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Paper Trading Challenge: Which Strategy Did the Best, Winner is The winner has now been decided! In this thrilling paper trading battle, we put four powerful trading strategies to the test: Harmonics Trading Strategy, Sentiment Trading Strategy, RSAI Blueprint Strategy, and Market Structure Strategy. Throughout this episode, we: Explained the fundamentals of each strategy. Demonstrated real-time application of each trading approach. Tracked and analyzed trades executed by each strategy. Compared performance metrics including win/loss ratio, average return, and overall profitability. Whether you're a seasoned trader or just starting out, this video offers valuable insights into the practical application of these popular trading techniques. Watch till the end to see which strategy emerges victorious and to learn tips and tricks you can incorporate into your own trading practice. 🔔 Don't forget to like, comment, and subscribe for more trading strategy battles and tutorials!
Education
by TruthakaWallStreetakaCookie
TradingView Masterclass: The power of Bar Replay🚀 Unlocking Your Trading Potential with Bar Replay on TradingView In the whirlwind of trading, having ace tools up your sleeve can dramatically shape your strategy and success. The spotlight shines bright on TradingView’s Bar Replay feature, a gem that offers a rewind on market movements, setting the stage for strategic mastery. Let's dive into what makes Bar Replay a must-use for traders eager to refine their game. 🕒 Understanding Bar Replay on TradingView Bar Replay is one of TradingView's standout features, allowing traders to select any point in history on their chart and watch the market's movements replay from that moment. It's a game-changer for visualizing price actions and volume changes without the stakes of live trading. Whether you're aiming for an in-depth analysis or a quick market recap, the adjustable speed of Bar Replay caters to all your needs with unmatched flexibility. 🤿 Why Dive into Bar Replay ? The magic of Bar Replay lies in its exceptional ability to simulate market scenarios, offering a practice ground for strategy testing and gaining insights from historical market behavior. Newcomers find a safe space to learn and experiment, while the pros get a robust tool for refining strategies. Our tutorial video steps it up by walking you through practical uses on a top company's chart—marking crucial levels, applying indicators, and making trade decisions, all within the Bar Replay environment. ✨ Conclusion: ReplayYour Path to Trading Excellence Bar Replay isn't just another tool; it's your companion in the quest for trading excellence, turning theory into actionable insight. Whether you're just starting or fine-tuning your strategy, it bridges the gap to more informed and decisive trading. Ready to explore Bar Replay 's power and make each session a step closer to your trading goals? Let's embark on this journey together. ❓ Ever tried Bar Replay in your trading adventures? We're all ears! 📢 Whether it's been a strategy game-changer or you're navigating its integration, drop your stories below. Let’s navigate the market's waves together. 💖 TradingView Team PS: Check out our other Masterclasses in the Related Ideas below 👇🏽👇🏽👇🏽 and give us a 🚀 and a follow if you don't want to miss any of our future releases!
Editors' picks
COINBASE:BTCUSDEducation
by TradingView
7
DXY to continue declineDXY started a recovery from 100.257 from the heavy decline due to the pause in the interest rate hikes back in December 13th, 2023. The index started to recover from 28th December and to 102.723 due to the positive news from the last Friday NFP fundamentals. Price was quickly knocked down by the negative news on the ISMs late Friday. DXY January candle has done a retracement unto the 61.8%-78.6% (EMA 20) of the December bearish candle. As a result of the retracement on the December candle, the DXY is expected to retest the weekly EMA 200 on the key level 100.500 and as at the ending of last Friday, price was resisted by the weekly resistance. On the Daily, the DXY index is expected to retest the EMA 200 at 101.706 and subsequently retest the key level 101.500 again. The important fundamentals this week are mainly the Thursday's Core CPI m/m and the Friday's PP1 m/m where the economists are projecting a negative news for the CPI. We need to keep an eagle eye on the news this week to make informed decisions.
