GKD-C Juirk-Filtered QQE Histogram [Loxx]Giga Kaleidoscope GKD-C Juirk-Filtered QQE Histogram is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ Giga Kaleidoscope Modularized Trading System
What is Loxx's "Giga Kaleidoscope Modularized Trading System"?
The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading.
What is the NNFX algorithmic trading strategy?
The NNFX (No-Nonsense Forex) trading system is a comprehensive approach to Forex trading that is designed to simplify the process and remove the confusion and complexity that often surrounds trading. The system was developed by a Forex trader who goes by the pseudonym "VP" and has gained a significant following in the Forex community.
The NNFX trading system is based on a set of rules and guidelines that help traders make objective and informed decisions. These rules cover all aspects of trading, including market analysis, trade entry, stop loss placement, and trade management.
Here are the main components of the NNFX trading system:
1. Trading Philosophy: The NNFX trading system is based on the idea that successful trading requires a comprehensive understanding of the market, objective analysis, and strict risk management. The system aims to remove subjective elements from trading and focuses on objective rules and guidelines.
2. Technical Analysis: The NNFX trading system relies heavily on technical analysis and uses a range of indicators to identify high-probability trading opportunities. The system uses a combination of trend-following and mean-reverting strategies to identify trades.
3. Market Structure: The NNFX trading system emphasizes the importance of understanding the market structure, including price action, support and resistance levels, and market cycles. The system uses a range of tools to identify the market structure, including trend lines, channels, and moving averages.
4. Trade Entry: The NNFX trading system has strict rules for trade entry. The system uses a combination of technical indicators to identify high-probability trades, and traders must meet specific criteria to enter a trade.
5. Stop Loss Placement: The NNFX trading system places a significant emphasis on risk management and requires traders to place a stop loss order on every trade. The system uses a combination of technical analysis and market structure to determine the appropriate stop loss level.
6. Trade Management: The NNFX trading system has specific rules for managing open trades. The system aims to minimize risk and maximize profit by using a combination of trailing stops, take profit levels, and position sizing.
Overall, the NNFX trading system is designed to be a straightforward and easy-to-follow approach to Forex trading that can be applied by traders of all skill levels.
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Juirk-Filtered QQE Histogram as shown on the chart above
Confirmation 2: Williams Percent Range
Continuation: Fisher Transform
Exit: Rex Oscillator
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain.
Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm)
Standard Entry
1. GKD-C Confirmation 1 Signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
6. GKD-C Confirmation 1 signal was less than 7 candles prior
Continuation Entry
1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously
2. GKD-B Baseline hasn't crossed since entry signal trigger
3. GKD-C Confirmation Continuation Indicator signals
4. GKD-C Confirmation 1 agrees
5. GKD-B Baseline agrees
6. GKD-C Confirmation 2 agrees
1-Candle Rule Standard Entry
1. GKD-C Confirmation 1 signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
1-Candle Rule Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 1 signal was less than 7 candles prior
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
PullBack Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is beyond 1.0x Volatility of Baseline
Next Candle:
1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
█ GKD-C Juirk-Filtered QQE Histogram
What is Parabolic-Weighted Velocity?
Parabolic-Weighted Velocity (PWV) is a mathematical model used in sports science to estimate the velocity of an athlete during a given movement or exercise. This model uses a parabolic weighting function to give more importance to the velocities achieved in the middle of the movement and less importance to the velocities achieved at the beginning and end of the movement.
PWV takes into account the acceleration and deceleration of an athlete during the movement, and uses this information to calculate an average velocity. The model assumes that the athlete moves at a constant velocity during the middle portion of the movement and that the velocity increases and decreases smoothly at the beginning and end of the movement.
The parabolic weighting function used in PWV is based on the principle of impulse momentum, which states that the change in momentum of an object is equal to the impulse applied to it. The impulse is calculated as the force applied to an object multiplied by the time during which the force is applied. By giving more weight to the velocities achieved during the middle of the movement, PWV takes into account the impulse generated during this period of the movement.
PWV is commonly used in sports science to measure the performance of athletes during activities such as sprinting, jumping, and throwing. It is often used in conjunction with other metrics such as power and force to provide a comprehensive picture of an athlete's performance. Additionally, PWV can be used to compare the performance of different athletes or to track an athlete's progress over time.
Overall, Parabolic-Weighted Velocity is a useful tool in sports science for estimating an athlete's velocity during a movement or exercise, taking into account the acceleration and deceleration of the athlete during the movement.
What is QQE?
Quantitative Qualitative Estimation (QQE) is a technical analysis indicator used to identify trends and trading opportunities in financial markets. It is based on a combination of two popular technical analysis indicators - the Relative Strength Index (RSI) and Moving Averages (MA).
The QQE indicator uses a smoothed RSI to determine the trend direction, and a moving average of the smoothed RSI to identify potential trend changes. The indicator then plots a series of bands above and below the moving average to indicate overbought and oversold conditions in the market.
The QQE indicator is designed to provide traders with a reliable signal that confirms the strength of a trend or indicates a possible trend reversal. It is particularly useful for traders who are looking to trade in markets that are trending strongly, but also want to identify when a trend is losing momentum or reversing.
Traders can use QQE in a number of different ways, including as a confirmation tool for other indicators or as a standalone indicator. For example, when used in conjunction with other technical analysis tools like support and resistance levels, the QQE indicator can help traders identify key entry and exit points for their trades.
One of the main advantages of the QQE indicator is that it is designed to be more reliable than other indicators that can generate false signals. By smoothing out the price action, the QQE indicator can provide traders with more accurate and reliable signals, which can help them make more profitable trading decisions.
In conclusion, QQE is a popular technical analysis indicator that traders use to identify trends and trading opportunities in financial markets. It combines the RSI and moving average indicators and is designed to provide traders with reliable signals that confirm the strength of a trend or indicate a possible trend reversal.
What is the Jurik Filter?
The Jurik Filter is a technical analysis tool that is used to filter out market noise and identify trends in financial markets. It was developed by Mark Jurik in the 1990s and is based on a non-linear smoothing algorithm that provides a more accurate representation of price movements.
Traditional moving averages, such as the Simple Moving Average ( SMA ) or Exponential Moving Average ( EMA ), are linear filters that produce a lag between price and the moving average line. This can cause false signals during periods of market volatility , which can result in losses for traders and investors.
The Jurik Filter is designed to address this issue by incorporating a damping factor into the smoothing algorithm. This damping factor adjusts the filter's responsiveness to the changes in price, allowing it to filter out market noise without overshooting price peaks and valleys.
The Jurik Filter is calculated using a mathematical formula that takes into account the current and past prices of an asset, as well as the volatility of the market. This formula incorporates the damping factor and produces a smoother price curve than traditional moving average filters.
One of the advantages of the Jurik Filter is its ability to adjust to changing market conditions. The damping factor can be adjusted to suit different securities and time frames, making it a versatile tool for traders and investors.
Traders and investors often use the Jurik Filter in conjunction with other technical analysis tools, such as the MACD or RSI , to confirm or complement their trading strategies. By filtering out market noise and identifying trends in the financial markets, the Jurik Filter can help improve the accuracy of trading signals and reduce the risks of false signals during periods of market volatility .
Overall, the Jurik Filter is a powerful technical analysis tool that can help traders and investors make more informed decisions about buying and selling securities. By providing a smoother price curve and reducing false signals, it can help improve trading performance and reduce risk in volatile markets.
This indicator contains 7 different types of RSI:
RSX
Regular
Slow
Rapid
Harris
Cuttler
Ehlers Smoothed
What is RSI?
RSI stands for Relative Strength Index . It is a technical indicator used to measure the strength or weakness of a financial instrument's price action.
The RSI is calculated based on the price movement of an asset over a specified period of time, typically 14 days, and is expressed on a scale of 0 to 100. The RSI is considered overbought when it is above 70 and oversold when it is below 30.
Traders and investors use the RSI to identify potential buy and sell signals. When the RSI indicates that an asset is oversold, it may be considered a buying opportunity, while an overbought RSI may signal that it is time to sell or take profits.
It's important to note that the RSI should not be used in isolation and should be used in conjunction with other technical and fundamental analysis tools to make informed trading decisions.
What is RSX?
Jurik RSX is a technical analysis indicator that is a variation of the Relative Strength Index Smoothed ( RSX ) indicator. It was developed by Mark Jurik and is designed to help traders identify trends and momentum in the market.
The Jurik RSX uses a combination of the RSX indicator and an adaptive moving average (AMA) to smooth out the price data and reduce the number of false signals. The adaptive moving average is designed to adjust the smoothing period based on the current market conditions, which makes the indicator more responsive to changes in price.
The Jurik RSX can be used to identify potential trend reversals and momentum shifts in the market. It oscillates between 0 and 100, with values above 50 indicating a bullish trend and values below 50 indicating a bearish trend . Traders can use these levels to make trading decisions, such as buying when the indicator crosses above 50 and selling when it crosses below 50.
The Jurik RSX is a more advanced version of the RSX indicator, and while it can be useful in identifying potential trade opportunities, it should not be used in isolation. It is best used in conjunction with other technical and fundamental analysis tools to make informed trading decisions.
What is Slow RSI?
Slow RSI is a variation of the traditional Relative Strength Index ( RSI ) indicator. It is a more smoothed version of the RSI and is designed to filter out some of the noise and short-term price fluctuations that can occur with the standard RSI .
The Slow RSI uses a longer period of time than the traditional RSI , typically 21 periods instead of 14. This longer period helps to smooth out the price data and makes the indicator less reactive to short-term price fluctuations.
Like the traditional RSI , the Slow RSI is used to identify potential overbought and oversold conditions in the market. It oscillates between 0 and 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. Traders often use these levels as potential buy and sell signals.
The Slow RSI is a more conservative version of the RSI and can be useful in identifying longer-term trends in the market. However, it can also be slower to respond to changes in price, which may result in missed trading opportunities. Traders may choose to use a combination of both the Slow RSI and the traditional RSI to make informed trading decisions.
What is Rapid RSI?
Same as regular RSI but with a faster calculation method
What is Harris RSI?
Harris RSI is a technical analysis indicator that is a variation of the Relative Strength Index ( RSI ). It was developed by Larry Harris and is designed to help traders identify potential trend changes and momentum shifts in the market.
The Harris RSI uses a different calculation formula compared to the traditional RSI . It takes into account both the opening and closing prices of a financial instrument, as well as the high and low prices. The Harris RSI is also normalized to a range of 0 to 100, with values above 50 indicating a bullish trend and values below 50 indicating a bearish trend .
Like the traditional RSI , the Harris RSI is used to identify potential overbought and oversold conditions in the market. It oscillates between 0 and 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. Traders often use these levels as potential buy and sell signals.
The Harris RSI is a more advanced version of the RSI and can be useful in identifying longer-term trends in the market. However, it can also generate more false signals than the standard RSI . Traders may choose to use a combination of both the Harris RSI and the traditional RSI to make informed trading decisions.
What is Cuttler RSI?
Cuttler RSI is a technical analysis indicator that is a variation of the Relative Strength Index ( RSI ). It was developed by Curt Cuttler and is designed to help traders identify potential trend changes and momentum shifts in the market.
The Cuttler RSI uses a different calculation formula compared to the traditional RSI . It takes into account the difference between the closing price of a financial instrument and the average of the high and low prices over a specified period of time. This difference is then normalized to a range of 0 to 100, with values above 50 indicating a bullish trend and values below 50 indicating a bearish trend .
Like the traditional RSI , the Cuttler RSI is used to identify potential overbought and oversold conditions in the market. It oscillates between 0 and 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. Traders often use these levels as potential buy and sell signals.
The Cuttler RSI is a more advanced version of the RSI and can be useful in identifying longer-term trends in the market. However, it can also generate more false signals than the standard RSI . Traders may choose to use a combination of both the Cuttler RSI and the traditional RSI to make informed trading decisions.
What is Ehlers Smoothed RSI?
Ehlers smoothed RSI is a technical analysis indicator that is a variation of the Relative Strength Index ( RSI ). It was developed by John Ehlers and is designed to help traders identify potential trend changes and momentum shifts in the market.
The Ehlers smoothed RSI uses a different calculation formula compared to the traditional RSI . It uses a smoothing algorithm that is designed to reduce the noise and random fluctuations that can occur with the standard RSI . The smoothing algorithm is based on a concept called "digital signal processing" and is intended to improve the accuracy of the indicator.
Like the traditional RSI , the Ehlers smoothed RSI is used to identify potential overbought and oversold conditions in the market. It oscillates between 0 and 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. Traders often use these levels as potential buy and sell signals.
The Ehlers smoothed RSI can be useful in identifying longer-term trends and momentum shifts in the market. However, it can also generate more false signals than the standard RSI . Traders may choose to use a combination of both the Ehlers smoothed RSI and the traditional RSI to make informed trading decisions.
What is Juirk-Filtered QQE Histogram ?
This indicator is a complex combiation of Jurik filtering with QQE output.
Requirements
Inputs
Confirmation 1 and Solo Confirmation: GKD-V Volatility / Volume indicator
Confirmation 2: GKD-C Confirmation indicator
Outputs
Confirmation 2 and Solo Confirmation Complex: GKD-E Exit indicator
Confirmation 1: GKD-C Confirmation indicator
Continuation: GKD-E Exit indicator
Solo Confirmation Simple: GKD-BT Backtest strategy
Additional features will be added in future releases.
Komut dosyalarını "profit" için ara
Strategy Developer ToolSolar Strategies: Strategy Developer Tool Complete Guide
This guide provides full explanation of the intended purpose of our script along with individual explanation of each input and the logic behind them coupled with general knowledge which we find useful in using our tool regarding elements of risk and strategy. Use this information wisely and understand we are not providing financial advise, this is a learning tool meant to help advance traders knowledge of the markets and their strategies which are formed as such.
Basics
Before getting into the specifics of how to use our strategy developer tool, it's important to understand a few basic fundamental things about it. The purpose of the tool is to allow the user to optimize a strategy through back testing with our strategy tracker and 50+ user inputs. The way you optimize your strategy depends on a couple things:
The state of the current and recent previous market.
The timeframe you trade on.
The types of trades you prefer. (swings, scalps, etc.)
How much risk you are willing to take on.
Risk Basics:
Going off the last bullet point on the list above, risk plays a huge part in how you optimize your strategy, with that being said here are a few general rules of risk as they relate to trades:
The more trades you take on, the more risk you are opening your strategy up to.
If done correctly, more trades will often result in more profit with slightly lower accuracy, and more risk.
The less trades you take on, the easier it is to have higher accuracy because ideally by rooting out the losing trades, you are left with fewer overall trades but mostly winning trades.
Less trades with higher accuracy often result in less profit but will 100% be less risky than the opposite. (More trades, less accurate, more profit, MORE RISK)
Input Basics:
More trades, less trades, more risk, less risk, what does this all mean as it relates to our tool?
The 50+ user inputs that allow you to optimize and create your strategy all effect when the script takes a trade.
Many of the inputs are essentially conditions. By changing these inputs, what you are doing is changing how specific the conditions need to be in order to take a trade.
This is how the inputs tie into the bullet point list above regarding risk and the number of trades you take on. By raising or lowering certain inputs, you are making the conditions more or less specific on when to trade.
Making conditions more specific will allow for less trades to be taken and will often result in a higher win rate, and less associated risk.
Making conditions less specific will allow for more trades to be taken and depending on the state of the market, could result in more profit being realized, but at the same time opens you up to more risk because you are stating a more general set of conditions in order to take a trade.
How does it work?
Our strategy developer tool is based on two simple factors in order to identify specific areas in the market deemed good for trade. They are as follows:
Directional momentum to identify when a move might happen.
A confirmation of the desired move.
Indicators:
The tool gets its information on these two factors from two custom built indicators which are hard coded into the script. These two indicators and the inputs which affect them can be found labeled with Indicator 1 or Indicator 2 in the tool's settings.
When the conditions are met based on the factors of both indicators, it then decides your stop losses and take profits using pivot points.
Indicator 1 is the momentum indicator.
Indicator 2 looks for confirmation of the move.
Hedges:
Since nothing is ever certain when trading, our tool also aims to minimize potential loss before it can happen by incorporating hedges when a signal prints in the opposite direction of the trade you are currently in.
To identify when to hedge, the candles will appear with the opposite color of your original trade. Candles, while in a long trade, appear as green and candles while in a short trade appear as red. While in a long trade the only time red candles will appear is when a hedge occurs and vice versa for shorts.
Example: If you just took a long trade based on a long signal that the script gave off, but a short signal prints off while you are in the long, you are directed to sell half your long position and enter that half into a short position. Since there is now more uncertainty in the long because of the short signal, minimizing your position size and having a smaller position in the opposite direction allows you to cover your bases if the trade moves against you. If it doesn’t move against you and ends up going long as originally intended, you are not to lose any money, likely a small profit or break even when all is said and done.
In order to give the hedges a greater change of hitting, the take profits are smaller than a normal trade, this way even if your hedge wasn’t necessary and the original trade does not move against you, it's likely that your hedge will still win, and you can just consider it a small scalp to further your profits on the original trade.
Doubles:
Besides minimizing loss, we also aim to maximize the potential gain. When a second signal prints off in the direction of the trade you are currently already in, the tool directs you to double your position size.
The signal for doubling is a label with “2x” written inside.
The logic here is similar to hedging but in the opposite way. Just as a signal in the opposite direction creates uncertainty, a signal in the same direction indicates more certainty hence doubling your position size.
Example: If you are currently in a long position and you get a second long signal, you would then double your existing position since two long signals printing off before the first one has a chance to play out indicates a stronger chance of movement in the intended direction of your trade.
User Inputs
Upon opening the tools settings tab, you will find all the user inputs which can then be modified to fit your desired strategy. In this section of our guides, you will find individual explanations and use cases for each input so you can correctly use them to your best advantage.
Strategy Tracker Table:
By ticking this input on, the strategy tracker table will be visible to the user. (Default is on)
Indicator 1 Greater Than: Long:
By ticking this input on, you are adding a condition the script will then look for in order to take a long. (Default is on)
This condition is that an average of indicator 1, which searches for momentum, must fall above a certain level, which is determined in the next input.
The purpose of this is to ensure that the average momentum is not too low because this would indicate prolonged downwards movement on the timeframe of the market being observed, making a long position riskier.
Indicator 1 Greater Than Input: Long:
This input correlates to the previous input directly above.
If Indicator 1 Greater Than: Long is ticked on, then one of the conditions in order to take a long position will be that the average of indicator 1 must fall above the level which you set in this input.
max level 100, min level 0
Indicator 1 Less Than: Long
By ticking this input on, you are adding a condition the script will then look for in order to take a long position. (Default is on)
This condition is that an average of indicator 1, which searches for momentum, must fall below a certain level, which is determined in the next input.
The purpose of this is to ensure that the average momentum is not too high, because this would indicate a prior significant upwards movement or trend on the timeframe of the market being observed.
Taking a long position while the average momentum is at higher levels exposes the risk of longing as the market has started to pull back from a peak or when the market has just reached a peak.
Indicator 1 Less Than Input: Long
This input correlates to the previous input directly above.
If Indicator 1 Less Than: Long is ticked on, then one of the conditions in order to take a long position will be that the average of indicator 1 must fall below the level which you set in this input.
max level 100, min level 0
Indicator 1 Greater Than: Short
By ticking this input on, you are adding a condition the script will then look for in order to take a short. (Default is on)
This condition is that an average of indicator 1, which searches for momentum, must fall above a certain level, which is determined in the next input.
The purpose of this is to ensure that the average momentum is not too low because this would indicate prolonged downwards movement or trend on the timeframe of the market being observed.
Taking a short position while the average momentum is at lower levels exposes the risk of shorting as the market has started to recover from a bottom or when the market has just reached a bottom.
Indicator 1 Greater Than Input: Short
This input correlates to the previous input directly above.
If Indicator 1 Greater Than: Short is ticked on, then one of the conditions in order to take a short position will be that the average of indicator 1 must fall above the level which you set in this input.
max level 100, min level 0
Indicator 1 Less Than: Short
By ticking this input on, you are adding a condition the script will then look for in order to take a short position. (Default is on)
This condition is that an average of indicator 1, which searches for momentum, must fall below a certain level, which is determined in the next input.
The purpose of this is to ensure that the average momentum is not too high, because this would indicate a prior significant upwards movement or trend on the timeframe of the market being observed.
Taking a short position while the average momentum is at higher levels exposes the risk of shorting as the market is currently in a strong uptrend.
Indicator 1 Less Than: Short
This input correlates to the previous input directly above.
If Indicator 1 Less Than: Short is ticked on, then one of the conditions in order to take a short position will be that the average of indicator 1 must fall below the level which you set in this input.
max level 100, min level 0
Summary of Input Group: Indicator 1 Greater/Less Than Long/Short
This grouping of inputs is best used as a filter of sorts, much like many of the other inputs which are also essentially filters of the market to find areas ripe for trade. Specifically, however, this group of inputs is especially powerful because if used correctly, it can specify a range for the average momentum to fall in when looking for either long or short trades. Think of it like a sweet spot where the average is not too high nor too low. In combination with the numerous other inputs which will shortly be explained, this sweet spot can be a great indication. Keep in mind that once you find a working range, this will not last forever. Conditions in the market are ever changing and as such your inputs, in this case the range the average momentum must fall in, will also need to change with the market conditions.
Bars Since Crossover:
This input simply describes a crossover of the momentum indicator (indicator 1) and its average.
In the category How does it work? Two main factors are discussed, the first being directional momentum to determine when an upwards move might happen. The crossover correlated to this input is the directional momentum as mentioned earlier.
