Support Resistance & Bollinger & EMA21The strategy combines multiple technical tools to identify support and resistance zones, as well as buy and sell signals. It includes indicators such as Bollinger Bands, EMA21, and dynamically calculated support/resistance levels. It also allows for generating alerts when key levels are breached.
Pivot noktaları ve seviyeleri
Pivot and Golden Crossover Swing Strategy### Strategy Description:
This **Pivot and Golden Crossover Swing Strategy** combines moving averages and pivot points to identify potential swing trade opportunities. It is designed for traders who want to leverage momentum and key price levels in their decisions.
#### Key Features:
1. **Golden Crossover**:
- A long position is triggered when the short moving average (50-period by default) crosses above the long moving average (200-period by default).
- A short position is triggered when the short moving average crosses below the long moving average.
2. **Pivot Points**:
- Identifies recent high and low pivot levels based on a user-defined lookback period (default is 5 candles).
- Pivot points are used to determine entry levels and calculate stop-loss and take-profit targets.
3. **Risk Management**:
- Stop-loss levels are set relative to pivot points with a user-defined multiplier (default: 1.5x).
- Take-profit targets are based on the distance between moving averages, adjusted by a multiplier (default: 2.0x).
4. **Visual Indicators**:
- Moving averages are plotted on the chart for trend visualization.
- Pivot points are marked with triangle shapes for easy identification.
#### Use Case:
This strategy works well in trending markets where golden crossovers indicate momentum shifts. The pivot points ensure precise trade management, making it suitable for swing traders aiming to capture medium-term price movements.
Let me know if you'd like any further details or adjustments!
NX8H intradayAutomatic Execution:
The script automatically places buy or sell orders when the conditions are met.
What the Script Does
Plots two SuperTrends:
Primary SuperTrend: Based on a configurable timeframe (e.g., 8 hours).
Secondary SuperTrend: Based on the chart’s current timeframe.
Plots a customizable Exponential Moving Average (EMA).
Generates entry signals:
Long (Buy): When the price breaks above the primary SuperTrend with a customizable offset and is above the EMA.
Short (Sell): When the price drops below the primary SuperTrend with an offset and is below the EMA.
NX8H inradayThe script automatically places buy or sell orders when the conditions are met.
What the Script Does
Plots two SuperTrends:
Primary SuperTrend: Based on a configurable timeframe (e.g., 8 hours).
Secondary SuperTrend: Based on the chart’s current timeframe.
Plots a customizable Exponential Moving Average (EMA).
Generates entry signals:
Long (Buy): When the price breaks above the primary SuperTrend with a customizable offset and is above the EMA.
Short (Sell): When the price drops below the primary SuperTrend with an offset and is below the EMA.
NX8HintradayHow to Use It
Add the Script to Your Chart:
Click "Add to Chart" after saving the script.
Configure Parameters:
Primary SuperTrend Timeframe: Select the timeframe (e.g., 8H) for long-term trend analysis.
ATR Parameters (Factor and Period): Adjust SuperTrend sensitivity.
EMA Timeframe and Period: Set the EMA to follow the overall trend.
Buy/Sell Offset: Fine-tune the entry levels for buy and sell signals.
Read the Chart:
Green lines indicate bullish trends, and red lines indicate bearish trends.
The blue EMA line helps confirm the trend direction.
Entry Signals:
Long: A "Long" signal appears when the price is above the SuperTrend and the EMA.
Short: A "Short" signal appears when the price is below the SuperTrend and the EMA.
Automatic Execution:
The script automatically places buy or sell orders when the conditions are met.
Soportes y Resistencias con Volumen EXTERMINIUN 2025 Explicación:
Parámetros: Puedes ajustar el período (length) para calcular soportes y resistencias, y el volMultiplier para el volumen.
Soportes y Resistencias: Se calculan usando las funciones ta.highest y ta.lowest sobre un número de barras definidas por length.
Volumen: La condición de volumen compara el volumen actual con un promedio móvil de volumen multiplicado por volMultiplier.
Señales de Compra/Venta: Se generan cuando el precio cruza por encima de la resistencia o por debajo del soporte, y se confirma con un volumen superior al promedio ajustado.
Enhanced Divergence Indicator / Strategy (many oscillators)Hi, Guys!
So, I am publishing a divergence script, with the ability to choose from many indicators, which is equipped to serve either as a strategy or an indicator (or both).
In my opinion, trading with indicators is not something that can consistently bring you profit. But one of the most effective ways to use an indicator is precisely divergence, since it also contains information about imbalance in the price action. This is still one of the main tasks of technical analysis of price movements.
That is why I decided to make a script public, which I myself use with some additional functions, and here I am publishing the main ones. Most of its elements can be found in other community scripts, but not quite collected in one, and not all. The main difference is that here I provide an opportunity to refine the divergences, by using a filter for the minimum price difference in the two extremes, the minimum difference in the extremes of the indicator and something else that you will not find anywhere in free code. As far as I can, I have also made a filter for the minimum reverse movement of the indicator between its two extremes, which make up the divergence. In the settings, I have called it "Minimum Oscillator Pullback".
I'm not a programmer, so my script is crude and inelegant, but overall it does the job.
I added the ability to use a few more widespread filters, but with some small additional options. For example, you can display a fast and slow moving average, but the good thing is that among them there is also T3 - one of the best MAs for showing a trend. You should keep in mind, however, that this way of using a trend is not very good when using divergences.
I also added an underestimated indicator as a filter, which could be quite effective here. It is the Stochastic Momentum Index. I have given the option to use a different timeframe for it. Usually, in oscillators, overbought and oversold zones are searched for, but here its more effective use is rather the opposite. It actually shows the strength of the trend. That's why I made an option for its reversed use, and in addition, its limit levels are also variable.
There is also a filter for eliminating trading days and/or trading hours.
To make the code more informative, I have provided an opportunity to test the strategy with leverage.
There is an option to use TP and SL.
Regarding closing a position, there are also several options. I have not seen anyone else use it, but with a lot of testing, I have found that the SMI mentioned and used as a filter is a very good indicator for exiting a position. This is one thing. But something even better that I have found and put in the code is the use of standard deviation. Most algo-traders use Average True Range for exit. Well, I have personally found with a lot of historical data that Standard Deviation is actually much more effective for this.
For variety, and also because such trading systems exist, I have added the option to close after a certain number of candles. Here I have also added an additional functionality - closing on a candle in the opposite direction of the open position, after the specified number of candles have passed.
Apart from this, there is also an option to use VWAP for exit.
You will see that there are more than a dozen indicators to choose from for divergence. I have tested dozens, maybe hundreds of others, which at first glance seem very suitable for this. But in practice I have found that they do not really add anything.
Keep in mind that in different timeframes, in different market conditions, and different assets behave differently. For some, some indicators are better, but in another timeframe they are weak.
In addition, the filters for improving divergence sometimes behave strangely (for example, for an oscillator it may be good to accept a negative and very large value for the minimum movement between its extremes). This is because they are not standardized and have different scales. But if you play around with the options enough, you will understand what works for you.
Now I can't think of anything more to say, inside the options things should be relatively clear. If there are adequate questions that I am able to answer (I remind you that I am an amateur), I will write in the comments. I am sure that this code will be useful for many, but do not rely too much on it and do not take risks without testing - both with historical data and paper trading. As you know, in any case, nothing is guaranteed in the future.
I think I missed something important.
When you use the script as an indicator, a line will always appear when there is a divergence. It may seem strange to you on the price movement, but keep in mind that it shows exactly where the extremes of the oscillator, which is not visible on the chart, are. A sign will appear on this line when the divergence meets your other conditions - the filters and enhancements included.
In addition, there are options to limit the divergence indication to a number of candles. In practice, this is necessary and improves the results. It is very important to understand that in order for the script to indicate the last extreme, which we will use to open a position, it must first have determined that we have already gone in the opposite direction. Therefore, the options specify candles to the left, but also candles to the right after the peak, to verify that this is really a peak (or bottom). Many believe that this makes divergences bad for trading, since the signal is actually received later. Well, this is not entirely true and you can check it yourself. You can safely set the right candles to 0 and you will see that there are many false signals. Usually it is best to use 2 candles on the right for a signal and if the divergence is good, they still give a good entry. In certain conditions it is good with just one candle.
SPXL strategy based on HighYield Spread (TearRepresentative56)This strategy is focused on leveraged funds (SPXL as basis that stands for 3x S&P500) and aims at maximising profit while keeping potential drawdowns at measurable level
Originally created by TearRepresentative56, I`m not the author of the concept, just backtesting it and sharing with the community
Key idea : Buy or Sell AMEX:SPXL SPXL if triggered
Trigger: HighYield Spread Change ( FRED:BAMLH0A0HYM2 BAMLH0A0HYM2). BAMLH0A0HYM2 can be used as indicator of chop/decline market (if spread rises significantly)
How it works :
1. Track BAMLH0A0HYM2 for 30% decline from local high marks the 'buy' trigger for SPXL (with all available funds)
2. When BAMLH0A0HYM2 increases 30% from local low (AND is higher then 330d EMA) strategy will signal with 'sell' trigger (sell all available contracts)
3. When in position strategy shows signal to DCA each month (adding contracts to position)
Current version update :
Added DCA function
User can provide desired amount of funds added into SPXL each month.
Funds will be added ONLY when user holds position already and avoids DCAing while out of the market (while BAML is still high)
Backtesting results :
11295% for SPXL (since inception in 2009) with DCAing of 500USD monthly
4547% for SPXL (since inception in 2009) without DCA (only 10 000USD invested initially)
For longer period: even with SP500 (no leverage) the strategy provides better results than Buy&Hold (420% vs 337% respectively since 1999)
Default values (can be changed by user):
Start investing amount = 10 000 USD
Decline % (Entry trigger) = 30%
Rise % (Exit trigger) = 30%
Timeframe to look for local high/low = 180 days
DCA amount = 500 USD
Inflation yearly rate for DCA amount = 2%
EMA to track = 330d
Important notes :
1. BAMLH0A0HYM2 is 1 day delayed (that provides certain lag)
2. Highly recommended to select 'on bar close' option in properties of the strategy
3. Please use DAILY SPXL chart.
4. Strategy can be used with any other ticker - SPX, QQQ or leveraged analogues (while basic scenario is still in SPXL)
Dynamic Support and Resistance Pivot Strategy The Dynamic Support and Resistance Pivot Strategy is a flexible and adaptive tool designed to identify short-term support and resistance levels using the concept of price pivots.
