loxx

TopTrend Backtest (advanced) [Loxx]

loxx Updated   
This indicator makes use of the Moving Averages found in the Baseline Backtest indicator:

Volatility Types
v1.0 Included Volatility
Average True Range (ATR)
True Range Double (TRD)

Signals
Initial Long (L): Hard flip downtrend to uptrend
Initial Short (S):Hard flip downtrend to uptrend
Continuation Long ( CL ): Trend up, trend dips, but not enough to flip trend, trend goes back up
Continuation Short (CS): Trend down, trend rises, but not enough to flip trend, trend goes back down
Post Baseline Cross Long ( BL ): Trend up over XX bars ago but Baseline didn't agree (that is, is still showing downtrend), if Baseline then catches up and agrees with direction within XX bars since the Trend up, then this signal is triggered
Post Baseline Cross Short (BS): Trend won over XX bars ago but Baseline didn't agree (that is, is still showing downtrend), if Baseline then catches up and agrees with direction within XX bars since the Trend down, then this signal is triggered
Baseline Recovery Continuation Long ( RL ): Trend up. Baseline crossed down into downtrend, then baseline crosses back up to uptrend while Trend is still up
Baseline Recovery Continuation Short ( RS ): Trend down. Baseline crossed up into uptrend, then baseline crosses back down to downtrend while Trend is still down

Take profit philosophy
The Take Profits and Stop Loss are based on multiples of volatility . So, if you set Take Profit 1 to a multiple of 1, which is the default, then the the Take Profit 1 for a Long is:

source + 1.0 x volatility in price

If you set the Stoploss to a multiplier of 1.5, then the Stoploss for a Long is set to:

source - 1.5 x volatility in price

Trading Rules
Volatility: If price crosses the baseline, we check to see how far it has moved in terms of multiples of volatility denoted in price ( volatility in price x multiple). If price has moved by at least "Qualifier multiplier" and less than "Range Multiplier", then the strategy enters a trade.

Baseline Filter: This adds another layer of filtering (See Post Baseline Cross signals above). This is a simple over/under qualification filter. If price is above the baseline, then that means it qualifies for a long, if price is below the baseline, then this qualifies for a short. This filter must be active for Post Baseline Cross signals to trigger.

Take Profit/Stoploss Quantity Removed
1 Take Profit: 100% of the trade is closed when the profit target or stoploss is reached.
2 Take Profits: Quantity is split 50/50 between Take Profit 1 and Take Profit 2
3 Take Profits: Quantify is split 50/25/25.

Example: If you select 3 Take Profits and you long 1 BTC , then when Take Profit 1 hits, the strategy will remove 50% of the trade, meaning you'll have 0.5 BTC left in the trade. When Take Profit 2 hits, the strategy will remove 50% of 0.5 BTC leaving 0.25 BTC in the trade. When Take Profit 3 hits, then whatever is left in the trade is removed from the trade.

Moving Stoploss
1 Take Profit: The Stoploss doesn't move
2 Take Profits: After Take Profit 1 is hit, then the Stoploss moves to the trade Entry
3 Take Profits: After Take Profit 1 is hit, then the Stoploss for Take Profit 2 and Take Profit 3 is move to trade Entry. When Take Profit 2 is hit, then Take Profit 3 Stoploss is moved to Take Profit 1

Date Range
Select starting (from) date for the backtest and ending (through) date for the backtest.

Other things to know
The strategy does't exit on the entry candle. This is a safety measure to keep the backtest results clean and accurate. After the strategy enters a trade, it will wait until the entry candle close to set take profits and stoploss. This should have minimal effects on the backtest results compared to live trading. This may or may not be updated in the future

Tips and tricks
-Try toggle the volatility qualifiers on/off when trading different types of assets. See how the backtest results change.
-Change the Baseline type used in the Baseline filter, see how the results change. The Baseline filter used here doesn't need to match the core Baseline you choose to use for your trading system

Additional moving averages, volatility types, qualifiers, and other advanced features will be added in future releases.
Release Notes:
Updated signals

Public Telegram Group, t.me/algxtrading_public

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