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! /pbergden