EVERYDAY 0002 _ MAC 1st Trading Hour Walkover

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This is the second strategy for my Everyday project.
Like I wrote the last time - my goal is to create a new strategy everyday
for the rest of 2016 and post it here on TradingView.

I'm a complete beginner so this is my way of learning about coding strategies.
I'll give myself between 15 minutes and 2 hours to complete each creation.

This is basically a repetition of the first strategy I wrote - a Moving Average Crossover,
but I added a tiny thing.

I read that "Statistics have proven that the daily high or low is established within the first hour of trading on more than 70% of the time."
(source: )

My first Moving Average Crossover strategy, tested on VOLVB daily, got stoped out by the volatility
and because of this missed one nice bull run and a very nice bear run.

So I added this single line: if time("60", "1000-1600") regarding when to take exits:
if time("60", "1000-1600")
strategy.exit("Close Long", "Long", profit=2000, loss=500)
strategy.exit("Close Short", "Short", profit=2000, loss=500)

Sweden is UTC+2 so I guess UTC 1000 equals 12.00 in Stockholm. Not sure if this is correct, actually.
Anyway, I hope this means the strategy will only take exits based on price action which occur in the afternoon, when there is a higher probability of a lower volatility .

When I ran the new modified strategy on the same VOLVB daily it didn't get stoped out so easily.
On the other hand I'll have to test this on various stocks.
Reading and learning about how to properly test strategies is on my todo list - all tips on youtube videos or blogs
to read on this topic is very welcome!

Like I said the last time, I'm posting these strategies hoping to learn from the community - so any feedback, advice, or corrections is very much welcome and appreciated!
I realized the strategy wasn't taking profit when the stop loss was restricted to
after noon trading hours. Not sure why actually.

Anyway, I separated the profit taking and stop loss protection, and it now works
as intended.

Here are the updated lines - everything else is the same.
// Strategy.When to take profit
if time >= testPeriodStart
if time <= testPeriodStop
strategy.exit("Close Long", "Go Long", profit=2000)
strategy.exit("Close Short", "Go Short", profit=2000)

// Strategy.When to stop out
// Some studies show that 70% of the days high low happen in the first hour
// of trading. To avoid having that volatility fire our loss stop we
// ignore price action in the morning, but allow stops to fire in the afternoon.
if time("60", "1000-1600")
strategy.exit("Close Long", "Go Long", loss=500)
strategy.exit("Close Short", "Go Short", loss=500)
i think your next study should be, to workout what to do after the Moving Average cross! If you look just on the chart you have posted, Price would appear to always come back to the levels where the 2 MA's cross and then go back in the direction of the crossing of the MA's. It's a great pull back strategy.
+1 Reply
pbergden SignalTradersUK
Thank you so much for your comment and great advice - I appreciate it very much!
I will definitely have a look at that for my next study.
Again, thanks!
@pbergden, does this repaint? i.e signals come and go-don't stay.. thanks
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