### Key Elements of the Strategy
1. Pivot points as support and resistance levels
Pivots are significant turning points on the price chart, often marking local highs and lows where the price has reversed direction. A pivot high occurs when the price forms a local peak, while a pivot low occurs when the price forms a local trough. When a new pivot high is formed, it creates a resistance level. Conversely, when a new pivot low is formed, it creates a support level.
The strategy continuously updates these levels as new pivots are detected, ensuring they remain relevant to the current market conditions. By identifying these price levels, the strategy dynamically adjusts to market conditions, allowing it to adapt to both trending and ranging markets, since it has a long target and can perform reversal operations.
2. Entry Criteria
- Buy (Long): A long position is triggered when the price is near the support level and then crosses it from below to above. This suggests that the price has found support and may start moving upwards.
- Sell (Short): A short position is triggered when the price is near the resistance level and then crosses it from above to below. This indicates that the price may be reversing and moving downward.
3. Support/Resistance distance (%)
- This parameter establishes a percentage range around the identified support and resistance level. For example, if the Support Resistance Distance is 0.4% (default), the closing price must be within a range of 0.4% above support or below the resistance to be considered "close" and trigger a trade.
4. Exit criteria
- Take profit = 27 %
- Stop loss = 10 %
- Reversal if a new entry point is identified in the opposite direction
5. No Repainting
- The Dynamic Support and Resistance Pivot Strategy is not subject to repainting.
6. Position Sizing by Equity and risk management
- This strategy has a default configuration to operate with 35% of the equity. The stop loss is set to 10% from the entry price. This way, the strategy is putting at risk about 10% of 35% of equity, that is, around 3.5% of equity for each trade. The percentage of equity and stop loss can be adjusted by the user according to their risk management.
7. Backtest results
- This strategy was subjected to backtest and operations in replay mode on **1000000MOGUSDT.P**, with the inclusion of transaction fees at 0.12% and slipagge of 5 ticks, and the past results have shown consistent profitability. Past results are no guarantee of future results. The strategy's backtest results may even be due to overfitting with past data.
8. Chart Visualization
- Support and resistance levels are displayed as green (support) and red (resistance) lines.
- Pivot prices are displayed as green (pivot low) and red (pivot high) labels.
In this image above, the Support/Resistance distance (%) parameter was set to 0.8.
9. Default Configuration
Chart Timeframe: 1h
Pivot Lengh: 2
Support/Resistance distance (%): 0.4*
Stop Loss: 10 %
Take Profit: 27 %
* This parameter can alternatively be set to 0.8.
10. Alternative Configuration
Chart Timeframe: 20 min
Pivot Lengh: 4
Support/Resistance distance (%): 0.1
Stop Loss: 10 %
Take Profit: 25 %
BYBIT:1000000MOGUSDT.P
ReversionXReversionX is a cutting-edge mean reversion strategy designed to identify high-probability turning points in the market. By leveraging advanced algorithms and dynamic levels, this tool pinpoints moments when price deviates significantly from its equilibrium, offering opportunities for precision entries and exits. Whether you’re trading trends or counter-trends, ReversionX adapts seamlessly to provide actionable insights.
Features include:
Dynamic Levels: Visualize key zones where reversals are likely to occur.
Customizable Parameters: Tailor the strategy to your trading style and market preferences.
Multi-Market Application: Works effectively across forex, stocks, crypto, and more.
Built-In Risk Management: Optimize trade potential with integrated stop loss and take profit logic.
Designed for traders seeking clarity in a chaotic market, ReversionX is your ultimate companion for navigating reversals with confidence.
Pivot & Source Cross StrategyPivot & ZoneCross Strategy V2
A powerful trading script combining Pivot Points, Retracement Zones, and Dynamic Stop-Loss Management. Suitable for beginners and advanced traders.
Introduction
This script enables traders to leverage Pivot Points and retracement zones for precise entry and exit points. Using price crossover detection and customizable stop-loss management, it offers a structured approach to trading various market conditions.
Features
Pivot Point Calculations: Select between Classic or Fibonacci methods for precise support and resistance levels.
Zone-Based Entry Signals: Identify price crossovers with retracement levels for optimal trade timing.
Customizable Stop-Loss Management: Automatically adjusts stop-loss levels to secure profits or limit losses.
Support for Market or Limit Orders: Choose instant market execution or specific limit entry points.
Flexible Inputs for Sources: Use Source First and Source Second to integrate external indicators like RSI and RSI MA, providing advanced customization options.
Visualization of Key Levels: Easily track retracement zones, Pivot Points, and stop-loss levels directly on the chart.
Configurable Conditions: Tailor entry/exit logic for your trading style.
How to Set Up
Choose Your Higher Timeframe (TIMEFRAME):
This determines the Pivot Points and retracement levels.
Example: Use “D” for daily pivots while trading on lower timeframes.
Select Entry Zone Patterns:
Define the pattern for detecting retracement levels:
xxx: Minor levels (steps of 10).
xx0: Intermediate levels (steps of 50).
x00: Major levels (steps of 100).
Set Entry Conditions for Long and Short Trades:
Activate or deactivate up/down conditions for xxx, xx0, or x00 patterns. Specify the count and range of crosses required for valid signals.
Configure Source Inputs (Source First and Source Second):
Assign external indicators such as RSI and RSI MA to refine entry conditions.
Tip: Adjust RSI settings in its separate indicator to suit your needs.
Select Your Order Type:
Choose between Market orders for instant execution or Limit orders for precision entries. Adjust offset zones for limit orders.
Set Up Stop-Loss Management:
Use dynamic stop-loss patterns with adjustable offsets:
HL: Stop-loss uses high/low levels of the zone.
Close: Stop-loss uses the closing price.
Customize Visualization Options:
Enable or disable xxx, xx0, x00, or 0 levels for cleaner charts. Adjust the display of retracement levels and stop-loss lines.
Apply and Monitor:
Attach the script to your chart, monitor entry/exit signals, and adjust parameters as needed.
How It Works
Calculates Pivot Points based on the chosen method ( Classic or Fibonacci ).
Detects price crossovers with retracement zones to identify potential entry points.
Dynamically adjusts stop-loss levels based on retracement zones and stop-loss patterns.
Supports both market and limit orders with customizable offsets for precise entries.
Allows integration of external sources like RSI for enhanced signal precision.
Important Notes
Use Source First and Source Second to input external indicators like RSI. You can configure RSI settings in its separate indicator to refine signals further.
Always test and optimize parameters before live trading.
Combine this script with your own analysis and proper risk management strategies.
This script is a tool to assist trading decisions but does not guarantee profits. Always trade responsibly.
Strategy Impulse Pivot EU - [AstroHub]The strategy is built on analyzing market impulses and their intensity. Its main goal is to help traders identify critical market moments when significant changes occur, signaling either a trend continuation or reversal.
Core Methodology
Impulse Movement
Measured by the difference between the current price and the previous bar’s price.
The indicator filters out minor fluctuations, focusing on meaningful changes.
Color Interpretation
Candles are color-coded based on the strength and direction of the impulse, providing a quick graphical understanding:
Green candles: Indicate moderate price growth, potentially signaling the end of the current trend.
Red candles: Reflect moderate price decline, possibly indicating a trend reversal.
Orange candles: Highlight strong price movements in either direction, signaling a potential trend continuation or reversal.
When a Signal Appears
Impulse Threshold : The price must change by at least a specified number of pips (e.g., 30 pips). This filters out weak movements.
Movement Intensity : Impulse is calculated and compared against threshold values to determine the signal’s strength.
Time Filter : Signals are generated 10 seconds before the hourly bar closes (at 59 minutes and 50 seconds). This ensures traders can prepare to act promptly.
Interpreting the Signals
Green Candle
Moderate price growth: A possible moment to take profit on long positions or open short positions.
Red Candle
Moderate price decline: A potential signal to open long positions or close short positions.
Orange Candle
Strong impulse movement:
If the price rises: A likely continuation of an upward trend.
If the price falls: A probable intensification of the downward trend.
I recommend using it on currency pairs with a 1-hour and 4-hour chart. EUR/USD, AUD/USD
Indicator Features
Impulse Analysis : The indicator highlights only significant price changes, ignoring market "noise."
Color Interpretation : Every movement is color-coded, simplifying the visualization of market dynamics.
Time Filter : Signals appear at critical moments — right before the hour closes. This enhances reliability and gives traders time to react.
Opening Levels : The indicator automatically marks opening levels for significant signals on the chart, helping traders visualize entry and exit zones.
Closed Code : The unique logic is protected, preventing unauthorized copying
Conclusion
This indicator is a powerful tool for analyzing impulse movements and their impact on the market. Its logic is straightforward, and its visualization makes signals easy to interpret. Suitable for both beginners and experienced traders, it offers clear entry and exit points with minimal false signal
Swing High/Low Pivots Strategy [LV]The Swing High/Low Pivots Strategy was developed as a counter-momentum trading tool.
The strategy is suitable for any market and the default values used in the input settings menu are set for Bitcoin (best on 15min). These values, expressed in minimum ticks (or pips if symbol is Forex) make this tool perfectly adaptable to every symbol and/or timeframe.
Check tooltips in the settings menu for more details about every user input.
STRTEGY ENTRY & EXIT MECHANISMS:
Trades Entry based on the detection of swing highs and lows for short and long entries respectively, validated by:
- Limit orders placed after each new pivot level confirmation
- Moving averages trend filter (if enabled)
- No active trade currently open
Trades Exit when the price reaches take-profit or stop-loss level as defined in the settings menu. A double entry/second take-profit level can be enabled for partial exits, with dynamic stop-loss adjustment for the remaining position.
