ProfitView Strategy TemplateHello traders,
This script took me a full week of coding/testing, sweat, and tears - and I’m too nice as I’m giving it for free to the community.
If you're tired of manual trading and looking for a solid strategy template to pair with your indicators, look no further.
This Pine Script v5 strategy template is engineered for maximum customization and risk management.
Best part?
This Pine Script v5 template facilitates the dynamic construction of ProfitView alerts, sparing users the time and effort of mastering the ProfitView syntax and manually creating alert commands.
This powerful tool gives much power to those who don't know how to code in Pinescript and want to automate their indicators' signals via the ProfitView Chrome extension.
IMPORTANT NOTES
ProfitView is a trading bot software that forwards TradingView alerts to your brokers (examples: Binance, Oanda, Coinbase, Bybit, etc.) for automating trading.
Many traders don't know how to dynamically create ProfitView-compatible alerts using the data from their TradingView scripts.
Traders using trading bots want their alerts to reflect the stop-loss/take-profit/trailing-stop/stop-loss to break options from your script and then create the orders accordingly.
This script showcases how to create ProfitView alerts dynamically.
TRADINGVIEW ALERTS
1) You'll have to create one alert per asset X timeframe = 1 chart.
Example: 1 alert for EUR/USD on the 5 minutes chart, 1 alert for EUR/USD on the 15-minute chart (assuming you want your bot to trade the EUR/USD on the 5 and 15-minute timeframes)
2) Select the Order fills and alert() function calls condition
3) For each alert, the alert message is pre-configured with the text below
{{strategy.order.alert_message}}
Please leave it as it is.
It's a TradingView native variable that will fetch the alert text messages built by the script.
4) ProfitView doesn't use webhook technology, so setting a webhook URL from the alerts notifications tab is unnecessary.
KEY FEATURES
I) Modular Indicator Connection
* plug your existing indicator into the template.
* Only two lines of code are needed for full compatibility.
Step 1: Create your connector
Adapt your indicator with only 2 lines of code and then connect it to this strategy template.
To do so:
1) Find in your indicator where the conditions print the long/buy and short/sell signals.
2) Create an additional plot as below
I'm giving an example with a Two moving averages cross.
Please replicate the same methodology for your indicator, whether a MACD , ZigZag, Pivots , higher-highs, lower-lows or whatever indicator with clear buy and sell conditions.
//@version=5
indicator("Supertrend", overlay = true, timeframe = "", timeframe_gaps = true)
atrPeriod = input.int(10, "ATR Length", minval = 1)
factor = input.float(3.0, "Factor", minval = 0.01, step = 0.01)
= ta.supertrend(factor, atrPeriod)
supertrend := barstate.isfirst ? na : supertrend
bodyMiddle = plot(barstate.isfirst ? na : (open + close) / 2, display = display.none)
upTrend = plot(direction < 0 ? supertrend : na, "Up Trend", color = color.green, style = plot.style_linebr)
downTrend = plot(direction < 0 ? na : supertrend, "Down Trend", color = color.red, style = plot.style_linebr)
fill(bodyMiddle, upTrend, color.new(color.green, 90), fillgaps = false)
fill(bodyMiddle, downTrend, color.new(color.red, 90), fillgaps = false)
buy = ta.crossunder(direction, 0)
sell = ta.crossunder(direction, 0)
//////// CONNECTOR SECTION ////////
Signal = buy ? 1 : sell ? -1 : 0
plot(Signal, title = "Signal", display = display.data_window)
//////// CONNECTOR SECTION ////////
Important Notes
🔥 The Strategy Template expects the value to be exactly 1 for the bullish signal and -1 for the bearish signal
Now, you can connect your indicator to the Strategy Template using the method below or that one.
Step 2: Connect the connector
1) Add your updated indicator to a TradingView chart
2) Add the Strategy Template as well to the SAME chart
3) Open the Strategy Template settings, and in the Data Source field, select your 🔌Connector🔌 (which comes from your indicator)
Note it doesn’t have to be named 🔌Connector🔌 - you can name it as you want - however, I recommend an explicit name you can easily remember.
From then, you should start seeing the signals and plenty of other stuff on your chart.
🔥 Note that whenever you update your indicator values, the strategy statistics and visuals on your chart will update in real-time
II) BOT Risk Management:
- Max Drawdown:
Mode: Select whether the max drawdown is calculated in percentage (%) or USD.
Value: If the max drawdown reaches this specified value, set a value to halt the bot.
- Max Consecutive Days:
Use Max Consecutive Days BOT Halt: Enable/Disable halting the bot if the max consecutive losing days value is reached.
- Max Consecutive Days: Set the maximum number of consecutive losing days allowed before halting the bot.
- Max Losing Streak:
Use Max Losing Streak: Enable/Disable a feature to prevent the bot from taking too many losses in a row.
- Max Losing Streak Length: Set the maximum length of a losing streak allowed.
Margin Call:
- Use Margin Call: Enable/Disable a feature to exit when a specified percentage away from a margin call to prevent it.
Margin Call (%): Set the percentage value to trigger this feature.
- Close BOT Total Loss:
Use Close BOT Total Loss: Enable/Disable a feature to close all trades and halt the bot if the total loss is reached.
- Total Loss ($): Set the total loss value in USD to trigger this feature.
Intraday BOT Risk Management:
- Intraday Losses:
Use Intraday Losses BOT Halt: Enable/Disable halting the bot on reaching specified intraday losses.
Mode: Select whether the intraday loss is calculated in percentage (%) or USD.
- Max Intraday Losses (%): Set the value for maximum intraday losses.
Limit Intraday Trades:
- Use Limit Intraday Trades: Enable/Disable a feature to limit the number of intraday trades.
- Max Intraday Trades: Set the maximum number of intraday trades allowed.
Restart Intraday EA:
- Use Restart Intraday EA: Enable/Disable a feature to restart the bot at the first bar of the next day if it has been stopped with an intraday risk management safeguard.
III) Order Types and Position Sizing
- Choose between market, limit, or stop orders.
- Set your position size directly in the template.
Please use the position size from the “Inputs” and not the “Properties” tab.
I know it's redundant. - the template needs this value from the "Inputs" tab to build the alerts, and the Backtester needs it from the "Properties" tab.
IV) Advanced Take-Profit and Stop-Loss Options
- Choose to set your SL/TP in either pips or percentages.
- Option for multiple take-profit levels and trailing stop losses.
- Move your stop loss to break even +/- offset in pips for “risk-free” trades.
V) Miscellaneous
Retry order openings if they fail.
Order Types:
Select and specify order type and price settings.
Position Size:
Define the type and size of positions.
Leverage:
Leverage settings, including margin type and hedge mode.
Session:
Limit trades to specific sessions.
Dates:
Limit trades to a specific date range.
Trades Direction:
Direction: Specify the market direction for opening positions.
VI) Notifications (Telegram/Discord/Email/IFTTT/Twilio/SMS)
Customize notifications sent to Telegram, Discord, Email, IFTTT, Twilio, and ProfitView Logger.
VII) Logger
The ProfitView commands are logged in the TradingView logger.
You'll find more information about it in this TradingView blog post .
WHY YOU MIGHT NEED THIS TEMPLATE
1) Transform your indicator into a ProfitView trading bot more easily than before
Connect your indicator to the template
Create your alerts
Set your EA settings
2) Save Time
Auto-generated alert messages for ProfitView.
I tested them all and checked with the support team what could/couldn’t be done.
3) Be in Control
Manage your trading risks with advanced features.
4) Customizable
Fits various trading styles and asset classes.
REQUIREMENTS
* Make sure you have your ProfitView account and do the settings correctly in your Chrome extension. If you don't know how to do it, read the documentation + ask for help in the ProfitView Discord support channel.
* If there is any issue with the template, ask me in the comments section - I’ll answer quickly.
BACKTEST RESULTS FROM THIS POST
1) I connected this strategy template to a dummy Supertrend script.
I could have selected any other indicator or concept for this script post.
I wanted to share an example of how you can quickly upgrade your strategy, making it compatible with ProfitView.