As also mentioned in How does it work? The second factor is a confirmation of the desired upwards move. This confirmation is a crossover of the current price and indicator 2 which will be further addressed later on.
What's important to understand about the two key factors at play in regard to Bars Since Crossover is that this input is determining a condition which looks for a certain number of bars prior to the confirmation of indicator 2 which the crossover of momentum and its average has happened on indicator 1.
Example: Bars Since Crossover input is set to 10. This means that the crossover of momentum and its average from indicator 1 must be within 10 bars prior to the confirmation from indicator 2. If this happens then this condition is met for a long position.
Bars Since Crossunder:
This input simply describes a crossunder of the momentum indicator (indicator 1) and its average.
In the category How does it work? Two main factors are discussed, the first being directional momentum to determine when a downwards move might happen. The crossunder correlated to this input is the directional momentum as mentioned earlier.
As also mentioned in How does it work? The second factor is a confirmation of the desired downwards move. This confirmation is a crossunder of the current price and indicator 2 which will be further addressed later on.
What's important to understand about the two key factors at play in regard to Bars Since Crossunder is that this input is determining a condition which looks for a certain number of bars prior to the confirmation of indicator 2 which the crossunder of momentum and its average has happened on indicator 1.
Example: Bars Since Crossunder input is set to 10. This means that the crossunder of momentum and its average from indicator 1 must be within 10 bars prior to the confirmation from indicator 2. If this happens then this condition is met for a short position.
Summary of Input Group: Bars Since Crossover/Crossunder
These two inputs can have a large effect on the types of trades being taken and the risk which your strategy opens up to. The idea is that in order for the two key factors described in How does it work? to be correlated and therefore indicate a strong directional move, the two events must happen within a somewhat small period of time. If the period of time between the two events taking place is too large, then it's riskier for your strategy due to a delay in directional momentum and the necessary confirmation. It's important to note that this “small period of time” is relative to the security you're trading and the timeframe its being trades on. Small could mean 5 bars in some cases or 20 bars in others, this is why our custom back tester exists. So that the process of optimization on different securities and different timeframes is smooth and only requires adjustments to inputs then your own analysis of the back test results.
Indicator 1 Input Long
Defines how strong the upwards momentum needs to be in order to take a long position.
When optimizing your strategy, this input is likely to have some of the most effect on when the script takes a long position.
The reasoning for this is because the level you set for this input is the level which indicator 1 must close above following the crossover of its average.
Example: Indicator 1 Input Long set to 50, this means that when the momentum crosses over its average from indicator 1, upon the close of this crossover the momentum must be above the level 50 in order for this condition to be met to take a long position.
The higher the level, the stronger the upwards momentum must be, and therefore by using higher levels for this input, the script will search for stronger directional moves leaving less chance for the trade to move against you.
Indicator 1 Input Short
Defines how strong the downwards momentum needs to be in order to take a short position.
When optimizing your strategy, this input is likely to have some of the most effect on when the script takes a short position.
The reasoning for this is because the level you set for this input is the level which indicator 1 must close below following the crossunder of its average.
Example: Indicator 1 Input Short set to 40, this means that when the momentum crosses under its average from indicator 1, upon the close of this crossunder the momentum must be below the level 40 in order for this condition to be met to take a short position.
The lower the level, the stronger the downwards momentum must be, and therefore by using lower levels for this input, the script will search for stronger directional moves leaving less chance for the trade to move against you.
Summary of Input Group: Indicator 1 Input Long/Short
These two inputs are so important to your strategy because at the end of the day no matter how you set it up, it's still a momentum-based strategy. With that being said the level of momentum or the strength needed in order to take trades is of course going to be a key decider in the successfulness of the strategy. When optimizing these two inputs make sure to take into account what the overall market conditions are, meaning if it’s a bull market maybe make the momentum needed to take a long slightly less comparatively to the amount needed to take a short, in other words make long conditions less specific and short conditions more specific. Slight variations of this input can have very big effects, even changing it by 1 or 2 can make a major difference. In might even be good to consider starting optimization with these inputs and then work the rest of the strategy out from there. A lot could be said about these inputs and more docs will be added in order to further explain more strategy approaches revolving around them, for now don’t hesitate to ask any questions.
Indicator 2 Red
This input is used as a sort of chop filter at its base level, however if used correctly it can be a much broader filter for what areas of the market you want to trade in.
Indicator 2 shows as either red or green and is used as a confirmation when price crosses over it following the crossover of momentum and its average from indicator 1 to take a long position.
If ticked on, Indicator 2 Red states a condition in order for the script to take a long position. (Default is on)
The condition is that upon the crossover of the current price and Indicator 2, 10 bars ago indicator 2 must have been red.
The reason for this input is because the current color of indicator 2 upon the crossover must also be red. However, this condition is hard coded in and cannot be changed by any input.
This is because the type of trade being targeted is that of a type of reversal or continuation.
If indicator 2 showed green 10 bars ago and is currently red this would indicate that a top was just reached, and price is reversing downwards making this not a good area to take a long.
Another scenario if indicator 2 showed green 10 bars ago and is currently red is that there is currently a sideways trend going on or otherwise known as chop, also not an ideal area to take a long
However, if 10 bars ago indicator 2 was red and it's currently red this would indicate a more prolonged pullback.
If all conditions are met and we know that price has been pulling back, now we can enter a long with more knowledge pointing to price reversing upwards from a downwards trend, or continuing its upwards trend after a pullback.
Indicator 2 Green
This input is used as a sort of chop filter at its base level, however if used correctly it can be a much broader filter for what areas of the market you want to trade in.
Indicator 2 shows as either red or green and is used as a confirmation when price crosses under it following the crossunder of momentum and its average from indicator 1 to take a short position.
If ticked on, Indicator 2 Green states a condition in order for the script to take a short position. (Default is on)
The condition is that upon the crossunder of the current price and Indicator 2, 10 bars ago indicator 2 must have been green.
The reason for this input is because the current color of indicator 2 upon the crossunder must also be green. However, this condition is hard coded in and cannot be changed by any input.
This is because the type of trade being targeted is that of a type of reversal or continuation.
If indicator 2 showed red 10 bars ago and is currently green this would indicate that a bottom was just reached, and price is reversing upwards making this not a good area to take a short.
Another scenario if indicator 2 showed red 10 bars ago and is currently green is that there is currently a sideways trend going on or otherwise known as chop, also not an ideal area to take a short.
However, if 10 bars ago indicator 2 was green and it's currently green this would indicate a more prolonged upwards movement.
If all conditions are met and we know that price has been moving up, now we can enter a short with more knowledge pointing to price reversing downwards from an upwards trend, or continuing its downwards trend after a bounce up.
Summary of Input Group: Indicator 2 Red/Green
Similar to Indicator 1 Greater/Less Than Long/Short, the goal of these inputs is to try to get a picture of what the previous recent market has been doing. By getting this picture it's easier to find different areas of the market more ideal for trades. Different from Indicator 1 Greater/Less Than Long/Short though, Indicator 2 Red/Green is directly correlated to the price action in the market rather than the momentum. By switching these on or off you are setting more or less specific conditions for taking trades. Some markets require this extra condition to lower your risk in your strategy, however others may not.
Pivot Low
This input is used to define the number of bars the script will look back to grab a pivot low when taking a long position.
This pivot low is then used to set the stop loss when entering a long position.
This input is very important and optimizing it correctly can be extremely crucial to your strategies success.
The Strategy Developer tool uses a 1:1 risk to reward ratio when setting your first take profit point, so when the script looks back to get a pivot low based on the input you set, it will then set your first take profit at an equal ratio to the stop loss found from the pivot low.
The goal in optimizing this input is to give enough lookback to find real pivot points where price has reversed off of, but not to give too much lookback where its grabbing previous pivot points unrelated to the current move of momentum the script is giving a long signal from.
Consider the type of trades you're looking for in your strategy and what timeframe you are trying to trade on.
Longer swing trades which aim to catch bigger moves in the market, possibly on higher time frames, may require a further lookback in order to get your take profits in the correct positioning to catch the desired move, and not exit early before the trade has fully played out.
Shorter scalp trades may aim to catch smaller moves and therefore you don’t want to allow for too much risk by having a large stop loss and large take profits as a result.
Pivot Low 2
Pivot low 2 can be thought of as a backup lookback in order to get the correct pivot low.
In an input which will be discussed shortly called Pivot Low Minimum, you can set a minimum percentage for your pivot low to be, if the pivot low does not meet the minimum then the script will look to Pivot Low 2’s input to use as a bar lookback in order to get the correct pivot low.
This input is used because you might find a Pivot Low input that works well for the majority of the trades in your back tested strategy, however, there will always be outliers and when this Pivot Low input falls short of getting the correct level to put your stop losses at, Pivot Low 2 is used.
Pivot Low 2’s input should always be higher than Pivot Low’s input, that way you can allow the script to look back further in time to find the correct level when the minimum is not met.
Pivot High
This input is used to define the number of bars the script will look back to grab a pivot high when taking a short position.
This pivot high is then used to set the stop loss when entering a short position.
This input is very important and optimizing it correctly can be extremely crucial to your strategies success.
The Strategy Developer tool uses a 1:1 risk to reward ratio when setting your first take profit point, so when the script looks back to get a pivot high based on the input you set, it will then set your first take profit at an equal ratio to the stop loss found from the pivot high.
The goal in optimizing this input is to give enough lookback to find real pivot points where price has reversed off of, but not to give too much lookback where its grabbing previous pivot points unrelated to the current move of momentum the script is giving a short signal from.
Consider the type of trades you're looking for in your strategy and what timeframe you are trying to trade on.
Longer swing trades which aim to catch bigger moves in the market, possibly on higher time frames, may require a further lookback in order to get your take profits in the correct positioning to catch the desired move, and not exit early before the trade has fully played out.
Shorter scalp trades may aim to catch smaller moves and therefore you don’t want to allow for too much risk by having a large stop loss and large take profits as a result.
Pivot High 2
Pivot high 2 can be thought of as a backup lookback in order to get the correct pivot high.
In an input which will be discussed shortly called Pivot High Minimum, you can set a minimum percentage for your pivot high to be, if the pivot high does not meet the minimum then the script will look to Pivot High 2’s input to use as a bar lookback in order to get the correct pivot high.
This input is used because you might find a Pivot High input that works well for the majority of the trades in your back tested strategy, however, there will always be outliers and when this Pivot High input falls short of getting the correct level to put your stop losses at, Pivot High 2 is used.
Pivot High 2’s input should always be higher than Pivot High’s input, that way you can allow the script to look back further in time to find the correct level when the minimum is not met.
Pivot Low Risk Tolerance
This input is very important in managing the risk associated with your strategy.
Pivot Low Risk Tolerance is defining a maximum percentage the pivot low can be away from your entry.
Since the pivot low that’s found is assigned to your stop loss and directly affects the placement of your take profits when taking a long position, making sure the pivot low isn’t too far down is crucial.
Depending on the types of trades you're aiming to take, the timeframe you choose to trade on, and the leverage you use in your strategy, you may want to assign a higher risk tolerance or a lower one.
Example: Pivot Low Risk Tolerance input set to 3, this means that when all other conditions are met in order to take a long position, when searching for the pivot low in order to set a stop loss, if the script finds the pivot low is greater than 3% away from the entry point, it will not take the trade.
Pivot High Risk Tolerance
This input is very important in managing the risk associated with your strategy.
Pivot High Risk Tolerance is defining a maximum percentage the pivot high can be away from your entry.
Since the pivot high that’s found is assigned to your stop loss and directly affects the placement of your take profits when taking a short position, making sure the pivot high isn’t too far up is crucial.
Depending on the types of trades you're aiming to take, the timeframe you choose to trade on, and the leverage you use in your strategy, you may want to assign a higher risk tolerance or a lower one.
Example: Pivot High Risk Tolerance input set to 3, this means that when all other conditions are met in order to take a short position, when searching for the pivot high in order to set a stop loss, if the script finds the pivot high is greater than 3% away from the entry point, it will not take the trade.
Pivot Low Minimum
Sometimes when searching for the pivot low, the script's defined lookback may not be enough to find the proper pivot point.
This can cause improper placement of stop losses and take profits and may cause trades to be exited early before they can fully play out in your favor.
Pivot Low Minimum is an input used to combat this problem, when the script finds a pivot low that does not meet the minimum percentage away from the entry point, it will then turn to Pivot Low 2 input in order to gain a further lookback and grab the correct pivot point to set your stop loss and take profits with.
When reading and setting this input, understand that setting it to 1 means there is no minimum, setting it to 0.9 would mean the minimum is a 10% difference between the pivot low and your entry point.
Think of it in terms of decimals and their equivalent percentage, 0.1 is equal to 10%, 0.01 is equal to 1%.
Whatever percentage you want to set for a minimum, convert it to a decimal, then simply subtract it from 1.
Example: Say you desire a 1.5% minimum pivot low and as a result an equivalent stop loss of 1.5% below your long entry and furthermore a take profit 1.5% above your long entry since the script uses a 1:1 ratio. Converting 1.5% to a decimal would give you 0.015, then subtracting it from 1 would give you 0.985, this would be the input assigned to Pivot Low Minimum.
Pivot High Minimum
Sometimes when searching for the pivot high, the script's defined lookback may not be enough to find the proper pivot point.
This can cause improper placement of stop losses and take profits and may cause trades to be exited early before they can fully play out in your favor.
Pivot High Minimum is an input used to combat this problem, when the script finds a pivot high that does not meet the minimum percentage away from the entry point, it will then turn to Pivot High 2 input in order to gain a further lookback and grab the correct pivot point to set your stop loss and take profits with.
When reading and setting this input, understand that setting it to 1 means there is no minimum, setting it to 0.9 would mean the minimum is a 10% difference between the pivot high and your entry point.
Think of it in terms of decimals and their equivalent percentage, 0.1 is equal to 10%, 0.01 is equal to 1%.
Whatever percentage you want to set for a minimum, convert it to a decimal, then simply subtract it from 1.
Example: Say you desire a 1.5% minimum pivot high and as a result an equivalent stop loss of 1.5% above your short entry and furthermore a take profit 1.5% below your short entry since the script uses a 1:1 ratio. Converting 1.5% to a decimal would give you 0.015, then subtracting it from 1 would give you 0.985, this would be the input assigned to Pivot High Minimum.
Summary of Input Group: Pivot Low/High - Pivot Low/High 2 – Pivot Low/High Risk Tolerance – Pivot Low/High Minimum
The first key takeaway from all these inputs is that your stop losses and take profits will be directly affected through optimizing any of them. The second key takeaway is that these inputs are crucial in managing the risk in your strategy, and while this has been said many times throughout the guide for various inputs, when it comes to stop losses and take profits it is especially true. Having a stop loss which is too high opens up the possibility for much bigger losses, and as a result your take profits will also be too high, minimizing the chance of any of them being hit. Having a stop loss which is too low increases the chance that your trade will get stopped out preemptively, before the trade can mature and move in your favor because remember that trades will not always move immediately in the intended direction, a good amount of patience is often involved in creating consistent successful trades and a successful strategy as such. On the same note, too low of a stop loss could also mean you are missing out on unrealized profit since your take profits are a direct result of the stop loss which is found. When optimizing your pivot low/high risk tolerance, think not about how much you are willing to lose on a single trade, but how much your portfolio can actually afford to lose not just on a single trade but multiple trades, sometimes even in a row. Obviously, the goal in creating a strategy is that you avoid losing trades and especially multiple in a row, however, there are many things that can’t be accounted for. The only way to manage this unaccounted risk is to use proper risk management and not open yourself up to big losses even in the worst most unlikely scenarios. Even if you don’t lose multiple trades in a row, ask yourself, could I afford to lose multiple trades with the risk tolerance I have set if everything were to go to $hit, (hopefully it would not), but in the off chance it did, instead of beating yourself up over what you did wrong, you’ll be patting yourself on the back for what you did right.
TP2-4 Long Placement
The first thing to understand about the take profit placement is that our system of stop losses and take profits uses a 1:1 risk to reward ratio for the first stop loss and first take profit.
This means that if your stop loss falls 2% below your long entry, your first take profit will be 2% above your long entry, hence 1:1.
As for take profits 2-4, they are just extensions of that ratio. This means that if TP2 Long Placement is set to 1.5, the ratio for your second take profit is 1:1.5.
Using the same percentage from the second bullet point being 2%, we can now gather that with a 1:1.5 ratio our second take profit would be at 3% above our long entry.
The same applies for the rest of the take profits, meaning whatever the take profit is set at regardless of which one, apply that number to the second placeholder of the ratio.
Example: First stop loss falls 2% below long entry. TP2 Long Placement input set to 1.5; risk to reward ratio is 1:1.5; corresponding percentage would be a 3% gain. TP3 Long Placement input set to 2; risk to reward ratio is 1:2; corresponding percentage would be a 4% gain. TP4 Long Placement input set to 2.5; risk to reward ratio is 1:2.5; corresponding percentage would be a 5% gain.
The next key thing to understand about the trailing take profits system is the position size being sold at each take profit and therefore how the strategy tracker calculates your strategy's profit.
At the first take profit, 50% of your position is being calculated as sold, locking in good profits off the bat.
At TP2, 20% of your position is being calculated as sold, leaving a remaining 30% open to gain more profit.
At TP3, another 20% of your position is being calculated as sold, leaving 10% to collect any additional possible gains.
At TP4 the remaining 10% of your position is sold and the trade will be fully closed out.
SL2-4 Long Placement
Our system of trailing stop losses is completely similar to that of our trailing take profits.
Just like the trailing take profits, the inputs for stop losses 2-4 are also used as the second placeholders in the risk to reward ratio.
This may be confusing since generally stop losses are associated with a loss on your position, however, the only stop loss which results in a loss on your position is the first one, not stop losses 2-4.
This is because once your first take profit is hit on your long, your stop loss will automatically move up to the price equivalent to the ratio which you set using these inputs that lies in profit.
Example: Since your first take profit will always be at a 1:1 risk to reward ratio with your stop loss, your second take profit could be at a 1:0.8 ratio. So, to clarify, once your first take profit is hit at a 1:1, your original first stop loss will now be moved up in profits to just below your first take profit at a 1:0.8 risk to reward ratio. This only happens AFTER the first take profit is hit.
For stop losses 3 and 4, the same logic is true, once TP2 is hit, your second stop loss will now be moved up to the placement of SL3 which will fall somewhere below TP2. Once TP3 is hit, your third stop loss will now be moved up to the placement of SL4 which will fall somewhere below TP3. If stop loss 4 does not get hit, then the only thing left to happen is for TP4 to hit and the trade will fully close out.
The one major difference between our system of trailing stop losses and take profits is that no matter what stop loss is hit, the entire remainder of your position will be calculated as sold.
So, if your first take profit hits and sells 50% of your long position, but the trade does not continue upwards and moves down to your second stop loss, the remaining 50% of your position will be calculated as sold.
The same applies to SL3 and SL4, so at SL3 the remaining 30% of your position will be calculated as sold, and at SL4 the remaining 10% will be calculated as sold.
Your trailing stop loss placement is dependent on what types of trades you desire. For shorter scalps on smaller timeframes, it's recommended to place each stop loss just below each corresponding take profit for long trades.
This way you leave just enough room for the trade to continue upwards if there is enough momentum, but you don’t open yourself up to losing your unrealized profit if it does not make this continuation.
If you desire longer swing trades on higher timeframes, it might be a good idea to leave more room in between the take profit and corresponding stop loss.
This way you leave more room for the trade to mature and move in your favor since when trading longer moves, often they will not shoot straight up but rather have a series of small pullbacks throughout the more general upwards trend.
Note that when a long trade is first entered the only stop loss and take profit in play are your original stop loss found by the pivot low which would result in a loss, and the first take profit at a 1:1 risk to reward ratio from that pivot low.
TP2-4 Short Placement
The first thing to understand about the take profit placement is that our system of stop losses and take profits uses a 1:1 risk to reward ratio for the first stop loss and first take profit.
This means that if your stop loss falls 2% above your short entry, your first take profit will be 2% below your short entry, hence, 1:1.
As for take profits 2-4, they are just extensions of that ratio. This means that if TP2 Short Placement is set to 1.5, the ratio for your second take profit is 1:1.5.
Using the same percentage from the second bullet point being 2%, we can now gather that with a 1:1.5 ratio our second take profit would be at 3% below our short entry.
The same applies for the rest of the take profits, meaning whatever the take profit is set at regardless of which one, apply that number to the second placeholder of the ratio.
Example: First stop loss falls 2% above short entry. TP2 Short Placement input set to 1.5; risk to reward ratio is 1:1.5; corresponding percentage would be a 3% gain. TP3 Short Placement input set to 2; risk to reward ratio is 1:2; corresponding percentage would be a 4% gain. TP4 Short Placement input set to 2.5; risk to reward ratio is 1:2.5; corresponding percentage would be a 5% gain.
The next key thing to understand about the trailing take profits system is the position size being sold at each take profit and therefore how the strategy tracker calculates your strategy's profit.
At the first take profit, 50% of your position is being calculated as sold, locking in good profits off the bat.
At TP2, 20% of your position is being calculated as sold, leaving a remaining 30% open to gain more profit.
At TP3, another 20% of your position is being calculated as sold, leaving 10% to collect any additional possible gains.
At TP4 the remaining 10% of your position is sold and the trade will be fully closed out.
SL2-4 Short Placement
Our system of trailing stop losses is completely similar to that of our trailing take profits.
Just like the trailing take profits, the inputs for stop losses 2-4 are also used as the second placeholders in the risk to reward ratio.