CAPITALCOM:DXY
by AbeikuGlobal_FX
2
RECOGNISING CHART FORMATION 🧠Hello Traders! In this post, I want to present how important is to recognize chart formation, set up correctly resistance levels, and find a good position to execute the trade. For better practice, I will recommend analyzing the history of any chart and trying to search for resistance levels, order blocks, and breakout points, and anticipate a good position for trade execution. This exercise will help us to have better visibility of the chart and will help us to anticipate future movements. Keep in touch! Follow me for more trade ideas and perspectives! www.tradingview.com
by GoodTradeST
2
Demo of first complete TradingView Strategy called BunnyIntroducing Bunny - the groundbreaking TradingView strategy that promises to revolutionize the world of online trading. Developed by a team of experts in the field, Bunny offers a comprehensive and innovative approach to trading by combining advanced technical analysis tools with a user-friendly interface. With its intuitive design, Bunny allows traders to easily create, test, and deploy custom strategies tailored to their unique trading preferences. Whether you are a seasoned investor or just starting in the world of trading, Bunny provides users with a fully immersive experience that unlocks the full potential of TradingView's platform. With its array of powerful features and comprehensive market data, Bunny offers the necessary tools and insights to analyze market trends, make informed trading decisions, and maximize profits. Embark on a new trading journey with Bunny and unlock the doors to success in the ever-evolving world of financial markets.
TVC:USOILLong
by bryandowningqln
Guide: SMA and RSI for Trend ReversalsWelcome, traders! In this comprehensive guide, we'll explore a long-term trading strategy that leverages two powerful technical indicators: the Simple Moving Average (SMA) and the Relative Strength Index (RSI). By the end, you'll have a solid understanding of how to use these tools to identify trend reversals and make informed trading decisions with a focus on the bigger picture. 📉📈 Educational Objectives: Understand the concept of long-term trading and its benefits. Learn how to use the Simple Moving Average (SMA) to identify trends. Master the Relative Strength Index (RSI) for spotting overbought and oversold conditions. Combine SMA and RSI for a comprehensive long-term trading strategy. Recognize key points of trend reversal for well-timed entries. 📌 Part 1: The Foundation of Long-Term Trading Long-term trading focuses on capturing significant price movements over extended periods. It requires patience, discipline, and the ability to ignore short-term noise. 📌 Part 2: Understanding the Simple Moving Average (SMA) SMA is a trend-following indicator that smooths price data to reveal the underlying trend. The 200-day SMA is particularly useful for long-term analysis, indicating the overall trend direction. An upward-sloping 200-day SMA suggests a bullish trend, while a downward slope indicates a bearish trend. 📌 Part 3: Mastering the Relative Strength Index (RSI) RSI measures the speed and change of price movements, helping identify overbought and oversold conditions. An RSI above 70 suggests overbought conditions and a potential trend reversal. An RSI below 30 indicates oversold conditions, potentially signaling a trend reversal to the upside. 📌 Part 4: Combining SMA and RSI for Long-Term Trading Look for confluence: Confirm trend reversals when the 200-day SMA aligns with RSI overbought or oversold signals. A bearish signal could be an overbought RSI crossing below the 200-day SMA, signaling a potential downtrend. A bullish signal might be an oversold RSI crossing above the 200-day SMA, suggesting a potential uptrend. 📌 Part 5: Identifying Points of Trend Reversal Key points to recognize trend reversals include: Divergence: When the price makes new highs or lows but RSI doesn't, it signals a potential reversal. Crossovers: Pay attention to the 200-day SMA crossing above or below the price chart. Volume: Increasing trading volume often accompanies trend reversals. 🚀 Conclusion: Long-term trading can be highly rewarding, but it requires a deep understanding of market trends and the right tools. By combining the SMA and RSI indicators, you gain a powerful strategy for identifying trend reversals and making well-informed trades with long-term potential. Remember that no strategy is infallible, so always employ proper risk management techniques and continuously refine your trading skills. ❗See related ideas below❗ Like, share, and leave your thoughts in the comments! Your engagement fuels our crypto discussions. 💚🚀💚
INDEX:BTCUSDEducation
by Yaroslav_Krasko
1