2) The backtest results aren't relevant for this educational script publication.
I used realistic backtesting data but didn't look too much into optimizing the results, as this isn't the point of why I'm publishing this script.
This strategy is a template to be connected to any indicator - the sky is the limit. :)
3) This template is made to take 1 trade per direction at any given time.
Pyramiding is set to 1 on TradingView.
The strategy default settings are:
* Initial Capital: 100000 USD
* Position Size: 1%
* Commission Percent: 0.075%
* Slippage: 1 tick
* No margin/leverage used
Best regards,
Dave
Search in scripts for "backtesting"
Heatmap MACD Strategy - Pineconnector (Dynamic Alerts)Hello traders
This script is an upgrade of this template script.
Heatmap MACD Strategy
Pineconnector
Pineconnector is a trading bot software that forwards TradingView alerts to your Metatrader 4/5 for automating trading.
Many traders don't know how to dynamically create Pineconnector-compatible alerts using the data from their TradingView scripts.
Traders using trading bots want their alerts to reflect the stop-loss/take-profit/trailing-stop/stop-loss to breakeven options from your script and then create the orders accordingly.
This script showcases how to create Pineconnector alerts dynamically.
Pineconnector doesn't support alerts with multiple Take Profits.
As a workaround, for 2 TPs, I had to open two trades.
It's not optimal, as we end up paying more spreads for that extra trade - however, depending on your trading strategy, it may not be a big deal.
TradingView Alerts
1) You'll have to create one alert per asset X timeframe = 1 chart.
Example : 1 alert for EUR/USD on the 5 minutes chart, 1 alert for EUR/USD on the 15-minute chart (assuming you want your bot to trade the EUR/USD on the 5 and 15-minute timeframes)
2) For each alert, the alert message is pre-configured with the text below
{{strategy.order.alert_message}}
Please leave it as it is.
It's a TradingView native variable that will fetch the alert text messages built by the script.
3) Don't forget to set the webhook URL in the Notifications tab of the TradingView alerts UI.
EA configuration
The Pyramiding in the EA on Metatrader must be set to 2 if you want to trade with 2 TPs => as it's opening 2 trades.
If you only want 1 TP, set the EA Pyramiding to 1.
Regarding the other EA settings, please refer to the Pineconnector documentation on their website.
Logger
The Pineconnector commands are logged in the TradingView logger.
You'll find more information about it from this TradingView blog post
Important Notes
1) This multiple MACDs strategy doesn't matter much.
I could have selected any other indicator or concept for this script post.
I wanted to share an example of how you can quickly upgrade your strategy, making it compatible with Pineconnector.
2) The backtest results aren't relevant for this educational script publication.
I used realistic backtesting data but didn't look too much into optimizing the results, as this isn't the point of why I'm publishing this script.
3) This template is made to take 1 trade per direction at any given time.
Pyramiding is set to 1 on TradingView.
The strategy default settings are:
Initial Capital: 100000 USD
Position Size: 1 contract
Commission Percent: 0.075%
Slippage: 1 tick
No margin/leverage used
For example, those are realistic settings for trading CFD indices with low timeframes but not the best possible settings for all assets/timeframes.
Concept
The Heatmap MACD Strategy allows selecting one MACD in five different timeframes.
You'll get an exit signal whenever one of the 5 MACDs changes direction.
Then, the strategy re-enters whenever all the MACDs are in the same direction again.
It takes:
long trades when all the 5 MACD histograms are bullish
short trades when all the 5 MACD histograms are bearish
You can select the same timeframe multiple times if you don't need five timeframes.
For example, if you only need the 30min, the 1H, and 2H, you can set your timeframes as follow:
30m
30m
30m
1H
2H
Risk Management Features
All the features below are pips-based.
Stop-Loss
Trailing Stop-Loss
Stop-Loss to Breakeven after a certain amount of pips has been reached
Take Profit 1st level and closing X% of the trade
Take Profit 2nd level and close the remaining of the trade
Custom Exit
I added the option ON/OFF to close the opened trade whenever one of the MACD diverges with the others.
Help me help the community
If you see any issue when adding your strategy logic to that template regarding the orders fills on your Metatrader, please let me know in the comments.
I'll use your feedback to make this template more robust. :)
What's next?
I'll publish a more generic template built as a connector so you can connect any indicator to that Pineconnector template.
Then, I'll publish a template for Capitalise AI, ProfitView, AutoView, and Alertatron.
Thank you
Dave
Heatmap MACD StrategyHello traders
A customer gave me the idea indirectly after I made an update to that script:
Supertrend MTF Heatmap
Important Notes
The backtest results aren't relevant for this educational script publication.
I used realistic backtesting data but didn't look too much into optimizing the results, as this isn't the point of why I'm publishing this script.
I wanted to showcase that any Heatmap script can be converted into a strategy.
The strategy default settings are:
Initial Capital: 100000 USD
Position Size: 1 contract
Commission Percent: 0.075%
Slippage: 1 tick
No margin/leverage used
For example, those are realistic settings for trading CFD indices with low timeframes, but not the best possible settings for all assets/timeframes.
Concept
The Heatmap MACD Strategy allows selecting one MACD in five different timeframes.
You'll get an exit signal whenever one of the 5 MACDs changes direction.
Then, the strategy re-enters whenever all the MACDs are in the same direction again.
It takes:
long trades when all the 5 MACD histograms are bullish
short trades when all the 5 MACD histograms are bearish
You can select the same timeframe multiple times if you don't need five timeframes.
For example, if you only need the 30min, the 1H, and 2H, you can set your timeframes as follow:
30m
30m
30m
1H
2H
Risk Management Features
Nothing too fancy
All the features below are pips-based
Stop-Loss
Trailing Stop-Loss
Stop-Loss to Breakeven after a certain amount of pips has been reached
Take Profit 1st level and closing X% of the trade
Take Profit 2nd level and close the remaining of the trade
What's next?
I'll publish this script's open-source Pineconnector, ProfitView, and AutoView versions for educational purposes.
Thank you
Dave
Ahsan Tufail Precise MA Crossover Filter for Reliable SignalsIntroduction:
In the ever-evolving world of Forex trading, strategies that provide a competitive edge are highly sought after. The Moving Average (MA) crossover technique is a popular long-term approach, but its vulnerability to false signals can lead to potential losses. To overcome this challenge, we introduce a game-changing MA crossover filter designed to weed out false signals and unlock the full potential of this strategy. In this article, we delve into the mechanics of this filter, providing a comprehensive analysis of its components and how it enhances the accuracy of buy and sell signals.
The Power of the MA Crossover Filter:
The essence of our MA crossover filter lies in the integration of a specialized indicator that operates on a scale of 0 to 100. This ingenious indicator dynamically measures the distance between the middle Bollinger band and either the upper or lower Bollinger band. By analyzing the values of the last 504 candlesticks, it maps the range from 50 to 100 for the largest and smallest distances between the middle and upper Bollinger bands. Similarly, for values ranging from 0 to 50, it measures the distance between the middle and lower Bollinger bands.
Unveiling the Signal Execution Process:
The brilliance of this filter is revealed in its meticulous execution of buy and sell signals, which significantly reduces false crossovers. Let's explore the process step-by-step:
Buy Signal Precision:
To initiate a buy signal, the price must be positioned above the 200-period Simple Moving Average (SMA).
The filter validates the crossover by checking the indicator's value, ensuring it falls below the threshold of 25.
Sell Signal Accuracy:
For a sell signal, the price must be below the 200-period Simple Moving Average (SMA).
The filter confirms the crossover by verifying the indicator's value, which should exceed the threshold of 75.
This selective approach ensures that only high-confidence crossovers are considered, maximizing the potential for profitable trades.
Fine-Tuning the Filter for Optimal Performance:
While the MA crossover filter exhibits its prowess in GBPUSD and EURUSD currency pairs, it may require adjustments for other pairs. Currency pairs possess unique characteristics, and adapting the filter to specific behavior is crucial for its success.
