMA.
Take Profit Ratio: Disable. Ratio 1:4.
Breakeven Ratio: Enable, Ratio 1:1.
Strategy: Long & Short.
🔷 STRATEGY RESULTS
⚠️Remember, past results do not guarantee future performance.
Net Profit: +324.88 USDT (+3.25%).
Max Drawdown: -81.18 USDT (-0.78%).
Total Closed Trades: 672.
Percent Profitable: 35.57%.
Profit Factor: 1.347.
Average Trade: +0.48 USDT (+0.48%).
Average # Bars in Trades: 13.
🔷 HOW TO USE
🔸 Adjust Settings:
The default values—MA1 (9) and MA2 (18) with EMA calculation—generally work well. However, you can increase these values, such as 20 and 40, to better identify stronger trends.
🔸 Choose a Symbol that Typically Trends:
Select an asset that tends to form clear trends. Keep in mind that the Strategy Tester results may show poor performance for certain assets, making them less suitable for sending signals to bots.
🔸 Experiment with Ratios:
Test different take profit and breakeven ratios to compare various scenarios—especially to observe how the strategy performs when only the trade is protected.
🔸This is an example of how protecting the trade works: once the price moves in favor of the position with a 1:1 risk-to-reward ratio, the stop loss is moved to the entry price. If the Slow MA surpasses this level, it will act as a trailing stop, aiming to follow the trend and maximize potential gains.
🔸In contrast, in this example, for the same trade, if we set a take profit at a 1:3 risk-to-reward ratio—which is generally considered a good risk-reward relationship—we can see how a significant portion of the upward move is left on the table.
🔸Results Review:
It is important to check the Max Drawdown. This value should ideally not exceed 10% of your capital. Consider adjusting the trade size to ensure this threshold is not surpassed.
Remember to include the correct values for commission and slippage according to the symbol and exchange where you are conducting the tests. Otherwise, the results will not be realistic.
If you are satisfied with the results, you may consider automating your trades. However, it is strongly recommended to use a small amount of capital or a demo account to test proper execution before committing real funds.
🔸Create alerts to trigger the DCA Bot:
Verify Messages: Ensure the message matches the one specified by the DCA Bot.
Multi-Pair Configuration: For multi-pair setups, enable the option to add the symbol in the correct format.
Signal Settings: Enable whether you want to receive long or short signals (Entry | TP | SL), copy and paste the the messages for the DCA Bots configured.
Alert Setup:
When creating an alert, set the condition to the indicator and choose "alert() function call only.
Enter any desired Alert Name.
Open the Notifications tab, enable Webhook URL, and paste the Webhook URL.
For more details, refer to the section: "How to use TradingView Custom Signals".
Finalize Alerts: Click Create, you're done! Alerts will now be sent automatically in the correct format.
🔷 INDICATOR SETTINGS
MA 1: Fast MA Length
MA 2: Slow MA Length
MA Calc: MA's Calculations (SMA,EMA, RMA,WMA)
TP Ratio: This is the take profit ratio relative to the stop loss, where the trade will be closed in profit.
BE Ratio: This is the breakeven ratio relative to the stop loss, where the stop loss will be updated to breakeven or if the MA2 is greater than this level.
Strategy: Order Type direction in which trades are executed.
Use Custom Test Period: When enabled signals only works in the selected time window. If disabled it will use all historical data available on the chart.
Test Start and End: Once the Custom Test Period is enabled, here you select the start and end date that you want to analyze.
Check Messages: Enable the table to review the messages to be sent to the bot.
Entry | TP | SL: Enable this options to send Buy Entry, Take Profit (TP), and Stop Loss (SL) signals.
Deal Entry and Deal Exit : Copy and paste the message for the deal start signal and close order at Market Price of the DCA Bot. This is the message that will be sent with the alert to the Bot, you must verify that it is the same as the bot so that it can process properly so that it executes and starts the trade.
DCA Bot Multi-Pair: You must activate it if you want to use the signals in a DCA Bot Multi-pair in the text box you must enter (using the correct format) the symbol in which you are creating the alert, you can check the format of each symbol when you create the bot.
👨🏻💻💭 We hope this tool helps enhance your trading. Your feedback is invaluable, so feel free to share any suggestions for improvements or new features you'd like to see implemented.
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The information and publications within the 3Commas TradingView account are not meant to be and do not constitute financial, investment, trading, or other types of advice or recommendations supplied or endorsed by 3Commas and any of the parties acting on behalf of 3Commas, including its employees, contractors, ambassadors, etc.
RSI ProfitGuard [CHE]The RSI ProfitGuard Indicator is a comprehensive tool designed to assist traders in making informed decisions by integrating the Relative Strength Index (RSI) with automated Take Profit (TP) and Stop Loss (SL) levels. This indicator enhances trading strategies by providing clear entry signals and risk management parameters.