Initiation. Accumulation. PumpHow to trade coins after listing? Here is logic of IAP model BINANCE:APTUSDT When people get tokens after airdrop or launchpad, most likely on first candle we will see seller pressure. This model works in general only for fundamental projects, where even people who get tokens for free will hold it for long term. Because we got a lot of examples when this model doesn't work and price crashed under listing price. Also we need pay attention in what market period we see this listing. Because if it's a beginning of bear market this model most likely also will not works. Initiation - Formation price imbalance in the broad price range at the time of listing coins can be interpreted as an initiating impulse, who doesn't leave fair traded price zones on ways of its formation and in here will be be nearest target. We can use Fib from the bottom to the top candle before correction or just count only body of first Daily close candle. Accumulation - Price reaction to price imbalance initiating impulse is a direct indication of the presence or lack of accumulation character on the chart. Zones for accumulation before pump will be classic 0.618 / 0.71/ 0.86 levels by fib. Pump - last stage of this model is a Pump, minimal target for this trade can be -0.27 and -0.618 level by fib where you can fix profit. On this example with Aptos it was over 500% pump. After pump depends of market stage and cycle price can continue parabolic move up or correction again to 0.5 or 0.618 level by same fib. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
Education
by Crypto4light
XAAUSD Strategy to Trade any Pair Testing Phase 1so weekends for many mean relaxing, but for many of us it is, contemplating what went wrong, strategizing our risk management and tweaking our strategies. I Had a thought that instead of trading during news and peak session, why dont we trade after the market has done what it has done and enter when the strength has weakened, this way we might cut unnecessary loss during news and peak sessions and aim for 3-5$ profits/loss. its less stressful, you don't need to sit the entire day or half a day, the process might be long and might require patience but its worth it. This may suit swing traders who can hold position for more than a day, but my basic idea is to enter and exit before the day closes(for testing purpose only). So basically i will take 2 EMA's 20 and 200, During the end of the day i will look to get in to the market. Conditions : There needs to be a maribozu candle above or below the ema, depending on if its a buy trade or sell trade. For buy trade the candles should be above both 20 and 200 ema and for the sell trade it should be below the 20 and 200 ema. Our Entry : will be after it breaks the maribozu candle body. Risk Ratio : 1:1 for starters Note: This strategy is risky if you account size is below 5000$ Will backtest this and keep sharing updates.
FOREXCOM:XAUUSD
by Subliminalroots
THIS IS THE REASON YOUR STRATEGY DOESN'T WORKThe title is brash, I know. But before you click away, answer these two questions: 1) How many strategies have you tried? 2) How many strategies have you backtested through several years and thousands of trades? If you have tried more strategies than you've backtested rigorously, then stick around because that's probably the reason why you're losing money. Imagine this. Florence is a novice trader. He's seen the thousands of dollars in profit a kid 10 years younger than him can generate. He's seen the kid flexing his Lambo on Instagram. The kid mentions RSI a few times, so Florence assumes the RSI indicator is the secret to insane profits. Florence is chomping at the bits and loads up a fresh Webull account with $3,000. Every time the RSI is above 70 on a stock, he shorts that stock. Lo and behold, after 5 trades, Florence's account now sits at $2,300. He concludes the indicator does not work. Florence perseveres and is determined to find the secret strategy to quick profits. He scraps the RSI and studies "support and resistance" trading from a few youtube mentors. He reloads his Webull account back up to $3,000. With a refreshed vision, he shorts anytime a stock is at resistance and longs anytime a stock hits support. Sadly, after 10 trades, his account is down again, this time to $2,600. Florence is flabbergasted. The story goes on. He attempts implementing strategy after strategy and continues to lose money. Unfortunately, many of us are Florence. We did what he did. We got into the game without a blueprint or game plan. And this is why my title is brashly stated, "If you don't read this you are going to lose money," because it's true. If you resemble Florence even in the slightest, basing the success of your trading strategy on a handful of trades, then how do you expect to know what strategy is actually successful? I don't blame you for approaching trading like Florence. In today's age, we are seeing the market oversaturated with traders and trading coaches, or even worse, "trading influencers". As with any influx of the masses, we are going to get the scumbags trying to get you to buy their image and product by falsifying the simplicity and ease of trading. If you are jumping between strategies without quantifying its success and failure rates over thousands of scenarios, then stop trading right now because you are going to continue losing money. Find a backtesting service or at the least log every single trade you take. Whatever it is, slow down and find proof of failure before declaring failure. I don't want you to fall into a never-ending hole of searching for the "right" indicator/strategy. The truth is, most of the strategies you've thrown away probably work and you don't even know it.
