OPEN-SOURCE SCRIPT

Probabilities Module - The Quant Science

This module can be integrate in your code strategy or indicator and will help you to calculate the percentage probability on specific event inside your strategy. The main goal is improve and simplify the workflow if you are trying to build a quantitative strategy or indicator based on statistics or reinforcement model.

Logic
The script made a simulation inside your code based on a single event. For single event mean a trading logic composed by three different objects: entry, take profit, stop loss.
The script scrape in the past through a look back function and return the positive percentage probability about the positive event inside the data sample. In this way you are able to understand and calculate how many time (in percentage term) the conditions inside the single event are positive, helping to create your statistical edge.
You can adjust the look back period in you user interface.

How can set up the module for your use case

At the top of the script you can find:

1. entry_condition: replace the default condition with your specific entry condition.
2. TPcondition_exit: replace the default condition with your specific take profit condition.
3. SLcondition_exit: replace the default condition with your specific stop loss condition.
DATAEDGEintegrationpercentagePine utilitiesprobabilitiesquantquantitativestatisticalprobabilitystatisticstool

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