To fine-tune the filter for alternative currency pairs, traders should conduct rigorous backtesting and analyze historical price data. By experimenting with indicator threshold values, traders can calibrate the filter to accurately match the dynamics of the target currency pair. This iterative process allows for customization, ultimately resulting in a finely-tuned filter that aligns with the unique behavior of the selected market.
Conclusion:
The MA crossover filter represents a paradigm shift in long-term Forex trading strategies. By intelligently filtering false signals, this precision tool unleashes the true potential of the MA crossover technique, elevating its profitability and enhancing overall trading performance. While no strategy guarantees absolute success, incorporating this filter empowers traders with a heightened level of confidence in their buy and sell signals. Embracing the power of this innovative filter can be a transformative step towards mastering Forex profits and staying ahead in the dynamic world of currency trading.
Good Mode RSI v2► Description:
"Good Mode RSI v2" is a powerful trading strategy designed to provide informed trading decisions. This script utilizes the popular RSI (Relative Strength Index) indicator to identify potential buying and selling opportunities in the market. It goes beyond the traditional use of RSI by incorporating carefully selected parameters to enhance its effectiveness. The strategy stands out for its customized combination of RSI levels and stop-loss/take-profit thresholds, allowing for precise trade entries and exits while effectively managing risk.
► How to Use:
To utilize the "Good Mode RSI v2" strategy, follow these steps:
1. Apply the script to your desired trading instrument and timeframe in TradingView.
2. Monitor the chart for trade signals generated by the strategy.
3. When the RSI reaches the sell level of 96, a sell signal is generated. Consider placing a sell order to take advantage of potential downward price movements.
4. take-profit level at 60 to secure profits in a strong downtrend.
5. When the RSI drops below the buy level of 4, a buy signal is generated. Consider placing a buy order to enter the market at a favorable price.
6. take-profit level at 30 to secure profits in a strong uptrend.
7. Monitor the RSI indicator on the chart to stay updated on its current value and anticipate potential trade signals.
Please note that trading decisions should be made based on a comprehensive analysis of multiple factors, including market conditions, trend analysis, and risk management. The "Good Mode RSI v2" strategy can serve as a valuable tool in your trading journey, but it should be used in conjunction with your own research and analysis.
► About it:
The "Good Mode RSI v2" strategy is not a mere replication or slight modification of existing strategies or indicators. It has been carefully crafted to provide traders with an original and purposeful approach to trading using the RSI indicator. The strategy's unique configuration of RSI levels and stop-loss/take-profit thresholds allows for improved performance and profitability. Backtesting results have shown impressive metrics, including a gain factor of 2.445 and a compelling profitability of 78.07% during the testing period.
► Referrals:
If you have any questions or need further assistance with the "Good Mode RSI v2" strategy, feel free to ask. Good luck with your trading endeavors!
CCI+EMA Strategy with Percentage or ATR TP/SL [Alifer]This is a momentum strategy based on the Commodity Channel Index (CCI), with the aim of entering long trades in oversold conditions and short trades in overbought conditions.
Optionally, you can enable an Exponential Moving Average (EMA) to only allow trading in the direction of the larger trend. Please note that the strategy will not plot the EMA. If you want, for visual confirmation, you can add to the chart an Exponential Moving Average as a second indicator, with the same settings used in the strategy’s built-in EMA.
The strategy also allows you to set internal Stop Loss and Take Profit levels, with the option to choose between Percentage-based TP/SL or ATR-based TP/SL.
The strategy can be adapted to multiple assets and timeframes:
Pick an asset and a timeframe
Zoom back as far as possible to identify meaningful positive and negative peaks of the CCI
Set Overbought and Oversold at a rough average of the peaks you identified
Adjust TP/SL according to your risk management strategy
Like the strategy? Give it a boost!
Have any questions? Leave a comment or drop me a message.
CAUTIONARY WARNING
Please note that this is a complex trading strategy that involves several inputs and conditions. Before using it in live trading, it is highly recommended to thoroughly test it on historical data and use risk management techniques to safeguard your capital. After backtesting, it's also highly recommended to perform a first live test with a small amount. Additionally, it's essential to have a good understanding of the strategy's behavior and potential risks. Only risk what you can afford to lose .
USED INDICATORS
1 — COMMODITY CHANNEL INDEX (CCI)
The Commodity Channel Index (CCI) is a technical analysis indicator used to measure the momentum of an asset. It was developed by Donald Lambert and first published in Commodities magazine (now Futures) in 1980. Despite its name, the CCI can be used in any market and is not just for commodities. The CCI compares current price to average price over a specific time period. The indicator fluctuates above or below zero, moving into positive or negative territory. While most values, approximately 75%, fall between -100 and +100, about 25% of the values fall outside this range, indicating a lot of weakness or strength in the price movement.
The CCI was originally developed to spot long-term trend changes but has been adapted by traders for use on all markets or timeframes. Trading with multiple timeframes provides more buy or sell signals for active traders. Traders often use the CCI on the longer-term chart to establish the dominant trend and on the shorter-term chart to isolate pullbacks and generate trade signals.
CCI is calculated with the following formula:
(Typical Price - Simple Moving Average) / (0.015 x Mean Deviation)
Some trading strategies based on CCI can produce multiple false signals or losing trades when conditions turn choppy. Implementing a stop-loss strategy can help cap risk, and testing the CCI strategy for profitability on your market and timeframe is a worthy first step before initiating trades.
2 — AVERAGE TRUE RANGE (ATR)
The Average True Range (ATR) is a technical analysis indicator that measures market volatility by calculating the average range of price movements in a financial asset over a specific period of time. The ATR was developed by J. Welles Wilder Jr. and introduced in his book “New Concepts in Technical Trading Systems” in 1978.
The ATR is calculated by taking the average of the true range over a specified period. The true range is the greatest of the following:
The difference between the current high and the current low.
The difference between the previous close and the current high.
The difference between the previous close and the current low.
The ATR can be used to set stop-loss orders. One way to use ATR for stop-loss orders is to multiply the ATR by a factor (such as 2 or 3) and subtract it from the entry price for long positions or add it to the entry price for short positions. This can help traders set stop-loss orders that are more adaptive to market volatility.
3 — EXPONENTIAL MOVING AVERAGE (EMA)
The Exponential Moving Average (EMA) is a type of moving average (MA) that places a greater weight and significance on the most recent data points.
The EMA is calculated by taking the average of the true range over a specified period. The true range is the greatest of the following:
The difference between the current high and the current low.
The difference between the previous close and the current high.
The difference between the previous close and the current low.
The EMA can be used by traders to produce buy and sell signals based on crossovers and divergences from the historical average. Traders often use several different EMA lengths, such as 10-day, 50-day, and 200-day moving averages.
The formula for calculating EMA is as follows:
Compute the Simple Moving Average (SMA).
Calculate the multiplier for weighting the EMA.
Calculate the current EMA using the following formula:
EMA = Closing price x multiplier + EMA (previous day) x (1-multiplier)
STRATEGY EXPLANATION
1 — INPUTS AND PARAMETERS
The strategy uses the Commodity Channel Index (CCI) with additional options for an Exponential Moving Average (EMA), Take Profit (TP) and Stop Loss (SL).
length : The period length for the CCI calculation.
overbought : The overbought level for the CCI. When CCI crosses above this level, it may signal a potential short entry.
oversold : The oversold level for the CCI. When CCI crosses below this level, it may signal a potential long entry.
useEMA : A boolean input to enable or disable the use of Exponential Moving Average (EMA) as a filter for long and short entries.
emaLength : The period length for the EMA if it is used.
2 — CCI CALCULATION
The CCI indicator is calculated using the following formula:
(src - ma) / (0.015 * ta.dev(src, length))
src is the typical price (average of high, low, and close) and ma is the Simple Moving Average (SMA) of src over the specified length.
3 — EMA CALCULATION
If the useEMA option is enabled, an EMA is calculated with the given emaLength .