CME_MINI:ES1!Education
by thetradedoc
Visualizing Stochastic energy for perfect entriesThe stochastic RSI has always been a problem tool for me because of its clunky look erratic lines and the way it seems l....r each other and sometimes it doesn't. I've always felt like the stochastic RSI had these energy waves built into it that we weren't able to see because if there's an uptrend of the stochastic then there has to be an equal or greater downtrend of energy pushing it in the other direction but what if there isn't more than that energy and what if this is a perfect balance between the two energies. This would imply that either that there's a divergence of the energy related to how price is closing or there is a pause in the energy because they're balanced between the two and of course that means your price will pause and run flat as well. In this video I talk about the proper way to use this new indicator and the way you used to use the stochastic RSI. Using the information as video and the images that I plot out on the screen you'll be able to see when you should do you should enter trades long or short and why you need to know where your support and resistance lines are as well as whether you're breaking above or below your moving averages. Let this video be a first class tutorial on perfect trades using a stochastic RSI but like all other indicators you cannot use it by itself make sure that you have confluence on your price chart. PS as always welcome to the coffee shop.
Education
by CoffeeshopCrypto
8
Does 10 Minutes Per Month Beat Buy and Hold?So far, I’ve been testing day trading strategies. Which you’d have to watch for hours per day for trading signals. Or automate. And after all that dang work, not one of them beat buy and hold. Ouch. Recently, I found a strategy claiming to beat buy and hold, without any of that hassle. They say you can run it manually and in only 10 minutes per month. Too good to be true? Let’s find out… Our Test The rules are so simple, you might chuckle… Ignore all S&P 500 price action for the whole month, until the close on the last day. If that closing price is above the 200-day moving average, go long (or stay long if you’re already in a trade). If it’s below the 200-day moving average, sell (or don’t get in if you’re on the sidelines). With that in mind, let’s look at our setup a little more closely… The Trading Truth Test Setup Since this is a monthly strategy, I used much more data than in previous tests… Market: the S&P 500 index (using SPY to trade it, assuming SPY existed decades ago and is exactly 1/10th the S&P 500 Index price) Timeframe: September, 1941 to April, 2023 Bar interval: 1 day (for the moving average, even though we’re only making trading decisions at the end of each month) Moving averages: 200-day exponential moving average Starting Equity: $ 25,000 Max % of Equity Per Trade: 100% (just like we would with buy and hold, we’re fully investing our capital) Commissions, fees and taxes. To keep things super simple, we’re assuming these are all zero. The Test Results The test ended up 152.4x to $ 3.81 million a 59% win rate. Pretty amazing, though that’s over several decades. The maximum losing streak was $ 46,384.74, or 18.4% (from $ 252,545.60). That said, the buy-and-hold return was up 403.0x, trouncing our test. Especially given the tax advantages from long-term capital gains. Note: I did this analysis in a spreadsheet, with exported TradingView data. If you see any errors, please let me know. What Test Tweaks We Could Make One tweak is looking at the slope of the 200-day moving average. If it’s not pointing up enough, I wouldn’t want to go long. We could also use some other indicators to see when a pullback is likely, for example, Bollinger Bands or Keltner channels. What would you test? And what else would you like to see tested? Comment below!