Key Features
RSIBased Signals: Utilizes RSI crossovers and crossunders to generate trade signals.
Automated TP and SL: Automatically calculates and plots Take Profit and Stop Loss levels based on userdefined methods.
Customizable Trade Types: Supports Long trades, Short trades, or both simultaneously.
Flexible Calculation Methods: Choose between Percentagebased or ATRbased methods for determining TP and SL levels.
Visual Enhancements: Highlights overbought and oversold RSI regions with background colors and marks trade entries with arrows.
Alerts: Provides realtime alerts when TP or SL levels are reached, ensuring timely trade management.
How It Works
1. RSI Calculation: The indicator calculates the RSI value based on the specified length.
2. Trade Signals:
Long Entry: Triggered when RSI crosses above the defined crossover threshold.
Short Entry: Triggered when RSI crosses below the defined crossunder threshold.
3. TP/SL Level Determination:
Percentage Method: Sets TP and SL as a percentage above and below the entry price.
ATR Method: Sets TP and SL based on the Average True Range (ATR), allowing for dynamic adjustments based on market volatility.
4. Visualization: Draws lines and labels on the chart to indicate TP, SL, and entry points.
5. Trade Management: Monitors price movements to determine if TP or SL levels are hit, automatically managing the trade state.
Customization Options
Trade Type Selection: Choose to execute Long trades, Short trades, or both.
RSI Settings:
RSI Length: Defines the period for RSI calculation (default is 14).
Crossover Threshold: RSI level above which a Long entry is signaled (default is 65).
Crossunder Threshold: RSI level below which a Short entry is signaled (default is 35).
Delay Settings: Sets the minimum number of bars between consecutive trade signals to avoid overtrading.
TP/SL Settings:
Method Selection: Choose between Percentage or ATRbased calculations.
Percentage Values: Define the percentage for TP and SL levels.
ATR Settings: Define ATR length and multipliers for TP and SL when using the ATR method.
Visual Settings:
Line Colors and Styles: Customize the appearance of TP, SL, crossover, and crossunder lines.
Transparency: Adjust the transparency of lines for better chart visibility.
Label Offset: Position labels at a specified number of bars to the right for clarity.
Using the Indicator
1. Add to Chart: Apply the RSI ProfitGuard Indicator to your TradingView chart.
2. Configure Settings: Adjust the parameters according to your trading strategy and risk tolerance.
3. Interpret Signals:
Long Entries: Look for green upward arrows indicating potential buy opportunities.
Short Entries: Look for red downward arrows indicating potential sell opportunities.
4. Monitor TP and SL Levels: Observe the plotted lines and labels to manage your trades effectively.
5. Set Up Alerts: Enable alerts to receive notifications when TP or SL levels are reached, ensuring you can act promptly.
Benefits
Enhanced DecisionMaking: Combines RSI signals with clear risk management levels.
Time Efficiency: Automates the calculation and plotting of TP and SL, saving time and reducing manual errors.
Flexibility: Adapts to various trading styles and market conditions through customizable settings.
Risk Management: Helps in defining and adhering to risk parameters, essential for longterm trading success.
Conclusion
The RSI ProfitGuard Indicator is an invaluable tool for traders seeking to integrate technical analysis with automated risk management. Its customizable features and realtime alerts provide a robust framework for executing and managing trades with confidence.
Disclaimer
The content provided with our RSI ProfitGuard Indicator, including all code, scripts, lessons, and materials, is strictly for educational and informational purposes only. It is not intended as, and should not be interpreted as, financial advice, a recommendation to buy or sell, or an offer of any financial product or service.
Key Points:
Educational Purpose:
All strategies, tools, and examples included within the RSI ProfitGuard Indicator are provided solely for illustrative purposes. They are designed to demonstrate coding techniques and the functionality of Pine Script within a trading context.
No Financial Advice:
The RSI ProfitGuard Indicator does not constitute financial advice. Users should not rely on it as a basis for making investment or trading decisions.
Hypothetical Results:
Any results or performance metrics derived from using the RSI ProfitGuard Indicator are purely hypothetical. Past performance is not indicative of future results, and there is no guarantee of profitability.
Risk Disclosure:
Trading and investing involve significant risks, including the potential loss of principal. The RSI ProfitGuard Indicator is not suitable for all persons, and users should be aware of the inherent risks involved in trading.
Professional Consultation:
Before making any trading decisions, it is strongly recommended to consult with a qualified financial professional to fully understand the risks and ensure that such decisions align with your financial situation and goals.
User Responsibility:
By using the RSI ProfitGuard Indicator, you acknowledge and agree that all trading decisions are made solely at your own discretion and risk. The developers and providers of the RSI ProfitGuard Indicator assume no responsibility or liability for any losses or damages resulting from its use.