Enhanced Trade Precision:
By limiting entries to confirmed swing high (HH, LH) or swing low (HL, LL) pivot points, the strategy ensures that trades occur at levels of significant price reversals. This precision reduces the likelihood of entering trades in the midst of a trend or during uncertain price action.
Risk Management Optimization:
The strategy incorporates clearly defined stop-loss (SL) and take-profit (TP) levels derived from the pivot points. This structured approach minimizes potential losses while locking in profits, which is critical for consistent performance in volatile markets.
Trend Filtering for Better Entry:
The use of a configurable moving average filter adds a layer of trend validation. This prevents entering trades against the dominant market trend, increasing the probability of success for each trade.
Avoidance of Noise:
The lookback period (length parameter) confirms pivots only after a set number of bars, effectively filtering out market noise and ensuring that entries are based on reliable, well-defined price movements.
Adaptability Across Markets:
The strategy is versatile and can be applied across different markets (Forex, stocks, crypto) due to its dynamic use of ticks and pips converters. It adapts seamlessly to varying price scales and asset types.
Dual Quantity Entries:
The original and optionnal double-entry mechanism allows traders to capture both short-term and extended profits by scaling out of positions. This adaptive approach caters to varying risk appetites and market conditions.
Clear Visualization:
The plotted pivot points, entry limits, SL, and TP levels provide visual clarity, making it easy for traders to track the strategy's behavior and make informed decisions.
Automated Execution with Alerts:
Integrated alerts for both entries and exits ensure timely actions without the need for constant market monitoring, enhancing efficiency. Configurable alert messages are suitable for API use.
Any feedback, comments, or suggestions for improvement are always welcome.
Hope you enjoy!
Support Resistance Pivot EMA Scalp Strategy [Mauserrifle]A strategy that creates signals based on: pivots, EMA 9+20, RSI, ATR, VWAP, wicks and volume.
The strategy is developed as a helper for quick long option scalping. This strategy is primarily designed for intraday trading on the 2m SPY chart with extended hours. However, users can adapt it for use on different symbols and timeframes. These signals are meant as a helper rather than fully automated trading bots.
One of the key elements is its pivot-based calculation, driven by my integrated indicator "Support and Resistance Pivot Points/Lines ". It enables multi-timeframe pivot calculations which are used to generate the signals and offers customizability, allowing you to define rounding methods and cooldown periods to refine pivot levels. The pivots, in combination with EMA crossovers, VWAP trend, and additional filters (RSI, ATR, VWAP, wicks and volume), create an entry and exit strategy for scalping opportunities that is useful for 0/1 DTE options with an average trade time of six minutes with the default setup for SPY. Option trading should be done outside TradingView. At this moment of release there is no option trading support.
All parameters used in the strategy are tweaked based on deep backtests results and real-time behavior. Be mindful that past performance does not guarantee future results.
The strategy is designed for intermediate and advanced users who are familiar intraday option scalping techniques.
How It Works
The strategy identifies entries based on multiple conditions, including: recently above pivot, recent EMA crossovers, RSI range, candle patterns, and VWAP uptrend. It avoids trades below the VWAP lower band due to poor backtesting results in those conditions. It creates a great number of signals when it detects an uptrend, which entails: VWAP and its lower/upper band slopes are going up, and the number of next high pivot points is greater than the number of lower pivot points. This indicates that we hope it will keep going up. In historical testing, this showed favorable results. This uptrend criteria runs on 15m charts max (where up to the VWAP effectiveness is the greatest).
The strategy also checks for candle and volume patterns, identified in backtesting to improve entry levels on historic data. Which include:
A red candle after multiple green ones, hoping to jump on a trend during a small pullback
Zero lower wick
Percentage and volume is up after lower volume candles
Percentage is up and the first and second EMA slopes are going up
Percentage is up, the first EMA is higher than the second, the price low is below the second EMA and price close above it
The VWAP uptrend overrules the candle and volume conditions (thus lots of signals during those moments).
The above is the base for many signals. There is a strict mode that adds extra checks such as:
not trading when there is no next low or high pivot
requiring a VWAP uptrend only
minimum candle percentages
This mode is for analyzing history and seeing performance during these conditions. It is worth it to create a separate alert for strict mode so you are aware of these conditions during trading.
When no stop has been defined, exits will always happen on pivot crossunder confirmations. If a stop is defined (default config), the strategy exits a position when:
the position is negative or no trail has been set
at least 1 bar has past
OR no stop has been defined (overrules previous)
trail has not been activated
The second exit condition happens when the close is below first EMA(9 by default) and when:
the position has been above first EMA
the gap between close and last pivot isn't small
the position is negative or no trail has been set
OR no stop has been defined (overrules above)
trail has not been activated
There are some more variations on this but the above are the most common. These exit conditions are a safety net because the strategy heavily relies on and favors stops. The settings allow changing stops, profit takers and trails. You can configure it to always sell without the conditions above.
The script will paint the pivot lines, trailing activation/stops, EMAs and entry/exits; with extra information in the data panel. For a complete view add VWAP and RSI to your chart, which are available from TradingView official indicator library. The strategy will not rely on those added indicators since VWAP and RSI are programmed in. You can add them to track the behavior of the signals based on these filters you have configured and have a complete view trading this strategy.
As mentioned earlier, the default settings are built for SPY 2m charts, with extended hours and real-time data. Open the strategy on this chart to study how all input parameters are used. If you don't have real-time data you need to adjust the minimum volume settings (set it to 0 at first).
The backtest
The default backtest configuration is set up to simulate SPY option trading.
Start capital is set to 10,000 and we risk around 5% of that per trade (1 contract)
Commission is set to 0.005%. The reason: at the time of this publication the SPY index price is approximately $580. Two ITM 0/1 DTE options contracts, each priced around $280, which is approximately $560. The typical commission for such a trade is around $3. To simulate this commission in the backtest on the SPY index itself, a commission of 0.005% per trade has been applied, approximating the options trading costs.
Slippage of 3 is set reflecting liquid SPY
The bar magnifier feature is turned on to have more realistic fills
Trading
In backtesting, setting commission and slippage to 0 on the SPY 2m chart shows many trades result around breaking even. Personally, I view them as an opportunity and safety net to help manage emotional decisions for exits. The signals are designed for short option scalps, allowing traders to take small profits and potentially re-enter during the strategy’s position window. It's advisable to take small potential profits, such as 4%, whenever the opportunity arises and consider re-entering if the setup still looks favorable, for example price still above ema9. Exiting a long position below ema9 is a common strategy for 2m scalping.
The average trade duration is approximately 6 minutes (3 bars). The choice between ITM (in-the-money), ATM (at-the-money), or OTM (out-of-the-money) options will depend on your trading style. Personally, I’ve seen better results with ITM options because they tend to move more in sync with the underlying index, thanks to their higher delta.
It’s important to note that the signals are designed to be a helper for manual trading rather than to automate a bot. Users are encouraged to take small profits and re-enter positions if favorable conditions persist. Be mindful that past performance does not guarantee future results.
For the default SPY setup the losses will mostly be 4-10% for ITM options. Be mindful of extreme volatile conditions where losses may reach 30% quickly, especially when trading ATM/OTM options.
The following settings can be changed:
8 pivot timeframes with left/right bars and days rendered
Here you can configure the timeframes for the pivots, which are crucial. The strategy wants that a crossover has happened recently (so it might enter after a crossunder if the crossover was recent) or the price is still above the crossed pivot.
When you decide to use a pivot timeframe higher than your chart, make sure it aligns the same starting point as the chart timeframe. As stated in the 43000478429 docs, there is a dependency between the resolution and the alignment of a starting point:
1–14 minutes — aligns to the beginning of a week
15–29 minutes — aligns to the beginning of a month
from 30 minutes and higher — aligns to the beginning of a year
This alignment also affects the setting of rendered days. I recommend a max value of 5 days for 1-14 minutes timeframes.
Also make sure a higher pivot timeframe can be divided by the lower. For instance I had repaint issues using 3m pivots on a 2m chart. But 4m pivots work fine.
Please look up docs 43000478429 to make sure this information is still up to date.
Pivot rounding
The pivot rounding option is used to add pivots based on a rounded price and limit the number of pivots. While this feature is disabled by default it can be useful with tweaking strategy variations, because many orders are placed at rounded levels and tend to act as strong price barriers.
There are multiple rounding methods: round, ceil/floor, roundn (decimal) and rounding to the minimal tick.
The next feature is a powerful extension called "Cooldown rounding":
Pivot cooldown rounding
This rounds new pivot levels for a cooldown period to keep the previous pivot line instead of adding a new line when they match the rounded value within the cooldown period. The existing line will be extended. This feature is useful because it makes sure the initial line is added to the exact high/low pivot level but any future lines within the rounding will just extend the existing line. This limits the number of pivots while still having precise levels (which normal rounding lacks) and allows more precise pivot trading.
This feature also helps ensure that the number of rendered lines will not exceed 500 too much, which is the render limit on TradingView.
You can set a maximum minutes for the cooldown. The default is 3 years which will enable the cooldown rounding permanently on the intraday (due to the max bar limit).
Pivot always added when new higher/lower pivot
When using cooldown rounding, one may find it useful to override this behavior when a new lower or higher pivot level has been reached. When enabled the new level will be added despite the fact that they may be rounded the same in the cooldown check. This is a good balance between limiting pivots but also allowing preciser trading.
VWAP bands multiplier
This is used to tweak the inner VWAP working for the upper and lower band. The default VWAP multiplier (0.9) is set based on backtesting since it performed better on historic data (the strategy does not trade below the lowerband). When you add the VWAP indicator from the TradingView library to the chart, make sure it uses the same multiplier setting as within this strategy so you have a correct view of the conditions the strategy acts on.
ATR EMA smoothing length
Used to tweak the ATR EMA smoothing. By default it is set up to 4 based on deep backtesting historic data.
EMA lengths
Changing the EMA length allows you to fine tune the EMA crossing behavior. By default the strategy is set up to EMA 9 and 20 which are considered commonly used values on the 2-minute chart.