4 — TAKE PROFIT AND STOP LOSS METHODS
The strategy offers two methods for TP and SL calculations: percentage-based and ATR-based.
tpSlMethod_percentage : A boolean input to choose the percentage-based method.
tpSlMethod_atr : A boolean input to choose the ATR-based method.
5 — PERCENTAGE-BASED TP AND SL
If tpSlMethod_percentage is chosen, the strategy calculates the TP and SL levels based on a percentage of the average entry price.
tp_percentage : The percentage value for Take Profit.
sl_percentage : The percentage value for Stop Loss.
6 — ATR-BASED TP AND SL
If tpSlMethod_atr is chosen, the strategy calculates the TP and SL levels based on Average True Range (ATR).
atrLength : The period length for the ATR calculation.
atrMultiplier : A multiplier applied to the ATR to set the SL level.
riskRewardRatio : The risk-reward ratio used to calculate the TP level.
7 — ENTRY CONDITIONS
The strategy defines two conditions for entering long and short positions based on CCI and, optionally, EMA.
Long Entry: CCI crosses below the oversold level, and if useEMA is enabled, the closing price should be above the EMA.
Short Entry: CCI crosses above the overbought level, and if useEMA is enabled, the closing price should be below the EMA.
8 — TP AND SL LEVELS
The strategy calculates the TP and SL levels based on the chosen method and updates them dynamically.
For the percentage-based method, the TP and SL levels are calculated as a percentage of the average entry price.
For the ATR-based method, the TP and SL levels are calculated using the ATR value and the specified multipliers.
9 — EXIT CONDITIONS
The strategy defines exit conditions for both long and short positions.
If there is a long position, it will be closed either at TP or SL levels based on the chosen method.
If there is a short position, it will be closed either at TP or SL levels based on the chosen method.
Additionally, positions will be closed if CCI crosses back above oversold in long positions or below overbought in short positions.
10 — PLOTTING
The script plots the CCI line along with overbought and oversold levels as horizontal lines.
The CCI line is colored red when above the overbought level, green when below the oversold level, and white otherwise.
The shaded region between the overbought and oversold levels is plotted as well.
Nadaraya-Watson Envelope Strategy (Non-Repainting) Log ScaleIn the diverse world of trading strategies, the Nadaraya-Watson Envelope Strategy offers a different approach. Grounded in mathematical analysis, this strategy utilizes the Nadaraya-Watson kernel regression, a method traditionally employed for interpreting complex data patterns.
At the core of this strategy lies the concept of 'envelopes', which are essentially dynamic volatility bands formed around the price based on a custom Average True Range (ATR). These envelopes help provide guidance on potential market entry and exit points. The strategy suggests considering a buy when the price crosses the lower envelope and a sell when it crosses the upper envelope.
One distinctive characteristic of the Nadaraya-Watson Envelope Strategy is its use of a logarithmic scale, as opposed to a linear scale. The logarithmic scale can be advantageous when dealing with larger timeframes and assets with wide-ranging price movements.
The strategy is implemented using Pine Script v5, and includes several adjustable parameters such as the lookback window, relative weighting, and the regression start point, providing a level of flexibility.
However, it's important to maintain a balanced view. While the use of mathematical models like the Nadaraya-Watson kernel regression may provide insightful data analysis, no strategy can guarantee success. Thorough backtesting, understanding the mathematical principles involved, and sound risk management are always essential when applying any trading strategy.
The Nadaraya-Watson Envelope Strategy thus offers another tool for traders to consider. As with all strategies, its effectiveness will largely depend on the trader's understanding, application, and the specific market conditions.
Grid Strategy with MA0. Preface
Hello traders,
This is a strategy script that allows you to utilize a Grid Strategy using moving averages.
It is very simple, but I decided to post it because it was hard to find such shared open-source codes in Pine Script.
1. Main
This is a very simple trading method.
Based on the moving average line you set, if the price drops by a certain ATR (or percent) below it, you buy, and when it goes back up, you sell.
In basic settings, you choose the moving average line and its length, and decide how much to set the distance between each grid through the 'Band Multiplier/Percent' item.
I believe that it is advantageous to widen the bandwidth for stocks with strong upward momentum.
2. Conclusion
I have confirmed that this works better in the stock market than in the crypto market,
and that it is suitable for use on index stocks like NASDAQ because it follows trends.
In addition, through backtesting, I have confirmed that this grid strategy is more suitable for buying strategies than selling strategies, so I uploaded it as a strategy focused on buying strategies.
Personally, I have developed my own strategy by adjusting buying and selling strategies according to trends and managing risks.
I hope you can use this to create a script that suits you.
Thank you.
Buy&Sell Bullish Engulfing - The Quant Science🇺🇸
GENERAL OVERVIEW
Buy&Sell Bullish Engulfing - The Quant Science It is a Buy&Sell strategy based on the 'Bullish Engulfing' candlestick pattern. The main goal of the strategy is to achieve a consistent and sustainable return over time, with a manageable level of risk.
Bullish Engulfing
The template was developed at the top of the Indicator provided by TradingView called 'Engulfing - Bullish'.
ENTRY AND EXIT CRITERIA
Entry: A single long order is opened when the candlestick pattern is formed, and the percentage size of the order (%) is fixed by the trader through the user interface.
Exit: The long trade is closed on a percentage equity take profit-stop loss.
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PANORAMICA GENERALE
Buy&Sell Bullish Engulfing - The Quant Science è una strategia Buy&Sell basata sul candlestick pattern 'Bullish Engulfing'. L'obiettivo principale della strategia è ottenere un ritorno costante e sostenibile nel tempo, con un livello gestibile di rischio.
Bullish Engulfing
Il template è stato sviluppato al top dell' Indicatore fornito da Trading View chiamato 'Engulfing - Bullish'.
CRITERI DI ENTRATA E USCITA
Entrata: viene aperto un singolo ordine long quando si forma il candlestick pattern, la size percentuale dell'ordine (%) viene selezionato tramite l'interfaccia utente dal trader.
Uscita: la chiusura della posizione avviene unicamente tramite un take profit-stop loss percentuale calcolato sul capitale.
Trailing Stop with RSI - Momentum-Based StrategyTrailing Stop with RSI - Momentum-Based Strategy
Description:
The Trailing Stop with RSI strategy combines momentum analysis and trailing stop functionality to help traders identify potential entry and exit points in their trading decisions. This strategy is suitable for various markets and timeframes.
Key Features:
Momentum Analysis: The strategy incorporates momentum indicators to identify potential buying and selling opportunities based on momentum shifts in the price.
Trailing Stop Functionality: The strategy utilizes a trailing stop to protect profits and dynamically adjust the stop loss level as the trade moves in the desired direction.
RSI Confirmation: The Relative Strength Index (RSI) is included to provide additional confirmation for trade entries by considering overbought and oversold conditions.
How to Use:
Entry Conditions: Long positions are triggered when positive momentum is detected, and the RSI confirms an oversold condition. Short positions are triggered when negative momentum is detected, and the RSI confirms an overbought condition.
Trailing Stop Activation: Once a position is opened, the trailing stop is activated when the specified profit level (as a percentage) is reached.
Trailing Stop Level: The trailing stop maintains a stop loss level at a specified distance (as a percentage) from the highest profit achieved since opening the position.
Exit Conditions: The trailing stop will trigger an exit and close all positions when the trailing stop level is breached.
Markets and Conditions:
This strategy can be applied to various markets, including stocks, forex, cryptocurrencies, and commodities. It can be used in trending and ranging market conditions, making it versatile for different market environments.
Important Considerations:
Adjust Parameters: Traders can modify the length of the momentum and RSI indicators to suit their preferred timeframe and trading style.
Risk Management: It is recommended to consider appropriate position sizing, risk-to-reward ratios, and overall risk management practices when using this strategy.
Backtesting and Optimization: Traders are encouraged to backtest the strategy on historical data and optimize the parameters to find the best settings for their chosen market and timeframe.
By incorporating momentum analysis, trailing stop functionality, and RSI confirmation, this strategy aims to provide traders with a systematic approach to capturing profitable trades while managing risk effectively.