Additional Notes:
No Guarantees:
There are no guarantees regarding the accuracy, reliability, or completeness of the RSI ProfitGuard Indicator. Users utilize the tool at their own risk.
No Endorsement:
Any mention of third-party products, services, or strategies within the RSI ProfitGuard Indicator does not constitute an endorsement or recommendation.
Updates and Modifications:
The RSI ProfitGuard Indicator may be updated or modified over time. Users are responsible for staying informed about any changes and understanding how they may impact the use of the tool.
Summary
This disclaimer clearly states that the RSI ProfitGuard Indicator is intended for educational purposes and should not be used as financial advice. It highlights the risks associated with trading, the hypothetical nature of any results, and the importance of consulting with a financial professional. Additionally, it emphasizes that users are solely responsible for their trading decisions and any outcomes that result from using the indicator.
Tips for Implementation:
Visibility:
Ensure that this disclaimer is prominently displayed wherever the RSI ProfitGuard Indicator is offered, such as on your website, within the TradingView description, or in any accompanying documentation.
Clarity:
Use clear and concise language to make sure that all users understand the limitations and responsibilities associated with using the indicator.
Legal Review:
Consider having the disclaimer reviewed by a legal professional to ensure that it meets all necessary legal requirements and adequately protects your interests.
Regular Updates:
Periodically review and update the disclaimer to reflect any changes in the indicator's functionality or in relevant laws and regulations.
Supertrend (Buy/Sell) With TP & SLSupertrend (Buy/Sell) with TP & SL: An Enhanced Trading Tool
This Pine Script indicator combines the popular Supertrend indicator with multiple take-profit (TP) and stop-loss (SL) levels, providing traders with a comprehensive visual aid for potential entries, exits, and risk management.
Originality
Buffer Zones for Precision: Instead of relying solely on the Supertrend line, this script incorporates buffer zones around it. This helps filter out false signals, especially in volatile markets, leading to more accurate buy/sell signals.
Flexible Stop-Loss: Offers the choice between a fixed or trailing stop-loss, allowing traders to tailor their risk management approach based on their preferences and market conditions.
Multiple Take-Profit Levels: Provides three potential take-profit levels, giving traders the flexibility to secure profits at different stages of a trend.
Heikin Ashi Candles & VWAP: Incorporates Heikin Ashi candles for smoother trend visualization and adds a VWAP line for potential support/resistance levels.
Clear Table Display: Presents key information like Stop Loss and Take Profit levels in a user-friendly table, making it easier to track trade targets.
How It Works
Supertrend Calculation: The Supertrend is calculated using ATR (Average True Range) to gauge market volatility. The script then creates buffer zones around the Supertrend line for refined signal generation.
Buy/Sell Signals:
Buy: When the close price crosses above the upper buffer zone, indicating a potential uptrend.
Sell: When the close price crosses below the lower buffer zone, suggesting a potential downtrend.
Take Profit & Stop Loss:
Take Profits: Three TP levels are calculated based on ATR and a customizable profit factor.
Stop Loss: The stop-loss can be set as either a fixed value based on ATR or as a trailing stop-loss that dynamically adjusts to lock in profits.
How To Use
Add the Indicator: Search for "Supertrend (Buy/Sell) With TP & SL" in the TradingView indicators list and add it to your chart.
Customize Inputs: Adjust parameters like ATR Period, Factor, Take Profit Factor, Stop Loss Factor, Stop Loss Type, etc., based on your trading style and preferences.
Interpret Signals: Look for buy signals when the price crosses above the upper buffer and sell signals when it crosses below the lower buffer.
Manage Risk: Use the plotted Take Profit and Stop Loss levels to manage your risk and potential rewards.
Concepts
Supertrend: A trend-following indicator that helps identify the direction of the prevailing trend.
ATR (Average True Range): A measure of market volatility.
Buffer Zones: Used to filter out false signals by creating a zone around the Supertrend line.
Trailing Stop Loss: A dynamic stop-loss that moves with the price to protect profits.
Heikin Ashi: A type of candlestick chart designed to filter out market noise and make trends easier to identify.
VWAP (Volume Weighted Average Price): An indicator that shows the average price at which a security has traded throughout the day, based on both volume and price.
Important Note: This script is for educational and informational purposes only. Backtest thoroughly and use with caution in live trading. Always manage your risk appropriately.
Contrarian DC Strategy - w Entry SL Pause and TrailingStopDonchian Channel Setup:
The strategy uses a tool called the Donchian Channel. Imagine this as two lines (bands) on a chart that show the highest and lowest prices over a certain number of past trading days (default is 20 days).
There's also a centerline, which is the average of these two bands.