Trading intraday time restrictions
For intraday charts you can configure when the strategy starts trading after market open and when it stops, including a hard sell. This makes sure there are no open positions left for the day during backtesting and can also aid in your trading style. For example some scalpers will not trade in the first two hours. Having no signals during this time can be beneficial. It is possible to configure these settings based on the number of bars or minutes.
Not trading on days the market closes earlier
By default the strategy does not trade on days the market closes earlier in the US. This makes sure there are no open positions left open during backtesting. Make sure to change it when using it on such a day. The days are: day before independence day, day after thanksgiving, Christmas eve and new years eve.
Not trading below VWAP lowerband
Backtesting has shown poor performance when trading below the VWAP lowerband but you are free to allow it to trade in such conditions. Past performance does not guarantee future results.
Minimum volume
A minimum volume can be set up. The current value is based on better deep backtest results for SPY using real-time data (48000). When you do not have a data plan for SPY, please set it to 0 and tweak based on backtests.
Minimum ATRP
The strategy has shown during my trading that it is sensitive to higher ATRP values and more volatile market conditions. There is more chance the index moves and we can profit from this during option scalping (if it moves in your favor). The default is based on SPY backtesting (0.04%), as a balance to have a lot of trades but also capture minimal movement.
RSI range
A RSI range can be set using a minimum and maximum value so we can limit trading during overbought/oversold conditions. Backtesting for SPY has shown the strategy performs better on historic data within a tighter range, so a default range has been set to 40-65.
Allow orders on every tick (no effect on stop/profit/trail)
This setting is used to allow orders on every tick. The strategy has been developed without trading on every tick but you can change this, for example when you have configured a setup different than the default configuration that you know works well with this. The default setup will not work well with it due to too many constant signals.
Stop percentage + ATRP threshold
One of the most important settings for managing the risk. I recommend setting a stop percentage first and later the ATRP threshold where the stop is calculated based on the current ATRP value. The calculated value will only be in effect when it is greater than the normal stop--the normal stop acts as baseline. The default stop is low (0.03). With a default ATRP threshold stop of 1.12, the calculated value overrules the normal stop when the value is greater. 0.03 acts as a minimum value but in reality the stop will most likely be higher on average for SPY with the default ATRP threshold.
For the default SPY setup the losses will be around 4-10% for ITM options. Be mindful of extreme volatile conditions where losses may reach 30% quickly, especially when trading ATM/OTM options.
Profit taker percentage + ATRP threshold
Same principles as the stop percentage above, but for profit taking. There is a very high ATRP threshold of 4 set by default. Backtests showed that trailing stops perform better on historic data.
Trailing stop
Used to set up a trailing stop. A useful feature to secure profit after a run-up, or get out with a small loss after initial activation. It is important to not use too tight values because they will give unrealistic backtest results and trigger too fast in real-time. Both the trail activation level and trail stop itself can be configured with a percentage value and ATRP value. I recommend setting up the ATRP last. By default the values are 0.05 for activation and 0.03 for the stop based on SPY real-time behavior.
Always sell on pivot crossunder confirmation
The strategy includes pivot crossunder confirmations as sell condition. By default it will not sell on every crossunder confirmation but checks for different conditions (explained in detail earlier in this description). You can change this behavior.
Always sell below first EMA when position has been above
The strategy sells below the first EMA when the position has been above it. By default it will not always sell but checks for different conditions (mentioned earlier in this description). You can change this behavior.
Buy modes pivot
By default the strategy buys between pivots as long as there has been a pivot crossover and EMAs crossover recently or price is still above it. You can change the behavior so it only buys on pivot crossovers or pivot crossover confirmations. Backtesting on the default setup shows decreased performance but for other strategy variations and pivot setups this feature can be useful since many scalpers do not buy between pivots.
Strict mode
There is a strict mode that adds extra checks such as not trading when there is no next low or high pivot, requiring a VWAP uptrend only and minimum candle percentages. This mode is for analyzing history and seeing performance during these conditions. It is worth it to create a separate alert for strict mode so you are aware of these conditions during trading. The deep backtests improved with these setting but past performance does not guarantee future results.
In the strict mode section you can override the stop, minimum ATRP, set up a minimum percentage, only trade VWAP uptrends and to not trade candles without a wick.
A summary and some extra detail
At the time of release only long trades are supported
The strategy is meant for quick scalping but one might find other uses for it
Enable extended hours on intraday charts so it captures more pivots
It does not trade extended hours (pre and post market) since options do not trade during those times
real-time data is recommended and required if a symbol has delayed data by default
You can configure that it trades minutes after market open and hard sells minutes after market open
The entries have a specific label text, example: "833 LE1 / 569.71 / P:569.8". This means: / / . The condition number is only for development/debug purposes for me when you have an issue.
The strategy cannot be tweaked to work on multiple symbols and timeframes with a single config. So you will have to make a config for every timeframe and symbol. I recommend using the Indicator Templates feature of TradingView. This way you can save the settings per timeframe and symbol
The strategy is per default config very dependent on (trailing) stops because it trades between pivots too. It wants that a pivot and EMA crossover has happened more recently than a crossunder. But you can change this behavior to always force crossover buys and crossunder sells.
It’s recommended to set up alerts to notify you of entry and exit signals. Watching the chart alone might cause you to miss trades, especially in fast-moving markets.
Only a max of 500 lines can be rendered on the chart, but the strategy will function with more under the hood. When you exceed 500 you will notice the beginning of the chart has no pivots, but beneath everything functions for backtesting.
Changing settings
Changing the settings for a different symbol and/or timeframe can be a challenging task. Here's a how-to you could use the first time to help you get going:
Set commission and slippage to 0. I prefer to do this so it is more clear whether you are balancing on break-even trades
Enable the pivot timeframe equal or above your chart timeframe. Avoid repainting as discussed earlier by choosing timeframes that align with the same timeframe
Set all volume, ATR, stop, profit takers and trail values to 0
Make sure strict mode is disabled at the bottom of the settings
You now have a clean state and you should see the backtest results purely based on pivot and EMA conditions
Tweak the stop and profit taker, beginning with the simple values and then ATRP threshold
At the last moment tweak the trailing stops. Tight trailing stops create an unrealistic backtest so you will need to tweak them based on real-time behavior of the symbol you're using which you will have to monitor during signals while the market is open. The default values are low (2m intraday SPY). Only with the bar magnifier feature it is somewhat possible to tweak realistic with history data. The tighter they are, the more unrealistic your backtest results. As a starting point, set the trailing stop low and find the highest activation level that doesn't change the results drastically, then increase the stop to the value you think reflects real-time behavior.
Keep refining by testing it during real-time behavior. Does it exit too early according to your own judgment? You need to increase the stop and maybe the activation level.
I hope you will find this useful!
DISCLAIMER
Trading is risky & most day traders lose money. This indicator is purely for informational & educational purposes only. Past performance does not guarantee future results.
Central Pivot Point Cross & Retrace Strategy // AlgoFyreThe Central Pivot Point Cross & Retrace Strategy uses pivot points for trend identification and trade entry. It combines accumulation/distribution indicators with pivot point levels to generate signals. The strategy incorporates dynamic position sizing based on a fixed risk amount and allows for both long and short positions with customizable stop-loss levels.
TABLE OF CONTENTS
🔶 ORIGINALITY
🔸Pivot Point-Based Trading
🔸Accumulation/Distribution
🔸Dynamic Position Sizing
🔸Customizable Risk Management
🔶 FUNCTIONALITY
🔸Indicators
🞘 Pivot Points
🞘 Accumulation/Distribution
🔸Conditions
🞘 Long Entry
🞘 Short Entry
🞘 Take Profit
🞘 Stop Loss
🔶 INSTRUCTIONS
🔸Adding the Strategy to the Chart
🔸Configuring the Strategy
🔸Backtesting and Practice
🔸Market Awareness
🔸Visual Customization
🔶 CONCLUSION
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🔶 ORIGINALITY The Central Pivot Point Cross & Retrace Strategy uniquely combines pivot point analysis with accumulation/distribution indicators to identify optimal entry and exit points. It employs dynamic position sizing based on a fixed risk amount, ensuring consistent risk management across trades. This approach allows traders to adapt to varying market conditions by adjusting position sizes according to predefined risk parameters, enhancing both flexibility and control in trading decisions. The strategy's integration of customizable stop-loss levels further refines its risk management capabilities.
🔸Pivot Point-Based Trading This strategy utilizes daily pivot points to identify key support and resistance levels, providing a framework for trend identification and trade entry. The central pivot point serves as the intraday point of balance between buyers and sellers, with the largest amount of trading volume assumed to take place in this area.
🔸Accumulation/Distribution The strategy incorporates the Accumulation/Distribution (A/D) line, an underrated volume-based indicator, to establish the main trend. The A/D line is used in conjunction with a trend based indicator like the 200-period Exponential Moving Average (EMA) to confirm trend direction and strength.
🔸Dynamic Position Sizing Position sizes are calculated dynamically based on a fixed risk amount, allowing traders to maintain consistent risk exposure across trades.
🔸Customizable Risk Management Traders can set flexible risk-reward ratios and adjust stop-loss and take-profit levels, tailoring the strategy to their risk tolerance and market conditions. The strategy recommends taking partial profits at S1 or R1 levels and moving the stop-loss to break-even for remaining positions.
🔶 FUNCTIONALITY The Central Pivot Point Cross & Retrace Strategy leverages pivot points and accumulation/distribution indicators to identify optimal trading opportunities. This strategy is designed to capitalize on price movements around key pivot levels by dynamically adjusting position sizes based on predefined risk parameters. It allows traders to manage risk effectively while taking advantage of both long and short positions.
🔸Indicators 🞘 Pivot Points: Calculates daily pivot points (PP, R1, R2, S1, S2) to identify key support and resistance levels. The central pivot point is crucial for determining market bias and entry points.
🞘 Accumulation/Distribution: Uses the A/D line and with a trend based indicator like the 200 EMA to determine market direction and trend strength. This combination helps eliminate noise and provides more reliable trend signals. We recommend using the Adaptive MAs (Hurst, CVaR, Fractal) // AlgoFyre , but any moving average could be used.