Williams %R Strategy
The Williams %R Strategy is a trading approach that is based on the Williams Percent Range indicator, available on the TradingView platform.
This strategy aims to identify potential overbought and oversold conditions in the market, providing clear buy and sell signals for entry and exit.
The strategy utilizes the Williams %R indicator, which measures the momentum of the market by comparing the current close price with the highest high and lowest low over a specified period. When the Williams %R crosses above the oversold level, a buy signal is generated, indicating a potential upward price movement. Conversely, when the indicator crosses below the overbought level, a sell signal is generated, suggesting a possible downward price movement.
Position management is straightforward with this strategy. Upon receiving a buy signal, a long position is initiated, and the position is closed when a sell signal is generated. This strategy allows traders to capture potential price reversals and take advantage of short-term market movements.
To manage risk, it is recommended to adjust the position size based on the available capital. In this strategy, the position size is set to 10% of the initial capital, ensuring proper risk allocation and capital preservation.
It is important to note that the Williams %R Strategy should be used in conjunction with other technical analysis tools and risk management techniques. Backtesting and paper trading can help evaluate the strategy's performance and fine-tune the parameters before deploying it with real funds.
Remember, trading involves risks, and past performance is not indicative of future results. It is always advised to do thorough research, seek professional advice, and carefully consider your financial goals and risk tolerance before making any investment decisions.
BB and KC StrategyThis script is designed as a TradingView strategy that uses Bollinger Bands (BB) and Keltner Channels (KC) as the primary indicators for generating trade signals. It aims to catch potential market trends by comparing the movements of these two popular volatility measures.
Key aspects of this strategy:
1. **Bollinger Bands and Keltner Channels:** Both are volatility-based indicators. The Bollinger Bands consist of a middle band (simple moving average) and two outer bands calculated based on standard deviation, which adjusts itself to market conditions. Keltner Channels are a set of bands placed above and below an exponential moving average of the price. The distance between the bands is calculated based on the Average True Range (ATR), a measure of price volatility.
2. **Entry Signals:** The strategy enters a long position when the upper KC line crosses above the upper BB line and the volume is above its moving average. Conversely, it enters a short position when the lower KC line crosses below the lower BB line and the volume is above its moving average.
3. **Exit Signals:** The strategy exits a position under two conditions. First, if the trade has been open for a certain number of bars defined by the user (default 20 bars). Second, a stop loss and trailing stop are in place to limit potential losses and lock in profits as the price moves favorably. The stop loss is set at a percentage of the entry price (default 1.5% for long and -1.5% for short), and the trailing stop is also a percentage of the entry price (default 2%).
4. **Trade Quantity:** The script allows specifying the investment amount for each trade, set to a default of 1000 currency units.
Remember, this is a strategy script, which means it is used for backtesting and not for real-time signals or live trading. It is also recommended that it is used as a tool to aid your trading, not as a standalone system. As with any strategy, it should be tested over different market conditions and used in conjunction with other aspects of technical and fundamental analysis to ensure robustness and effectiveness.
Monthly Strategy Performance TableWhat Is This?
This script code adds a Monthly Strategy Performance Table to your Pine Script strategy scripts so you can see a month-by-month and year-by-year breakdown of your P&L as a percentage of your account balance.
The table is based on realized equity rather than open equity, so it only updates the metrics when a trade is closed.
That's why some numbers will not match the Strategy Tester metrics (such as max drawdown), as the Strategy Tester bases metrics like max drawdown on open trade equity and not realized equity (closed trades).
The script is still a work-in-progress, so make sure to read the disclaimer below. But I think it's ready to release the code for others to play around with.
How To Use It
The script code includes one of my strategies as an example strategy. You need to replace my strategy code with your own. To do that just copy the source code below into a blank script, delete lines 11 -> 60 and paste your strategy code in there instead of mine. The script should work with most systems, but make sure to read the disclaimer below.
It works best with a significant amount of historical data, so it may not work very effectively on intraday timeframes as there is a severe limitation of available bars on TradingView. I recommend using it on 4HR timeframes and above, as anything less will produce very little usable data. Having a premium TradingView plan will also help boost the number of available bars.
You can hover your mouse over a table cell to get more information in the form of tooltips (such as the Long and Short win rate if you hover over your total return cell).
Credit
The code in this script is based on open-source code originally written by QuantNomad, I've made significant changes and additions to the original script but all credit for the idea and especially the display table code goes to them - I just built on top of it:
Why Did I Make This?
None of this is trading or investment advice, just my personal opinion based on my experience as a trader and systems developer these past 6+ years:
The TradingView Strategy Tester is severely limited in some important ways. And unless you use complex Excel formulas on exported test data, you can't see a granular perspective of your system's historical performance.
There is much more to creating profitable and tradeable systems than developing a strategy with a good win rate and a good return with a reasonable drawdown.
Some additional questions we need to ask ourselves are:
What did the system's worst drawdown look like?
How long did it last?
How often do drawdowns occur, and how quickly are they typically recovered?
How often do we have a break-even or losing month or year?
What is our expected compounded annual growth rate, and how does that growth rate compare to our max drawdown?
And many more questions that are too long to list and take a lifetime of trading experience to answer.
Without answering these kinds of questions, we run the risk of developing systems that look good on paper, but when it comes to live trading, we are uncomfortable or incapable of enduring the system's granular characteristics.
This Monthly Performance Table script code is intended to help bridge some of that gap with the Strategy Tester's limited default performance data.
Disclaimer
I've done my best to ensure the numbers this code outputs are accurate, and according to my testing with my personal strategy scripts it appears to work fine. But there is always a good chance I've missed something, or that this code will not work with your particular system.
The majority of my TradingView systems are extremely simple single-target systems that operate on a closed-candle basis to minimize many of the data reliability issues with the Strategy Tester, so I was unable to do much testing with multiple targets and pyramiding etc.
I've included a Debug option in the script that will display important data and information on a label each time a trade is closed. I recommend using the Debug option to confirm that the numbers you see in the table are accurate and match what your strategy is actually doing.
Always do your own due diligence, verify all claims as best you can, and never take anyone's word for anything.
Take care, and best of luck with your trading :)
Kind regards,
Matt.
PS. If you're interested in learning how this script works, I have a free hour-long video lesson breaking down the source code - just check out the links below this script or in my profile.
Range BreakerStrategy Description: Range Breaker
The Range Breaker strategy is a breakout trading strategy that aims to capture profits when the price of a financial instrument moves out of a defined range. The strategy identifies swing highs and swing lows over a specified lookback period and enters long or short positions when the price breaks above the swing high or below the swing low, respectively. It also employs stop targets based on a percentage to manage risk and protect profits.
Beginner's Guide:
Understand the concepts:
a. Swing High: A swing high is a local peak in price where the price is higher than the surrounding prices.
b. Swing Low: A swing low is a local trough in price where the price is lower than the surrounding prices.
c. Lookback Period: The number of bars or periods the strategy analyzes to determine swing highs and swing lows.
d. Stop Target: A predetermined price level at which the strategy will exit the position to manage risk and protect profits.
Configure the strategy:
a. Set the initial capital, order size, commission, and pyramiding as needed for your specific trading account.
b. Choose the desired lookback period to identify the swing highs and lows.
c. Set the stop target multiplier and stop target percentage as desired to manage risk and protect profits.
Backtest the strategy:
a. Set the backtest start date to analyze the strategy's historical performance.
b. Observe the backtesting results to evaluate the strategy's effectiveness and adjust the parameters if necessary.
Implement the strategy:
a. Apply the strategy to your preferred financial instrument on the TradingView platform.
b. Monitor the strategy's performance and adjust the parameters as needed to optimize its effectiveness.
Risk management:
a. Always use a stop target to protect your trading capital and manage risk.
b. Don't risk more than a small percentage of your trading capital on a single trade.
c. Be prepared to adjust the strategy or stop trading it if the market conditions change significantly.