Entry Conditions for Trades:
Buying (Going Long): The strategy considers buying when the price touches or falls below the lower band of the Donchian Channel. However, this only happens if there has been a pause after a previous losing trade. This pause is a number of candles where no new trades are taken.
Selling (Going Short): Similarly, the strategy considers selling when price reaches or exceeds the upper band of the Donchian Channel. Again, this is subject to a pause after a losing trade.
Stop Loss and Take Profit:
Each trade has a "Stop Loss" and "Take Profit" set. The Stop Loss is a preset price level where the trade will close to prevent further losses if the market moves against your position. The Take Profit does the same but locks in profit if the market moves in your favor.
The Stop Loss is set based on a percentage of the price at which you entered the trade.
The Take Profit is determined by the Risk/Reward Ratio. This ratio helps balance how much you're willing to risk versus the potential reward.
Trailing Stop Loss:
When a trade is profitable, the strategy should involve a "Trailing Stop Loss." This means the Stop Loss level moves (or trails) the price movement to lock in profits as the market moves in your favor.
For a buy trade, if the price moves above the centerline of the Donchian Channel, the Trailing Stop Loss should be adjusted in the middle between the entry price and the centerline. Viceversa for a sell trade, it should be adjusted in the same way if the price goes below the centerline.
IMPORTANT: There's no allert for the trailing stop at the moment.
Post-Stop Loss Pause:
If a trade hits the Stop Loss (i.e., it's a losing trade), the strategy takes a break before opening another trade in the same direction. This pause helps to avoid entering another trade immediately in a potentially unfavorable market.
In summary, this strategy is designed to make trades based on the Donchian Channel, with specific rules for when to enter and exit trades, and mechanisms to manage risk and protect profits. It's contrarian because it tends to buy when the price is low and sell when the price is high, which is opposite to what many traders might do.
MA RSI @KINGThis Pine Script is designed to create a trading indicator with moving averages (MA) and relative strength index (RSI), along with arrow signals and background color changes based on those signals. Here's a description of its functions:
1. Moving Averages and RSI Calculation:
- Two moving averages (`fastMA` and `slowMA`) are calculated based on user-input lengths.
- The Relative Strength Index (`rsi`) is calculated based on a user-defined length.
2. Crossover Conditions:
- `crossoverUp` is true when the fastMA crosses above the slowMA and RSI is above an overbought level.
- `crossoverDown` is true when the fastMA crosses below the slowMA and RSI is below an oversold level.
3. Arrow Signals:
- Triangle-shaped arrows (`arrowUp` and `arrowDown`) are plotted below and above bars, indicating buy (green) and sell (red) signals, respectively.
4. Background Color Changes:
- The background color (`bgColor`) changes based on buy and sell signals.
- If there's a buy signal (`crossoverUp`), the background color is set to a light blue with 40% transparency.
- If there's a sell signal (`crossoverDown`), the background color is set to a light red with 40% transparency.
- On the next opposite signal, the background color is scaled up (transparency set to 80%) to indicate a stronger signal.
In summary, this script provides visual cues through arrows and background color changes to assist traders in identifying potential buy and sell signals based on moving average crossovers and RSI conditions. The background color variations aim to highlight the strength of the signal, with scaling based on consecutive signals in the same direction.
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1. Buy Signal:
- Condition: The arrow points up (green) with a background color indicating a buy signal.
- Confirmation: Ensure that there is a strong upward crossover (fastMA above slowMA) and RSI is above the overbought level.
2. Sell Signal:
- Condition: The arrow points down (red) with a background color indicating a sell signal.
- Confirmation: Ensure that there is a strong downward crossover (fastMA below slowMA) and RSI is below the oversold level.
3. Exit Signal:
- Condition: No arrow is present, and the background color is reset.
- Confirmation: Confirm that there is no active buy or sell signal.
Example Trading Rules:
Opening a Long Position (Buy):
- Enter a long (buy) position when:
- The green arrow appears with a light blue background.
- Confirm that the fastMA is above the slowMA.
- Confirm that RSI is above the overbought level.
Opening a Short Position (Sell):
- Enter a short (sell) position when:
- The red arrow appears with a light red background.
- Confirm that the fastMA is below the slowMA.
- Confirm that RSI is below the oversold level.
Exiting a Position:
- Close the position when:
- There is no arrow present (neither green nor red).
- The background color is reset, indicating no active signal.
Risk Management:
Position Sizing: Determine the size of your positions based on your risk tolerance and the size of your trading account.
Stop-Loss and Take-Profit: Set stop-loss orders to limit potential losses and take-profit orders to secure profits.
Risk-Reward Ratio: Consider maintaining a favorable risk-reward ratio in your trades.
Notes:
Backtesting: Before applying this strategy in a live market, it's crucial to backtest it using historical data to assess its performance.