🔸Conditions 🞘 Long Entry: Initiates a long position when the price crosses above the central pivot point (PP), retraces back to it and the A/D line is above its 200 EMA, indicating an uptrend. A limit entry order is set at the PP for entering the long trade.
🞘 Short Entry: Initiates a short position when the price crosses below the central pivot point (PP), retraces back to it and the A/D line is below its 200 EMA, indicating a downtrend. A limit entry order is set at the PP for entering the short trade.
🞘 Take Profit: 50% of the position is closed as profit when R1 for Longs and S1 for Shorts is reached. The position is fully closed when R2 for Longs and S2 for Shorts is reached.
🞘 Stop Loss: Stop loss is set via strategy settings. When the first 50% take profit for both long and shorts is taken, stop loss for both will be moved to break-even/entry.
🔶 INSTRUCTIONS
The Central Pivot Point Cross & Retrace Strategy can be set up by adding it to your TradingView chart and configuring parameters such as the accumulation/distribution source, stop-loss percentage, and risk management settings. This strategy is designed to capitalize on price movements around key pivot levels by dynamically adjusting position sizes based on predefined risk parameters. Enhance the accuracy of signals by combining this strategy with additional indicators like trend-following or momentum-based tools. Adjust settings to better manage risk and optimize entry and exit points.
🔸Adding the Strategy to the Chart Go to your TradingView chart.
Click on the "Pine Editor" button at the bottom of the chart.
Copy and paste the strategy code into the Pine Editor.
Click "Add to Chart" to apply the strategy.
Add the technical indicator "Accumulation/Distribution" to the chart.
Add the trend indicator " Adaptive MAs (Hurst, CVaR, Fractal) // AlgoFyre " or any other MA to the chart and move it to the "Accumulation/Distribution" pane.
Set the source of your trend indicator to "Accumulation/Distribution".
🔸Configuring the Strategy Open the strategy settings by clicking on the gear icon next to its name on the chart.
Accumulation/Distribution Source: Select the source for the accumulation/distribution indicator.
Accumulation/Distribution EMA Source: Select the source for the trend indicator.
Stop Loss Percentage: Set the stop loss distance from the pivot point as a percentage.
Risk Amount: Define the fixed risk amount for position sizing.
Base Order Size: Set the base order size for position calculations.
Number of Positions: Specify the maximum number of positions allowed.
Time Frame: Adjust the time frame based on the currency pair or asset being traded (e.g., 15-minute for EUR/USD, 30-minute for GBP/USD).
🔸Backtesting and Practice Backtest the strategy on historical data to understand how it performs in various market environments.
Practice using the strategy on a demo account before implementing it in live trading.
Test different time frames and asset pairs to find the most suitable combinations.
🔸Market Awareness Keep an eye on market news and events that might cause extreme price movements. The strategy reacts to price data and might not account for news-driven events that can cause large deviations.
Remember that this strategy is not recommended for stocks due to the A/D line's inability to account for gaps in its calculation.
🔸Visual Customization Visualization Settings: Customize the display of entry price, take profit, and stop loss levels.
Color Settings: Switch to the AlgoFyre theme or set custom colors for bullish, bearish, and neutral states.
Table Settings: Enable or disable the information table and adjust its position.
🔶 CONCLUSION
The Central Pivot Point Cross & Retrace Strategy provides a robust framework for capitalizing on price movements around key pivot levels by combining pivot point analysis with accumulation/distribution indicators. This strategy leverages pivot point crossovers to identify entry points and utilizes the A/D line crossover with its 200 EMA for trend confirmation, ensuring trades align with prevailing market conditions. By incorporating dynamic position sizing based on a fixed risk amount, traders can effectively manage risk and adapt to varying market conditions. The strategy's focus on trading around the central pivot point and its customizable stop-loss and take-profit levels further enhance its risk management capabilities, making it a versatile tool for both trending and ranging markets. With its strategic blend of technical indicators and risk management, the Central Pivot Point Cross & Retrace Strategy offers traders a comprehensive approach to optimizing trade execution and maximizing potential returns across various currency pairs and commodities.
QuantBuilder | FractalystWhat's the strategy's purpose and functionality?
QuantBuilder is designed for both traders and investors who want to utilize mathematical techniques to develop profitable strategies through backtesting on historical data.
The primary goal is to develop profitable quantitive strategies that not only outperform the underlying asset in terms of returns but also minimize drawdown.
For instance, consider Bitcoin (BTC), which has experienced significant volatility, averaging an estimated 200% annual return over the past decade, with maximum drawdowns exceeding -80%. By employing this strategy with diverse entry and exit techniques, users can potentially seek to enhance their Compound Annual Growth Rate (CAGR) while managing risk to maintain a lower maximum drawdown.
While this strategy employs quantitative techniques, including mathematical methods such as probabilities and positive expected values, it demonstrates exceptional efficacy across all markets. It particularly excels in futures, indices, stocks, cryptocurrencies, and commodities, leveraging their inherent trending behaviors for optimized performance.
In both trending and consolidating market conditions, QuantBuilder employs a combination of multi-timeframe probabilities, expected values, directional biases, moving averages and diverse entry models to identify and capitalize on bullish market movements.
How does the strategy perform for both investors and traders?
The strategy has two main modes, tailored for different market participants: Traders and Investors.
1. Trading:
- Designed for traders looking to capitalize on bullish markets.
- Utilizes a percentage risk per trade to manage risk and optimize returns.
- Suitable for both swing and intraday trading with a focus on probabilities and risk per trade approach.
2. Investing:
- Geared towards investors who aim to capitalize on bullish trending markets without using leverage while mitigating the asset's maximum drawdown.
- Utilizes pre-define percentage of the equity to buy, hold, and manage the asset.
- Focuses on long-term growth and capital appreciation by fully/partially investing in the asset during bullish conditions.
How does the strategy identify market structure? What are the underlying calculations?
The strategy utilizes an efficient logic with for loops to pinpoint the first swing candle featuring a pivot of 2, establishing the point at which the break of structure begins.
What entry criteria are used in this script? What are the underlying calculations?
The script utilizes two entry models: BreakOut and fractal.
Underlying Calculations:
Breakout: The script assigns the most recent swing high to a variable. When the price closes above this level and all other conditions are met, the script executes a breakout entry (conservative approach).
Fractal: The script identifies a swing low with a period of 2. Once this condition is met, the script executes the trade (aggressive approach).
How does the script calculate probabilities? What are the underlying calculations?
The script calculates probabilities by monitoring price interactions with liquidity levels. Here’s how the underlying calculations work:
Tracking Price Hits: The script counts the number of times the price taps into each liquidity side after the EQM level is activated. This data is stored in an array for further analysis.
Sample Size Consideration: The total number of price interactions serves as the sample size for calculating probabilities.
Probability Calculation: For each liquidity side, the script calculates the probability by taking the average of the recorded hits. This allows for a dynamic assessment of the likelihood that a particular side will be hit next, based on historical performance.
Dynamic Adjustment: As new price data comes in, the probabilities are recalculated, providing real-time aduptive insights into market behavior.
Note: The calculations are performed independently for each directional range. A range is considered bearish if the previous breakout was through a sellside liquidity. Conversely, a range is considered bullish if the most recent breakout was through a buyside liquidity.
How does the script calculate expected values? What are the underlying calculations?
The script calculates expected values by leveraging the probabilities of winning and losing trades, along with their respective returns. The process involves the following steps:
This quantitative methodology provides a robust framework for assessing the expected performance of trading strategies based on historical data and backtesting results.
How is the contextual bias calculated? What are the underlying calculations?
The contextual bias in the QuantBuilder script is calculated through a structured approach that assesses market structure based on swing highs and lows. Here’s how it works:
Identification of Swing Points: The script identifies significant swing points using a defined pivot logic, focusing on the first swing high and swing low. This helps establish critical levels for determining market structure.
Break of Structure (BOS) Assessment:
Bullish BOS: The script recognizes a bullish break of structure when a candle closes above the first swing high, followed by at least one swing low.
Bearish BOS: Conversely, a bearish break of structure is identified when a candle closes below the first swing low, followed by at least one swing high.
Bias Assignment: Based on the identified break of structure, the script assigns directional biases:
A bullish bias is assigned if a bullish BOS is confirmed.
A bearish bias is assigned if a bearish BOS is confirmed.
Quantitative Evaluation: Each identified bias is quantitatively evaluated, allowing the script to assign numerical values representing the strength of each bias. This quantification aids in assessing the reliability of market sentiment across multiple timeframes.
What's the purpose of using moving averages in this strategy? What are the underlying calculations?
Using moving averages is a widely-used technique to trade with the trend.
The main purpose of using moving averages in this strategy is to filter out bearish price action and to only take trades when the price is trading ABOVE specified moving averages.
The script uses different types of moving averages with user-adjustable timeframes and periods/lengths, allowing traders to try out different variations to maximize strategy performance and minimize drawdowns.
By applying these calculations, the strategy effectively identifies bullish trends and avoids market conditions that are not conducive to profitable trades.
The MA filter allows traders to choose whether they want a specific moving average above or below another one as their entry condition.
What type of stop-loss identification method are used in this strategy? What are the underlying calculations?
- Initial Stop-loss:
1. ATR Based:
The Average True Range (ATR) is a method used in technical analysis to measure volatility. It is not used to indicate the direction of price but to measure volatility, especially volatility caused by price gaps or limit moves.
Calculation:
- To calculate the ATR, the True Range (TR) first needs to be identified. The TR takes into account the most current period high/low range as well as the previous period close.
The True Range is the largest of the following:
- Current Period High minus Current Period Low
- Absolute Value of Current Period High minus Previous Period Close
- Absolute Value of Current Period Low minus Previous Period Close
- The ATR is then calculated as the moving average of the TR over a specified period. (The default period is 14)
2. ADR Based:
The Average Day Range (ADR) is an indicator that measures the volatility of an asset by showing the average movement of the price between the high and the low over the last several days.
Calculation:
- To calculate the ADR for a particular day:
- Calculate the average of the high prices over a specified number of days.
- Calculate the average of the low prices over the same number of days.
- Find the difference between these average values.
- The default period for calculating the ADR is 14 days. A shorter period may introduce more noise, while a longer period may be slower to react to new market movements.
