Hereby I present you the EMA RSI Lowest Low Hidden Divergence strategy, which I discovered on a youtube channel. He has tested the strategy hundreds of times manually, herewith I try to automate the whole thing.
Since I use the strategy with a bot, it can only enter long positions for now. But in the future I will add the possibility to trade short positions.
The strategy was tested with BTC/ USDT in 1m chart (8 days). The values must be adjusted depending on the timeframe and coin.
First of all, we need a bullish hidden divergence. Once this is detected, the following parameters are checked:
The 50 EMA must cross the 250 EMA .
Then, the candle must close above the 50 EMA .
The K line of the RSI STOCH indicator need to crosses the D line.
If the next candle closes above the 50 EMA , a long position is opened.
The stop loss is determined with the "lowest low/highest high lookback". The profit factor is multiplied by the value of the lowest low/highest high lookback.
The results of the strategy are without commissions and levers.
If you have any questions or feedback, please let me know in the comments.
In the future I will add other types of stop loss / take profits. (ATR; %; eg.)
I wish you good luck with the strategy!
Release Notes
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The strategy is now designed on a 15 minute chart, but works just as well on the 1 minute chart.
It is now possible to trade short positions.
You can now see the stop loss of the respective candle.
Release Notes
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Added the possibility to calculate the stop loss and take profit by means of the ATR
*Added table with the last tp and sl
*take profit and stop loss marked on the chart
Release Notes
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I fixed a bug that caused incorrect purchases when used with bots.
I used to code PHP in the past and 10 minutes ago I decided to code the same strategy from YT video to learn Pine code and make a profit (obviously xD) the irony is I searched how to find hidden divergence and saw your strategy which is from the same video xD
TheBitcoinHunter
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I have 2 questions if you don't mind, when I use 1 min it returns "study error"
also, I use Binance which takes 0.1% from every trade, should I type the commission on properties 0.1 or 0.2 ?
TradingStrategyCheck
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@fareselhadary, The commission is 0.1 percent. You should also not ignore the slipage (spread). The error occurs because the script only looks back a maximum number of candles. I will fix this error soon. Have a nice day!
A_Traders_Edge
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@TradingStrategyCheck, I often wondered the best way to calculate the slippage that should be coded in. Any experience/opinion on the matter? Currently I do not (and have not) ever used slippage in my strats but would like to to attempt a little more realism so...how do you go about it. Lastly, why would you not be coding a commission in your script? Thanks for the published script and for your time. Have a GREAT day bud.
TradingStrategyCheck
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@fareselhadary, What a coincidence.
Dinkelfras
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Very nice! So if I would like to connect this to a bot via webhooks and have different alert messages depending on entry/exit and short/long, how do I configure that?
TradingStrategyCheck
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@Dinkelfras, hey there :) i made a tutorial for this. Just check my profile.
Dinkelfras
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@TradingStrategyCheck, Thanks, I did check the tutorial but didn't really get wiser :p Basically I want to connect Cornix and the alert message should only contain a string of numbers and letters. Could you give an example of how the alert should look for enter long if the message should only say e.g. "enterlongnow"? Then I can probably figure out the rest.
myholt
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What settings were used to produce these results?
TradingStrategyCheck
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@myholt, The default settings of the script in the five Minute chart of BTC/USDT Binance.