This may be confusing since generally stop losses are associated with a loss on your position, however, the only stop loss which results in a loss on your position is the first one, not stop losses 2-4.
This is because once your first take profit is hit on your short, your stop loss will automatically move down to the price equivalent to the ratio which you set using these inputs that lies in profit.
Example: Since your first take profit will always be at a 1:1 risk to reward ratio with your stop loss, your second take profit could be at a 1:0.8 ratio. So, to clarify, once your first take profit is hit at a 1:1, your original first stop loss will now be moved down in profits to just below your first take profit at a 1:0.8 risk to reward ratio. This only happens AFTER the first take profit is hit.
For stop losses 3 and 4, the same logic is true, once TP2 is hit, your second stop loss will now be moved down to the placement of SL3 which will fall somewhere above TP2. Once TP3 is hit, your third stop loss will now be moved down to the placement of SL4 which will fall somewhere above TP3. If stop loss 4 does not get hit, then the only thing left to happen is for TP4 to hit and the trade will fully close out.
The one major difference between our system of trailing stop losses and take profits is that no matter what stop loss is hit, the entire remainder of your position will be calculated as sold.
So, if your first take profit hits and sells 50% of your short position, but the trade does not continue downwards and moves up to your second stop loss, the remaining 50% of your position will be calculated as sold.
The same applies to SL3 and SL4, so at SL3 the remaining 30% of your position will be calculated as sold, and at SL4 the remaining 10% will be calculated as sold.
Your trailing stop loss placement is dependent on what types of trades you desire. For shorter scalps on smaller timeframes, it's recommended to place each stop loss just above each corresponding take profit for short trades.
This way you leave just enough room for the trade to continue downwards if there is enough momentum, but you don’t open yourself up to losing your unrealized profit if it does not make this continuation.
If you desire longer swing trades on higher timeframes, it might be a good idea to leave more room in between the take profit and corresponding stop loss.
This way you leave more room for the trade to mature and move in your favor since when trading longer moves, often they will not shoot straight down but rather have a series of small bounces throughout the more general downwards trend.
Note that when a short trade is first entered the only stop loss and take profit in play are your original stop loss found by the pivot high which would result in a loss, and the first take profit at a 1:1 risk to reward ratio from that pivot high.
Summary of Take Profit/Stop Loss Placement:
Correctly placed take profits and stop losses are essential in having a successful strategy and proper risk management. With that being said there are also many ways in which to use this system. Deciding how to set them up is really just a matter of determining the trading style you aim to succeed with. Once this has been determined, the placement of take profits and stop losses should be easier to configure. However, if there is any confusion on either of these topics as the ratios and corresponding TP/SL can get confusing, please do not hesitate to ask further questions in our discord!
Leverage Long
Leverage Long input simply defines the leverage used in your long positions, and is used in calculating the profit in Strategy Tracker
A rundown of risk associated with using leverage will not be given here since it should assume that if you're using leverage, you should already understand the risks.
If you are not using any leverage, then set Leverage Long input to 1.
Long Position Size
This input defines the position size you are using in your long trades.
This input is also used in calculating profit in Strategy Tracker.
Long Hedge Position Size
This input is used to define the position size of long hedge positions.
This input is also used in calculating profit in Strategy Tracker.
Important: Your Long Hedge Position Size should always be half of your Long Position Size for accurate profit calculation.
Double Long Position Size
This input is used to define the position size when in a double long.
This input is also used in calculating profit in Strategy Tracker
Important: Your Double Long Position Size should always be double your Long Position Size for accurate profit calculation.
Short Position Size
This input defines the position size you are using in your short trades.
This input is also used in calculating profit in Strategy Tracker.
Short Hedge Position Size
This input is used to define the position size of short hedge positions.
This input is also used in calculating profit in Strategy Tracker.
Important: Your Short Hedge Position Size should always be half of your Short Position Size for accurate profit calculation.
Double Short Position Size
This input is used to define the position size when in a double short.
This input is also used in calculating profit in Strategy Tracker
Important: Your Double Short Position Size should always be double your Short Position Size for accurate profit calculation.
A Message From the Developer PLEASE READ!!!
If you have made it this far in the guide, I applaud you and thank you for sticking with it as I know there is a lot of information here! This is not an exaggeration when I say there are hundreds of millions of possible variations that could be applied throughout all the inputs which is why I much prefer to call this a tool rather than an algorithm. Algorithm is a loaded word in my opinion as it comes with an implication of guarantee in the trades being made. This is not meant to discourage anybody from taking trades based off the tool which is also why I provided the option for automated alerts which through third party software can turn into automated trades; if you have the confidence in your strategy by all means I encourage you to trade it, automated or not. Just please understand that it's highly recommended to also apply your own knowledge and analysis before taking a trade as historical back testing data has its limitations and cannot always account for current market conditions. The real applicability does not fall in what the back tester window is saying you would have made or how accurate your strategy would have been, it's within the sheer number of markets and scenarios this tool can be used in and the information you can get which a human just can’t comprehend all at once; its literally endless. I urge all of you to be creative and think outside the box about what you can do with such a powerful tool at your fingertips. After all this is the reason why so many inputs were provided. Another main goal of this project was to give users a better understanding of risk management. It can be hard to manage your risk when it’s all kept in your head, but when you can modify your strategy to better manage your risk by simply optimizing a few inputs, it’s a lot easier to comprehend and actually apply when trading. The last thing I want to say is have fun working through the possible learning curve in using this tool, it may be a process but enjoy it because the one thing I can guarantee is that you will come out the other side a better trader than before!
Period Dollar Cost Average BacktesterHere is a simple script to calculate the profits and other dollar cost average strategy statistics. This strategy was created to avoid asset price volatility, so the pump and dump scheme does not affect the portfolio. By dividing the investment amount into periods, the investor doesn’t need to analyze the market, fundamental analysis, or anything. The goal is to increase the asset holdings and avoid fast and robust price movements.
This indicator has some configurations.
Amount to buy: the amount to buy at each time
Broker fee %: the fee percentage that the broker has for spot trade
Frequency: the frequency of the investments. Example: 1 Day means that every day, it will buy an amount of the asset
Starting Date: when the indicator will start the investment simulation
Ending Date: when the indicator will end the investment simulation
InfoCell With/Height: it relates to the panel for view purposes. Change the values to fit better on your screen.
This indicator has three lines:
Total Invested (green): total amount invested at the end of the period
Total Net Profit (pink): total profit by converting the amount of the asset bought at the latest closing price
Holding Profits (yellow): the amount that would be in the portfolio if the investor had invested all the capital in a signal trade at the beginning of the period.
The statistics panel has some information to help you understand buying the asset in one or more trades. So, besides those three lines that were mentioned above, here are the other statistics:
Entry Price: The price of the asset when the first investment was made
Gross Profit: Total amount of profit, not excluding the losses
Gross Losses: Total amount of losses, not excluding the profits
Profit Factor: The Gross Profit divided by the Gross Loss. A value above 1 means it’s profitable.
Profit/Trades: Net profit per trade. This includes the broker fees.
Recovery Factor: The Net profit divided by the relative drawdown. The higher the recovery factor, the faster the recovery of a loss
Total Asset Bought: The amount of the asset that was bought at the end of the investment plan
Absolute Drawdown: The total amount of losses that made the account balance go below its initial value
Relative Drawdown: The max drawdown that occurred, no matter the account balance amount
Total Trades: number of times the investment was made in the selected period
Total Fee: total Fee that was spent on the total investment
Total Winning Trades: the total amount of winning trades. A trade is considered a winner if the net profit is up compared with the latest investment.
Total Losing Trades: the total amount of losing trades. A trade is considered a loser if the net profit is down compared to the latest investment.
Max consecutive wins: the max amount of consecutive winning trades
Max consecutive losses: the max amount of consecutive losing trades
The chart above uses the default configuration of the indicator. Placed on the BTCUSD market, taking the time range of January 1st, 2018 to January 1st, 2022, 4 years. Buying a BTC amount with 10 USDT every day in that period would generate a more than 500% profit. Compared to the profit amount by just holding the count, which was close to 350% profit, the dollar cost average by period would be much more profitable.
Advanced ORB Strategy with Filters & TargetsThe Advanced ORB (Opening Range Breakout) Strategy I created is a sophisticated intraday trading system designed for TradingView, optimized for the US stock market open at 9:30 AM ET (New York time). It builds on the classic ORB concept—identifying the high (ORH) and low (ORL) of the initial market range after open and trading breakouts from those levels—while incorporating multiple layers of confirmation, risk management, and visual aids to filter out noise and capture high-probability momentum moves. This makes it more robust than basic ORB setups, aiming for higher profitability by reducing false signals and adapting to market conditions.
Core Concept
Opening Range Definition: The strategy uses the first 15 minutes (9:30–9:45 AM ET) as the primary opening range to establish ORH, ORL, and the midpoint (ORM). This window captures the initial volatility spike from overnight news, earnings, or economic data. You can optionally enable a secondary 5-minute range (9:30–9:35 AM) for added confirmation, requiring a breakout from both ranges.
Breakout Logic:
Long Entry: Triggered when price closes above ORH post-range, confirmed by filters (detailed below). This signals upward momentum.
Short Entry: Mirror for closes below ORL, indicating downward pressure.
Why 9:30 AM ET?: This aligns with the NYSE/NASDAQ open, where volume surges and institutional activity often lead to trend days (sustained moves). Statistically, about 30% of days are trend days, and ORB excels here by riding the breakout.
Key Advanced Features and Filters
To elevate it from a simple breakout strategy, I integrated multi-factor validation to avoid whipsaws (false breakouts common in choppy markets):
Candle Strength Filter: Requires the breakout candle to have a body >50% of the range width and wicks < body size, ensuring strong conviction (no doji-like indecision).
Volume Confirmation: Breakout volume must exceed 1.5x the 20-period average, verifying institutional interest.
Minimum Breakout Distance: At least 0.3% beyond ORH/ORL to ignore minor wick pierces.
Trend Alignment: Price must be above a 100-period EMA for longs (or below for shorts), favoring with-trend trades.
RSI Filter: RSI(14) <70 for longs (>30 for shorts) to avoid overbought/oversold traps.
Daily Bias: Compares today's ORM to yesterday's ORH/ORL; only longs if bullish overlap, shorts if bearish, skipping neutral days.
Secondary Range Layer: If enabled, breakout must also clear the 5-min range, adding confluence.
These filters collectively reduce trade frequency (focusing on quality) while aiming for a win rate >50% and risk-reward >2:1.
Risk Management and Exits
Stop-Loss: Placed at ORL (for longs) or ORH (for shorts), buffered by 1x ATR(14) for volatility adjustment. ORM can be used for tighter stops in ranging markets.
Take-Profit Targets: Scaled exits for profitability:
Target 1: 1x range width (e.g., ORH + (ORH - ORL)).
Target Fib: 1.618x Fibonacci extension.
Target 2: 2x range width.
Suggestion: Exit 50% at Target 1, trail the rest using a session EMA or 50% range retracement invalidation.
Position Sizing: Risk 1% of account per trade based on stop distance.
Additional Exits: Close all at 4:00 PM ET (market close) or if price retraces >50% of the range. A 30-min cooldown prevents re-entries after a signal.
Visuals and Implementation on TradingView
Plots: Green ORH, red ORL, orange ORM lines; optional clouds (green upper half, red lower) for the range.
Secondary Visuals: Dashed lime/maroon lines for the 5-min range (if enabled).
Signals: Green up-triangle for long breakouts, red down-triangle for shorts.
Targets/Stops: Horizontal lines extend from signals for targets (green/blue) and stops (dashed red).
Alerts: Built-in for breakouts, integrable with TradingView notifications.
Pine Script: The code is a custom indicator (convertible to strategy for backtesting). Use on 1-5 min charts for indices like SPY/QQQ or volatile stocks. Backtest via TradingView's Strategy Tester to optimize inputs.
What Works Best with This Strategy
Complementary Indicators:
EMAs (100/200-period): For broader trend confirmation.
Volume tools (e.g., VWAP or oscillators): Enhance volume filter.
Market internals ( USI:TICK , USI:ADD ): Gauge overall sentiment.
ATR/VWAP: Dynamic stops and volatility skips (e.g., ignore narrow ranges < average ATR).
Assets: High-liquidity, volatile ones like QQQ, SPY, or futures (ES/NQ). Avoid low-volume stocks.
Timeframes: 1-5 min for entries, daily for bias.
Market Conditions: Thrives on trend days with gaps/news; skip low-volatility or holiday sessions.
Why It's a High-Profitable Strategy
ORB's edge comes from exploiting post-open volatility, where 70-80% of daily range forms in the first hour. By adding filters, it cuts false breakouts (common in 50-60% of basic ORB trades) while targeting 2-3R rewards on winners. Backtests often show 1.5-2.5 profit factor on indices, with drawdowns <10% if risked properly. Profitability stems from:
Edge in Momentum: Captures "big moves" on trend days.
Risk Control: ATR-adapted stops and scaled exits preserve capital.
Adaptability: Customizable (e.g., range duration, filters) for different markets.
Psychological Fit: Mechanical signals reduce emotion, ideal for day traders.
Quantify [Trading Model] | FractalystNote: In this description, "TM" refers to Trading Model (not trademark) and "EM" refers to Entry Model
What’s the indicator’s purpose and functionality?
You know how to identify market bias but always struggle with figuring out the best exit method, or even hesitating to take your trades?
I've been there. That's why I built this solution—once and for all—to help traders who know the market bias but need a systematic and quantitative approach for their entries and trade management.
A model that shows you real-time market probabilities and insights, so you can focus on execution with confidence—not doubt or FOMO.
How does this Quantify differentiate from Quantify ?
Have you managed to code or even found an indicator that identifies the market bias for you, so you don’t have to manually spend time analyzing the market and trend?
Then that’s exactly why you might need the Quantify Trading Model.
With the Trading Model (TM) version, the script automatically uses your given bias identification method to determine the trend (bull vs bear and neutral), detect the bias, and provide instant insight into the trades you could’ve taken.
To avoid complications from consecutive signals, it uses a kNN machine learning algorithm that processes market structure and probabilities to predict the best future patterns.
(You don’t have to deal with any complexity—it’s all taken care of for you.)
Quantify TM uses the k-Nearest Neighbors (kNN) machine learning algorithm to learn from historical market patterns and adapt to changing market structures. This means it can recognize similar market conditions from the past and apply those lessons to current trading decisions.
On the other hand, Quantify EM requires you to manually select your directional bias. It then focuses solely on generating entry signals based on that pre-determined bias.
While the entry model version (EM) uses your manual bias selection to determine the trend, it then provides insights into trades you could’ve taken and should be taking.
Trading Model (TM)
- Uses `input.source()` to incorporate your personal methodology for identifying market bias
- Automates everything—from bias detection to entry and exit decisions
- Adapts to market bias changes through kNN machine learning optimization
- Reduces human intervention in trading decisions, limiting emotional interference
Entry Model (EM)
- Focuses specifically on optimizing entry points within your pre-selected directional bias
- Requires manual input for determining market bias
- Provides entry signals without automating alerts or bias rules
Can the indicator be applied to any market approach/trading strategy?
Yes, if you have clear rules for identifying the market bias, then you can code your bias detection and then use the input.source() user input to retrieve the direction from your own indicator, then the Quantify uses machine-learning identify the best setups for you.
Here's an example:
//@version=6
indicator('Moving Averages Bias', overlay = true)
// Input lengths for moving averages
ma10_length = input.int(10, title = 'MA 10 Length')
ma20_length = input.int(20, title = 'MA 20 Length')
ma50_length = input.int(50, title = 'MA 50 Length')
// Calculate moving averages
ma10 = ta.sma(close, ma10_length)
ma20 = ta.sma(close, ma20_length)
ma50 = ta.sma(close, ma50_length)
// Identify bias
var bias = 0
if close > ma10 and close > ma20 and close > ma50 and ma10 > ma20 and ma20 > ma50
bias := 1 // Bullish
bias
else if close < ma10 and close < ma20 and close < ma50 and ma10 < ma20 and ma20 < ma50
bias := -1 // Bearish
bias
else
bias := 0 // Neutral
bias
// Plot the bias
plot(bias, title = 'Identified Bias', color = color.blue,display = display.none)
Once you've created your custom bias indicator, you can integrate it with Quantify :
- Add your bias indicator to your chart
- Open the Quantify settings
- Set the Bias option to "Auto"
- Select your custom indicator as the bias source
The machine learning algorithms will then analyze historical price action and identify optimal setups based on your defined bias parameters. Performance statistics are displayed in summary tables, allowing you to evaluate effectiveness across different timeframes.
Can the indicator be used for different timeframes or trading styles?
Yes, regardless of the timeframe you’d like to take your entries, the indicator adapts to your trading style.
Whether you’re a swing trader, scalper, or even a position trader, the algorithm dynamically evaluates market conditions across your chosen timeframe.
How Quantify Helps You Trade Profitably?
The Quantify Trading Model offers several powerful features that can significantly improve your trading profitability when used correctly:
Real-Time Edge Assessment
It displays real-time probability of price moving in your favor versus hitting your stoploss
This gives you immediate insight into risk/reward dynamics before entering trades
You can make more informed decisions by knowing the statistical likelihood of success
Historical Edge Validation
Instantly shows whether your trading approach has demonstrated an edge in historical data
Prevents you from trading setups that historically haven't performed well
Gives confidence when entering trades that have proven statistical advantages
Optimized Position Sizing
Analyzes each setup's success rate to determine the adjusted Kelly criterion formula
Customizes position sizing based on your selected maximum drawdown tolerance
Helps prevent account-destroying losses while maximizing growth potential
Advanced Exit Management
Utilizes market structure-based trailing stop-loss mechanisms
Maximizes the average risk-reward ratio profit per winning trade
Helps capture larger moves while protecting gains during market reversals
Emotional Discipline Enforcement
Eliminates emotional bias by adhering to your pre-defined rules for market direction
Prevents impulsive decisions by providing objective entry and exit signals
Creates psychological distance between your emotions and trading decisions
Overtrading Prevention
Highlights only setups that demonstrate positive expectancy
Reduces frequency of low-probability trades
Conserves capital for higher-quality opportunities
Systematic Approach Benefits
By combining machine learning algorithms with your personal bias identification methods, Quantify helps transform discretionary trading approaches into more systematic, probability-based strategies.
What Entry Models are used in Quantify Trading Model version?
The Quantify Trading Model utilizes two primary entry models to identify high-probability trade setups:
Breakout Entry Model
- Identifies potential trade entries when price breaks through significant swing highs and swing lows
- Captures momentum as price moves beyond established trading ranges
- Particularly effective in trending markets when combined with the appropriate bias detection
- Optimized by machine learning to filter false breakouts based on historical performance
Fractals Entry Model
- Utilizes fractal patterns to identify potential reversal or continuation points
- Also uses swing levels to determine optimal entry locations
- Based on the concept that market structure repeats across different timeframes
- Identifies local highs and lows that form natural entry points
- Enhanced by machine learning to recognize the most profitable fractal formations
- These entry models work in conjunction with your custom bias indicator to ensure trades are taken in the direction of the overall market trend. The machine learning component analyzes historical performance of these entry types across different market conditions to optimize entry timing and signal quality.
How Does This Indicator Identify Market Structure?
1. Swing Detection
• The indicator identifies key swing points on the chart. These are local highs or lows where the price reverses direction, forming the foundation of market structure.
2. Structural Break Validation
• A structural break is flagged when a candle closes above a previous swing high (bullish) or below a previous swing low (bearish).
• Break Confirmation Process:
To confirm the break, the indicator applies the following rules:
• Valid Swing Preceding the Break: There must be at least one valid swing point before the break.
3. Numeric Labeling
• Each confirmed structural break is assigned a unique numeric ID starting from 1.
• This helps traders track breaks sequentially and analyze how the market structure evolves over time.
4. Liquidity and Invalidation Zones
• For every confirmed structural break, the indicator highlights two critical zones:
1. Liquidity Zone (LIQ): Represents the structural liquidity level.
2. Invalidation Zone (INV): Acts as Invalidation point if the structure fails to hold.
How does the trailing stop-loss work? what are the underlying calculations?
A trailing stoploss is a dynamic risk management tool that moves with the price as the market trend continues in the trader’s favor. Unlike a fixed take profit, which stays at a set level, the trailing stoploss automatically adjusts itself as the market moves, locking in profits as the price advances.
In Quantify, the trailing stoploss is enhanced by incorporating market structure liquidity levels (explain above). This ensures that the stoploss adjusts intelligently based on key price levels, allowing the trader to stay in the trade as long as the trend remains intact, while also protecting profits if the market reverses.
What is the Kelly Criterion, and how does it work in Quantify?
The Kelly Criterion is a mathematical formula used to determine the optimal position size for each trade, maximizing long-term growth while minimizing the risk of large drawdowns. It calculates the percentage of your portfolio to risk on a trade based on the probability of winning and the expected payoff.
Quantify integrates this with user-defined inputs to dynamically calculate the most effective position size in percentage, aligning with the trader’s risk tolerance and desired exposure.
How does Quantify use the Kelly Criterion in practice?
Quantify uses the Kelly Criterion to optimize position sizing based on the following factors:
1. Confidence Level: The model assesses the confidence level in the trade setup based on historical data and sample size. A higher confidence level increases the suggested position size because the trade has a higher probability of success.
2. Max Allowed Drawdown (User-Defined): Traders can set their preferred maximum allowed drawdown, which dictates how much loss is acceptable before reducing position size or stopping trading. Quantify uses this input to ensure that risk exposure aligns with the trader’s risk tolerance.