3. PL Based:
This method places the stop-loss at the low of the previous candle.
If the current entry is based on the hunt entry strategy, the stop-loss will be placed at the low of the candle that wicks through the lower FRMA band.
Example:
If the previous candle's low is 100, then the stop-loss will be set at 100.
This method ensures the stop-loss is placed just below the most recent significant low, providing a logical and immediate level for risk management.
- Trailing Stop-Loss:
One of the key elements of this strategy is its ability to detect structural liquidity and structural invalidation levels across multiple timeframes to trail the stop-loss once the trade is in running profits.
By utilizing this approach, the strategy allows enough room for price to run.
By using these methods, the strategy dynamically adjusts the initial stop-loss based on market volatility, helping to protect against adverse price movements while allowing for enough room for trades to develop.
Each market behaves differently across various timeframes, and it is essential to test different parameters and optimizations to find out which trailing stop-loss method gives you the desired results and performance.
What type of break-even and take profit identification methods are used in this strategy? What are the underlying calculations?
For Break-Even:
Percentage (%) Based:
Moves the initial stop-loss to the entry price when the price reaches a certain percentage above the entry.
Calculation:
Break-even level = Entry Price * (1 + Percentage / 100)
Example:
If the entry price is $100 and the break-even percentage is 5%, the break-even level is $100 * 1.05 = $105.
Risk-to-Reward (RR) Based:
Moves the initial stop-loss to the entry price when the price reaches a certain RR ratio.
Calculation:
Break-even level = Entry Price + (Initial Risk * RR Ratio)
For TP1 (Take Profit 1):
- You can choose to set a take profit level at which your position gets fully closed or 50% if the TP2 boolean is enabled.
- Similar to break-even, you can select either a percentage (%) or risk-to-reward (RR) based take profit level, allowing you to set your TP1 level as a percentage amount above the entry price or based on RR.
For TP2 (Take Profit 2):
- You can choose to set a take profit level at which your position gets fully closed.
- As with break-even and TP1, you can select either a percentage (%) or risk-to-reward (RR) based take profit level, allowing you to set your TP2 level as a percentage amount above the entry price or based on RR.
What's the day filter Filter, what does it do?
The day filter allows users to customize the session time and choose the specific days they want to include in the strategy session. This helps traders tailor their strategies to particular trading sessions or days of the week when they believe the market conditions are more favorable for their trading style.
Customize Session Time:
Users can define the start and end times for the trading session.
This allows the strategy to only consider trades within the specified time window, focusing on periods of higher market activity or preferred trading hours.
Select Days:
Users can select which days of the week to include in the strategy.
This feature is useful for excluding days with historically lower volatility or unfavorable trading conditions (e.g., Mondays or Fridays).
Benefits:
Focus on Optimal Trading Periods:
By customizing session times and days, traders can focus on periods when the market is more likely to present profitable opportunities.
Avoid Unfavorable Conditions:
Excluding specific days or times can help avoid trading during periods of low liquidity or high unpredictability, such as major news events or holidays.
What tables are available in this script?
- Summary: Provides a general overview, displaying key performance parameters such as Net Profit, Profit Factor, Max Drawdown, Average Trade, Closed Trades and more.
Total Commission: Displays the cumulative commissions incurred from all trades executed within the selected backtesting window. This value is derived by summing the commission fees for each trade on your chart.
Average Commission: Represents the average commission per trade, calculated by dividing the Total Commission by the total number of closed trades. This metric is crucial for assessing the impact of trading costs on overall profitability.
Avg Trade: The sum of money gained or lost by the average trade generated by a strategy. Calculated by dividing the Net Profit by the overall number of closed trades. An important value since it must be large enough to cover the commission and slippage costs of trading the strategy and still bring a profit.
MaxDD: Displays the largest drawdown of losses, i.e., the maximum possible loss that the strategy could have incurred among all of the trades it has made. This value is calculated separately for every bar that the strategy spends with an open position.
Profit Factor: The amount of money a trading strategy made for every unit of money it lost (in the selected currency). This value is calculated by dividing gross profits by gross losses.
Avg RR: This is calculated by dividing the average winning trade by the average losing trade. This field is not a very meaningful value by itself because it does not take into account the ratio of the number of winning vs losing trades, and strategies can have different approaches to profitability. A strategy may trade at every possibility in order to capture many small profits, yet have an average losing trade greater than the average winning trade. The higher this value is, the better, but it should be considered together with the percentage of winning trades and the net profit.
Winrate: The percentage of winning trades generated by a strategy. Calculated by dividing the number of winning trades by the total number of closed trades generated by a strategy. Percent profitable is not a very reliable measure by itself. A strategy could have many small winning trades, making the percent profitable high with a small average winning trade, or a few big winning trades accounting for a low percent profitable and a big average winning trade. Most mean-reversion successful strategies have a percent profitability of 40-80% but are profitable due to risk management control.
BE Trades: Number of break-even trades, excluding commission/slippage.
Losing Trades: The total number of losing trades generated by the strategy.
Winning Trades: The total number of winning trades generated by the strategy.
Total Trades: Total number of taken traders visible your charts.
Net Profit: The overall profit or loss (in the selected currency) achieved by the trading strategy in the test period. The value is the sum of all values from the Profit column (on the List of Trades tab), taking into account the sign.
- Monthly: Displays performance data on a month-by-month basis, allowing users to analyze performance trends over each month and year.
- Weekly: Displays performance data on a week-by-week basis, helping users to understand weekly performance variations.
- UI Table: A user-friendly table that allows users to view and save the selected strategy parameters from user inputs. This table enables easy access to key settings and configurations, providing a straightforward solution for saving strategy parameters by simply taking a screenshot with Alt + S or ⌥ + S.
User-input styles and customizations:
To facilitate studying historical data, all conditions and filters can be applied to your charts. By plotting background colors on your charts, you'll be able to identify what worked and what didn't in certain market conditions.
Please note that all background colors in the style are disabled by default to enhance visualization.
How to Use This Quantitive Strategy Builder to Create a Profitable Edge and System?
Choose Your Strategy mode:
- Decide whether you are creating an investing strategy or a trading strategy.
Select a Market:
- Choose a one-sided market such as stocks, indices, or cryptocurrencies.
Historical Data:
- Ensure the historical data covers at least 10 years of price action for robust backtesting.
Timeframe Selection:
- Choose the timeframe you are comfortable trading with. It is strongly recommended to use a timeframe above 15 minutes to minimize the impact of commissions/slippage on your profits.
Set Commission and Slippage:
- Properly set the commission and slippage in the strategy properties according to your broker/prop firm specifications.
Parameter Optimization:
- Use trial and error to test different parameters until you find the performance results you are looking for in the summary table or, preferably, through deep backtesting using the strategy tester.
Trade Count:
- Ensure the number of trades is 200 or more; the higher, the better for statistical significance.
Positive Average Trade:
- Make sure the average trade is above zero.
(An important value since it must be large enough to cover the commission and slippage costs of trading the strategy and still bring a profit.)
Performance Metrics:
- Look for a high profit factor, and net profit with minimum drawdown.
- Ideally, aim for a drawdown under 20-30%, depending on your risk tolerance.
Refinement and Optimization:
- Try out different markets and timeframes.
- Continue working on refining your edge using the available filters and components to further optimize your strategy.
What makes this strategy original?
QuantBuilder stands out due to its unique combination of quantitative techniques and innovative algorithms that leverage historical data for real-time trading decisions. Unlike most algorithmic strategies that work based on predefined rules, this strategy adapts to real-time market probabilities and expected values, enhancing its reliability. Key features include:
Mathematical Framework: The strategy integrates advanced mathematical concepts, such as probabilities and expected values, to assess trade viability and optimize decision-making.
Multi-Timeframe Analysis: By utilizing multi-timeframe probabilities, QuantBuilder provides a comprehensive view of market conditions, enhancing the accuracy of entry and exit points.
Dynamic Market Structure Identification: The script employs a systematic approach to identify market structure changes, utilizing a blend of swing highs and lows to detect contextual/direction bias of the market.
Built-in Trailing Stop Loss: The strategy features a dynamic trailing stop loss based on multi-timeframe analysis of market structure. This allows traders to lock in profits while adapting to changing market conditions, ensuring that exits are executed at optimal levels without prematurely closing positions.
Robust Performance Metrics: With detailed performance tables and visualizations, users can easily evaluate strategy effectiveness and adjust parameters based on historical performance.
Adaptability: The strategy is designed to work across various markets and timeframes, making it versatile for different trading styles and objectives.
Suitability for Investors and Traders: QuantBuilder is ideal for both investors and traders looking to rely on mathematically proven data to create profitable strategies, ensuring that decisions are grounded in quantitative analysis.
These original elements combine to create a powerful tool that can help both traders and investors to build and refine profitable strategies based on algorithmic quantitative analysis.
Terms and Conditions | Disclaimer
Our charting tools are provided for informational and educational purposes only and should not be construed as financial, investment, or trading advice. They are not intended to forecast market movements or offer specific recommendations. Users should understand that past performance does not guarantee future results and should not base financial decisions solely on historical data.
Built-in components, features, and functionalities of our charting tools are the intellectual property of @Fractalyst Unauthorized use, reproduction, or distribution of these proprietary elements is prohibited.
By continuing to use our charting tools, the user acknowledges and accepts the Terms and Conditions outlined in this legal disclaimer and agrees to respect our intellectual property rights and comply with all applicable laws and regulations.
TradeCreator Pro - Moving Averages, RSI, Volume, Trends, Levels█ Overview
TradeCreator Pro is designed to help you build successful trades by streamlining the processes of trade planning, evaluation, and execution. With a focus on data accuracy, speed, precision, and ease of use, this all-in-one tool assists in identifying optimal entry and exit points, calculating risk/reward ratios, and executing trades efficiently. Whether you’re a beginner or an experienced trader, TradeCreator Pro empowers you to make informed, data-driven decisions with real-time signals and fully customizable settings.