Adjusting the Lookback Period and Timeframes for Optimal Strategy Performance
The Range Breaker strategy uses a lookback period to identify swing highs and lows, which serve as the basis for determining entry and exit points for long and short positions. By adjusting the lookback period and analyzing different timeframes, you can potentially find the best strategy configuration for each specific asset.
Adjusting the lookback period:
The lookback period is a critical parameter that affects the sensitivity of the strategy to price movements. A shorter lookback period will make the strategy more sensitive to smaller price fluctuations, resulting in more frequent trading signals. On the other hand, a longer lookback period will make the strategy less sensitive, generating fewer signals but potentially capturing larger price movements.
To optimize the lookback period for a specific asset, you can test different lookback values and compare their performance in terms of risk-adjusted returns, win rate, and other relevant metrics. Keep in mind that using an overly short lookback period may lead to overtrading and increased transaction costs, while an overly long lookback period may cause the strategy to miss profitable trading opportunities.
Analyzing different timeframes:
Timeframes refer to the duration of each bar or candlestick on the chart. Shorter timeframes (e.g., 5-minute, 15-minute, or 30-minute) focus on intraday price movements, while longer timeframes (e.g., daily, weekly, or monthly) capture longer-term trends. The choice of timeframe affects the number of trading signals generated by the strategy and the length of time each position is held.
To find the best strategy for each asset, you can test the Range Breaker strategy on different timeframes and analyze its performance. Keep in mind that shorter timeframes may require more active monitoring and management due to the increased frequency of trading signals. Longer timeframes, on the other hand, may require more patience as positions are held for extended periods.
Finding the best strategy for each asset:
Every asset has unique price characteristics that may affect the performance of a trading strategy. To find the best strategy for each asset, you should:
a. Test various lookback periods and timeframes, observing the strategy's performance in terms of profitability, risk-adjusted returns, and win rate.
b. Consider the asset's historical price behavior, such as its volatility, liquidity, and trend-following or mean-reverting tendencies.
c. Evaluate the strategy's performance during different market conditions, such as bullish, bearish, or sideways markets, to ensure its robustness.
d. Keep in mind that each asset may require a unique set of strategy parameters for optimal performance, and there may be no one-size-fits-all solution.
By experimenting with different lookback periods and timeframes, you can fine-tune the Range Breaker strategy for each specific asset, potentially improving its overall performance and adaptability to changing market conditions. Always practice proper risk management and be prepared to make adjustments as needed.
Remember that trading strategies carry inherent risk, and past performance is not indicative of future results. Always practice proper risk management and consider your own risk tolerance before trading with real money.
Pure Morning 2.0 - Candlestick Pattern Doji StrategyThe new "Pure Morning 2.0 - Candlestick Pattern Doji Strategy" is a trend-following, intraday cryptocurrency trading system authored by devil_machine.
The system identifies Doji and Morning Doji Star candlestick formations above the EMA60 as entry points for long trades.
For best results we recommend to use on 15-minute, 30-minute, or 1-hour timeframes, and are ideal for high-volatility markets.
The strategy also utilizes a profit target or trailing stop for exits, with stop loss set at the lowest low of the last 100 candles. The strategy's configuration details, such as Doji tolerance, and exit configurations are adjustable.
In this new version 2.0, we've incorporated a new selectable filter. Since the stop loss is set at the lowest low, this filter ensures that this value isn't too far from the entry price, thereby optimizing the Risk-Reward ratio.
In the specific case of ALPINE, a 9% Take-Profit and and Stop-Loss at Lowest Low of the last 100 candles were set, with an activated trailing-stop percentage, Max Loss Filter is not active.
Name : Pure Morning 2.0 - Candlestick Pattern Doji Strategy
Author : @devil_machine
Category : Trend Follower based on candlestick patterns.
Operating mode : Spot or Futures (only long).
Trades duration : Intraday
Timeframe : 15m, 30m, 1H
Market : Crypto
Suggested usage : Short-term trading, when the market is in trend and it is showing high volatility .
Entry : When a Doji or Morning Doji Star formation occurs above the EMA60.
Exit : Profit target or Trailing stop, Stop loss on the lowest low of the last 100 candles.
Configuration :
- Doji Settings (tolerances) for Entry Condition
- Max Loss Filter (Lowest Low filter)
- Exit Long configuration
- Trailing stop
Backtesting :
⁃ Exchange: BINANCE
⁃ Pair: ALPINEUSDT
⁃ Timeframe: 30m
⁃ Fee: 0.075%
⁃ Slippage: 1
- Initial Capital: 10000 USDT
- Position sizing: 10% of Equity
- Start: 2022-02-28 (Out Of Sample from 2022-12-23)
- Bar magnifier: on
Disclaimer : Risk Management is crucial, so adjust stop loss to your comfort level. A tight stop loss can help minimise potential losses. Use at your own risk.
How you or we can improve? Source code is open so share your ideas!
Leave a comment and smash the boost button!
Thanks for your attention, happy to support the TradingView community.
Chandelier Exit ZLSMA StrategyIntroducing a Powerful Trading Indicator: Chandelier Exit with ZLSMA
If you're a trader, you know the importance of having the right tools and indicators to make informed decisions. That's why we're excited to introduce a powerful new trading indicator that combines the Chandelier Exit and ZLSMA: two widely-used and effective indicators for technical analysis.
The Chandelier Exit (CE) is a popular trailing stop-loss indicator developed by Chuck LeBeau. It's designed to follow the price trend of a security and provide an exit signal when the price crosses below the CE line. The CE line is based on the Average True Range (ATR), which is a measure of volatility. This means that the CE line adjusts to the volatility of the security, making it a reliable indicator for trailing stop-losses.
The ZLEMA (Zero Lag Exponential Moving Average) is a type of exponential moving average that's designed to reduce lag and improve signal accuracy. The ZLSMA takes into account not only the current price but also past prices, using a weighted formula to calculate the moving average. This makes it a smoother indicator than traditional moving averages, and less prone to giving false signals.
When combined, the CE and ZLSMA create a powerful indicator that can help traders identify trend changes and make more informed trading decisions. The CE provides the trailing stop-loss signal, while the ZLSMA provides a smoother trend line to help identify potential entry and exit points.
In our indicator, the CE and ZLSMA are plotted together on the chart, making it easy to see both the trailing stop-loss and the trend line at the same time. The CE line is displayed as a dotted line, while the ZLSMA line is displayed as a solid line.
Using this indicator, traders can set their stop-loss levels based on the CE line, while also using the ZLSMA line to identify potential entry and exit points. The combination of these two indicators can help traders reduce their risk and improve their trading performance.
In conclusion, the Chandelier Exit with ZLSMA is a powerful trading indicator that combines two effective technical analysis tools. By using this indicator, traders can identify trend changes, set stop-loss levels, and make more informed trading decisions. Try it out for yourself and see how it can improve your trading performance.
Warning: The results in the backtest are from a repainting strategy. Don't take them seriously. You need to do a dry live test in order to test it for its useability.
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Here is a description of each input field in the provided source code:
length: An integer input used as the period for the ATR (Average True Range) calculation. Default value is 1.
mult: A float input used as a multiplier for the ATR value. Default value is 2.
showLabels: A boolean input that determines whether to display buy/sell labels on the chart. Default value is false.
isSignalLabelEnabled: A boolean input that determines whether to display signal labels on the chart. Default value is true.
useClose: A boolean input that determines whether to use the close price for extrema calculations. Default value is true.
zcolorchange: A boolean input that determines whether to enable rising/decreasing highlighting for the ZLSMA (Zero-Lag Exponential Moving Average) line. Default value is false.
zlsmaLength: An integer input used as the length for the ZLSMA calculation. Default value is 50.
offset: An integer input used as an offset for the ZLSMA calculation. Default value is 0.