Market Conditions: Adapt the strategy to different market conditions, and be aware that no strategy is guaranteed to be profitable.
Continuous Monitoring: Regularly monitor the performance of the strategy and make adjustments as needed.
Educational Purpose: This strategy is for educational purposes only. Always consult with financial professionals and use your judgment when making trading decisions.
Remember that trading involves risk, and past performance is not indicative of future results. It's recommended to paper trade or use a demo account to test the strategy before risking real capital.
Best wishes on your trading journey! May your strategies be profitable, your risks well-managed, and your decisions guided by wisdom and success. Happy trading!
Good Mode RSI v2► Description:
"Good Mode RSI v2" is a powerful trading strategy designed to provide informed trading decisions. This script utilizes the popular RSI (Relative Strength Index) indicator to identify potential buying and selling opportunities in the market. It goes beyond the traditional use of RSI by incorporating carefully selected parameters to enhance its effectiveness. The strategy stands out for its customized combination of RSI levels and stop-loss/take-profit thresholds, allowing for precise trade entries and exits while effectively managing risk.
► How to Use:
To utilize the "Good Mode RSI v2" strategy, follow these steps:
1. Apply the script to your desired trading instrument and timeframe in TradingView.
2. Monitor the chart for trade signals generated by the strategy.
3. When the RSI reaches the sell level of 96, a sell signal is generated. Consider placing a sell order to take advantage of potential downward price movements.
4. take-profit level at 60 to secure profits in a strong downtrend.
5. When the RSI drops below the buy level of 4, a buy signal is generated. Consider placing a buy order to enter the market at a favorable price.
6. take-profit level at 30 to secure profits in a strong uptrend.
7. Monitor the RSI indicator on the chart to stay updated on its current value and anticipate potential trade signals.
Please note that trading decisions should be made based on a comprehensive analysis of multiple factors, including market conditions, trend analysis, and risk management. The "Good Mode RSI v2" strategy can serve as a valuable tool in your trading journey, but it should be used in conjunction with your own research and analysis.
► About it:
The "Good Mode RSI v2" strategy is not a mere replication or slight modification of existing strategies or indicators. It has been carefully crafted to provide traders with an original and purposeful approach to trading using the RSI indicator. The strategy's unique configuration of RSI levels and stop-loss/take-profit thresholds allows for improved performance and profitability. Backtesting results have shown impressive metrics, including a gain factor of 2.445 and a compelling profitability of 78.07% during the testing period.
► Referrals:
If you have any questions or need further assistance with the "Good Mode RSI v2" strategy, feel free to ask. Good luck with your trading endeavors!
Baseline Cross Qualifier Volatility Strategy with HMA Trend BiasFor trading ES on 30min Chart
Trading Rules
Post Baseline Cross Qualifier (PBCQ): If price crosses the baseline but the trade is invalid due to additional qualifiers, then the strategy doesn't enter a trade on that candle. This setting allows you override this disqualification in the following manner: If price crosses XX bars ago and is now qualified by other qualifiers, then the strategy enters a trade.
Volatility: If price crosses the baseline, we check to see how far it has moved in terms of multiples of volatility denoted in price (ATR x multiple). If price has moved by at least "Qualifier multiplier" and less than "Range Multiplier", then the strategy enters a trade. This range is shown on the chart with yellow area that tracks price above/blow the baseline. Also, see the dots at the top of the chart. If the dots are green, then price passes the volatility test for a long. If the dots are red, then price passes the volatility test for a short.
Take Profit/Stoploss Quantity Removed
1 Take Profit: 100% of the trade is closed when the profit target or stoploss is reached.
2 Take Profits: Quantity is split 50/50 between Take Profit 1 and Take Profit 2
3 Take Profits: Quantify is split 50/25/25.
Stratgey Inputs
Baseline Length
37
Post Baseline Cross Qualifier Enabled
On
Post Baseline Cross Qualifier Bars Ago
9
ATR Length
9
Volatility Multiplier
0
Volatility Range Multiplier
10
Volatility Qualifier Multiplier
2
Take Profit Type
1 Take Profit
HMA Length
11
[-_-] Level Breakout, Auto Backtesting StrategyDescription:
A Long only strategy based on breakout from a certain level formed by High price. It has auto-backtesting capabilities (you set ranges for the three main parameters: Lookback, TP and SL; the strategy then goes through different combinations of those parameters and displays a table with results that you can sort by Percentage of profitable trades AND/OR Net profit AND/OR Number of trades). So you can, for example, sort only by Net profit to find combination of parameters that gives highest net profit, or sort by Net profit and Percentage profitable to find a combination of parameters that gives the best balance between profitability and profit. The auto-backtesting also takes into account the commission which is set in % in the inputs (make sure to set the same value in properties of the strategy so that auto-backtesting and real backtesting results match).
