Drawdown strategy indicator

16 Eyl 2021

This indicator uses drawdown and max drawdown to determine good areas to enter or exit the market.

It uses the ratio between those values and two thresholds provided by the user: top and bottom.

These two values will be used to highlight the areas that match the users strategy criteria.

I normally use this indicator on the 4h or higher timeframes.

On BTC using the default parameters it predicts the tops pretty nicely. The areas of accumulation or buy zones are consistent with the ones that follow each halving.

The chart shows:
- Drawdown
- max drawdown
- drawdown average
- drawdown ratio
- buy and sell zones

The study includes alerts for both buy and sell zones.

20 Eyl 2021

Sürüm Notları

Support for backtesting the indicator.

Instructions:
1) switch on the "backtestable" toggle from settings
2) the source you want to use in the backtest script will appear as "drawdown signal"
3) use 1 for buy and 2 for sell

NOTE: this indicator works better in higher timeframes, I have used it mostly on 4h.