3. Probabilities: Quantify calculates the probabilities of success for each trade setup. The higher the probability of a successful trade (based on historical price action and liquidity levels), the larger the position size suggested by the Kelly Criterion.
How can I get started to use the indicator?
1. Set Your Market Bias
• Choose Auto.
• Select the source you want Quantify to use as for bias identification method (explained above)
2. Choose Your Entry Timeframes
• Specify the timeframes you want to focus on for trade entries.
• The indicator will dynamically analyze these timeframes to provide optimal setups.
3. Choose Your Entry Model and BE/TP Levels
• Choose a model that suits your personality
• Choose a level where you'd like the script to take profit or move stop-loss to BE
4. Set and activate the alerts
What tables are used in the Quantify?
• Quarterly
• Monthly
• Weekly
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.
Daily Coin Purchase StrategyThis indicator helps investors track the profitability of their Dollar-Cost Averaging (DCA) strategy when buying crypto assets periodically over time. Users can customize the start date, purchase amount per cycle, and the frequency of purchases based on different timeframes (e.g., 15m, 1H, 4H, 1D).
Features:
✅ Flexible Configuration: Allows users to set the start date, purchase amount per cycle, and select the desired timeframe (15m, 1H, 4H, 1D, etc.).
✅ Automated Profit Calculation: Displays total investment, total coins accumulated, average cost per coin, and profit based on the current market price.
✅ Supports Multiple Timeframes: Users can choose to buy at intervals based on 15m, 1H, 4H, or 1D candlesticks.
✅ Helps Plan Investment Capital: Calculates the total capital needed to follow a DCA strategy over a given period, allowing for better financial planning.
✅ Visualizes Investment Profitability: Provides clear insights into the accumulation process and the overall performance of the strategy.
✅ Intuitive Charts: Displays the accumulation process and investment performance over time.
How to Use:
Set the start date for purchases.
Enter the desired amount to invest per cycle.
Select the timeframe for purchases (15m, 1H, 4H, 1D, etc.).
The indicator will automatically calculate the number of coins accumulated, the average cost per coin, and the overall profit.
🔹 Use Cases:
Monitor the effectiveness of the DCA strategy over time.
Compare profitability across different purchase intervals.
Optimize long-term asset accumulation strategies.
Plan financial resources effectively for long-term investment strategies.
This version keeps all the key details while ensuring clarity and accuracy. Let me know if you need any modifications! 🚀
Trading IQ - Razor IQIntroducing TradingIQ's first dip buying/shorting all-in-one trading system: Razor IQ.
Razor IQ is an exclusive trading algorithm developed by TradingIQ, designed to trade upside/downside price dips of varying significance in trending markets. By integrating artificial intelligence and IQ Technology, Razor IQ analyzes historical and real-time price data to construct a dynamic trading system adaptable to various asset and timeframe combinations.
Philosophy of Razor IQ
Razor IQ operates on a single premise: Trends must retrace, and these retracements offer traders an opportunity to join in the overarching trend. At some point traders will enter against a trend in aggregate and traders in profitable positions entered during the trend will scale out. When occurring simultaneously, a trend will retrace against itself, offering an opportunity for traders not yet in the trend to join in the move and continue the trend.
Razor IQ is designed to work straight out of the box. In fact, its simplicity requires just a few user settings to manage output, making it incredibly straightforward to manage.
Long Limit Order Stop Loss and Minimum ATR TP/SL are the only settings that manage the performance of Razor IQ!
Traders don’t have to spend hours adjusting settings and trying to find what works best - Razor IQ handles this on its own.
Key Features of Razor IQ
Self-Learning Retracement Detection
Employs AI and IQ Technology to identify notable price dips in real-time.
AI-Generated Trading Signals
Provides retracement trading signals derived from self-learning algorithms.
Comprehensive Trading System
Offers clear entry and exit labels.
Performance Tracking
Records and presents trading performance data, easily accessible for user analysis.
Self-Learning Trading Exits
Razor IQ learns where to exit positions.
Long and Short Trading Capabilities
Supports both long and short positions to trade various market conditions.
How It Works
Razor IQ operates on a straightforward heuristic: go long during the retracement of significant upside price moves and go short during the retracement of significant downside price moves.
IQ Technology, TradingIQ's proprietary AI algorithm, defines what constitutes a “trend” and a “retracement” and what’s considered a tradable dip buying/shorting opportunity. For Razor IQ, this algorithm evaluates all historical trends and retracements, how much trends generally retrace and how long trends generally persist. For instance, the "dip" following an uptrend is measured and learned from, including the significance of the identified trend level (how long it has been active, how much price has increased, etc). By analyzing these patterns, Razor IQ adapts to identify and trade similar future retracements and trends.
In simple terms, Razor IQ clusters previous trend and retracement data in an attempt to trade similar price sequences when they repeat in the future. Using this knowledge, it determines the optimal, current price level where joining in the current trend (during a retracement) has a calculated chance of not stopping out before trend continuation.
For long positions, Razor IQ enters using a market order at the AI-identified long entry price point. If price closes beneath this level a market order will be placed and a long position entered. Of course, this is how the algorithm trades, users can elect to use a stop-limit order amongst other order types for position entry. After the position is entered TP1 is placed (identifiable on the price chart). TP1 has a twofold purpose:
Acts as a legitimate profit target to exit 50% of the position.
Once TP1 is achieved, a stop-loss order is immediately placed at breakeven, and a trailing stop loss controls the remainder of the trade. With this, so long as TP1 is achieved, the position will not endure a loss. So long as price continues to uptrend, Razor IQ will remain in the position.
For short positions, Razor IQ provides an AI-identified short entry level. If price closes above this level a market order will be placed and a short position entered. Again, this is how the algorithm trades, users can elect to use a stop-limit order amongst other order types for position entry. Upon entry Razor IQ implements a TP order and SL order (identifiable on the price chart).
Downtrends, in most markets, usually operate differently than uptrends. With uptrends, price usually increases at a modest pace with consistency over an extended period of time. Downtrends behave in an opposite manner - price decreases rapidly for a much shorter duration.
With this observation, the long dip entry heuristic differs slightly from the short dip entry heuristic.
The long dip entry heuristic specializes in identifying larger, long-term uptrends and entering on retracement of the uptrends. With a dedicated trailing stop loss, so long as the uptrend persists, Razor IQ will remain in the position.
The short dip entry heuristic specializes in identifying sharp, significant downside price moves, and entering short on upside volatility during these moves. A fixed stop loss and profit target are implemented for short positions - no trailing stop is used.
As a trading system, Razor IQ exits all TP orders using a limit order, with all stop losses exited as stop market orders.
What Classifies As a Tradable Dip?
For Razor IQ, tradable price dips are not manually set but are instead learned by the system. What qualifies as an exploitable price dip in one market might not hold the same significance in another. Razor IQ continuously analyzes historical and current trends (if one exists), how far price has moved during the trend, the duration of the trend, the raw-dollar price move of price dips during trends, and more, to determine which future price retracements offer a smart chance to join in any current price trend.
The image above illustrates the Razor Line Long Entry point.
The green line represents the Long Retracement Entry Point.
The blue upper line represents the first profit target for the trade.
The blue lower line represents the trailing stop loss start point for the long position.
The position is entered once price closes below the green line.
The green Razor Lazor long entry point will only appear during uptrends.
The image above shows a long position being entered after the Long Razor Lazor was closed beneath.
Green arrows indicate that the strategy entered a long position at the highlighted price level.
Blue arrows indicate that the strategy exited a position, whether at TP1, the initial stop loss, or at the trailing stop.
Blue lines above the entry price indicate the TP1 level for the current long trade. Blue lines below the current price indicate the initial stop loss price.
If price reaches TP1, a stop loss will be immediately placed at breakeven, and the in-built trailing stop will determine the future exit price.
A blue line (similar to the blue line shown for TP1) will trail price and correspond to the trailing stop price of the trade.
If the trailing stop is above the breakeven stop loss, then the trailing stop will be hit before the breakeven stop loss, which means the remainder of the trade will be exited at a profit.
If the breakeven stop loss is above the trailing stop, then the breakeven stop loss will be hit first. In this case, the remainder of the position will be exited at breakeven.
The image above shows the trailing stop price, represented by a blue line, and the breakeven stop loss price, represented by a pink line, used for the long position!
You can also hover over the trade labels to get more information about the trade—such as the entry price and exit price.
The image above exemplifies Razor IQ's output when a downtrend is active.
When a downtrend is active, Razor IQ will switch to "short mode". In short mode, Razor IQ will display a neon red line. This neon red line indicates the Razor Lazor short entry point. When price closes above the red Razor Lazor line a short position is entered.
The image above shows Razor IQ during an active short position.
The image above shows Razor IQ after completing a short trade.
Red arrows indicate that the strategy entered a short position at the highlighted price level.
Blue arrows indicate that the strategy exited a position, whether at the profit target or the fixed stop loss.
Blue lines indicate the profit target level for the current trade when below price. and blue lines above the current price indicate the stop loss level for the short trade.
Short traders do not utilize a trailing stop - only a fixed profit target and fixed stop loss are used.
You can also hover over the trade labels to get more information about the trade—such as the entry price and exit price.
Minimum Profit Target And Stop Loss
The Minimum ATR Profit Target and Minimum ATR Stop Loss setting control the minimum allowed profit target and stop loss distance. On most timeframes users won’t have to alter these settings; however, on very-low timeframes such as the 1-minute chart, users can increase these values so gross profits exceed commission.
After changing either setting, Razor IQ will retrain on historical data - accounting for the newly defined minimum profit target or stop loss.
AI Direction
The AI Direction setting controls the trade direction Razor IQ is allowed to take.
“Trade Longs” allows for long trades.
“Trade Shorts” allows for short trades.
Verifying Razor IQ’s Effectiveness
Razor IQ automatically tracks its performance and displays the profit factor for the long strategy and the short strategy it uses. This information can be found in the table located in the top-right corner of your chart showing.
This table shows the long strategy profit factor and the short strategy profit factor.
The image above shows the long strategy profit factor and the short strategy profit factor for Razor IQ.
A profit factor greater than 1 indicates a strategy profitably traded historical price data.
A profit factor less than 1 indicates a strategy unprofitably traded historical price data.
A profit factor equal to 1 indicates a strategy did not lose or gain money when trading historical price data.
Using Razor IQ
While Razor IQ is a full-fledged trading system with entries and exits - manual traders can certainly make use of its on chart indications and visualizations.
The hallmark feature of Razor IQ is its ability to signal an acceptable dip entry opportunity - for both uptrends and downtrends. Long entries are often signaled near the bottom of a retracement for an uptrend; short entries are often signaled near the top of a retracement for a downtrend.
Razor IQ will always operate on exact price levels; however, users can certainly take advantage of Razor IQ's trend identification mechanism and retracement identification mechanism to use as confluence with their personally crafted trading strategy.
Of course, every trend will reverse at some point, and a good dip buying/shorting strategy will often trade the reversal in expectation of the prior trend continuing (retracement). It's important not to aggressively filter retracement entries in hopes of avoiding an entry when a trend reversal finally occurs, as this will ultimately filter out good dip buying/shorting opportunities. This is a reality of any dip trading strategy - not just Razor IQ.
Of course, you can set alerts for all Razor IQ entry and exit signals, effectively following along its systematic conquest of price movement.
Mxwll OptAlgoIntroducing the Mxwll OptAlgo
Mxwll OptAlgo is a sophisticated algorithmic trading tool designed to identify potential long and short signals. It leverages an optimized combination of the M-Swift average, M-Smooth average, and M-RSI to fine-tune custom lengths and improve signal accuracy. The Mxwll OptAlgo provides long and short signals across various trading assets and timeframes. Additionally, it features optimized Take Profit (TP) and Stop Loss (SL) settings to help traders manage risk.
Key Features
Step-by-Step Complete Optimization: A systematic approach to optimize trading parameters.
Buy/Sell Signals: Clear indicators for long and short positions.
Easy to Use: User-friendly interface for seamless trading.
Predictive counter trend channels
Integrated trend following system and counter trend trading system
3-optimized strategies working cooperatively
Alerts and auto trading capabilities
How It Works
The Mxwll OptAlgo is comprised of three strategies:
Trend following using the OptAlgo
AI Reversal counter trend trading
Market crash shorting
Mxwll OptAlgo can be used for market analysis and trading similarly to any moving average.
The Mxwll OptAlgo MA is composed of two distinct moving averages to be used for trend following strategies.
M-Swift Average: The M-Swift Average accounts for volume and weights current price movement heavier than older price movement - allowing for improved responsiveness to current price movement. Volume is additionally weighted to the average to determine the significance of the price move and the resulting response of the M-Swift average. The M-Swift average consists of an HVWMA with OBV weighting. The HVWMA is used to create a moving average that adapts to volume, attempting to respond to significant price moves with high volume quicker and significant price moves with low volume slower - which might not be indicative of the start of a strong trend. To further reduce the M-Swift average’s responsiveness to weak volume price moves, the average is weighted with a normalized OBV. With this, the M-Swift moving average uses these two indicators to create a responsive moving average to significant price moves with high volume.
M-Smooth Average: The M-Smooth average consists of a McGinley average.
The McGinley Average is designed to address some of the limitations of traditional moving averages, such as the Simple Moving Average (SMA) or Exponential Moving Average (EMA), by reducing their lag and more accurately reflecting the market's true movements, especially during periods of volatility.
The McGinley Dynamic automatically adjusts its smoothing factor based on market speed. This means it responds more quickly to fast-moving markets and slows down during periods of consolidation, reducing the likelihood of false signals.
Unlike traditional moving averages that have a fixed period and can lag significantly behind fast-moving prices, the McGinley Dynamic adjusts dynamically, which helps to reduce lag and keeps the moving average closer to the price action.
The M-Smooth average uses bar low prices as a series during an uptrend - bar high prices as a series during a downtrend. A cross above the M-Smooth average indicates an uptrend, while a cross below the M-Smooth average indicates a downtrend. When this cross event occurs the M-Smooth average will “flip” from calculating on lows to highs, or highs to lows, contingent on the direction of the trend. The expectation is that a cross event of the M-Smooth average requires a substantial price move and, subsequent to this cross, price will continue to trend in the direction of the cross.
OptAlgo: The OptAlgo is simply the average of the M-Swift average and the M-smooth average.
By combining the M-Swift average and the M-Smooth average, the final output results in an average that slows during ranging markets and quickly adjusts to high volume breakouts and high volume reversals that initiate a trend. Due to the combination, the average will keep up quickly with a trend but remain at an appropriate distance from the current price - requiring a significant counter trend price move to change the direction of the OptAlgo average.
How does the OptAlgo follow trends?
The OptAlgo, comprising the two moving averages above, considers a cross event of the OptAlgo as a change in trend indication. The OptAlgo can be thought of as a moving average that significantly deviates from price. For price to cross the OptAlgo, a substantial price move must occur, and this event is treated as a "strong trend" or "new trend" indication.
M-RSI: The M-RSI is a fundamental component of the trend following strategy. Prior to a trend following “long” or “short” signal, the M-RSI must generate a signal in confluence with an OptAlgo cross event. When price crosses over the opt algo its color will change to green, indicating an uptrend. A buy signal will generate should the M-RSI provide a similar indication. The M-RSI portion of the trend following strategy is explained below. When price crosses under the opt algo its color will change to green, indicating a downtrend, and a sell signal becomes eligible. The foundational logic for using the Opt Algo as a trend following strategy is to treat crossovers/crossunders of the Opt Algo as strong trend indications, and trade them.
Steps to generate a trend following long signal:
1: M-RSI extends into oversold territory
2: Price crosses over the OptAlgo
Steps to generate a trend following short signal:
1: M-RSI extends into overbought territory
2: Price crosses under the OptAlgo
Our trend following strategy considers crossovers/crossunders at key market turning points as buy/sell opportunities. This strategy integrates the Mxwll RSI and Mxwll OptAlgo MA to determine entry points in anticipation of trend continuation.
The Mxwll RSI must move below/above the optimized OB/OS level prior to a cross event for a long/short signal to be considered. Entry points for this strategy are marked as "Long" or "Short".
At its core, the OptAlgo trend following strategy tries to enter a trend as close to the origin point as possible. As with any trend following strategy, price may not continue to move in the expected direction following entry, resulting in a losing trade.
AI Reversal Predictions
Our AI reversals strategy uses AI suggested turning points to capitalize on price reversions back towards the OptAlgo. These levels are considered by the AI on the selected days, and entry points at these levels are marked as "LLO" or "SLO".
How AI reversals work
Our AI reversals strategy attempts to trade price reversions back toward the Opt Algo.
These levels are calculated on specific days of the week, but can be traded any day. The internal algorithm determines which HTF highs/lows are most likely to function as tradable support/resistance levels. For instance, if Friday consists of heavy trading activity and high/low prices are tracked/recorded as causing significant support / resistance when tested in the future, the algorithm will consider support and resistance levels created on Friday as future tradable levels.
Additionally, if support/resistance levels created on Wednesday are recorded as weak or unpredictable when traded at in the future, the algorithm will not consider support/resistance levels generated on Thursday as tradable, and will not generate long or shit signals for these levels.
In the background, the AI reversals strategy is tracking success rates at multiple support and resistance levels. The best performers, if there are any, will be considered tradable. A “best performer” is calculated as the raw price move up to a threshold (i.e. 0.5%) that occurs subsequent to a test of the level.
Crash Short
The "Crash Short" strategy prioritizes short positions during retracements of a sell off. A simple yet effective strategy.
How Crash Short Works
The Crash Short strategy uses a customized momentum indicator (similar to ROC, MOM, etc.) to identify strong downside price moves. When our customized momentum indicator gives strong sell indications, the RSI is then referenced to identify an upside retracement. When the RSI exceeds a user-inputted level, a “Crash Short” signal is generated.
What is the customized momentum indicator?
The customized momentum indicator is the RoCR (Rate of Change Ratio). Instead of classic ROC, which is close - close , the RoCR divides the current close by a previous close. This formula creates a ratio that is more normalized than a simple price difference. This ratio is used to determine upside/downside momentum, with values greater than 1 indicating bullish momentum and values less than 1 indicating bearish momentum. The RoCR looks for deviating values to the downside (less than 1) to identify strong selling. From there, once the RSI crosses over an optimized level (such as 35), the indicator will print a sell signal titled "Crash Short".
Predictive Countertrend Channels
Our Predictive Countertrend Channel applies a two-stage recursive filter to smooth data using exponential decay and periodic adjustments for trend extraction. Our counter trend channels aren't directly used for signal processing; however, these channels provide useful visual cues for extended market moves.
Instructions for Optimization
Step 1: Optimize Mxwll OptAlgo
Begin by optimizing the M-Swift and M-Smooth averages for better signal accuracy.
This step simply finds better performing M-Swift and M-Smooth lookbacks. Again, if the strategy is unprofitable you will be notified and from there decide not to use the strategy.
Step 2: Optimize Mxwll RSI
Refine the Mxwll RSI settings to explore potential adjustments in smoothness and signal output. This step aims to evaluate whether these adjustments could improve the accuracy of the signals generated by Mxwll OptAlgo, while being mindful of any potential impacts.
Step 3: Optimize TP/SL
Consider adjusting the Take Profit and Stop Loss settings to potentially manage risk.
Step 4: Optimize Bars Between Trades
Set the number of bars between trades to regulate the frequency of trade executions. This adjustment may help in reducing the risk of overtrading and support a more disciplined trading strategy.
Step 5: Optimize Trade Flip
Adjust the trade flip parameters to potentially improve the management of transitions between long and short positions. This adjustment is intended to help achieve smoother trade executions, though outcomes may vary.
Step 6: Optimize RSI OB/OB Levels
Consider adjusting the overbought (OB) and oversold (OS) RSI levels to explore potential improvements in signal sensitivity. Careful calibration of these levels may help refine the accuracy of trend reversal signals, although results may depend on market conditions.
Finished!
From this point, consider setting alerts to make the most of the Mxwll Opt Algo's potential accuracy.
The effectiveness of the Opt Algo signal output can be evaluated using the "PF" table, which indicates the profit factor score for the strategy. A profit factor (PF) of less than or equal to 1 suggests that the strategy may not be profitable.
Disclaimer
No strategy works on any timeframe on any asset, so, if the Opt Algo underperforms for the asset/timeframe you're analyzing, the Opt Algo PF table lets you know it hasn't been generating accurate signals, in which case you can decide not to use it!
Optimization Disclaimer
Optimization can be tricky. It's helpful to test numerous strategies in aggregate to see if a strategy has potential. Despite this, optimization can cause overfitting. Overfitting occurs when a strategy is too closely fit to the data it's trading. Overfit backtests are deceptively phenomenal. While the historical performance looks great, the future expectancy of the strategy remains unpredictable - an overfit strategy will profit from periods of random price movement which, being random, are irreproducible and cannot be profited from other than their initial occurrence. When a strategy trades random price movement profitably, any and all profit earned can be reduced to chance. Keep this in mind when using the in-built optimization system. Optimization should be kept to a minimum, a tool to point you in the right direction, whether confirming potential or signifying a useless system.
SL ManagerSTOP LOSS MANAGER
Overview:
The "SL Manager" indicator is designed to assist traders in managing their stop loss (SL) and take profit (TP) levels for both long and short positions. This tool helps you visualize intermediate levels, enhancing your trading decisions by providing crucial information on the chart.