NOTE: auto-backtesting only find the best combinations and displays them in a table, you will then need to manually set the Lookback, TP and SL inputs for real backtesting to match.
Parameters:
- Lookback -> # of bars for filtering signals; recommended range from 2 to 5
- TP (%) -> take profit; recommended range from 5 to 10
- SL (%) -> stop loss; recommended range from 1 to 5
- Commission (%) -> commission per trade
- Min/Max Lookback -> lookback range for auto-backtesting
- Min/Max TP -> take profit range for auto-backtesting
- Min/Max SL -> stop loss range for auto-backtesting
- Percentage profitable -> sort by percentage of profitable trades
- Net profit -> sort by net profit
- Number of trades -> sort by number of trades
[MT] Strategy Backtest Template| Initial Release | | EN |
An update of my old script, this script is designed so that it can be used as a template for all those traders who want to save time when programming their strategy and backtesting it, having functions already programmed that in normal development would take you more time to program, with this template you can simply add your favorite indicator and thus be able to take advantage of all the functions that this template has.
🔴Stop Loss and 🟢Take Profit:
No need to mention that it is a Stop Loss and a Take Profit, within these functions we find the options of: fixed percentage (%), fixed price ($), ATR, especially for Stop Loss we find the Pivot Points, in addition to this, the price range between the entry and the Stop Loss can be converted into a trailing stop loss, instead, especially for the Take Profit we have an option to choose a 1:X ratio that complements very well with the Pivot Points.
📈Heikin Ashi Based Entries:
Heikin Ashi entries are trades that are calculated based on Heikin Ashi candles but their price is executed to Japanese candles, thus avoiding false results that occur in Heikin candlestick charts, this making in certain cases better results in strategies that are executed with this option compared to Japanese candlesticks.
📊Dashboard:
A more visual and organized way to see the results and necessary data produced by our strategy, among them we can see the dates between which our operations are made regardless if you have activated some time filter, usual data such as Profit, Win Rate, Profit factor are also displayed in this panel, additionally data such as the total number of operations, how many were gains and how many losses, the average profit and loss for each operation and finally the maximum profits and losses followed, which are data that will be very useful to us when we elaborate our strategies.
Feel free to use this template to program your own strategies, if you find errors or want to request a new feature let me know in the comments or through my social networks found in my tradingview profile.
| Update 1.1 | | EN |
➕Additions: '
Time sessions filter and days of the week filter added to the time filter section.
Option to add leverage to the strategy.
5 Moving Averages, RSI, Stochastic RSI, ADX, and Parabolic Sar have been added as indicators for the strategy.
You can choose from the 6 available indicators the way to trade, entry alert or entry filter.
Added the option of ATR for Take Profit.
Ticker information and timeframe are now displayed on the dashboard.
Added display customization and color customization of indicator plots.
Added customization of display and color plots of trades displayed on chart.
📝Changes:
Now when activating the time filter it is optional to add a start or end date and time, being able to only add a start date or only an end date.
Operation plots have been changed from plot() to line creation with line.new().
Indicator plots can now be controlled from the "plots" section.
Acceptable and deniable range of profit, winrate and profit factor can now be chosen from the "plots" section to be displayed on the dashboard.
Aesthetic changes in the section separations within the settings section and within the code itself.
The function that made the indicators give inputs based on heikin ashi candles has been changed, see the code for more information.
⚙️Fixes:
Dashboard label now projects correctly on all timeframes including custom timeframes.
Removed unnecessary lines and variables to take up less code space.
All code in general has been optimized to avoid the use of variables, unnecessary lines and avoid unnecessary calculations, freeing up space to declare more variables and be able to use fewer lines of code.
| Lanzamiento Inicial | | ES |
Una actualización de mi antiguo script, este script está diseñado para que pueda ser usado como una plantilla para todos aquellos traders que quieran ahorrar tiempo al programar su estrategia y hacer un backtesting de ella, teniendo funciones ya programadas que en el desarrollo normal te tomaría más tiempo programar, con esta plantilla puedes simplemente agregar tu indicador favorito y así poder aprovechar todas las funciones que tiene esta plantilla.
🔴Stop Loss y 🟢Take Profit:
No hace falta mencionar que es un Stop Loss y un Take Profit, dentro de estas funciones encontramos las opciones de: porcentaje fijo (%), precio fijo ($), ATR, en especial para Stop Loss encontramos los Pivot Points, adicionalmente a esto, el rango de precio entre la entrada y el Stop Loss se puede convertir en un trailing stop loss, en cambio, especialmente para el Take Profit tenemos una opción para elegir un ratio 1:X que se complementa muy bien con los Pivot Points.