SP:SPX
by TradingTruthseeker
Testing a Youtube MACD StrategyIn previous articles, I’ve tested moving average crossovers and bounces. But I didn’t test this famous (or infamous?) indicator related to them… The MACD. When I saw a video from TradingLab on Youtube called “BEST MACD Strategy,” I was curious to test his approach. What’s a MACD Daddy-o? It stands for Moving Averages Convergence Divergence. It’s meant to help us see momentum in the market. So we take a shorter-duration moving average and pair it up with a longer one. We then graph the difference between the two as its own line. We also plot an MA of the difference, called the “signal” line. When the signal line crosses over the difference line, we might be seeing a shift in direction. The farther the signal line pushes away from the other, the stronger the momentum is in that direction. Note: most charting software, including TradingView, also shows the difference as bars (a histogram). So how are we gonna test this thing? The Trading Truth Test Setup We’re keeping the market and the test period the same as some of the previous tests, for easier comparison. (The TradingLab video just says MACD works in many markets and timeframes, without limiting it to one for testing.) Market: the S&P 500 index (using SPY to trade it, assuming SPY is exactly 1/10th the S&P 500 Index price) Timeframe: Jan 2, 2008 to March 28, 2023 Bar interval: 1 hour Moving averages: Unlike previous tests, where we used simple moving averages, we’re using exponential moving average here to weight recent prices more. We use a 200 exponential moving average for overall trend direction. For the MACD, we’re using the classic 12 bars and 26 bars to see the difference between them. And we’re the normal 9-bar MA of that difference as the signal line. Starting Equity: $ 25,000 Max % of Equity Per Trade: 3% Commissions, fees and taxes. To keep things super simple, we’re assuming these are all zero. Our Test When we get a MACD crossover between the signal line and the difference line, we look to go long. But we only go long if: the last closing price is above the 200 MA, and When an upside MACD crossover (the signal line crossing up through the difference line) happens below its zero line (the lower half of the plotted indicator area). We do the opposite to go short… We short when price closes below the 200 MA and we get a downside MACD crossover above the zero line. Our stop loss is 1 penny past the 200 MA value when entering the trade. And our take-profit price is the difference between the entry price and the 200 MA (on entry) multiplied by 1.5. That’s the suggestion in the TradingLab video. Note: The Youtube video suggests using support and resistance as another filter to avoid choppy markets. But there aren’t clear rules given, so I didn’t do that. The Test Results The test ended at $ 30,401.39, up 21.6% with a 46.9% win rate. The biggest loss from the initial $ 25,000 deposit was $ 270.85, a 1.1% loss. The maximum losing streak was $ 800.22 or 3.0% (from $ 26,908.66). That said, the buy-and-hold return was 173.1%. Quite a reward for sitting on your hands, especially given the tax advantages from long-term capital gains. Note: I did this analysis in a spreadsheet, with exported TradingView data. If you see any errors, please let me know. What Test Tweaks We Could Make We could identify rules on when to stay out of the market. MACD strategies, like many, get chopped up in sideways price action. Some other MACD settings might also be interesting to test. We used only the most common settings here. What would you test? And what else would you like to see tested? Comment below!
