The second indicator used in this strategy is the Simple Moving Average (SMA). A SMA is an arithmetic moving average calculated by adding recent prices and then dividing that figure by the number of time periods in the calculation average. For example, one could add the closing price of a coin for a number of time periods and then divide this total by that same number of periods. Short-term averages respond quickly to changes in the price of the underlying coin, while long-term averages are slower to react.
Long/Exit orders are placed when three basic signals are triggered.
- RSI is greater than 50
- MA9 is greater than MA100
- MA9 increases by 6%
- Price increases 5% trailing
- Price decreases 5% trailing
The script is backtested from 1 May 2022 and provides good returns.
A trading fee of 0.1% is also taken into account and is aligned to the base fee applied on Binance.
This script also works well on AVAX 45m/1h, MATIC 15m/45m/1h and ETH 4h.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.