📈Entradas Basadas en Heikin Ashi:
Las entradas Heikin Ashi son operaciones que son calculados en base a las velas Heikin Ashi pero su precio esta ejecutado a velas japonesas, evitando así́ los falsos resultados que se producen en graficas de velas Heikin, esto haciendo que en ciertos casos se obtengan mejores resultados en las estrategias que son ejecutadas con esta opción en comparación con las velas japonesas.
📊Panel de Control:
Una manera más visual y organizada de ver los resultados y datos necesarios producidos por nuestra estrategia, entre ellos podemos ver las fechas entre las que se hacen nuestras operaciones independientemente si se tiene activado algún filtro de tiempo, datos usuales como el Profit, Win Rate, Profit factor también son mostrados en este panel, adicionalmente se agregaron datos como el número total de operaciones, cuantos fueron ganancias y cuantos perdidas, el promedio de ganancias y pérdidas por cada operación y por ultimo las máximas ganancias y pérdidas seguidas, que son datos que nos serán muy útiles al elaborar nuestras estrategias.
Siéntete libre de usar esta plantilla para programar tus propias estrategias, si encuentras errores o quieres solicitar una nueva función házmelo saber en los comentarios o a través de mis redes sociales que se encuentran en mi perfil de tradingview.
| Actualización 1.1 | | ES |
➕Añadidos:
Filtro de sesiones de tiempo y filtro de días de la semana agregados al apartado de filtro de tiempo.
Opción para agregar apalancamiento a la estrategia.
5 Moving Averages, RSI, Stochastic RSI, ADX, y Parabolic Sar se han agregado como indicadores para la estrategia.
Puedes escoger entre los 6 indicadores disponibles la forma de operar, alerta de entrada o filtro de entrada.
Añadido la opción de ATR para Take Profit.
La información del ticker y la temporalidad ahora se muestran en el dashboard.
Añadido personalización de visualización y color de los plots de indicadores.
Añadido personalización de visualización y color de los plots de operaciones mostradas en grafica.
📝Cambios:
Ahora al activar el filtro de tiempo es opcional añadir una fecha y hora de inicio o fin, pudiendo únicamente agregar una fecha de inicio o solamente una fecha de fin.
Los plots de operaciones han cambiados de plot() a creación de líneas con line.new().
Los plots de indicadores ahora se pueden controlar desde el apartado "plots".
Ahora se puede elegir el rango aceptable y negable de profit, winrate y profit factor desde el apartado "plots" para mostrarse en el dashboard.
Cambios estéticos en las separaciones de secciones dentro del apartado de configuraciones y dentro del propio código.
Se ha cambiado la función que hacía que los indicadores dieran entradas en base a velas heikin ashi, mire el código para más información.
⚙️Arreglos:
El dashboard label ahora se proyecta correctamente en todas las temporalidades incluyendo las temporalidades personalizadas.
Se han eliminado líneas y variables innecesarias para ocupar menos espacio en el código.
Se ha optimizado todo el código en general para evitar el uso de variables, líneas innecesarias y evitar los cálculos innecesarios, liberando espacio para declarar más variables y poder utilizar menos líneas de código.
Customizable Non-Repainting HTF MACD MFI Scalper Bot Strategy v2Customizable Non-Repainting HTF MACD MFI Scalper Bot Strategy v2
This script was originally shared by Wunderbit as a free open source script for the community to work with. This is my second published iteration of this idea.
WHAT THIS SCRIPT DOES:
It is intended for use on an algorithmic bot trading platform but can be used for scalping and manual trading.
This strategy is based on the trend-following momentum indicator . It includes the Money Flow index as an additional point for entry.
This is a new and improved version geared for lower timeframes (15-5 minutes), but can be run on larger ones as well. I am testing it live as my high frequency trader.
HOW IT DOES IT:
It uses a combination of MACD and MFI indicators to create entry signals. Parameters for each indicator have been surfaced for user configurability.
Take profits are now trailing profits, and the stop loss is now fixed. Why? I found that the trailing stop loss with ATR in the previous version yields very good results for back tests but becomes very difficult to deploy live due to transaction fees. As you can see the average trade is a higher profit percentage than the previous version.
HOW IS MY VERSION ORIGINAL:
Now instead of using ATR stop loss, we have a fixed stop loss - counter intuitively to what some may believe this performs better in live trading scenarios since it gives the strategy room to move. I noticed that the ATR trailing stop was stopping out too fast and was eating away balance due to transaction fees.
The take profit on the other hand is now a trailing profit with a customizable deviation. This ensures that you can have a minimum profit you want to take in order to exit.
I have depracated the old ATR trailing stop as it became too confusing to have those as different options. I kept the old version for others that want to experiment with it. The source code still requires some cleanup, but its fully functional.