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Ty for checking this out and good luck on your trading journey! Likes and comments are appreciated. 👍
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Credits to:
▪ @everget – Chandelier Exit (CE)
▪ @netweaver2022 – ZLSMA
Strategy Creator5 indicators. Backtesting available. Uses ADX, RSI, Stochastic, MACD, and crossing EMAs (1,2, or 3). This strategy creator allows you to turn on or off these indicators and adjust the parameters for each indicator. It allows you to make one trade at a time e.g the next trade doesn't open until the last one closes. (You are also able to enter how many trades in one direction you want for example if you want only 2 long trades in a row, then the strategy waits for the next short position without making anymore long trades. Once there are 2 short positions in a row, it waits for a long position). The code can be edited to for automated trading by editing the comment in the source code for the strategy parameters. This took many hours to finish. ENJOY.
Slight Swing Momentum Strategy.Introduction:
The Swing Momentum Strategy is a quantitative trading strategy designed to capture mid-term opportunities in the financial markets by combining swing trading principles with momentum indicators. It utilizes a combination of technical indicators, including moving averages, crossover signals, and volume analysis, to generate buy and sell signals. The strategy aims to identify market trends and capitalize on price momentum for profit generation.
Highlights:
The strategy offers several key highlights that make it unique and potentially attractive to traders:
Swing Trading with Momentum: The strategy combines the principles of swing trading, which aim to capture short-to-medium-term price swings, with momentum indicators that help identify strong price trends and potential breakout opportunities.
Technical Indicator Optimization: The strategy utilizes a selection of optimized technical indicators, including moving averages and crossover signals, to filter out the noise and focus on high-probability trading setups. This optimization enhances the strategy's ability to identify favourable entry and exit points.
Risk Management: The strategy incorporates risk management techniques, such as position sizing based on equity and dynamic stop loss levels, to manage risk exposure and protect capital. This helps to minimize drawdowns and preserve profits.
Buy Condition:
The buy condition in the strategy is determined by a combination of factors, including A1, A2, A3, XG, and weeklySlope. Let's break it down:
A1 Condition: The A1 condition checks for specific price relationships. It verifies that the ratio of the highest price to the closing price is less than 1.03, the ratio of the opening price to the lowest price is less than 1.03, and the ratio of the highest price to the previous day's closing price is greater than 1.06. This condition looks for a specific pattern indicating potential bullish momentum.
A2 Condition: The A2 condition checks for price relationships related to the closing price. It verifies that the ratio of the closing price to the opening price is greater than 1.05 or that the ratio of the closing price to the previous day's closing price is greater than 1.05. This condition looks for signs of upward price movement and momentum.
A3 Condition: The A3 condition focuses on volume. It checks if the current volume crosses above the highest volume over the last 60 periods. This condition aims to identify increased buying interest and potentially confirms the strength of the potential upward price movement.
XG Condition: The XG condition combines the A1 and A2 conditions and checks if they are true for both the current and previous bars. It also verifies that the ratio of the closing price to the 5-period EMA crosses above the 9-period SMA of the same ratio. This condition helps identify potential buy signals when multiple factors align, indicating a strong bullish momentum and potential entry point.
Weekly Trend Factor: The weekly slope condition calculates the slope of the 50-period SMA over a weekly timeframe. It checks if the slope is positive, indicating an overall upward trend on a weekly basis. This condition provides additional confirmation that the stock is in an upward trend.
When all of these conditions align, the buy condition is triggered, indicating a favourable time to enter a long position.
Sell Condition:
The sell condition is relatively straightforward in the strategy:
Sell Signal: The sell condition simply checks if the closing price crosses below the 10-period EMA. When this condition is met, it indicates a potential reversal or weakening of the upward price momentum, and a sell signal is generated.
Backtest Outcome:
The strategy was backtested over the period from January 22nd, 1999 to May 3rd, 2023, using daily candlestick charts for the NASDAQ: NVDA. The strategy used an initial capital of 1,000,000 USD, The order quantity is defined as 10% of the equity. The strategy allows for pyramiding with 1 order, and the transaction fee is set at 0.03% per trade. Here are the key outcomes of the backtest:
Net Profit: 539,595.84 USD, representing a return of 53.96%.
Percent Profitable: 48.82%
Total Closed Trades: 127
Profit Factor: 2.331
Max Drawdown: 68,422.70 USD
Average Trade: 4,248.79 USD
Average Number of Bars in Trades: 11, indicating the average duration of the trades.
Conclusion:
In conclusion, the Swing Momentum Strategy is a quantitative trading approach that combines swing trading principles with momentum indicators to identify and capture mid term trading opportunities. The strategy has demonstrated promising results during backtesting, including a significant net profit and a favourable profit factor.
Price Action Trading StrategyIn this strategy, we define the high and low of the previous candle, and then check whether the current candle's high or low is higher or lower than the previous candle's high or low, respectively. If there's a new high, we enter a long position, and if there's a new low, we enter a short position. We also set exit conditions to close the position if the price drops below the previous low or rises above the previous high.
Please note that this is a simple example and should not be used as a standalone trading strategy. It is important to conduct thorough backtesting and consider other factors such as risk management before implementing any trading strategy.
Yesterday’s High Breakout - Trend Following StrategyYesterday’s High Breakout it is a trading system based on the analysis of yesterday's highs, it works in trend-following mode therefore it opens a long position at the breakout of yesterday's highs even if they occur several times in one day.
There are several methods for exiting a trade, each with its own unique strategy. The first method involves setting Take-Profit and Stop-Loss percentages, while the second utilizes a trailing-stop with a specified offset value. The third method calls for a conditional exit when the candle closes below a reference EMA.
Additionally, operational filters can be applied based on the volatility of the currency pair, such as calculating the percentage change from the opening or incorporating a gap to the previous day's high levels. These filters help to anticipate or delay entry into the market, mitigating the risk of false breakouts.
In the specific case of NULS, a 9% Take-Profit and a 3% Stop-Loss were set, with an activated trailing-stop percentage. To postpone entry and avoid false breakouts, a 1% gap was added to the price of yesterday's highs.
Name : Yesterday's High Breakout - Trend Follower Strategy
Author : @tumiza999
Category : Trend Follower, Breakout of Yesterday's High.
Operating mode : Spot or Futures (only long).
Trade duration : Intraday.
Timeframe : 30M, 1H, 2H, 4H
Market : Crypto
Suggested usage : Short-term trading, when the market is in trend and it is showing high volatility.
Entry : When there is a breakout of Yesterday's High.
Exit : Profit target or Trailing stop, Stop loss or Crossunder EMA.
Configuration :
- Gap to anticipate or postpone the entry before or after the identified level
- Rate of Change for Entry Condition
- Take Profit, Stop Loss and Trailing Stop
- EMA length
Backtesting :
⁃ Exchange: BINANCE
⁃ Pair: NULSUSDT
⁃ Timeframe: 2H
⁃ Fee: 0.075%
⁃ Slippage: 1
- Initial Capital: 10000 USDT
- Position sizing: 10% of Equity
- Start : 2018-07-26 (Out Of Sample from 2022-12-23)
- Bar magnifier: on
Credits : LucF for Pine Coders (f_security function to avoid repainting using security)
Disclaimer : Risk Management is crucial, so adjust stop loss to your comfort level. A tight stop loss can help minimise potential losses. Use at your own risk.
How you or we can improve? Source code is open so share your ideas!
Leave a comment and smash the boost button!
Thanks for your attention, happy to support the TradingView community.
VIX Futures Spread StrategyThis script was an exercise in learning Pinescript and exploring the futures curve of the VIX in relation to SPY. Was deleted by TV, trying to republish it now with updated parameters for slippage and commission and a more detailed description.
"VIX Futures Spread Strategy" is a trading strategy that capitalizes on the spread between the 3-month VIX futures (VIX3M) and the spot VIX index. This strategy is based on the idea that the VIX futures spread can serve as a contrarian indicator of market sentiment, with extreme negative spreads potentially signaling oversold conditions and opportunities for long positions.
Ordinarily the VIX curve is in contango as futures contracts are priced at a premium to the current spot price and are used to hedge future uncertainty in the market. When the spot price of VIX spikes the curve can invert and enter backwardation; this strategy detects this condition and uses it as a trigger to open a long position in SPY. The spread going negative tends to correlate with excessive fear and uncertainty in the short term while expecting lower volatility in the long term, in this case 3 months out.