Usage:
This indicator is particularly useful for traders who want to manage their trades more effectively by visualizing potential adjustment points for their stop loss and take profit levels. It helps in making informed decisions to maximize profits and minimize risks by providing clear levels to take partial profits and adjust stop losses.
Features:
Position Input: Select between "long" and "short" positions.
Entry Price: Specify the entry price of your trade.
Take Profit: Define the price level at which you want to take profit.
Stop Loss: Set the stop loss price level to manage your risk.
Intermediate Levels:
For both long and short positions, the indicator calculates and plots the following intermediate levels:
50% Take Profit (TP 50%): Midway between the entry price and the take profit level, where you can take partial profits and move your SL up to the 25% mark.
75% Take Profit (TP 75%): Three-quarters of the way from the entry price to the take profit level, where you can take partial profits and move your SL to breakeven.
Stop Loss Move to 25% (SL Move to 25%): A level where the stop loss can be adjusted to lock in profits.
Visualization:
The indicator plots the calculated levels directly on the chart, provided the data for the current day is available. Different color codes and line styles distinguish between the various levels:
TP 50% and TP 75% are plotted in green.
SL Move to 25% is plotted in red .
Entry/Breakeven is plotted in blue.
Stock Rating [TrendX_]# OVERVIEW
This Stock Rating indicator provides a thorough evaluation of a company (NON-FINANCIAL ONLY) ranging from 0 to 5. The rating is the average of six core financial metrics: efficiency, profitability, liquidity, solvency, valuation, and technical ratings. Each metric encompasses several financial measurements to ensure a robust and holistic evaluation of the stock.
## EFFICIENCY METRICS
1. Asset-to-Liability Ratio : Measures a company's ability to cover its liabilities with its assets.
2. Equity-to-Liability Ratio : Indicates the proportion of equity used to finance the company relative to liabilities.
3. Net Margin : Shows the percentage of revenue that translates into profit.
4. Operating Expense : Reflects the costs required for normal business operations.
5. Operating Expense Ratio : Compares operating expenses to total revenue.
6. Operating Profit Ratio : Measures operating profit as a percentage of revenue.
7. PE to Industry Relative PE/PB : Compares the company's PE ratio to the industry average.
## PROFITABILITY METRICS
1. ROA : Indicates how efficiently a company uses its assets to generate profit.
2. ROE : Measures profitability relative to shareholders' equity.
3. EBITDA : Reflects a company's operational profitability.
4. Free Cash Flow Margin : Shows the percentage of revenue that remains as free cash flow.
5. Revenue Growth : Measures the percentage increase in revenue over a period.
6. Gross Margin : Reflects the percentage of revenue exceeding the cost of goods sold.
7. Net Margin : Percentage of revenue that is net profit.
8. Operating Margin : Measures the percentage of revenue that is operating profit.
## LIQUIDITY METRICS
1. Current Ratio : Indicates the ability to cover short-term obligations with short-term assets.
2. Interest Coverage Ratio : Measures the ability to pay interest on outstanding debt.
3. Debt-to-EBITDA : Compares total debt to EBITDA.
4. Debt-to-Equity Ratio : Indicates the relative proportion of debt and equity financing.
## SOLVENCY METRICS
1. Altman Z-score : Predicts bankruptcy risk
2. Beneish M-score : Detects earnings manipulation.
3. Fulmer H-factor : Predicts business failure risk.
## VALUATION METRICS
1. Industry Relative PE/PB Comparison : Compares the company's PE and PB ratios to industry averages.
2. Momentum of PE, PB, and EV/EBITDA Multiples : Tracks the trends of PE, PB, and EV/EBITDA ratios over time.
## TECHNICAL METRICS
1. Relative Strength Index (RSI) : Measures the speed and change of price movements.
2. Supertrend : Trend-following indicator that identifies market trends.
3. Moving Average Golden-Cross : Occurs when a short-term MA crosses above mid-term and long-term MA which are determined by half-PI increment in smoothing period.
4. On-Balance Volume Golden-Cross : Measures cumulative buying and selling pressure.
Luxmi AI Ultimate 1 Min Option ScalperThe Luxmi AI Ultimate 1 Min Option Scalper is a specialized trading indicator designed for use in options trading. This tool is particularly focused on providing actionable signals to option buyers within a one-minute timeframe, making it highly suitable for scalping—a trading strategy aimed at profiting from small price changes. Below is an elaboration on how this indicator functions and its significance in trading decisions:
### Key Features of Luxmi AI Ultimate 1 Min Option Scalper
1. **Enter and Don't Signals:**
- **Enter Signals:** These signals indicate the optimal moments to enter a trade, suggesting when to buy an option. They are typically based on sophisticated algorithms that analyze price movements, volume, volatility, and other relevant market data.
- **Don't Signals:** These signals advise traders to refrain from entering a trade. This could be due to market conditions that are not conducive to profitable trading, such as high volatility, low liquidity, or unclear directional trends.
2. **Directional Trading Strategy:**
- The Luxmi AI Ultimate 1 Min Option Scalper focuses on directional trading, which involves making trades based on the expected direction of the market. For option buyers, this means taking positions that profit from upward (call options) or downward (put options) movements in the price of the underlying asset.
3. **Scalping Approach:**
- Scalping is a short-term trading strategy that involves making numerous trades over the course of a trading session, aiming to capitalize on small price changes. The one-minute timeframe is particularly suited for scalping, as it allows traders to quickly enter and exit positions to capture minimal but frequent profits.
### Functionality and Benefits
1. **Real-Time Analysis:**
- The indicator provides real-time analysis and signals, ensuring that traders receive timely information to make quick trading decisions. This is crucial in the fast-paced environment of scalping, where delays can significantly impact profitability.
2. **Automated Decision-Making Support:**
- By automating the signal generation process, the Luxmi AI Ultimate 1 Min Option Scalper helps reduce the cognitive load on traders. This automation can lead to more consistent trading performance, as it mitigates the impact of emotional and psychological factors that often influence human decision-making.
3. **Market Adaptability:**
- The indicator is designed to adapt to changing market conditions, adjusting its signals based on the latest data. This adaptability enhances its effectiveness in various market environments, whether trending, ranging, or highly volatile.
4. **Risk Management:**
- Incorporating "Don't" signals as part of the strategy helps traders avoid entering trades in unfavorable conditions, thereby managing risk more effectively. This feature is particularly valuable in preventing losses and preserving capital.
5. **Educational Value:**
- For less experienced traders, using the Luxmi AI Ultimate 1 Min Option Scalper can provide a learning experience. By observing the signals and their outcomes, traders can develop a better understanding of market dynamics and refine their trading strategies.
### Practical Application
- **Setup:** Traders integrate the Luxmi AI Ultimate 1 Min Option Scalper into their trading platforms. This setup typically involves installing the indicator and configuring it to monitor the specific options and market data relevant to the trader's strategy.
- **Monitoring:** During trading hours, traders monitor the signals provided by the indicator. They prepare to act quickly on "Enter" signals and heed "Don't" signals to avoid unnecessary risks.
- **Execution:** When an "Enter" signal is generated, traders execute the recommended trade, buying the corresponding option. They then manage their positions closely, ready to exit based on their predetermined profit targets or stop-loss levels.
In summary, the Luxmi AI Ultimate 1 Min Option Scalper is a powerful tool for option buyers, providing critical buy and hold signals in a highly time-sensitive manner. Its primary benefits include enhancing decision-making speed, improving trading consistency, and managing risk, all of which are essential for successful scalping in options trading.
Smart DCA StrategyINSPIRATION
While Dollar Cost Averaging (DCA) is a popular and stress-free investment approach, I noticed an opportunity for enhancement. Standard DCA involves buying consistently, regardless of market conditions, which can sometimes mean missing out on optimal investment opportunities. This led me to develop the Smart DCA Strategy – a 'set and forget' method like traditional DCA, but with an intelligent twist to boost its effectiveness.
The goal was to build something more profitable than a standard DCA strategy so it was equally important that this indicator could backtest its own results in an A/B test manner against the regular DCA strategy.
WHY IS IT SMART?
The key to this strategy is its dynamic approach: buying aggressively when the market shows signs of being oversold, and sitting on the sidelines when it's not. This approach aims to optimize entry points, enhancing the potential for better returns while maintaining the simplicity and low stress of DCA.
WHAT THIS STRATEGY IS, AND IS NOT
This is an investment style strategy. It is designed to improve upon the common standard DCA investment strategy. It is therefore NOT a day trading strategy. Feel free to experiment with various timeframes, but it was designed to be used on a daily timeframe and that's how I recommend it to be used.
You may also go months without any buy signals during bull markets, but remember that is exactly the point of the strategy - to keep your buying power on the sidelines until the markets have significantly pulled back. You need to be patient and trust in the historical backtesting you have performed.
HOW IT WORKS
The Smart DCA Strategy leverages a creative approach to using Moving Averages to identify the most opportune moments to buy. A trigger occurs when a daily candle, in its entirety including the high wick, closes below the threshold line or box plotted on the chart. The indicator is designed to facilitate both backtesting and live trading.
HOW TO USE
Settings:
The input parameters for tuning have been intentionally simplified in an effort to prevent users falling into the overfitting trap.
The main control is the Buying strictness scale setting. Setting this to a lower value will provide more buying days (less strict) while higher values mean less buying days (more strict). In my testing I've found level 9 to provide good all round results.
Validation days is a setting to prevent triggering entries until the asset has spent a given number of days (candles) in the overbought state. Increasing this makes entries stricter. I've found 0 to give the best results across most assets.
In the backtest settings you can also configure how much to buy for each day an entry triggers. Blind buy size is the amount you would buy every day in a standard DCA strategy. Smart buy size is the amount you would buy each day a Smart DCA entry is triggered.
You can also experiment with backtesting your strategy over different historical datasets by using the Start date and End date settings. The results table will not calculate for any trades outside what you've set in the date range settings.
Backtesting:
When backtesting you should use the results table on the top right to tune and optimise the results of your strategy. As with all backtests, be careful to avoid overfitting the parameters. It's better to have a setup which works well across many currencies and historical periods than a setup which is excellent on one dataset but bad on most others. This gives a much higher probability that it will be effective when you move to live trading.
The results table provides a clear visual representation as to which strategy, standard or smart, is more profitable for the given dataset. You will notice the columns are dynamically coloured red and green. Their colour changes based on which strategy is more profitable in the A/B style backtest - green wins, red loses. The key metrics to focus on are GOA (Gain on Account) and Avg Cost .
Live Trading:
After you've finished backtesting you can proceed with configuring your alerts for live trading.
But first, you need to estimate the amount you should buy on each Smart DCA entry. We can use the Total invested row in the results table to calculate this. Assuming we're looking to trade on BITSTAMP:BTCUSD
Decide how much USD you would spend each day to buy BTC if you were using a standard DCA strategy. Lets say that is $5 per day
Enter that USD amount in the Blind buy size settings box
Check the Blind Buy column in the results table. If we set the backtest date range to the last 10 years, we would expect the amount spent on blind buys over 10 years to be $18,250 given $5 each day
Next we need to tweak the value of the Smart buy size parameter in setting to get it as close as we can to the Total Invested amount for Blind Buy
By following this approach it means we will invest roughly the same amount into our Smart DCA strategy as we would have into a standard DCA strategy over any given time period.
After you have calculated the Smart buy size , you can go ahead and set up alerts on Smart DCA buy triggers.
BOT AUTOMATION
In an effort to maintain the 'set and forget' stress-free benefits of a standard DCA strategy, I have set my personal Smart DCA Strategy up to be automated. The bot runs on AWS and I have a fully functional project for the bot on my GitHub account. Just reach out if you would like me to point you towards it. You can also hook this into any other 3rd party trade automation system of your choice using the pre-configured alerts within the indicator.
PLANNED FUTURE DEVELOPMENTS
Currently this is purely an accumulation strategy. It does not have any sell signals right now but I have ideas on how I will build upon it to incorporate an algorithm for selling. The strategy should gradually offload profits in bull markets which generates more USD which gives more buying power to rinse and repeat the same process in the next cycle only with a bigger starting capital. Watch this space!
MARKETS
Crypto:
This strategy has been specifically built to work on the crypto markets. It has been developed, backtested and tuned against crypto markets and I personally only run it on crypto markets to accumulate more of the coins I believe in for the long term. In the section below I will provide some backtest results from some of the top crypto assets.
Stocks:
I've found it is generally more profitable than a standard DCA strategy on the majority of stocks, however the results proved to be a lot more impressive on crypto. This is mainly due to the volatility and cycles found in crypto markets. The strategy makes its profits from capitalising on pullbacks in price. Good stocks on the other hand tend to move up and to the right with less significant pullbacks, therefore giving this strategy less opportunity to flourish.
Forex:
As this is an accumulation style investment strategy, I do not recommend that you use it to trade Forex.
STRATEGY IN ACTION
Here you see the indicator running on the BITSTAMP:BTCUSD pair. You can read the indicator as follows:
Vertical green bands on historical candles represents where buy signals triggered in the past
Table on the top right represents the results of the A/B backtest against a standard DCA strategy
Green Smart Buy column shows that Smart DCA was more profitable than standard DCA on this backtest. That is shown by the percentage GOA (Gain on Account) and the Avg Cost
Smart Buy Zone label marks the threshold which the entire candle must be below to trigger a buy signal (line can be changed to a box under plotting settings)
Green color of Smart Buy Zone label represents that the open candle is still valid for a buy signal. A signal will only be generated if the candle closes while this label is still green
Below is the same BITSTAMP:BTCUSD chart a couple of days later. Notice how the threshold has been broken and the Smart Buy Zone label has turned from green to red. No buy signal can be triggered for this day - even if the candle retraced and closed below the threshold before daily candle close.
Notice how the green vertical bands tend to be present after significant pullbacks in price. This is the reason the strategy works! Below is the same BITSTAMP:BTCUSD chart, but this time zoomed out to present a clearer picture of the times it would invest vs times it would sit out of the market. You will notice it invests heavily in bear markets and significant pullbacks, and does not buy anything during bull markets.
Finally, to visually demonstrate the indicator on an asset other than BTC, here is an example on CRYPTO:ETHUSD . In this case the current daily high has not touched the threshold so it is still possible for this to be a valid buy trigger on daily candle close. The vertical green band will not print until the buy trigger is confirmed.
BACKTEST RESULTS
Now for some backtest results to demonstrate the improved performance over a standard DCA strategy using all non-stablecoin assets in the top 30 cryptos by marketcap.
I've used the TradingView ticker (exchange name denoted as CRYPTO in the symbol search) for every symbol tested with the exception of BTCUSD because there was some dodgy data at the beginning of the TradingView BTCUSD chart which overinflated the effectiveness of the Smart DCA strategy on that ticker. For BTCUSD I've used the BITSTAMP exchange data. The symbol links below will take you to the correct chart and exchange used for the test.
I'm using the GOA (Gain on Account) values to present how each strategy performed.
The value on the left side is the standard DCA result and the right is the Smart DCA result.
✅ means Smart DCA strategy outperformed the standard DCA strategy
❌ means standard DCA strategy outperformed the Smart DCA strategy
To avoid overfitting, and to prove that this strategy does not suffer from overfitting, I've used the exact same input parameters for every symbol tested below. The settings used in these backtests are:
Buying strictness scale: 9
Validation days: 0
You can absolutely tweak the values per symbol to further improve the results of each, however I think using identical settings on every pair tested demonstrates a higher likelihood that the results will be similar in the live markets.
I'm presenting results for two time periods:
First price data available for trading pair -> closing candle on Friday 26th Jan 2024 (ALL TIME)
Opening candle on Sunday 1st Jan 2023 -> closing candle on Friday 26th Jan 2024 (JAN 2023 -> JAN 2024)
ALL TIME:
BITSTAMP:BTCUSD 80,884% / 133,582% ✅
CRYPTO:ETHUSD 17,231% / 36,146% ✅
CRYPTO:BNBUSD 5,314% / 2,702% ❌
CRYPTO:SOLUSD 1,745% / 1,171% ❌
CRYPTO:XRPUSD 2,585% / 4,544% ✅
CRYPTO:ADAUSD 338% / 353% ✅
CRYPTO:AVAXUSD 130% / 160% ✅
CRYPTO:DOGEUSD 13,690% / 16,432% ✅
CRYPTO:TRXUSD 414% / 466% ✅
CRYPTO:DOTUSD -16% / -7% ✅
CRYPTO:LINKUSD 1,161% / 2,164% ✅
CRYPTO:TONUSD 25% / 47% ✅
CRYPTO:MATICUSD 1,769% / 1,587% ❌
CRYPTO:ICPUSD 70% / 50% ❌
CRYPTO:SHIBUSD -20% / -19% ✅
CRYPTO:LTCUSD 486% / 718% ✅
CRYPTO:BCHUSD -4% / 3% ✅
CRYPTO:LEOUSD 102% / 151% ✅
CRYPTO:ATOMUSD 46% / 91% ✅
CRYPTO:UNIUSD -16% / 1% ✅
CRYPTO:ETCUSD 283% / 414% ✅
CRYPTO:OKBUSD 1,286% / 1,935% ✅
CRYPTO:XLMUSD 1,471% / 1,592% ✅
CRYPTO:INJUSD 830% / 1,035% ✅
CRYPTO:OPUSD 138% / 195% ✅
CRYPTO:NEARUSD 23% / 44% ✅
Backtest result analysis:
Assuming we have an initial investment amount of $10,000 spread evenly across each asset since the creation of each asset, it would have provided the following results.
Standard DCA Strategy results:
Average percent return: 4,998.65%
Profit: $499,865
Closing balance: $509,865
Smart DCA Strategy results:
Average percent return: 7,906.03%
Profit: $790,603
Closing balance: $800,603
JAN 2023 -> JAN 2024:
BITSTAMP:BTCUSD 47% / 66% ✅
CRYPTO:ETHUSD 26% / 33% ✅
CRYPTO:BNBUSD 15% / 17% ✅
CRYPTO:SOLUSD 272% / 394% ✅
CRYPTO:XRPUSD 7% / 12% ✅
CRYPTO:ADAUSD 43% / 59% ✅
CRYPTO:AVAXUSD 116% / 151% ✅
CRYPTO:DOGEUSD 8% / 14% ✅
CRYPTO:TRXUSD 48% / 65% ✅
CRYPTO:DOTUSD 24% / 35% ✅
CRYPTO:LINKUSD 83% / 124% ✅
CRYPTO:TONUSD 7% / 21% ✅
CRYPTO:MATICUSD -3% / 7% ✅
CRYPTO:ICPUSD 161% / 196% ✅
CRYPTO:SHIBUSD 1% / 8% ✅
CRYPTO:LTCUSD -15% / -7% ✅
CRYPTO:BCHUSD 47% / 68% ✅
CRYPTO:LEOUSD 9% / 11% ✅
CRYPTO:ATOMUSD 1% / 15% ✅
CRYPTO:UNIUSD 9% / 23% ✅
CRYPTO:ETCUSD 27% / 40% ✅
CRYPTO:OKBUSD 21% / 30% ✅
CRYPTO:XLMUSD 11% / 19% ✅
CRYPTO:INJUSD 477% / 446% ❌
CRYPTO:OPUSD 77% / 91% ✅
CRYPTO:NEARUSD 78% / 95% ✅
Backtest result analysis:
Assuming we have an initial investment amount of $10,000 spread evenly across each asset for the duration of 2023, it would have provided the following results.
Standard DCA Strategy results:
Average percent return: 61.42%
Profit: $6,142
Closing balance: $16,142
Smart DCA Strategy results:
Average percent return: 78.19%
Profit: $7,819
Closing balance: $17,819
GKD-C Zero-lag TEMA Crosses [Loxx]The Giga Kaleidoscope GKD-C Zero-lag TEMA Crosses is a confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ GKD-C Zero-lag TEMA Crosses
Zero-lag TEMA Crosses is a spinoff of a the Zero-lag MA as described by David Stendahl in the April 2000 issue of the journal "Technical Analysis of Stocks and Commodities". This indicator uses TEMA calculation mode in order to make the lag lesser compared to the original Zero-lag MA, and that makes this version even faster than the Zero-lag DEMA too. This indicator is the difference between a Fast and Slow Zero-lag TEMA. This indicator is very useful for lower timeframe scalping.
What is the Zero-lag MA?
The Zero-lag MA (Zero-Lag Moving Average) is a technical indicator that was introduced in the April 2000 issue of the journal "Technical Analysis of Stocks and Commodities" by David Stendahl.
The Zero-lag MA is a type of moving average (MA) that is designed to reduce or eliminate the lag that is typically associated with traditional moving averages. Moving averages are a widely used technical analysis tool that helps traders to identify trends and potential trading opportunities. They work by calculating the average price of a security over a given period of time, and then plotting that average on a chart. The most commonly used moving averages are simple moving averages (SMAs) and exponential moving averages (EMAs).
The problem with traditional moving averages is that they can be slow to respond to changes in market conditions. This lag can cause traders to miss out on potential trading opportunities, or to enter or exit trades at the wrong time. The Zero-lag MA was developed as a solution to this problem.
The Zero-lag MA is calculated using a combination of two EMAs and a subtraction formula. The first step in calculating the Zero-lag MA is to calculate two exponential moving averages: a fast EMA and a slow EMA. The fast EMA is calculated over a shorter period of time than the slow EMA. The exact period lengths will depend on the trader's preferences and the security being analyzed.
Once the two EMAs have been calculated, the next step is to take the difference between them. This difference represents the current market trend, with a positive value indicating an uptrend and a negative value indicating a downtrend. However, this difference alone is not enough to create a useful indicator, as it can still suffer from lag.
