See for yourself here, that the entire strategy is based on parabolic SAR. The minor deviance may be from a use of average true range instead of close, or some other similar source. If you want this just simply use the BUILT IN SAR function with the parameters: sar(0.015, 0.01, 0.025)
I am not sure how they are obfuscating the input to get a single integer into these three parameters, but the lesson here is: DO NOT PAY $300+ FOR THIS INDICATOR
Parabolic SAR is a very simple strategy, and the fact that Travis is obscuring the actual mechanics behind this should make you as skeptical as I was.
Great work. While there is some original material in a select group of paid scripts, many simply repurpose open source code already available for free. Predatory marketing aimed at unchecked trader greed and ignorance seems to provide these unscrupulous vendors with an unending trail of customers. Nice to see information like this get out and hopefully help traders make better choices.Congrats.
jhanson107
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This is the function used to convert trend codes into parbolic sar settings.
//Parabolic SAR
psar = sar(0.02, 0.02, TrendCode * 0.005)
on2valhalla
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I figured it was something close to that, good work! That also explains why every other 'trend code' is complete ****. It really is not that hard to optimize over these three values, while there is a very reasonable number of realistic combinations.
In backtesting, the PSAR strategy with a good take profit strategy does actually work well for crypto currency, though very much only in trending markets. It is incredibly susceptible to ranging markets, compared to other strategies.
jhanson107
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@on2valhalla, thank you! I agree for crypto the PSAR is a great tool but I think MTT over simplifies it and ranging markets can get rough quick. The goal was to make a super simple strategy so I get it.
tradingview.com/script/jJOommPT-Trend-Trader-Trend-Code-w-Alerts/ < MTT Replica it amazes me with so little lines of code he is making $300 plus for the indicator. I was paying monthly until I learned it was simply a PSAR from you a few other community members.
I made an attempt to optimize the MTT strategy aka PSAR using ema filtering. In my personal opinion and from back testing I believe in only longing and taking a break from trading when stopped out or in a short condition. I have seen great back testing results 60 to 70% accuracy with this strategy on BTC.
I wouldn't rely on tradingview's backtesting tool too much! You should remember that Bitcoin has been parabolic its entire existence, and so therefore put very little stock in overall backtesting. You can work around this by going to specific periods that have special interest (long ranging periods, broken trends). You can get almost any simple strategy to look good on Bitcoin backtests :)
jhanson107
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@on2valhalla, I agree that back testing isn't fail safe but it's a good way to quickly find what has worked historically to help create good strategies.
MichaelReyes
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@jhanson107, Nice catch! How about his Martin Trend Meter do you know how to replicate it?
MIHAEL00
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whats the parametres for the metric_? thanks for your work!
TradeIndicators
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Hey there! The code has a lot more than what might be assumed. Our traders have found that it's well worth $300 and as mentioned there is a lot more to this code than what it appears to be. The P's and the E's on the Trend Trader are also custom coded as well which help traders exit and re-enter into trends! We also don't use the Parabolic Sar settings but rather a range between 5 and 40 to predict future trends and trades which is a proprietary function. You'll start to see all the features to the indicator when you start using it :)