SP:SPX
by TradingTruthseeker
2
Are Keltner Channel Bounces Worth Trading?Since I tested Bollinger Bands in the last article , what’s natural to think of testing next? Rubber bands? Rock bands? No, you silly goose! Keltner Channels… What’s the Difference Between Keltner Channels and Bollinger Bands? Bollinger Bands are based on chunks (called “standard deviations”) away from an average. Keltner Channel bands are based on multiples of the average true range (ATR) away from the average. Alrighty then. Let’s get into our test setup… The Trading Truth Test Setup We’re keeping this the same as our Bollinger Bands test, except for the ATR period. Since we’re using ATR to determine the Keltner Channels, we’re going with the same period as the moving average. Market: the S&P 500 index (using SPY to trade it, assuming SPY is exactly 1/10th the S&P 500 Index price) Timeframe: Jan 2, 2008 to March 28, 2023 Bar interval: 1 hour Moving averages: 50 bars (simple moving averages, meaning every bar gets equal weight, unlike with exponential) Average true range: 50 bars Starting Equity: $ 25,000 Max % of Equity Per Trade: 3% Commissions, fees and taxes. To keep things super simple, we’re assuming these are all zero. Our 2 Tests Test A: We’re using Keltner Channel bands 2 ATRs away from the moving average. Any time a high pierces the upper Keltner band and then a high is below the band, go short (if we’re not already in a trade). Any time a low pierces the lower Keltner band and then a low is above the band, go short (if we’re not already in a trade). This way, we’re waiting for a cross back over the band after it gets pierced. We didn’t do this for our Bollinger Bands tests, which makes this not a direct performance comparison. Test B: The same as Test A, except we’ll use Keltner bands 3 ATRs away from the MA instead of 2. The Test Results Test A's equity ended at $ 38,137.63, up 52.6%. The biggest loss from the initial $ 25,000 deposit was $ 843.16, a 3.4% loss. The maximum losing streak was $ 1,805.75 or 6.36%. Test B's equity ended with $ 34,435.71, up 37.7%. The biggest loss from the initial $ 25,000 deposit was $ 3,027.42, a 12.1% loss. The maximum losing streak was $ 2,080.71 or 8.22%. The worse results 3 ATRs away from the MA is surprising. Seems like that’d give us higher-quality trades. Even Test A’s numbers don’t come close to what plain-Jane buy and hold did: ending up 173.1%. Note: I did this analysis in a spreadsheet, with exported TradingView data. If you see any errors, please let me know. What Test Tweaks We Could Make Some traders wait for when Bollinger Bands or Keltner Channels get pinched (narrower in width). That’d be interesting to test vs bounces. One well-known trader, John Carter, looks for when Bollinger Bands go inside (“squeeze into”) Keltner Channels. He sees that as an indicator of bigger-than-normal moves. What would you test? And what else would you like to see tested? Comment below!
SP:SPX
by TradingTruthseeker
6
Which Moving Average Strategy Crushes MA Crossovers? This...If you read last week’s article, you saw results for the famous (or infamous!) moving average crossover. It bombed vs buy and hold over the last 10 years, even when using take-profit and stop-loss levels. So, how do moving average bounces perform with the same exit levels? That’s what we’re testing today… The Trading Truth Test Setup Our setup is the same as last time, except we just need one moving average. Market: the S&P 500 index (using SPY to trade it) Timeframe: Jan 1, 2013 to January 31, 2023 Bar interval: 30 minutes. Moving averages: 50 bars (simple moving averages, meaning every bar gets equal weight, unlike with exponential) Starting Equity: $25,000 Max % of Equity Per Trade: 3% Commissions, fees and taxes. To keep things super simple, we’re again assuming these are all zero. How Is “Bounce” Defined? Traders look for ricochets off moving averages in a bajillion ways. Let’s be real: most just eyeball charts without real rules. That won’t work for rigorous renegades like us, though. :-) So, for Test A, here’s how we defined a bounce when price is above the MA: A price bar’s low is above the moving average The next price bar’s low touches or pierces the MA for one bar. (A close below the MA is ok.) The bar touching or piercing the MA can’t go more than 0.5% below the MA The next bar’s low must again be above the MA. Flip these rules for a bounce when price is below the MA. I know, I know… many bounces don’t happen until 2 bars (sometimes more) hover on or below the MA. We're keeping the criteria here simple. We define Test B the same way, except with an extra filter: The 50-bar MA needs to be sloping up at least 0.5% over the last 25 bars for long trades (and -0.5% or less for short trades). Alrighty, now, let’s check out the results… The Test Results Like with the MA crossovers test before, let’s first look at how plain ol’ buy and hold did over the same period. If you parked your cash in the S&P 500, your money would be worth 2.9 times as much by the end. Pretty good. So how did Test A do? The ending equity after 10 years was $40,112.74, 1.6 times your money with 24.27% max drawdown. Test B, in which we only took trades if the MA was sloping (trending) enough, we ended with $43,149.00, for a 1.7x return with only 17.75% max drawdown. That makes the return on risk much better than Test A. Yet, while these returns beat the pants off of our MA crossover tests, boring old buy and hold still whooped them both. What Would You Change About This Bounce Strategy? Trade a different market? Longer or shorter time frame? Tweak how a bounce is defined? Comment below to share. Also, please let me know: what else do you want to see tested?