To further reduce lag, the difference between the two EMAs is multiplied by a factor derived from a third, slower EMA. This slower EMA acts as a smoothing factor, helping to reduce noise and make the indicator more accurate. The exact period length of the slower EMA will depend on the trader's preferences and the security being analyzed.
The final step in calculating the Zero-lag MA is to add the result of the multiplication to the fast EMA. This produces a final value that represents the current market trend with reduced lag. The Zero-lag MA can be plotted on a chart like any other moving average, and can be used to identify trends, potential trading opportunities, and support and resistance levels.
Overall, the Zero-lag MA is designed to provide traders with a more accurate representation of current market conditions by reducing the lag time between price changes and the moving average. By doing so, it can help traders to make more informed trading decisions and improve their overall profitability.
What is the TEMA?
The triple exponential moving average (TEMA) is a technical analysis indicator that was developed to reduce the lag of traditional moving averages, such as the simple moving average (SMA) or the exponential moving average (EMA). The TEMA was first introduced by Patrick Mulloy in the January 1994 issue of the "Technical Analysis of Stocks and Commodities" magazine.
The TEMA is a type of moving average that is calculated by applying multiple exponential smoothing techniques to price data. Unlike traditional moving averages, which apply a single smoothing factor to price data, the TEMA applies three smoothing factors to produce a more responsive and accurate indicator.
To calculate the TEMA, the following steps are taken:
Calculate the single exponential moving average (SMA) of the price data over a given period.
Calculate the double exponential moving average (DEMA) of the SMA over the same period.
Calculate the triple exponential moving average (TEMA) of the DEMA over the same period.
The formula for calculating the TEMA is:
TEMA = 3 * EMA(SMA) - 3 * EMA(EMA(SMA)) + EMA(EMA(EMA(SMA)))
where EMA is the exponential moving average and SMA is the simple moving average.
The TEMA is designed to reduce the lag associated with traditional moving averages by applying multiple smoothing factors to the price data. This helps to filter out short-term price fluctuations and provide a smoother indicator of the underlying trend. The TEMA is also less susceptible to whipsaws, which occur when a security's price moves in one direction and then quickly reverses, causing false trading signals.
The TEMA can be used in a variety of ways in technical analysis. It can be used to identify trends, determine support and resistance levels, and generate trading signals. When the TEMA is rising, it is generally interpreted as a bullish signal, indicating that the price is trending higher. When the TEMA is falling, it is generally interpreted as a bearish signal, indicating that the price is trending lower.
In summary, the TEMA is a more responsive and accurate indicator than traditional moving averages, designed to reduce lag and provide a smoother representation of the underlying trend. It is a useful tool for technical analysts and traders looking to identify trends, support and resistance levels, and potential trading opportunities.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Zero-lag TEMA Crosses as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
█ Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
GKD-C Adaptive-Lookback Stochastic [Loxx]Giga Kaleidoscope GKD-C Adaptive-Lookback Stochastic is a Metamorphosis module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ GKD-C Adaptive-Lookback Stochastic
The Adaptive-Lookback Stochastic uses a swing pivot lookback algorithm to adjust the periiod input bar-bar-bar thereby converting the regular Stochasitc oscillator into an adaptive Stochatic oscillator.
What is the Adaptive Lookback Period?
The adaptive lookback period is a technique used in technical analysis to adjust the period of an indicator based on changes in market conditions. This technique is particularly useful in volatile or rapidly changing markets where a fixed period may not be optimal for detecting trends or signals.
The concept of the adaptive lookback period is relatively simple. By adjusting the lookback period based on changes in market conditions, traders can more accurately identify trends and signals. This can help traders to enter and exit trades at the right time and improve the profitability of their trading strategies.
The adaptive lookback period works by identifying potential swing points in the market. Once these points are identified, the lookback period is calculated based on the number of swings and a speed parameter. The swing count parameter determines the number of swings that must occur before the lookback period is adjusted. The speed parameter controls the rate at which the lookback period is adjusted, with higher values indicating a more rapid adjustment.
The adaptive lookback period can be applied to a wide range of technical indicators, including moving averages, oscillators, and trendlines. By adjusting the period of these indicators based on changes in market conditions, traders can reduce the impact of noise and false signals, leading to more profitable trades.
The adaptive lookback period is a powerful technique for traders and analysts looking to optimize their technical indicators. By adjusting the period based on changes in market conditions, traders can more accurately identify trends and signals, leading to more profitable trades. While there are various ways to implement the adaptive lookback period, the basic concept remains the same, and traders can adapt and customize the technique to suit their individual needs and trading styles.
What is the Stochastic Oscillator?
The Stochastic Oscillator is a popular technical analysis indicator developed by George Lane in the 1950s. It is a momentum indicator that compares a security's closing price to its price range over a specified period. The main idea behind the Stochastic Oscillator is that, in an upward trending market, prices tend to close near their high, while in a downward trending market, prices tend to close near their low. The Stochastic Oscillator ranges from 0 to 100 and is primarily used to identify overbought and oversold conditions or potential trend reversals.
The Stochastic Oscillator is calculated using the following formula:
%K = ((C - L14) / (H14 - L14)) * 100
Where:
%K: The Stochastic Oscillator value.
C: The most recent closing price.
L14: The lowest price of the last 14 periods (or any other chosen period).
H14: The highest price of the last 14 periods (or any other chosen period).
Additionally, a moving average of %K, called %D, is calculated to provide a signal line:
%D = Simple Moving Average of %K over 'n' periods
The Stochastic Oscillator generates signals based on the following conditions:
1. Overbought and Oversold Levels: The Stochastic Oscillator typically uses 80 and 20 as overbought and oversold levels, respectively. When the oscillator is above 80, it is considered overbought, indicating that the market may be overvalued and a price decline is possible. When the oscillator is below 20, it is considered oversold, indicating that the market may be undervalued and a price rise is possible.
2. Bullish and Bearish Divergences: A bullish divergence occurs when the price makes a lower low, but the Stochastic Oscillator makes a higher low, suggesting a potential trend reversal to the upside. A bearish divergence occurs when the price makes a higher high, but the Stochastic Oscillator makes a lower high, suggesting a potential trend reversal to the downside.
3. Crosses: Buy signals are generated when %K crosses above %D, indicating upward momentum. Sell signals are generated when %K crosses below %D, indicating downward momentum.
The Stochastic Oscillator is commonly used in combination with other technical analysis tools to confirm signals and improve the accuracy of predictions.
When using the Stochastic Oscillator, it's important to consider a few best practices and additional insights:
1. Confirmation with other indicators: While the Stochastic Oscillator can provide valuable insights into potential trend reversals and overbought/oversold conditions, it is generally more effective when used in conjunction with other technical indicators, such as moving averages, RSI (Relative Strength Index), or MACD (Moving Average Convergence Divergence). This can help confirm signals and reduce the chances of false signals or whipsaws.
2. Timeframes: The Stochastic Oscillator can be applied to various timeframes, such as daily, weekly, or intraday charts. Adjusting the lookback period for the calculation can also alter the sensitivity of the indicator. A shorter lookback period will make the oscillator more sensitive to price movements, while a longer lookback period will make it less sensitive. Traders should choose a timeframe and lookback period that aligns with their trading strategy and risk tolerance.
3. Variations: There are two primary variations of the Stochastic Oscillator: Fast Stochastic and Slow Stochastic. The Fast Stochastic uses the original %K and %D calculations, while the Slow Stochastic smooths %K with an additional moving average and uses this smoothed %K as the new %D. The Slow Stochastic is generally considered to generate fewer false signals due to the additional smoothing.
4. Overbought and Oversold: It's important to remember that overbought and oversold conditions can persist for an extended period, especially during strong trends. This means that the Stochastic Oscillator alone should not be relied upon as a definitive buy or sell signal. Instead, traders should wait for additional confirmation from other indicators or price action before entering or exiting a trade.
The Stochastic Oscillator is a valuable momentum indicator that helps traders identify potential trend reversals and overbought/oversold conditions in the market. However, it is most effective when used in combination with other technical analysis tools and should be adapted to suit the specific needs of the individual trader's strategy and risk tolerance.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Full GKD Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Composite RSI
Confirmation 2: uf2018
Continuation: Vortex
Exit: Rex Oscillator
Metamorphosis: Fisher Transform, Universal Oscillator, Aroon, Vortex .. combined
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
█ Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Basline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
█ Connecting to Backtests
All GKD indicators are chained indicators meaning you export the value of the indicators to specialized backtest to creat your GKD trading system. Each indicator contains a proprietary signal generation algo that will only work with GKD backtests. You can find these backtests using the links below.
GKD-BT Giga Confirmation Stack Backtest:
GKD-BT Giga Stacks Backtest:
GKD-BT Full Giga Kaleidoscope Backtest:
GKD-BT Solo Confirmation Super Complex Backtest:
GKD-BT Solo Confirmation Complex Backtest:
GKD-BT Solo Confirmation Simple Backtest:
GKD-C Variety Filters w/ Dynamic Zones [Loxx]Giga Kaleidoscope GKD-C Variety Filters w/ Dynamic Zones is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ Giga Kaleidoscope Modularized Trading System
What is Loxx's "Giga Kaleidoscope Modularized Trading System"?
The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading.
What is the NNFX algorithmic trading strategy?
The NNFX (No-Nonsense Forex) trading system is a comprehensive approach to Forex trading that is designed to simplify the process and remove the confusion and complexity that often surrounds trading. The system was developed by a Forex trader who goes by the pseudonym "VP" and has gained a significant following in the Forex community.
The NNFX trading system is based on a set of rules and guidelines that help traders make objective and informed decisions. These rules cover all aspects of trading, including market analysis, trade entry, stop loss placement, and trade management.
Here are the main components of the NNFX trading system:
1. Trading Philosophy: The NNFX trading system is based on the idea that successful trading requires a comprehensive understanding of the market, objective analysis, and strict risk management. The system aims to remove subjective elements from trading and focuses on objective rules and guidelines.
2. Technical Analysis: The NNFX trading system relies heavily on technical analysis and uses a range of indicators to identify high-probability trading opportunities. The system uses a combination of trend-following and mean-reverting strategies to identify trades.
3. Market Structure: The NNFX trading system emphasizes the importance of understanding the market structure, including price action, support and resistance levels, and market cycles. The system uses a range of tools to identify the market structure, including trend lines, channels, and moving averages.
4. Trade Entry: The NNFX trading system has strict rules for trade entry. The system uses a combination of technical indicators to identify high-probability trades, and traders must meet specific criteria to enter a trade.
5. Stop Loss Placement: The NNFX trading system places a significant emphasis on risk management and requires traders to place a stop loss order on every trade. The system uses a combination of technical analysis and market structure to determine the appropriate stop loss level.
6. Trade Management: The NNFX trading system has specific rules for managing open trades. The system aims to minimize risk and maximize profit by using a combination of trailing stops, take profit levels, and position sizing.
Overall, the NNFX trading system is designed to be a straightforward and easy-to-follow approach to Forex trading that can be applied by traders of all skill levels.
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Variety Filters w/ Dynamic Zones as shown on the chart above
Confirmation 2: Williams Percent Range
Continuation: Fisher Transform
Exit: Rex Oscillator
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain.
Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm)
Standard Entry
1. GKD-C Confirmation 1 Signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
6. GKD-C Confirmation 1 signal was less than 7 candles prior
Volatility/Volume Entry
1. GKD-V Volatility/Volume signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-B Baseline agrees
6. GKD-C Confirmation 1 signal was less than 7 candles prior
Continuation Entry
1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously
2. GKD-B Baseline hasn't crossed since entry signal trigger
3. GKD-C Confirmation Continuation Indicator signals
4. GKD-C Confirmation 1 agrees
5. GKD-B Baseline agrees
6. GKD-C Confirmation 2 agrees
1-Candle Rule Standard Entry
1. GKD-C Confirmation 1 signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
1-Candle Rule Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 1 signal was less than 7 candles prior
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
1-Candle Rule Volatility/Volume Entry
1. GKD-V Volatility/Volume signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 1 signal was less than 7 candles prior
Next Candle:
1. Price retraced (Long: close < close or Short: close > close)
2. GKD-B Volatility/Volume agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-B Baseline agrees
PullBack Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is beyond 1.0x Volatility of Baseline
Next Candle:
1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
2. GKD-C Confirmation 1 agrees
3. GKD-C Confirmation 2 agrees
4. GKD-V Volatility/Volume Agrees
█ GKD-C Variety Filters w/ Dynamic Zones
What are Dynamic Zones?
As explained in "Stocks & Commodities V15:7 (306-310): Dynamic Zones by Leo Zamansky, Ph .D., and David Stendahl"
Most indicators use a fixed zone for buy and sell signals. Here’ s a concept based on zones that are responsive to past levels of the indicator.
One approach to active investing employs the use of oscillators to exploit tradable market trends. This investing style follows a very simple form of logic: Enter the market only when an oscillator has moved far above or below traditional trading levels. However, these oscillator- driven systems lack the ability to evolve with the market because they use fixed buy and sell zones. Traders typically use one set of buy and sell zones for a bull market and substantially different zones for a bear market. And therein lies the problem.
Once traders begin introducing their market opinions into trading equations, by changing the zones, they negate the system’s mechanical nature. The objective is to have a system automatically define its own buy and sell zones and thereby profitably trade in any market — bull or bear. Dynamic zones offer a solution to the problem of fixed buy and sell zones for any oscillator-driven system.
An indicator’s extreme levels can be quantified using statistical methods. These extreme levels are calculated for a certain period and serve as the buy and sell zones for a trading system. The repetition of this statistical process for every value of the indicator creates values that become the dynamic zones. The zones are calculated in such a way that the probability of the indicator value rising above, or falling below, the dynamic zones is equal to a given probability input set by the trader.
To better understand dynamic zones, let's first describe them mathematically and then explain their use. The dynamic zones definition:
Find V such that:
For dynamic zone buy: P{X <= V}=P1
For dynamic zone sell: P{X >= V}=P2
where P1 and P2 are the probabilities set by the trader, X is the value of the indicator for the selected period and V represents the value of the dynamic zone.
The probability input P1 and P2 can be adjusted by the trader to encompass as much or as little data as the trader would like. The smaller the probability, the fewer data values above and below the dynamic zones. This translates into a wider range between the buy and sell zones. If a 10% probability is used for P1 and P2, only those data values that make up the top 10% and bottom 10% for an indicator are used in the construction of the zones. Of the values, 80% will fall between the two extreme levels. Because dynamic zone levels are penetrated so infrequently, when this happens, traders know that the market has truly moved into overbought or oversold territory.
Calculating the Dynamic Zones
The algorithm for the dynamic zones is a series of steps. First, decide the value of the lookback period t. Next, decide the value of the probability Pbuy for buy zone and value of the probability Psell for the sell zone.
For i=1, to the last lookback period, build the distribution f(x) of the price during the lookback period i. Then find the value Vi1 such that the probability of the price less than or equal to Vi1 during the lookback period i is equal to Pbuy. Find the value Vi2 such that the probability of the price greater or equal to Vi2 during the lookback period i is equal to Psell. The sequence of Vi1 for all periods gives the buy zone. The sequence of Vi2 for all periods gives the sell zone.
In the algorithm description, we have: Build the distribution f(x) of the price during the lookback period i. The distribution here is empirical namely, how many times a given value of x appeared during the lookback period. The problem is to find such x that the probability of a price being greater or equal to x will be equal to a probability selected by the user. Probability is the area under the distribution curve. The task is to find such value of x that the area under the distribution curve to the right of x will be equal to the probability selected by the user. That x is the dynamic zone.
What is Variety Filters w/ Dynamic Zones?
This indicator first smooths price with one of 65+ moving averages and then injects that output into the Dynamic Zones algorithm to create levels of significances. These levels are used to generate trading signals.
Requirements
Inputs
Confirmation 1: GKD-V Volatility / Volume indicator
Confirmation 2: GKD-C Confirmation indicator
Continuation: GKD-C Confirmation indicator
Solo Confirmation Simple: GKD-B Baseline
Solo Confirmation Complex: GKD-V Volatility / Volume indicator
Solo Confirmation Super Complex: GKD-V Volatility / Volume indicator
Stacked 1: None
Stacked 2+: GKD-C, GKD-V, or GKD-B Stacked 1
Outputs
Confirmation 1: GKD-C Confirmation 2 indicator
Confirmation 2: GKD-C Continuation indicator
Continuation: GKD-E Exit indicator
Solo Confirmation Simple: GKD-BT Backtest
Solo Confirmation Complex: GKD-BT Backtest or GKD-E Exit indicator
Solo Confirmation Super Complex: GKD-C Continuation indicator
Stacked 1: GKD-C, GKD-V, or GKD-B Stacked 2+
Stacked 2+: GKD-C, GKD-V, or GKD-B Stacked 2+ or GKD-BT Backtest
Additional features will be added in future releases.
Most Power V5 Most Power V5
The MOST indicator is an indicator used as a Moving Stoploss. The MOST indicator also generates a buy signal in case the prices rise, unlike the traditional indicators that allow you to make stop losses.In the MOST POWER V5 indicator, stoploss generates its signals using moving averages such as 'SMA', 'EMA', 'WMA', 'VWMA', 'HMA', 'SMMA', 'DEMA' rather than just the current price. In this way, it aims to prevent false signals that may be produced by excessive price movements during the day.
MOST POWER Indicator follows the average by preserving the stop loss distance in the movement of the moving average in the same direction.
The second variable that creates the MOST POWER curve is the stop loss distance that gives power to MOST with the moving average used and the shift rate that provides the stop signal. In this version, this distance is prepared with 2 separate inputs for both buy and sell.You can set these values as "percentage for long trend" and "percentage for short trend" in the indicator input properties.
You can also enter your Take Profit-1, Take Profit-2-, Take Profit-3- and Stop Loss levels in the indicator input properties, especially if you are interested in algo trading or to take advantage of the wonderful alarm setup features of tradingview and get the chance to get maximum profit. (If you enter Take Profit-1, Take Profit-2-, Take Profit-3- and Stop Loss levels as 0. Only buy and sell labels will appear on the indicator.)
Also, activate the amplitude filter option from the indicator input settings to get less signal and filter our inputs.
In addition, the entry price, take profit1, take profit2, take profit3 values for the last transaction opened to make things easier are located in the upper right corner of your graph as a table.
Important note: No indicator guarantees investment. That's why the tests you will do before real trades are very important in this indicator. I wish you all successful trades.
i will show how works with examples
Example 1
If you enter Take Profit-1, Take Profit-2-, Take Profit-3- and Stop Loss levels greater than 0
Example 2
If you enter Take Profit-1, Take Profit-2-, Take Profit-3- and Stop Loss levels as 0 (u will see only buy - sell labels)
Example 3
if select Amplitude Filter is on . you will see less signal
how works Amplitude Filter whats logic ?
if Amplitude Filter is active the signal from mostpower will be combined with Amplitude Filter.
for example, if the amplitude value is 2, the highest price and the lowest price of the last 2 bars are calculated. then this amplitude value is calculated for sma with its source high and low. Based on these values, the trend is determined in the amplitude of the price movement.
Important note: No indicator guarantees investment. That's why the tests you will do before real trades are very important in this indicator. I wish you all successful trades.
Trendmaster - Crypto On-Chain Metric BundleWhat it is:
The ‘Trendmaster Crypto On-Chain Metric Bundle’ is truly a one-of-a-kind bundle. It provides a complete insight into the on-chain dynamics of the entire Crypto asset class, with a multitude of different included indicators providing unique information and data points to give users an edge regardless of ticker, timeframe, or trading style.
What it Does:
Allows you to switch between several different metrics in one place and see specific combined metrics and look at the metrics to take contrarian positions
How to Use it:
Use these metrics to see the on-chain actions in cryptocurrency and play the contrarian. For example, when people are flooding into stablecoins as the price goes down you can see that as a potential buy indicator.
All metrics can be viewed with a Dashboard allowing the user to see all of the information in 1 place.
List of On-Chain Metrics:
To begin with, we have the ‘Trendmaster On-Chain Rating’ – which is our all-in-one, complete on-chain overview metric that can give you an instant insight into the fundamental and underlying strength of any given Crypto asset. It collates the key factors provided by all other indicators within the bundle, weighing in and condensing all of that information into a simple -5 to 5 scale; with a -5 indicating a completely bearish outlook on the asset, and a +5 representing truly great upcoming upside potential. As this indicator is taking into account large amounts of data and statistics to provide an on-chain overview, this value is best taken into consideration on higher timeframes such as the 4hour or daily to provide fundamentally strong buy or sell swing trade opportunities. Extreme rating signals on this indicator are rare but always worth taking into serious consideration.
Secondly, we have the ‘Collated Open Interest Oscillator’ – which gives us a peek into the current outlook of the derivatives market across a wide array of Crypto futures on a number of different exchanges. This indicator provides data on a 0-100 scale, with 100 indicating a substantial and sustained increase in open derivative positions in relation to the underlying market volume. A score of 100 can tell us that a huge amount of traders are trying to position themselves with high leverage in anticipation of a big move, and can often be compared to periods of extreme greed from market participants. On the contrary, a value of 0 shows us that the derivative market is decreasing in volume and therefore open interest is decreasing, which can be likened to periods of extreme fear. This data is only provided at daily intervals, but as incredibly high or low values on this indicator can have an almost instant impact, this indicator is best utilized for medium-term trading and investment decisions.