█ Key Benefits & Use Cases
TradeCreator Pro is designed to help you effortlessly discover profitable trades by evaluating and testing multiple setups across different assets and timeframes. Key use cases include:
Quick Strategy Testing: Rapidly test multiple setups and strategies, gaining immediate insights into their potential outcomes.
Risk/Reward Evaluation: Quickly identify which trade ideas are worth pursuing based on their profitability and associated risk.
Multi-Timeframe Testing: Seamlessly test the same trading setup across various timeframes and tickers.
Backtesting: Analyze the historical performance of specific setups to gauge their effectiveness.
Key Level Identification: Instantly spot critical support and resistance levels, improving your decision-making process.
Custom Alerts: Set personalized notifications for key levels, ensuring timely action on potential trade opportunities.
█ Core Features
Dashboard: A real-time view of critical metrics such as trend strength, support/resistance levels, volume profiles, RSI divergence, and trade scoring. Designed to provide a comprehensive snapshot of your trading environment and potential trading outcome.
Trend Analysis: Detect prevailing trends by analyzing multiple moving averages, support/resistance zones, volume profile and linear regressions for RSI and closing prices.
Support & Resistance Identification: Automatically identify support and resistance levels.
Volume Profile: Visualize volume profile and its point of control across support/resistance ranges, helping you spot key consolidation areas.
RSI & Price Divergence Detection: Identify potential divergences between RSI and price through linear regressions, providing valuable trade signals.
Risk Management Tools: Set equity loss levels based on specified leverage, allowing you to manage risk effectively for both long and short trades.
Entry & Exit Recommendations: Identify multiple options for optimal entry and exit levels based on current market conditions.
Trade Scoring: Score each trade setup on a 0-100 scale, factoring in potential ROI, ROE, P&L, and Risk-Reward Ratios to ensure high-quality trade execution.
Dynamic Execution & Monitoring: Benefit from multi-stage exit strategies, dynamic trailing stop losses, and the ability to backtest setups with historical data.
Alerts & Automation: Customize alerts for key market movements and opt for manual or automated trading through TradingView’s supported partners.
█ How to Use
Installation: Add TradeCreator Pro to your TradingView chart.
Trend Adjustment: The system automatically detects the current market trend, but you can fine-tune all trend detection parameters as needed.
Trading Parameter Configuration: Customize entry, exit, profitability, and risk-reward settings to match your trading style.
Entry and Exit Level Refinement: Use the automated suggestions, or choose from conceptual or arbitrary levels for greater control.
Stop Loss and Profit Target Fine-Tuning: Apply the system’s recommendations or adjust them by selecting from multiple available options.
Backtest Setup: Run the backtester to analyze past performance and assess how the strategy would have performed historically.
Set Alerts: Stay informed by setting alerts to notify you when a trade setup is triggered.
█ Notes
The first time you apply the indicator to a chart, it may take a few moments to compile. If it takes too long, switch timeframes temporarily to restart the process.
█ Risk Disclaimer
Trading in financial markets involves significant risk and is not suitable for all investors. The use of TradeCreator Pro, as well as any other tools provided by AlgoTrader Pro, is purely for informational and educational purposes. These tools are not intended to provide financial advice, and past performance is not indicative of future results. It is essential to do your own research, practice proper risk management, and consult with a licensed financial advisor before making any trading decisions. AlgoTrader Pro is not responsible for any financial losses you may incur through the use of these tools.
IsAlgo - Support & Resistance Strategy► Overview:
The Support & Resistance Strategy is designed to identify critical support and resistance levels and execute trades when the price crosses these levels. Utilizing a combination of a moving average, ATR indicator, and the highest and lowest prices, this strategy aims to accurately pinpoint entry and exit points for trades based on market movements.
► Description:
The Support & Resistance Strategy leverages the ATR (Average True Range) and a moving average to identify key support and resistance levels. The strategy calculates these levels by measuring the distance between the current market price and the moving average. This distance is continuously compared with each new candle to provide an estimate of the support and resistance levels.
The ATR is utilized to determine the width of these levels, ensuring they adjust to market volatility. To validate these levels, the strategy counts how often a candle’s low or high touches the estimated support or resistance and then bounces back. A higher frequency of such touches indicates a stronger, more reliable level.
Once the levels are confirmed, the strategy waits for a candle to close above the resistance level or below the support level. A candle closing above the resistance triggers a long entry, while a candle closing below the support triggers a short entry.
The strategy incorporates multiple stop-loss options to manage risk effectively. These options include setting stop-loss levels based on fixed pips, ATR calculations, or the highest/lowest prices of previous candles. Up to three take-profit levels can be set using fixed pips, ATR, or risk-to-reward ratios. A trailing stop feature adjusts the stop loss as the trade moves into profit, and a break-even feature moves the stop loss to the entry price once a certain profit level is reached.
Additionally, the strategy can close trades if the price crosses the opposite support or resistance level or if a candle moves significantly against the trade direction.
↑ Long Entry Example:
↓ Short Entry Example:
► Features & Settings:
⚙︎ Levels: Configure the length, width, and ATR period for support and resistance levels.
⚙︎ Moving Average: Use an Exponential Moving Average (EMA) to confirm trend direction. This can be enabled or disabled.
⚙︎ Entry Candle: Define the minimum and maximum body size and the body-to-candle size ratio for entry candles.
⚙︎ Trading Session: Specify the trading hours during which the strategy operates.
⚙︎ Trading Days: Select which days of the week the strategy is active.
⚙︎ Backtesting: Set a backtesting period with start and end dates. This feature can be deactivated.
⚙︎ Trades: Customize trade direction (long, short, or both), position sizing (fixed or percentage-based), maximum open trades, and daily trade limits.
⚙︎ Trades Exit: Choose from various exit methods, including profit/loss limits, trade duration, or crossing the opposite support/resistance level.
⚙︎ Stop Loss: Set stop-loss levels using fixed pips, ATR-based calculations, or the highest/lowest price within a specified number of previous candles.
⚙︎ Break Even: Adjust the stop loss to break-even once certain profit conditions are met.
⚙︎ Trailing Stop: Automatically adjust the stop loss as the trade moves into profit.
⚙︎ Take Profit: Define up to three take-profit levels using fixed pips, ATR, or risk-to-reward ratios based on the stop loss.
⚙︎ Alerts: Receive alerts for significant actions such as trade openings and closings, with support for dynamic values.
⚙︎ Dashboard: A visual display on the chart providing detailed information about ongoing and past trades.
► Backtesting Details:
Timeframe: 1-hour US30 chart
Initial Balance: $10,000
Order Size: 5 Units
Commission: $0.5 per contract
Slippage: 5 ticks
Stop Loss: Based on the opposite support/resistance level or break-even adjustments
Strategy Container_Variable Pyramiding & Leverage [Tradingwhale]This is a strategy container . It doesn’t provide a trading strategy. What it does is provide functionality that is not readily available with standard strategy ’shells.’
More specifically, this Strategy Container enables Tradingview users to create trading strategies without knowing any Pine Script code .
Furthermore, you can use most indicators on tradingview to build a strategy without any coding at all, whether or not you have access to the code.
To illustrate a possible output in the image (buy and sell orders) of this strategy container, we are using here an indicator that provides buy and sell signals, only for illustration purposes. Again, this is a strategy container, not a strategy. So we need to include an indicator with this published strategy to be able to show the strategy execution.
What can you do with this strategy container? Please read below.
Trade Direction
You can select to trade Long trades only, Short trades only, or both, assuming that whatever strategy you create with this container will produce buy and sell signals.
Exit on Opposite
You can select if Long signals cause the exit of Short positions and vice versa. If you turn this on, then a sell/short signal will cause the closing of your entire long position, and a buy/long signal will cause the closing of your entire short position.
Use external data sources (indicators) to (a) import signals, or (b) create trading signals using almost any of the indicators available on Tradingview.
Option 1:
When you check the box ‘Use external indicator Buy & Sell signals?’ and continue to select an external indicator that plots LONG/BUY signals as value '1' and SHORT/SELL signals as value '-1, then this strategy container will use those signals for the strategy, in combination with all other available settings.
Here an example of code in an indicator that you could use to import signals with this strategy container:
buy = long_cond and barstate.isconfirmed
sell = short_cond and barstate.isconfirmed
//—------- Signal for Strategy
signal = buy ? 1 : sell ? -1 : 0
plot(plot_connector? signal : na, title="OMEGA Signals", display = display.none)
Option 2:
You can create buy/long and sell/short signals from within this strategy container under the sections called “ Define 'LONG' Signal ” and “ Define 'SHORT' Signal .”
You can do this with a single external indicator, by comparing two external indicators, or by comparing one external indicator with a fixed value. The indicator/s you use need to be on the same chart as this strategy container. You can add up to two (2) external indicators that can be compared to each other at a time. A checkbox allows you to select whether the logical operation is executed between Source #1 and #2, between Source # 1 and an absolute value, or just by analyzing the behavior of Source #1.
Without an image of the strategy container settings it’s a bit hard to explain. However, below you see a list of all possible operations.
Operations available , whenever possible based on source data, include:
- "crossing"
- "crossing up"
- "crossing down"
- "rejected from resistance (Source #1) in the last bar", which means ‘High’ was above Source #1 (resistance level) in the last completed bar and 'Close' (current price of the symbol) is now below Source #1" (resistance level).
- "rejected from resistance (Source #1) in the last 2 bars", which means ‘High’ was above Source #1 (resistance level) in one of the last two (2) completed bars and 'Close' (current price of the symbol) is now below Source #1" (resistance level).
- "rejected from support (Source #1) in the last bar" --- similar to above except with Lows and rejection from support level
- "rejected from support (Source #1) in the last 2 bars" --- similar to above except with Lows and rejection from support level
- "greater than"
- "less than"
- "is up"
- "is down"
- "is up %"
- "is down %"
Variable Pyramiding, Leverage, and Pyramiding Direction
Variable Pyramiding
With this strategy container, you can define how much capital you want to invest for three consecutive trades in the same direction (pyramiding). You can define what percentage of your equity you want to invest for each pyramid-trade separately, which means they don’t have to be identical.