I added in a way to show RSI values and ATR values with a checkbox so that you can use the new an improved ATR Filter (and grab the right RSI values for the RSI filter). This will help to filter out times of very low volatility where we are unlikely to find a profitable trade. Use the "Show Data" checkbox to see what the values are on the indicator pane, then use those values to gauge what you want to filter out.
Both versions
Delayed Signals : The script has been refactored to use a time frame drop down. The higher time frame can be run on a faster chart (recommended on one minute chart for fastest signal confirmation and relay to algotrading platform.)
Repainting Issues : All indicators have been recoded to use the security function that checks to see if the current calculation is in realtime, if it is, then it uses the previous bar for calculation. If you are still experiencing repainting issues based on intended (or non intended use), please provide a report with screenshot and explanation so I can try to address.
Filtering : I have added to additional filters an ABOVE EMA Filter and a BELOW RSI Filter (both can be turned on and off)
Customizable Long and Close Messages : This allows someone to use the script for algorithmic trading without having to alter code. It also means you can use one indicator for all of your different alterts required for your bots.
HOW TO USE IT:
It is intended to be used in the 5-30 minute time frames, but you might be able to get a good configuration for higher time frames. I welcome feedback from other users on what they have found.
Find a pair with high volatility (example KUCOIN:ETH3LUSDT ) - I have found it works particularly well with 3L and 3S tokens for crypto. although it the limitation is that confrigurations I have found to work typically have low R/R ratio, but very high win rate and profit factor.
Ideally set one minute chart for bots, but you can use other charts for manual trading. The signal will be delayed by one bar but I have found configurations that still test well.
Select a time frame in configuration for your indicator calculations.
Select the strategy config for time frame (resolution). I like to use 5 and 15 minutes for scalping scenarios, but I am interested in hearing back from other community memebers.
Optimize your indicator without filters : customize your settings for MACD and MFI that are profitable with your chart and selected time frame calculation. Try different Take Profits (try about 2-5%) and stop loss (try about 5-8%). See if your back test is profitable and continue to optimize.
Use the Trend, RSI, ATR Filter to further refine your signals for entry. You will get less entries but you can increase your win ratio.
You can use the open and close messages for a platform integration, but I choose to set mine up on the destination platform and let the platform close it. With certain platforms you cannot be sure what your entry point actually was compared to Trading View due to slippage and timing, so I let the platform decide when it is actually profitable.
Limitations: this works rather well for short term, and does some good forward testing but back testing large data sets is a problem when switching from very small time frame to large time frame. For instance, finding a configuration that works on a one minute chart but then changing to a 1 hour chart means you lose some of your intra bar calclulations. There are some new features in pine script which might be able to address, this, but I have not had a chance to work on that issue.
Short Selling EMA Cross (By Coinrule)BINANCE:AVAXUSDT
This short selling script works best in periods of downtrends and general bearish market conditions, with the ultimate goal to sell as the the price decreases further and buy back before a rebound.
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 to hodl this cash, or use it to reinvest when the market reaches attractive buying levels.
Entry
The exponential moving average ( EMA ) 20 and EMA 50 have been used for the variables determining the entry to the short. EMAs can operate better than simple moving averages due to the additional weighting placed on the most recent data points, whereas simple moving averages weight all the data the same. This means that price is tracked more closely and the most recent volatile moves can be captured and exploited more efficiently using EMAs.
Our backtesting data revealed that the most profitable timeframe was the 30-minute timeframe, this also enabled a good frequency of trades and high profitability.
A fast (shorter term) exponential moving average , in this strategy the EMA 20, crossing under a slow (longer term) moving average, in this example the EMA 50, signals the price of an asset has started to trend to the downside, as the most recent data signals price is declining compared to earlier data. The entry acts on this principle and executes when the EMA 20 crosses under the EMA 50.
Enter Short: EMA 20 crosses under EMA 50.
Exit
This script utilises a take profit and stop loss for the exit. The take profit is set at -8% and the stop loss is set at +16% from the entry price. This would normally be a poor trade due to the risk:reward equalling 0.5. However, when looking at the backtesting data, the high profitability of the strategy (93.33%) leads to increased confidence and showcases the high probability of success according to historical data.
The take profit (-8%) and the stop loss (+16%) of the strategy are widely placed to ensure the move is captured without being stopped out due to relief rallies. The stop loss also plays a role of mitigating losses and minimising risk of being stuck in a short position once there has been a fundamental trend reversal and the market has become bullish .
Exit Short: -8% price decrease from entry price.
OR
Exit Short: +16% price increase from entry price.
Tip: Research what coins have consistent and large token unlocks / highly inflationary tokenomics, and target these during bear markets to short as they will most likely have substantial selling pressure that outweighs demand - leading to declining prices.
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.