The strategy is designed to enter a long position when the VIX futures spread is negative and to exit the position when the spread rises above 3 -- when the curve is in contango again. The strategy employs a pyramiding approach, allowing up to 10 additional orders to be placed while the entry condition is met, with each order consisting of 10 contracts. This approach aims to maximize potential profits during periods of favorable market conditions.
In this strategy, the VIX futures spread is calculated as the difference between the 3-month VIX futures (VIX3M) and the spot VIX index. The spread is plotted as a histogram on the chart, with the zero line representing no spread, and horizontal lines at 0 and 3 indicating the entry and exit thresholds, respectively.
The strategy's backtesting settings use an initial capital of HKEX:10 ,000, a commission of 0.5% per trade, and a maximum of 10 pyramiding orders, and a slippage of 2 ticks.
Please note that this strategy is intended for educational purposes and should not be considered as financial advice. Before using this strategy in live trading, make sure to thoroughly test and optimize its parameters to suit your risk tolerance and specific trading conditions.
The Flash-Strategy (Momentum-RSI, EMA-crossover, ATR)The Flash-Strategy (Momentum-RSI, EMA-crossover, ATR)
Are you tired of manually analyzing charts and trying to find profitable trading opportunities? Look no further! Our algorithmic trading strategy, "Flash," is here to simplify your trading process and maximize your profits.
Flash is an advanced trading algorithm that combines three powerful indicators to generate highly selective and accurate trading signals. The Momentum-RSI, Super-Trend Analysis and EMA-Strategy indicators are used to identify the strength and direction of the underlying trend.
The Momentum-RSI signals the strength of the trend and only generates trading signals in confirmed upward or downward trends. The Super-Trend Analysis confirms the trend direction and generates signals when the price breaks through the super-trend line. The EMA-Strategy is used as a qualifier for the generation of trading signals, where buy signals are generated when the EMA crosses relevant trend lines.
Flash is highly selective, as it only generates trading signals when all three indicators align. This ensures that only the highest probability trades are taken, resulting in maximum profits.
Our trading strategy also comes with two profit management options. Option 1 uses the so-called supertrend-indicator which uses the dynamic ATR as a key input, while option 2 applies pre-defined, fixed SL and TP levels.
The settings for each indicator can be customized, allowing you to adjust the length, limit value, factor, and source value to suit your preferences. You can also set the time period in which you want to run the backtest and how many dollar trades you want to open in each position for fully automated trading.
Choose your preferred trade direction and stop-loss/take-profit settings, and let Flash do the rest. Say goodbye to manual chart analysis and hello to consistent profits with Flash. Try it now!
General Comments
This Flash Strategy has been developed in cooperation between Baby_whale_to_moon and JS-TechTrading. Cudos to Baby_whale_to_moon for doing a great job in transforming sophisticated trading ideas into pine scripts.
Detailed Description
The “Flash” script considers the following indicators for the generation of trading signals:
1. Momentum-RSI
2. ‘Super-Trend’-Analysis
3. EMA-Strategy
1. Momentum-RSI
• This indicator signals the strength of the underlying upward- or downward-trend.
• The signal range of this indicator is from 0 to 100. Values > 60 indicate a confirmed upward- or downward-trend.
• The strategy will only generate trading signals in case the stock (or any other financial security) is in a confirmed upward- (long entry signals) or downward-trend (short entry signals).
• This indicator provides information with regards to the strength of the underlying trend and it does not give any insight with regard to the direction of the trend. Therefore, this strategy also considers other indicators which provide technical confirmation with regards to the direction of the underlying trend.
Graph 1 shows this concept:
• The Momentum-RSI indicator gives lower readings during consolidation phases and no trading signals are generated during these periods.
Example (graph 2):
2. Super-Trend Analysis
• The red line in the graph below represents the so-called super-trend-line. Trading signals are only generated in case the price action breaks through this super-trend-line indicating a new confirmed upward-trend (or downward-trend, respectively).
• If that happens, the super trend-line changes its color from red to green, giving confirmation that the trend changed from bearish to bullish and long-entries can be considered.
• The vice-versa approach can be considered for short entries.
Graph 3 explains this concept:
3. Exponential Moving Average / EMA-Strategy
The functionality of this EMA-element of the strategy has been programmed as follows:
• The exponential moving average and two other trend lines are being used as qualifiers for the generation of trading-signals.
• Buy-signals for long-entries are only considered in case the EMA (yellow line in the graph below) crosses the red line.
• Sell-signals for short-entries are only considered in case the EMA (yellow line in the graph below) crosses the green line.
An example is shown in graph 4 below:
We use this indicator to determine the new trend direction that may occur by using the data of the price's past movement.
4. Bringing it all together
This section describes in detail, how this strategy combines the Momentum-RSI, the super-trend analysis and the EMA-strategy.
The strategy only generates trading-signals in case all of the following conditions and qualifiers are being met:
1. Momentum-RSI is higher than the set value of this strategy. The standard and recommended value is 60 (graph 5):
2. The super-trend analysis needs to indicate a confirmed upward-trend (for long-entry signals) or a confirmed downward-trend (for short-entry signals), respectively.
3. The EMA-strategy needs to indicate that the stock or financial security is in a confirmed upward-trend (long-entries) or downward-trend (short-entries), respectively.
The strategy will only generate trading signals if all three qualifiers are being met. This makes this strategy highly selective and is the key secret for its success.
Example for Long-Entry (graph 6):
When these conditions are met, our Long position is opened.
Example for Short-Entry (graph 7):
Trade Management Options (graph 8)
Option 1
In this dynamic version, the so-called supertrend-indicator is being used for the trade exit management. This supertrend-indicator is a sophisticated and optimized methodology which uses the dynamic ATR as one of its key input parameters.
The following settings of the supertrend-indicator can be changed and optimized (graph 9):
The dynamic SL/TP-lines of the supertrend-indicator are shown in the charts. The ATR-length and the supertrend-factor result in a multiplier value which can be used to fine-tune and optimize this strategy based on the financial security, timeframe and overall market environment.
Option 2 (graph 10):
Option 2 applies pre-defined, fixed SL and TP levels which will appear as straight horizontal lines in the chart.
Settings options (graph 11):
The following settings can be changed for the three elements of this strategy:
1. (Length Mom-Rsi): Length of our Mom-RSI indicator.
2. Mom-RSI Limit Val: the higher this number, the more momentum of the underlying trend is required before the strategy will start creating trading signals.
3. The length and factor values of the super trend indicator can be adjusted:ATR Length SuperTrend and Factor Super Trend
4. You can set the source value used by the ema trend indicator to determine the ema line: Source Ema Ind
5. You can set the EMA length and the percentage value to follow the price: Length Ema Ind and Percent Ema Ind
6. The backtesting period can be adjusted: Start and End time of BackTest
7. Dollar cost per position: this is relevant for 100% fully automated trading.
8. Trade direction can be adjusted: LONG, SHORT or BOTH
9. As we explained above, we can determine our stop-loss and take-profit levels dynamically or statically. (Version 1 or Version 2 )
Display options on the charts graph 12):
1. Show horizontal lines for the Stop-Loss and Take-profit levels on the charts.
2. Display relevant Trend Lines, including color setting options for the supertrend functionality. In the example below, green lines indicate a confirmed uptrend, red lines indicate a confirmed downtrend.
Other comments
• This indicator has been optimized to be applied for 1 hour-charts. However, the underlying principles of this strategy are supply and demand in the financial markets and the strategy can be applied to all timeframes. Daytraders can use the 1min- or 5min charts, swing-traders can use the daily charts.
• This strategy has been designed to identify the most promising, highest probability entries and trades for each stock or other financial security.
• The combination of the qualifiers results in a highly selective strategy which only considers the most promising swing-trading entries. As a result, you will normally only find a low number of trades for each stock or other financial security per year in case you apply this strategy for the daily charts. Shorter timeframes will result in a higher number of trades / year.
• Consequently, traders need to apply this strategy for a full watchlist rather than just one financial security.
