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."
My first Moving Average Crossover strategy, tested on VOLVB daily, got stoped out by the
and because of this missed one nice run and a very nice 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 .
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!
//@version=2 strategy("MAC 1st Trading Hour Walkover", overlay=true) // Setting up timeperiod for testing startPeriodYear = input(2014, "Backtest Start Year") startPeriodMonth = input(1, "Backtest Start Month") startPeriodDay = input(2, "Backtest Start Day") testPeriodStart = timestamp(startPeriodYear, startPeriodMonth, startPeriodDay, 0, 0) stopPeriodYear = input(2015, "Backtest Stop Year") stopPeriodMonth = input(12, "Backtest Stop Month") stopPeriodDay = input(30, "Backtest Stop Day") testPeriodStop = timestamp(stopPeriodYear, stopPeriodMonth, stopPeriodDay, 0, 0) // Moving Averages ema14 = ema(close, 14) ema28 = ema(close, 28) sma56 = sma(close, 56) // Plot plot(ema14, title="ema14", linewidth=2, color=green) plot(ema28, title="ema28", linewidth=2, color=red) plot(sma56, title="sma56", linewidth=3, color=blue) // Strategy goLong = cross(ema14, sma56) and ema14 > ema28 goShort = cross(ema14, sma56) and ema14 < ema28 // Strategy.When to enter if time >= testPeriodStart if time <= testPeriodStop strategy.entry("Go Long", strategy.long, 1.0, when=goLong) strategy.entry("Go Short", strategy.short, 1.0, when=goShort) // 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)