The ‘Social Sentiment Oscillator' analyses bullish and bearish narratives in relation to a number of large Cryptocurrencies and the market in general, across multiple social media platforms. Rather than a traditional 0-100 ‘Fear & Greed’ index that many may be familiar with, this indicator tracks the changing in sentiment across platforms on a -100 to 100 scale. A score of -100 may not necessarily indicate immediate extreme fear in the market, but instead a huge shift from an incredibly bullish narrative to an incredibly bearish one. Similar to a score of 100, this does not necessarily indicate that the current outlook on social media platforms is currently positive, but rather that a substantial amount of people are altering their views and have become more bullish on a short-term basis. This data is only provided at daily intervals, so make sure to keep an eye on price and sentiment divergences for the best swing trade opportunities to play contrarian to the majority.
Following this is the ‘Miner Confidence Metric’, which provides a long-term overview of the current Crypto miner's outlook. This simple -10 to 10 scale gives us an easy-to-follow bearish to the bullish sentiment of miners. This indicator takes into account the current hash rate, looking at both how it historically compares as well as its rate of decrease/increase; as well as on-chain miner movements to verify their stance on either holding onto their Crypto earnings or preferring to move their coins to exchanges to sell and cover their running costs. Generally speaking, miners can face difficulties operating during times of large market drawdowns, and may be forced into offloading and selling physical and virtual resources to remain afloat – this is indicated by a -10 value at the extreme end, and has historically provided outsized returns for long-term investors accumulating at their demise. Contrary to this, a score of 10 can indicate that miners are not only bullish on the future of crypto, but are likely also expanding operations in anticipation of higher prices in the future. This data is only provided at daily intervals, but on longer-term timeframes provide some of the best long-term accumulation opportunities available to market participants.
Next is the ‘Collated On-Chain Volume’ indicator, which simply monitors a variety of Cryptocurrencies and their underlying on-chain transactional usage. When collating these volumetric data it can provide invaluable insight into the current actions taken by market buyers and sellers and often larger players who can have a big influence on price. Typically when we see large spikes in on-chain usage it indicates substantial levels of accumulation or distribution, which can be made more obvious by observing where we currently are in a market cycle. Large spikes after large and extended periods of drawdown can represent coins transferring from retail to larger players who are often referred to as ‘smart money’; and with large on-chain volume following a substantial bull cycle, this may show us larger players distributing coins to retail. Data can only be fetched at daily intervals, but watch for big spikes to try and position yourself alongside the big players.
We also have the ‘Holder in Profit %’ which as it sounds, is just giving us a percentile value of Crypto traders, investors, and holders who are currently in profit on their positions. Historically speaking, when a majority are at a loss – and buying ‘when there is blood in the streets has been a profitable venture. Considering cutting some of your positions when market exuberance is in full effect and a vast majority of participants are reaping in easy profits. As data is only obtained at daily intervals, using this as a longer-term gauge for where we may be in a cycle is where it is most insightful.
The ‘Long/Short Ratio Crossover’ analyses the current disparity between traders who have positioned themselves in a long position on derivatives markets in comparison to those betting on prices going down. This indicator provides another impressive insight into the fallacy of the herd mentality, and how aiming to be on the opposite side of the masses can often be a profitable venture. A value of 100 can show us that an overwhelming majority of traders are predicting a price increase and are trying to position themselves accordingly, whereas a value of -100 indicates almost all derivative traders are trying to bet on a sizeable market downturn. This metric can be useful for both long-term positions and shorter-term scalping methods of trading and investing, updating on a per-candle basis.
Along with this, the ‘Retail Stablecoin Demand’ looks into the current demand for a number of Crypto stablecoins, aiming to mimic an underlying value close to that of traditional fiat currencies like the US Dollar. This is calculated by analyzing the short to mid-term rush to these ‘safer’ assets by retail traders. Traditionally people will exit their positions in favor of stable assets when they are either currently or are expecting to experience losses. Conversely, when users foresee upcoming profits they are likely to transition into a more ‘risk-on’ thesis and exit their stablecoins for more speculative assets. A value of 100 represents a huge demand for stablecoins, whereas a value of -100 shows that there is currently a lack of interest. Another indication providing a chance to profitably play the contrarian, with figures constantly updating to provide the functionality to all regardless of your trading methodology or investment philosophy.
Lastly the ‘Whale Bubbles’, display overlaying circles of varying size and opacity to represent on-chain activity by larger market players who are transferring a portion of their substantial holding, usually to exchanges to sell. These bubbles are placed over price action to clearly see the point at which the transaction occurred. We can also lower the minimum requirement of what is defined as a ‘whale movement’ by increasing the sensitivity within the indicator settings and subsequently increasing signal frequency. When whales begin to sell in numbers, it may be worth considering doing the same yourself!
We hope you can find utility in all of these indicators, and that in unison they can take your trading and investment to the next level. A majority of these indicators within the bundle can be tweaked and optimized within the bundle to further fine-tune and cater to your preferred trading and investing thesis. Check out our other resources and let us know what you’d like to see next!
MKAST V2 (monthly)PLEASE READ THE ENTIRE POST BEFORE PURCHASING & USING THE MKAST Algorithm. Saves you and me some time in emails and messages. :)
This is the NEW MONTHLY ACCESS Version of the MKAST
The MKAST Buy Sell Algorithm is a very specific strategy, cut down to its roots and made perfect for the volatile crypto market.
Many Algorithms focus only on one aspect, one side, one specific rule.
As you know, this is not how life, the market or anything else works.
MKAST combines many different aspects at the same time, scans multiple other Algorithms and comes to a conclusion based on over 1350 lines of code.
It is based on Divergences, Elliott Waves , Ichimoku , MACD , MACD Histogram, RSI , Stoch , CCI , Momentum, OBV, DIOSC, VWMACD, CMF and multiple EMAs.
Every single aspect is weighted into the decision before giving out an indication.
Most buy/sell Algorithms FAIL because they try to apply the same strategy to every single chart, which
are as individual as humans.
To conquer this problem, MKAST has a wide range of settings and variables which can be easily
modified.
To make it a true strategy, MKAST has as well settings for Take Profit Points, Multiple Entries and Stop
Losses. Everything with an Alert Feature of course.
I know from experience that many people take one Algorithm and are simply too LAZY to add multiple Algorithms to make a rational choice.
The result of that is that they lose money, by following blatantly only one Algorithm.
MKAST has additional 9 Indicators, perfect for the crypto market, which can be turned on and off.
Manual
MKAST Signals Settings
“Show Signals?” - On/Off to show the Buy/Sell Signals.
“Aggressiveness” - Increase to make the signals less aggressive and decrease to make them more aggressive.
“Show Custom Signals?” - On/Off to show custom MKAST Signals as chosen in the settings below.
“Custom Buy/Sell Aggressiveness” - Choose a custom Aggressiveness for each buy and sell signal individually.
“TJ-Index Requirement For Buy/Sell” - If the TJ-Index is below the given number, it will show the signal in grey, this also applies for normal signals. Buy 0 and Sell 15 shows all signals in their original colour again.
“Don’t show signals that don’t meet index requirement?” - Checked, it will completely not show signals which would be “grey” as in the explanation above.
“Change Backgroundcolour if index is at 15 or 0?” - Checked, changes the colour of the chart if the index is at 15 or 0 points
MKAST Panel Settings
“Show Info Panel?” - Shows Info Panel on the chart.
“Move Info Panel UP by %” - Moves Info Panel up/down.
“Move Info Panel Left/Right ” - Moves Info Panel Left/Right.
“Show BitMEX Panel?” - Shows BitMEX Panel on the chart.
“Move BitMEX Panel by % ” - Moves BitMEX Panel up/down.
“Move BitMEX Panel Left/Right” - Moves BitMEX Panel Left/Right. “Signal Source” - Choose source of candle open/close for Equity calculation.
“Leverage Used?” - Select the used Leverage for your strategy and Equity calculation.
“Fees Per Trade in % ” - Deducts these fees after each trade from Equity calculation.
“Round Current Profit Price?” - Rounds the number on the Panel. “Trading Periods ” - Choose a trading Period which will be used to calculate Period Equity.
“Show separations of each Trading Period?” - Show separations on the chart of each Trading Period.
The very new feature on Tradingview and obviously now as well on MKAST are Information Panels.
I have chosen to add an Info Panel and a BitMEX Price Panel into MKAST, to make live and even
backtesting easier.
With only one blink of an eye the user is able to see ALL relevant information, without having to go
through various ways of checking and using other tools.
The Info Panel:
The first row shows the current profit. This is calculated since the signal initiation and the current candle close. Followed by a single number, which represents the current TJ-Index, removing the need of having to add the actual TJ-Index Oscillator on the chart.
The second row shows the current position and its status. This was added on request of many users wanting to know if their position is “about to change” or not. The status shows the users if the position is “endangered” or “okay”.
Followed by the “backtesting tool” already included inside the Panel. No need for complex oscillators with a hard reading for backtesting. With this one and simple panel, you see the Period Equity for the period chosen previously in the settings. This calculates all profits made inside that period and re-sets when the period ends. Right next to it, the Total Equity calculating ALL profits since the beginning of the chart.
Right below, you see the information about the last long and short position which have been open. This helps with the evaluation and documentation of the last trade.
The BitMEX Panel:
A convenient panel which shows all BitMEX contracts and their LIVE prices. The need for opening each chart goes away, the quality and experience of trading increases.
MKAST custom Signals are one of the notorious possibilities for ADVANCED strategies with MKAST.
Users who requested these features and use them frequently are the ones, having already a very unique trading strategy and they use these very custom signals as confluence or for multiple entry trades.
These custom signals and their settings can be mostly ignored by the majority of traders who are using this Algorithm.
The idea behind the grey signals has its roots in the idea of the TJ-Index. The TJ-Index being 15 Algorithms and conditions possible showing a bullish or bearish interpretation. The index counts the Algorithms which are showing a bullish interpretation.
Like that we can make sure that signals are shown in the original colour, are only those who have an additional confluence with the TJ-Index, not letting the user buy, if at least the majority is not bullish , and not letting the user sell, if at least the majority is bearish .
The custom buy and sell aggressiveness lets the user customise the MKAST algorithm even more.
Either the users wants to see how signals are changing on a different (slightly lower or higher) aggressiveness, being able to expect a change on their own settings. OR seeing that some signals of the same sort are a little out of place and is able to move these to a different aggressiveness, increasing the profitability even more.
Needless to say, custom signals are NOT a part of the Info Panel.
MKAST Label & Trendline Settings
“Show Labels?” - On/Off to show Labels above each signal, with the percentage gain or loss, calculated from the last signal to the new signal.
“Show Trendlines?” - On/Off to show automatic Trendlines following Gainzy Lines.
“Lookback Length” - Choose a length that the automatic trendiness use for calculation. Comparable to Aggressiveness.
“Wicks//Bodies” - Change between trendiness connecting from wick to wick or from body to body.
“Black lines// Coloured lines” - Change between simply black lines or changing colour lines.
“Filter Trendlines?” - On/Off to show all trendiness or just resistance decreasing and support increasing ones.
“Limit Extensions Of The Lines?” - This value increases by how much the trendiness are being extended. 0 = endless extension, otherwise 100 = maximum custom extension.MKAST Strategy “Take Profit 1” - On/Off to show TP1 points.
“Take Profit After %” - Set the percentage after which TP1 is active.
“Take Profit 2 ” - On/Off to show TP2 points.
“Take Profit 2 After %” - Set the percentage after which TP1 is
active.
“Take Profit 3” - On/Off to show TP3 points.
“Take Profit 3 After %” - Set the percentage after which TP1 is active.
“Second Entry” - On/Off to show Second Entry points.
“Second Entry After %” - Set the percentage after which Second Entry is active.
“Third Entry” - On/Off to show Third Entry points.
“Third Entry After %” - Set the percentage after which Third Entry is active.
“Stop Loss” - On/Off to show Stop Loss points.
“Stop Loss After %” - Set the percentage after which Stop Loss is active.
MKAST Strategy
To make the life of the MKAST user even easier, I have added all adjustable Take Profit Points, Multiple entry points and Stop Loss points.
I have never seen a sustainable and reliable trading strategy without TPs, Multiple entry and especially without a stop loss. Everything in the usual and fully customisable MKAST style.
Simply choose how many Take Profit points you would like to have and choose the percentage after which you would like to see the Take Profit point appear on the chart and notify you to take profits.
Are you a Trader who likes Multiple Entries? Also no problem with MKAST. Select how many additional entries you would like to have and after how many percent you would like them to appear on the chart and remind you of adding to the position.
What would a Strategy be without a Stop Loss? Same settings apply here as on the TPs and MEs .
All of the settings are able to take fractions of a number as well. This enables users to even use all of the strategy settings for scalping or FX pairs, where high leverage and the smallest of moves are used for trading.
Needless to say, all of these settings work on RENKO and Heikin Ashi as well. These might need adjustment, since the calculation is different, yet there is nothing standing in the way of it anymore.
Crypto Modified Indicators
“Show Divergences?” - On/Off to show Divergences on the Chart based on the data of 10 different Algorithms.
“Show Oversold/bought?” - On/Off to change the colour of the chart in Oversold/bought conditions.
“Oversold/bought value?” - Choose a value for which the chart is Oversold/bought.
“Show Fibonacci Levels?” - On/Off to show automatic Fibonacci Levels.
“Fibonacci Lookback Lenght” - This value states how many candles from right now are taken into account to paint the Fibonacci Levels.
“Fibonacci Custom Period” - Choose a custom Timeframe that should be used to paint the Fibonacci Levels.
“2nd-7th Fibonacci Level” - Enter a value for the Fibonacci Levels you would like to use and see on the chart.
“Plot 1.618 Level?” - On/Off for the Fibonacci extension level.
Crypto Modified Indicators
“Show Bands?” - On/Off to show the TJ-Bands on the chart.
“Bands Length” - Choose a value for the TJ-Bands Lenght
“Show Show EMA 1-3?” - On/Off to show the EMAs 1-3 on the chart.
“EMA Lenght 1-3” - Choose a value for the first to third EMA Lenght
“Show Ichimoku? ” - On/Off to show Ichimoku on the chart.
“Show Tenkin?” - On/Off to show Tenkin on the chart. “Tenkin” - Set the lenght of the Tenkin.
“Show Kijun?” - On/Off to show Kijun on the chart.
“Kijun” - Set the lenght of the Kijun.
“Show Senkou?” - On/Off to show the Senkou on the chart. “Senkou” - Set the lenght of the Senkou.
“Displacement” - Set the value of the Displacement.
“Show Chikou Span?” - On/Off to show the Chikou Span on the chart.
Crypto Custom Indicators
In the picture above, you see the first pair of Crypto Custom Indicators. The oversold and overbought conditions are highlighted.
Bullish and Bearish divergences are also plotted on the chart.
This is personally my favourite combination of Indicators and MKAST settings. It shows nicely
everything one needs to know and makes it easier to decide wether to follow a signal or not.
We here as well a perfect example of the Automatic Fibonacci Lines (Lookback 50, Timeframe 1D).
It shows all significant levels, which we can see being respected.
Orange = 23.6%, Green = 38.2%, Red = 50%, Yellow = 61.8%, Blue = 78.6%, White = 0%;100%
In this picture above, we observe the perfect ensemble of MKAST and an EMA strategy, especially modified for crypto markets.
Here, as by default, we have the EMAs at 21, 90 and 200. These have shown to be very significant moving support and resistance points in the crypto market.
In this picture above, I lowered the timeframe to show the highly significant levels of the Ichimoku . It has not the “usual values”. These here have been modified for the volatile crypto market and set as default.
An incredibly powerful tool for anyone who is ready to step up their trading game. It is a huge part of the MKAST back end and the strategy behind it.
MKAST Custom Alerts
1
MKAST without any doubt has Custom Alerts for all Signals that it is painting on the chart.
One can even choose to receive custom notifications for Take Profit points, Multiple Entry points and
the Stop Loss points.
The signals appear on the chart DURING the candle, not at the end of the candle. Therefore, the
alerts do this as well. These appear during the candle.
Here we can see all of the possible Alerts that can be chosen to be displayed. In total it is 14 different custom alerts, based on what the trader is looking for and how he is trading.
Personally, I have 10-15 coins that I trade the most and for these I have custom notifications, mostly though only the MKAST Buy/Sell and Stop Loss Signals.
To activate Alerts for MKAST,
1) Go to the “ALERT” icon on the top tool bar of your Tradingview.
2) Select “CONDITION” as “—MKAST—“
3) Then choose ONE condition from the list of conditions.
4) On “OPTIONS” you can set how many times it appears, I have “Once per Bar”.
4.1) If you want to make sure that the signal is truly there and not just a condition for a second during the candle, choose “ONCE PER BAR CLOSE”.
5) “Expiration Time” sets the time until the alert expires. PRO users have no expiration for alerts.
6) “Alert Actions” give you a row of choices what happens and how you want to be notified.
7) “Message” is the message that you receive inside the notification.
Thank you, Kong
MKAST V2 (lifetime)PLEASE READ THE ENTIRE POST BEFORE PURCHASING & USING THE MKAST Algorithm. Saves you and me some time in emails and messages. :)
This is the NEW LIFETIME ACCESS Version of the MKAST
The MKAST Buy Sell Algorithm is a very specific strategy, cut down to its roots and made perfect for the volatile crypto market.
Many Algorithms focus only on one aspect, one side, one specific rule.
As you know, this is not how life, the market or anything else works.
MKAST combines many different aspects at the same time, scans multiple other Algorithms and comes to a conclusion based on over 1350 lines of code.
It is based on Divergences, Elliott Waves, Ichimoku, MACD, MACD Histogram, RSI, Stoch, CCI, Momentum, OBV, DIOSC, VWMACD, CMF and multiple EMAs.
Every single aspect is weighted into the decision before giving out an indication.
Most buy/sell Algorithms FAIL because they try to apply the same strategy to every single chart, which
are as individual as humans.
To conquer this problem, MKAST has a wide range of settings and variables which can be easily
modified.
To make it a true strategy, MKAST has as well settings for Take Profit Points, Multiple Entries and Stop
Losses. Everything with an Alert Feature of course.
I know from experience that many people take one Algorithm and are simply too LAZY to add multiple Algorithms to make a rational choice.
The result of that is that they lose money, by following blatantly only one Algorithm.
MKAST has additional 9 Indicators, perfect for the crypto market, which can be turned on and off.
Manual
MKAST Signals Settings
“Show Signals?” - On/Off to show the Buy/Sell Signals.
“Aggressiveness” - Increase to make the signals less aggressive and decrease to make them more aggressive.
“Show Custom Signals?” - On/Off to show custom MKAST Signals as chosen in the settings below.
“Custom Buy/Sell Aggressiveness” - Choose a custom Aggressiveness for each buy and sell signal individually.
“TJ-Index Requirement For Buy/Sell” - If the TJ-Index is below the given number, it will show the signal in grey, this also applies for normal signals. Buy 0 and Sell 15 shows all signals in their original colour again.
“Don’t show signals that don’t meet index requirement?” - Checked, it will completely not show signals which would be “grey” as in the explanation above.
“Change Backgroundcolour if index is at 15 or 0?” - Checked, changes the colour of the chart if the index is at 15 or 0 points
MKAST Panel Settings
“Show Info Panel?” - Shows Info Panel on the chart.
“Move Info Panel UP by %” - Moves Info Panel up/down.
“Move Info Panel Left/Right ” - Moves Info Panel Left/Right.
“Show BitMEX Panel?” - Shows BitMEX Panel on the chart.
“Move BitMEX Panel by % ” - Moves BitMEX Panel up/down.
“Move BitMEX Panel Left/Right” - Moves BitMEX Panel Left/Right. “Signal Source” - Choose source of candle open/close for Equity calculation.
“Leverage Used?” - Select the used Leverage for your strategy and Equity calculation.
“Fees Per Trade in % ” - Deducts these fees after each trade from Equity calculation.
“Round Current Profit Price?” - Rounds the number on the Panel. “Trading Periods ” - Choose a trading Period which will be used to calculate Period Equity.
“Show separations of each Trading Period?” - Show separations on the chart of each Trading Period.
The very new feature on Tradingview and obviously now as well on MKAST are Information Panels.
I have chosen to add an Info Panel and a BitMEX Price Panel into MKAST, to make live and even
backtesting easier.
With only one blink of an eye the user is able to see ALL relevant information, without having to go
through various ways of checking and using other tools.
The Info Panel:
The first row shows the current profit. This is calculated since the signal initiation and the current candle close. Followed by a single number, which represents the current TJ-Index, removing the need of having to add the actual TJ-Index Oscillator on the chart.
The second row shows the current position and its status. This was added on request of many users wanting to know if their position is “about to change” or not. The status shows the users if the position is “endangered” or “okay”.
Followed by the “backtesting tool” already included inside the Panel. No need for complex oscillators with a hard reading for backtesting. With this one and simple panel, you see the Period Equity for the period chosen previously in the settings. This calculates all profits made inside that period and re-sets when the period ends. Right next to it, the Total Equity calculating ALL profits since the beginning of the chart.
Right below, you see the information about the last long and short position which have been open. This helps with the evaluation and documentation of the last trade.
The BitMEX Panel:
A convenient panel which shows all BitMEX contracts and their LIVE prices. The need for opening each chart goes away, the quality and experience of trading increases.
MKAST custom Signals are one of the notorious possibilities for ADVANCED strategies with MKAST.
Users who requested these features and use them frequently are the ones, having already a very unique trading strategy and they use these very custom signals as confluence or for multiple entry trades.
These custom signals and their settings can be mostly ignored by the majority of traders who are using this Algorithm.
The idea behind the grey signals has its roots in the idea of the TJ-Index. The TJ-Index being 15 Algorithms and conditions possible showing a bullish or bearish interpretation. The index counts the Algorithms which are showing a bullish interpretation.