As an example: You can invest 5% in the first trade let’s call this pyramid trade #0), 10% in the second trade (pyramid trade #1), and 7% in the third trade (pyramid trade #2), or any other combination. If your trading strategy doesn’t produce pyramid trading opportunities (consecutive trades in the same direction), then the pyramid trade settings won’t come to bear for the second and third trades, because only the first trade will be executed with each signal.
Leverage
You can enter numbers for the three pyramid trades that are combined greater than 100%. Once that is the case, you are using leverage in your trades and have to manage the risk that is associated with that.
Pyramiding Direction
You can decide to scale only into Winners, Losers, or Both. Pyramid into a:
- Losers : A losing streak occurs when the price of the underlying security at the current signal is lower than the average cost of the position.
- Winners : A winning streak occurs when the price of the underlying security at the current signal is higher than the average cost of the position.
- Both means that you are selecting to scale/pyramid into both Winning and Losing streaks.
Other Inputs that influence signal execution:
You can choose to turn these on or off.
1. Limit Long exits with a WMA to stay longer in Long positions: If you check this box and enter a Length number (integer) for the WMA (Weighted Moving Average), then Long positions can only be exited with short signals when the current WMA is lower than on the previous bar/candle. Short signals sometimes increase with uptrends. We’re using this WMA here to limit short signals by adding another condition (WMA going down) for the short signal to be valid.
2. Maximum length of trades in the number of candles. Positions that have been in place for the specified number of trades are excited automatically.
3. Set the backtest period (from-to). Only trades within this range will be executed.
4. Market Volatility Adjustment Settings
- Use ATR to limit when Long trades can be entered (enter ATR length and Offset). We’re using the 3-day ATR here, with your entries for ATR length and offset. When the 3-day ATR is below its signal line, then Long trades are enabled; otherwise, they are not.
- Use VIX to limit when Short trades can be entered (enter VIX). If you select this checkbox, then Short trades will only be executed if the daily VIX is above your set value.
- Use Momentum Algo functions to limit Short trades. This uses the average distance of Momentum Highs and Lows over the lookback period to gauge whether markets are calm or swinging more profoundly. Based on that you can limit short entries to more volatile market regimes.
Set:
- Fast EMA and Slow EMA period lengths
- Number of left and right candles for High and Low pivots
- Lookback period to calculate the High/Low average and then the distance between the two.
The assumption here is that greater distances between momentum highs and lows correlate positively with greater volatility and greater swings in the underlying security.
Stop-Loss
Set separate stop-losses based on % for Long and Short positions. If the position loses X% since entry, then the position will be closed.
Take-Profit
Set separate take-profit levels based on % for Long and Short positions. If the position wins X% since entry, then the position will be closed.
Wunder OI breakout1. The basic concept for this strategy is to breakout open interest levels.
2. Open interest indicates the total number of active positions in the market a sharp increase in which we will use to enter a trade.
3. The main concept of this strategy is to break open interest levels.The strategy is based on building levels based on the highs and lows over a certain period. The breakdown of the set levels is used for entry. You can change the period as well as the percentage of change in open interest to find setups based on your pair and timeframe.
4. A function for calculating risk on the portfolio (your deposit) has been added to the Wunder OI breakout. When this option is enabled, you get a calculation of the entry amount in dollars relative to your Stop Loss. In the settings, you can select the risk percentage on your portfolio. The loss will be calculated from the amount that will be displayed on the chart.
5. For example, if your deposit is $1000 and you set the risk to 1%, with a Stop Loss of 5%, the entry volume will be $200. The loss at SL will be $10. 10$, which is your 1% risk or 1% of the deposit.
Important! The risk per trade must be less than the Stop Loss value. If the risk is greater than SL, then you should use leverage.
The amount of funds entering the trade is calculated in dollars. This option was created if you want to send the dollar amount from Tradingview to the exchange. However, putting your volume in dollars you get the incorrect net profit and drawdown indication in the backtest results, as TradingView calculates the backtest volume in contracts.
To display the correct net profit and drawdown values in Tradingview Backtest results, use the ”Volume in contract” option.
BBSR Extreme Strategy [nachodog]The Bollinger Bands Stochastic RSI Extreme Strategy is a comprehensive trading approach designed for use on the TradingView platform, employing a combination of Bollinger Bands and the Stochastic RSI to identify potential entry and exit points in the market. This strategy is converted into Pine Script version 5 and is specifically tailored as a strategy rather than a mere study, allowing traders to simulate and backtest their trades within the TradingView environment.
Strategy Overview:
Bollinger Bands serve as the primary tool for volatility and price level analysis. By calculating the standard deviation of price movements around a simple moving average (SMA), this strategy identifies the upper and lower bounds of price fluctuations, helping traders spot potential reversal points.
Stochastic RSI is used to gauge the momentum by comparing the closing price's position relative to its price range over a certain period. This indicator helps in determining overbought or oversold conditions, providing insights into potential bullish or bearish momentum.
Entry Signals:
Bullish Entry: The strategy signals a long entry when the price moves from below to above the lower Bollinger Band, coupled with a Stochastic RSI indicating an exit from oversold conditions. This suggests an uptrend initiation, prompting a buy order.
Bearish Entry: Conversely, a short entry is signaled when the price drops from above to below the upper Bollinger Band while the Stochastic RSI moves from overbought territory. This condition indicates a potential downtrend, triggering a sell order.
Exit Criteria:
Stop Loss: A key feature of this strategy is the inclusion of a user-defined stop loss percentage, which helps manage risk by specifying the maximum allowable loss per trade.
Bearish Exit for Long Positions: Long positions are exited either when a bearish signal is detected or when the price crosses below the lower Bollinger Band, suggesting a reversal or weakening of the bullish trend.
Bullish Exit for Short Positions: Short positions are closed upon a bullish signal or when the price crosses above the upper Bollinger Band, indicating a potential reversal or diminishing bearish momentum.
Strategy Benefits:
The strategy provides a structured framework for entering and exiting trades, leveraging the strengths of both Bollinger Bands and Stochastic RSI.
It includes parameters for customization, such as the stop loss percentage, allowing traders to align the strategy with their risk tolerance and trading objectives.
The ability to backtest and simulate trades on TradingView enhances its utility, offering insights into the strategy's performance under historical market conditions.
Overall, the Bollinger Bands Stochastic RSI Extreme Strategy is designed for traders who seek to capitalize on trend reversals and momentum shifts, with built-in risk management features to safeguard against significant losses.
Brilliance Academy Secret StrategyThe Brilliance Academy Secret Strategy is a powerful trading strategy designed to identify potential trend reversals and optimize entry and exit points in the market. This strategy incorporates a combination of technical indicators, including Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), Pivot Points, and Bollinger Bands.
Key Features:
MACD Indicator: A momentum oscillator that helps identify changes in trend strength and direction.
RSI Indicator: A momentum oscillator that measures the speed and change of price movements, indicating potential overbought or oversold conditions.
Pivot Points: Key levels used by traders to identify potential support and resistance levels in the market, aiding in trend reversal identification.
Bollinger Bands: Volatility bands placed above and below a moving average, indicating potential market volatility and overbought or oversold conditions.
How to Use:
Long Signals: Look for long signals when the market price is above the 200-period moving average, MACD line crosses below the signal line, RSI is above 30, and price is above the lower Bollinger Band or at a pivot low.
Short Signals: Look for short signals when the market price is below the 200-period moving average, MACD line crosses above the signal line, RSI is below 70, and price is below the upper Bollinger Band or at a pivot high.
Exit Strategy: Long trades are closed when the next short signal occurs or when the profit reaches a fixed take profit percentage (3% above entry price). Short trades are closed when the next long signal occurs or when the profit reaches a fixed take profit percentage (3% below entry price).
TrippleMACDCryptocurrency Scalping Strategy for 1m Timeframe
Introduction:
Welcome to our cutting-edge cryptocurrency scalping strategy tailored specifically for the 1-minute timeframe. By combining three MACD indicators with different parameters and averaging them, along with applying RSI, we've developed a highly effective strategy for maximizing profits in the cryptocurrency market. This strategy is designed for automated trading through our bot, which executes trades using hooks. All trades are calculated for long positions only, ensuring optimal performance in a fast-paced market.
Key Components:
MACD (Moving Average Convergence Divergence):
We've utilized three MACD indicators with varying parameters to capture different aspects of market momentum.
Averaging these MACD indicators helps smooth out noise and provides a more reliable signal for trading decisions.
RSI (Relative Strength Index):
RSI serves as a complementary indicator, providing insights into the strength of bullish trends.
By incorporating RSI, we enhance the accuracy of our entry and exit points, ensuring timely execution of trades.
Strategy Overview:
Long Position Entries:
Initiate long positions when all three MACD indicators signal bullish momentum and the RSI confirms bullish strength.
This combination of indicators increases the probability of successful trades, allowing us to capitalize on uptrends effectively.
Utilizing Linear Regression:
Linear regression is employed to identify consolidation phases in the market.
Recognizing consolidation periods helps us avoid trading during choppy price action, ensuring optimal performance.
Suitability for Grid Trading Bots:
Our strategy is well-suited for grid trading bots due to frequent price fluctuations and opportunities for grid activation.
The strategy's design accounts for price breakthroughs, which are advantageous for grid trading strategies.
Benefits of the Strategy:
Consistent Performance Across Cryptocurrencies:
Through rigorous testing on various cryptocurrency futures contracts, our strategy has demonstrated favorable results across different coins.
Its adaptability makes it a versatile tool for traders seeking consistent profits in the cryptocurrency market.
Integration of Advanced Techniques:
By integrating multiple indicators and employing linear regression, our strategy leverages advanced techniques to enhance trading performance.
This strategic approach ensures a comprehensive analysis of market conditions, leading to well-informed trading decisions.
Conclusion:
Our cryptocurrency scalping strategy offers a sophisticated yet user-friendly approach to trading in the fast-paced environment of the 1-minute timeframe. With its emphasis on automation, accuracy, and adaptability, our strategy empowers traders to navigate the complexities of the cryptocurrency market with confidence. Whether you're a seasoned trader or a novice investor, our strategy provides a reliable framework for achieving consistent profits and maximizing returns on your investment.