Like that we can make sure that signals are shown in the original colour, are only those who have an additional confluence with the TJ-Index, not letting the user buy, if at least the majority is not bullish, and not letting the user sell, if at least the majority is bearish.
The custom buy and sell aggressiveness lets the user customise the MKAST algorithm even more.
Either the users wants to see how signals are changing on a different (slightly lower or higher) aggressiveness, being able to expect a change on their own settings. OR seeing that some signals of the same sort are a little out of place and is able to move these to a different aggressiveness, increasing the profitability even more.
Needless to say, custom signals are NOT a part of the Info Panel.
MKAST Label & Trendline Settings
“Show Labels?” - On/Off to show Labels above each signal, with the percentage gain or loss, calculated from the last signal to the new signal.
“Show Trendlines?” - On/Off to show automatic Trendlines following Gainzy Lines.
“Lookback Length” - Choose a length that the automatic trendiness use for calculation. Comparable to Aggressiveness.
“Wicks//Bodies” - Change between trendiness connecting from wick to wick or from body to body.
“Black lines// Coloured lines” - Change between simply black lines or changing colour lines.
“Filter Trendlines?” - On/Off to show all trendiness or just resistance decreasing and support increasing ones.
“Limit Extensions Of The Lines?” - This value increases by how much the trendiness are being extended. 0 = endless extension, otherwise 100 = maximum custom extension.MKAST Strategy “Take Profit 1” - On/Off to show TP1 points.
“Take Profit After %” - Set the percentage after which TP1 is active.
“Take Profit 2 ” - On/Off to show TP2 points.
“Take Profit 2 After %” - Set the percentage after which TP1 is
active.
“Take Profit 3” - On/Off to show TP3 points.
“Take Profit 3 After %” - Set the percentage after which TP1 is active.
“Second Entry” - On/Off to show Second Entry points.
“Second Entry After %” - Set the percentage after which Second Entry is active.
“Third Entry” - On/Off to show Third Entry points.
“Third Entry After %” - Set the percentage after which Third Entry is active.
“Stop Loss” - On/Off to show Stop Loss points.
“Stop Loss After %” - Set the percentage after which Stop Loss is active.
MKAST Strategy
To make the life of the MKAST user even easier, I have added all adjustable Take Profit Points, Multiple entry points and Stop Loss points.
I have never seen a sustainable and reliable trading strategy without TPs, Multiple entry and especially without a stop loss. Everything in the usual and fully customisable MKAST style.
Simply choose how many Take Profit points you would like to have and choose the percentage after which you would like to see the Take Profit point appear on the chart and notify you to take profits.
Are you a Trader who likes Multiple Entries? Also no problem with MKAST. Select how many additional entries you would like to have and after how many percent you would like them to appear on the chart and remind you of adding to the position.
What would a Strategy be without a Stop Loss? Same settings apply here as on the TPs and MEs.
All of the settings are able to take fractions of a number as well. This enables users to even use all of the strategy settings for scalping or FX pairs, where high leverage and the smallest of moves are used for trading.
Needless to say, all of these settings work on RENKO and Heikin Ashi as well. These might need adjustment, since the calculation is different, yet there is nothing standing in the way of it anymore.
Crypto Modified Indicators
“Show Divergences?” - On/Off to show Divergences on the Chart based on the data of 10 different Algorithms.
“Show Oversold/bought?” - On/Off to change the colour of the chart in Oversold/bought conditions.
“Oversold/bought value?” - Choose a value for which the chart is Oversold/bought.
“Show Fibonacci Levels?” - On/Off to show automatic Fibonacci Levels.
“Fibonacci Lookback Lenght” - This value states how many candles from right now are taken into account to paint the Fibonacci Levels.
“Fibonacci Custom Period” - Choose a custom Timeframe that should be used to paint the Fibonacci Levels.
“2nd-7th Fibonacci Level” - Enter a value for the Fibonacci Levels you would like to use and see on the chart.
“Plot 1.618 Level?” - On/Off for the Fibonacci extension level.
Crypto Modified Indicators
“Show Bands?” - On/Off to show the TJ-Bands on the chart.
“Bands Length” - Choose a value for the TJ-Bands Lenght
“Show Show EMA 1-3?” - On/Off to show the EMAs 1-3 on the chart.
“EMA Lenght 1-3” - Choose a value for the first to third EMA Lenght
“Show Ichimoku? ” - On/Off to show Ichimoku on the chart.
“Show Tenkin?” - On/Off to show Tenkin on the chart. “Tenkin” - Set the lenght of the Tenkin.
“Show Kijun?” - On/Off to show Kijun on the chart.
“Kijun” - Set the lenght of the Kijun.
“Show Senkou?” - On/Off to show the Senkou on the chart. “Senkou” - Set the lenght of the Senkou.
“Displacement” - Set the value of the Displacement.
“Show Chikou Span?” - On/Off to show the Chikou Span on the chart.
Crypto Custom Indicators
In the picture above, you see the first pair of Crypto Custom Indicators. The oversold and overbought conditions are highlighted.
Bullish and Bearish divergences are also plotted on the chart.
This is personally my favourite combination of Indicators and MKAST settings. It shows nicely
everything one needs to know and makes it easier to decide wether to follow a signal or not.
We here as well a perfect example of the Automatic Fibonacci Lines (Lookback 50, Timeframe 1D).
It shows all significant levels, which we can see being respected.
Orange = 23.6%, Green = 38.2%, Red = 50%, Yellow = 61.8%, Blue = 78.6%, White = 0%;100%
In this picture above, we observe the perfect ensemble of MKAST and an EMA strategy, especially modified for crypto markets.
Here, as by default, we have the EMAs at 21, 90 and 200. These have shown to be very significant moving support and resistance points in the crypto market.
In this picture above, I lowered the timeframe to show the highly significant levels of the Ichimoku. It has not the “usual values”. These here have been modified for the volatile crypto market and set as default.
An incredibly powerful tool for anyone who is ready to step up their trading game. It is a huge part of the MKAST back end and the strategy behind it.
MKAST Custom Alerts
1
MKAST without any doubt has Custom Alerts for all Signals that it is painting on the chart.
One can even choose to receive custom notifications for Take Profit points, Multiple Entry points and
the Stop Loss points.
The signals appear on the chart DURING the candle, not at the end of the candle. Therefore, the
alerts do this as well. These appear during the candle.
Here we can see all of the possible Alerts that can be chosen to be displayed. In total it is 14 different custom alerts, based on what the trader is looking for and how he is trading.
Personally, I have 10-15 coins that I trade the most and for these I have custom notifications, mostly though only the MKAST Buy/Sell and Stop Loss Signals.
To activate Alerts for MKAST,
1) Go to the “ALERT” icon on the top tool bar of your Tradingview.
2) Select “CONDITION” as “—MKAST—“
3) Then choose ONE condition from the list of conditions.
4) On “OPTIONS” you can set how many times it appears, I have “Once per Bar”.
4.1) If you want to make sure that the signal is truly there and not just a condition for a second during the candle, choose “ONCE PER BAR CLOSE”.
5) “Expiration Time” sets the time until the alert expires. PRO users have no expiration for alerts.
6) “Alert Actions” give you a row of choices what happens and how you want to be notified.
7) “Message” is the message that you receive inside the notification.
Thank you, Kong
HTC peppermint_07 CCI w signal + s&r RSI
This CCI version enhances the traditional Commodity Channel Index (CCI) by integrating a dynamically calculated Relative Strength Index (RSI) that acts as support and resistance as shown in the screenshot, it can add as a confirmation to the divergence found in the CCI.
Key Features:
Enhanced CCI: The primary plot (black line but customizable) represents the standard CCI, providing insight into price momentum and potential overbought/oversold conditions.
Dynamic RSI Support/Resistance: The upper and lower bands (medium cyan line) are derived from a smoothed RSI, dynamically adjusting to the current market volatility. These bands serve as potential support and resistance levels for the CCI as additional confirmation for the divergence.
Overbought/Oversold Zones: The traditional overbought (+100) and oversold (-100) levels for CCI are marked with horizontal dotted lines.
Benefits:
Improved Entry/Exit Signals: Combining CCI with dynamic RSI support/resistance may offer more precise trading signals compared to using CCI alone.
Dynamic Adaptation: The RSI-based bands adapt to changing market conditions, potentially providing more relevant support and resistance levels.
Divergence Confirmation: dynamic s&r RSI adds confluence to potential trend reversals identified by the CCI.
Potential Usage:
Traders might use this indicator to:
Identify potential overbought/oversold conditions using the CCI and its relationship to the dynamic RSI bands.
Look for breakouts beyond the dynamic support/resistance levels as potential entry points.
Confirm potential trend reversals using RSI divergence (cyan and red label above divergence) signals.
Further Development Considerations:
Customizable Parameters: Allowing users to adjust the CCI length, RSI periods, and smoothing factors would enhance flexibility.
Alert Conditions: Adding alerts for breakouts, overbought/oversold conditions, and divergence signals would improve usability.
Backtesting: Thoroughly backtesting the indicator's performance across different assets and timeframes is essential before using it for live trading.
DISCLAIMER: !!
indicator is a custom technical analysis tool designed for educational and informational purposes only. It should not be construed as financial advice or a recommendation to buy or sell any security. Trading involves substantial risk of loss and may not be suitable for all investors.
Key Points to Consider:
No Guarantee of Profitability: The indicator's past performance is not indicative of future results. No trading strategy can guarantee profits or eliminate the risk of losses. You could lose some or all of your investment.
Use at Your Own Risk: Use of this indicator is solely at your own discretion and risk. You are responsible for your trading decisions. The developers and distributors of this indicator are not liable for any losses incurred as a result of using it.
Not Financial Advice: This indicator does not provide financial advice. Consult with a qualified financial advisor before making any investment decisions.
Backtesting Limitations: Backtested results, if presented, should be viewed with caution. Past performance may not reflect future results due to various factors, including changing market conditions and the limitations of backtesting methodologies.
Indicator Limitations: Technical indicators, including this one, are not perfect. They can generate false signals, and their effectiveness can vary depending on market conditions and the specific parameters used.
Parameter Optimization: Optimizing indicator parameters for past performance can lead to overfitting, which may not translate to future profitability.
No Warranty: The indicator is provided "as is" without any warranty of any kind, either express or implied, including but not limited to warranties of merchantability, fitness for a particular purpose, or non-infringement.
Changes and Updates: The developers may make changes or updates to the indicator without notice.
By using the "HTC peppermint_07 CCI w signal + s&r RSI" indicator, you acknowledge and agree to the terms of this disclaimer. If you do not agree with these terms, do not use the indicator.
Supertrend (Buy/Sell) With TP & SLSupertrend (Buy/Sell) with TP & SL: An Enhanced Trading Tool
This Pine Script indicator combines the popular Supertrend indicator with multiple take-profit (TP) and stop-loss (SL) levels, providing traders with a comprehensive visual aid for potential entries, exits, and risk management.
Originality
Buffer Zones for Precision: Instead of relying solely on the Supertrend line, this script incorporates buffer zones around it. This helps filter out false signals, especially in volatile markets, leading to more accurate buy/sell signals.
Flexible Stop-Loss: Offers the choice between a fixed or trailing stop-loss, allowing traders to tailor their risk management approach based on their preferences and market conditions.
Multiple Take-Profit Levels: Provides three potential take-profit levels, giving traders the flexibility to secure profits at different stages of a trend.
Heikin Ashi Candles & VWAP: Incorporates Heikin Ashi candles for smoother trend visualization and adds a VWAP line for potential support/resistance levels.
Clear Table Display: Presents key information like Stop Loss and Take Profit levels in a user-friendly table, making it easier to track trade targets.
How It Works
Supertrend Calculation: The Supertrend is calculated using ATR (Average True Range) to gauge market volatility. The script then creates buffer zones around the Supertrend line for refined signal generation.
Buy/Sell Signals:
Buy: When the close price crosses above the upper buffer zone, indicating a potential uptrend.
Sell: When the close price crosses below the lower buffer zone, suggesting a potential downtrend.
Take Profit & Stop Loss:
Take Profits: Three TP levels are calculated based on ATR and a customizable profit factor.
Stop Loss: The stop-loss can be set as either a fixed value based on ATR or as a trailing stop-loss that dynamically adjusts to lock in profits.
How To Use
Add the Indicator: Search for "Supertrend (Buy/Sell) With TP & SL" in the TradingView indicators list and add it to your chart.
Customize Inputs: Adjust parameters like ATR Period, Factor, Take Profit Factor, Stop Loss Factor, Stop Loss Type, etc., based on your trading style and preferences.
Interpret Signals: Look for buy signals when the price crosses above the upper buffer and sell signals when it crosses below the lower buffer.
Manage Risk: Use the plotted Take Profit and Stop Loss levels to manage your risk and potential rewards.
Concepts
Supertrend: A trend-following indicator that helps identify the direction of the prevailing trend.
ATR (Average True Range): A measure of market volatility.
Buffer Zones: Used to filter out false signals by creating a zone around the Supertrend line.
Trailing Stop Loss: A dynamic stop-loss that moves with the price to protect profits.
Heikin Ashi: A type of candlestick chart designed to filter out market noise and make trends easier to identify.
VWAP (Volume Weighted Average Price): An indicator that shows the average price at which a security has traded throughout the day, based on both volume and price.
Important Note: This script is for educational and informational purposes only. Backtest thoroughly and use with caution in live trading. Always manage your risk appropriately.
Financial Ratio Analysis (with / without Competitors)What Is Financial Ratio Analysis?
Financial Ratio Analysis is a quantitative technique used to assess a company's liquidity, operational efficiency, and profitability by examining its financial statements, including the balance sheet, income statement, and cash flow statement. It provides valuable insights into a company's performance over time and allows for comparisons with other companies within the same industry or sector.
What Are the Uses of Financial Ratio Analysis?
Analysis of financial ratios serves two main purposes:
1. Track company performance
Determining individual financial ratios per period and tracking the change in their values over time is done to spot trends that may be developing in a company.
Current Ratio for Adobe Inc. NASDAQ:ADBE
2. Make comparative judgments regarding company performance
Comparing financial ratios with those of major competitors enables the identification of whether a company is performing better or worse than the industry average. This comparative analysis aids in understanding the company's competitive position and potential areas for improvement.
For comparison, the script would automatically select a maximum of 5 competitors from the US markets based on the ticker's industry. This ensures a relevant comparison with industry peers to evaluate performance and assess competitive positioning.
To compare the Free Cash Flow Margin of Apple Inc. NASDAQ:AAPL with its competitors.
To compare the Free Cash Flow Margin of Apple Inc. NASDAQ:AAPL with its competitors’ average.
Customized competitors list
To customize your own competitors list, you can specify the companies or tickers you want to include in the comparison. This allows for a tailored analysis based on your specific preferences and industry knowledge.
Example:
To compare PayPal NASDAQ:PYPL with NASDAQ:MELI , NASDAQ:DLO , and NYSE:PAY , users can input the following text into the competitors list:
NASDAQ:MELI,NASDAQ:DLO,NASDAQ:PYPL,NYSE:PAY;
This will ensure that the comparison includes these specific companies alongside PayPal.
Financial ratios are grouped into the following categories:
Liquidity ratios
Leverage ratios
Efficiency ratios
Profitability ratios
Market value ratios
Liquidity Ratios
Liquidity ratios are financial ratios that measure a company’s ability to repay both short-term and long-term obligations.
Current Ratio measures a company’s ability to pay off short-term liabilities with current assets:
Current ratio = Total current assets / Total current liabilities
Cash To Debt Ratio measures a company’s ability to pay off short-term liabilities with cash and cash equivalents. A high ratio indicates a company can pay off its debt and remain solvent into the foreseeable future. In addition, it also means that if necessary, the company can take on a larger amount of debt because it has the cash to support that.
Cash to debt ratio = Cash and Short Term Investments / Total debt
Leverage Financial Ratios
Leverage ratios measure the amount of capital that comes from debt. In other words, leverage financial ratios are used to evaluate a company’s debt levels.
Debt To Assets Ratio measures the relative amount of a company’s assets that are provided from debt. This indicator is a measure of assets that are growing at the expense of debt. Because of this, you can see how a company acquired its assets over time. It can be used to assess a company's ability to meet its current debt obligations.
Debt to assets ratio = Total debt / Total assets
Debt To Equity Ratio calculates the weight of total debt and financial liabilities against shareholders’ equity:
Debt to equity ratio = Total liabilities / Shareholder’s equity
Interest Coverage Ratio shows how easily a company can pay its interest expenses:
Interest coverage ratio = Operating income / Interest expense
Efficiency Ratios
Efficiency ratios, also known as activity financial ratios, are used to measure how well a company is utilizing its assets and resources.
Research & Development (R&D) Expense to Revenue Ratio measures the percentage of sales that is allocated to R&D expenditures.
R&D to revenue ratio = Research and development expense / Total revenue * 100%
Asset Turnover Ratio measures a company’s ability to generate sales from assets. The higher it is, the more efficient the company is, since higher ratios mean that the company generates more income per dollar of assets. Conversely, if the company has a low Asset turnover, this indicates that it is inefficiently using its assets.
Asset turnover ratio = Revenue / Average total assets for two periods
Inventory Turnover shows how quickly a company sells its stock. A low turnover can mean weak sales, while a high one can mean good sales or insufficient stock. Inventory turnover is an important indicator of a company's performance.
Inventory turnover = Cost of goods sold / Total inventories
Days Sales Outstanding measures the average number of days it takes for a company to collect cash from credit purchases.
Days sales outstanding = Average Accounts Receivable / Revenue x 365 Days
Days Inventory shows the time in days that is spent turning a company's inventory into sales. This metric is an indicator of a company's inventory management. Low values are preferred for Days Inventory, which means items are selling faster and there is a quick turnaround. Large values indicate that a company has invested too much in stocks and does not have time to sell them.
Days inventory = Average inventories / Cost of goods sold * Days in period
Profitability Ratios
Profitability ratios measure a company’s ability to generate income relative to revenue, balance sheet assets, operating costs, and equity.
Gross Margin compares the gross profit of a company to its net sales to show how much profit a company makes after paying its cost of goods sold:
Gross margin % = Gross income / Total revenue * 100
Operating Margin , sometimes known as the return on sales ratio, compares the operating income of a company to its net sales to determine operating efficiency:
Operating margin = Operating income / Revenue * 100%
Free Cash Flow Margin is a profitability ratio that compares a company's free cash flow to its revenue to understand the proportion of revenue that becomes free cash flow. The higher the percentage, the more cash is available from sales. A company that shows an increasing cash flow margin from year to year is certainly getting stronger with time. This is a good indicator of its probability for long-term success.
Free cash flow margin = Free Cash Flow / Total Revenue
Return On Assets measures how efficiently a company is using its assets to generate profit. A high ROA indicates that a company successfully converts invested money into income.
Return on assets = Net income before discontinued operations / Total average assets
Return On Equity measures how efficiently a company is using its equity to generate profit:
Return on equity = Net income / Shareholder’s equity
Revenue Growth refers to the increase in a company’s total revenue or income over a specific period
Revenue growth = (Current period revenue - previous period revenue) / Previous period revenue * 100%
Earnings Per Share Growth illustrates the growth of earnings per share over time.
Earnings per share growth = ( Current period EPS - previous period EPS ) / Previous period EPS * 100%
Operating Cash Flow Growth is the long term rate of growth of operating cash, the money that is actually coming into the bank from business operations.
Operating cash flow growth = ( Current period operating cash flow - previous period operating cash flow) / Previous period operating cash flow* 100%
Market Value Ratios
Market value ratios are used to evaluate the share price of a company’s stock.
Book Value Per Share calculates the per-share value of a company based on the equity available to shareholders. In case of the company liquidation, the book value per share shows the monetary value remaining for common shareholders after all assets are sold and all debt is paid. If a company’s Book value per share is higher than a market price of its share, then the stock may be considered undervalued.
Book value per share = Total common equity / Total common shares outstanding
Dividend Yield measures the amount of dividends attributed to shareholders relative to the market value per share:
Dividend yield = Dividends TTM for the primary issue excluding special dividends / Price of the primary issue
Diluted Earnings per Share (Diluted EPS)
EPS stands for earnings per share. Investors use EPS to measure how much money a company makes for every outstanding share the company has. Diluted EPS is slightly different in that it measures the earnings per share for a company if all convertible securities (such as preferred stocks, convertible debt instruments, stock options and warrants) were used to calculate the metric.
GKD-V Stiffness [Loxx]The Giga Kaleidoscope GKD-V Stiffness is a Volume/Volatility module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ GKD-V Stiffness
The stiffness indicator quantifies the market's momentum by analyzing the relationship between price movements and volatility over a specific time frame. It employs a moving average to smooth out price data, providing a baseline for trend assessment. The key element in this calculation is the incorporation of a volatility factor, typically standard deviation, which adjusts the moving average to account for market volatility. This adjusted moving average creates a benchmark that the current price must surpass to signal significant momentum.
By comparing the current price to this volatility-adjusted moving average, the stiffness indicator determines the strength of the market's trend. A higher stiffness value, surpassing a predefined threshold, indicates a strong and potentially profitable trend, either upward or downward, suggesting opportunities for strategic trading positions. Conversely, a stiffness value below the threshold signifies insufficient momentum, advising traders to refrain from entering the market due to the high risk of unpredictability. This method provides a systematic approach to evaluate market trends, enabling traders to make decisions based on the robustness of price movements relative to historical volatility.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, and the Average Directional Index (ADX).
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Advance Trend Pressure as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
█ Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