SP:SPX
by TradingTruthseeker
Trading Truth Test: Do MA Crossovers Really Work?If you’ve ever sat up late at night watching tv, you may have seen an infomercial for software to become a day trader. They make trading sound so simple. Buy when a green arrow appears on the chart. Sell when a red arrow pops up. You’re snickering right now because you already know it doesn’t work. Yet so many traders talk about moving average (MA) crossovers in a similar way. Put a shorter time period MA (like 21 bars) on a chart and wait for it to cross above longer one (say, 50 bars) to buy. Do the opposite to sell. So how well does it really work? Let’s jump in and find out… Testing the Fabled Moving Average Crossover My 21/50 moving average crossover example above is a semi-common one people use. Of course there are others, like the 5/8, the 8/13 and the 13/21. 5, 8, 13 and 21 are all Fibonacci numbers, so people believe they have special powers. That’s probably a self-fulfilling prophecy since so many people use them. But that’s a test for another day. On to the rules!... The Trading Truth Test Setup Market: the S&P 500 index (using SPY to trade it) Timeframe: Jan 1, 2013 to January 31, 2023 Bar interval: 30 minutes. I chose 30-minute bars instead of the 2-minute or 5-minute bars many day traders use, just to smooth trends more. The less we can get caught in chops, the better. Moving averages: 21 and 50 bars (simple moving averages, meaning every gets equal weight, unlike with exponential) Starting Equity: $25,000 Max % of Equity Per Trade: 3% Commissions, fees and taxes. To keep things super simple, we’ll assume these are all zero. That’s borderline-realistic if you’re trading in a retirement account with a broker not charging commissions (you’d still have to pay exchange fees). The A/B Test Rules Rules for Test A This is the classic moving average crossing strategy. Whenever the 21 MA crosses above the 50 MA, buy. And every time the 21 MA crosses below the 50 MA, sell. That means, we exit whatever trade we’re in when we get the opposite signal… and then jump in going the other direction. Easy fo sheezy. Rules for Test B Everything is the same here, except for when we’ll take profits and losses. For this bad boy, we’re gonna use the 21-bar average true range (ATR) as both a trailing stop-loss and a trailing take-profit. Specifically, we’re using twice the 21-bar ATR (based on the previous bar’s closing price) for extra wiggle room. If we’re still in a trade when we get a new entry signal (MA crossover), we don’t take the trade. ‘Cause we’re rebels like that. One other quirk for Test B: if we hit a take-profit level in the same bar as a stop-loss target, I assumed we took the profit first. It didn’t make much difference overall, as we’ll see… The Test Results Before we see how Test A did vs Test B, the real baseline is just ye ol’ Buy and Hold. If you plunked your money into the S&P 500, your money would be worth 2.86 times as much by the end. Not bad for doing nada. So how did Test A do? No bueno. The ending equity after 10 years was only $25,091.74, which is barely breakeven. The one bright spot is the max drawdown, at 5.0%. It’s not hugely surprising, since MA crossover strategies are highly prone to losses when the market is chopping around instead of trending. And the market sloshes around way more than it trends. This pure strategy (only exiting a position on the next crossover) also tends to give back most profits, since it waits so long to exit. Given the take-profit targets and trailing stop-losses in Test B, how did we fare there? We ended with $27,261.39, a 9.0% return. Definitely better, especially given the 1.9% max drawdown, but nowhere near as good as buying and holding — especially when you factor in all the trading you’d have to do. What to Test Next Using some kind of trend indicator, like Super Trend or Linear Regression, to filter entry signals could help reduce losses. Picking a different market might also get us better results. For example, I saw someone on Youtube say the EUR-GBP forex market works well for MA crosses. Testing longer-period moving averages would also smooth the price action more and be less likely to cross as much in ranges.
SP:SPX
by TradingTruthseeker
2
Bollinger Bands Strategy+ 3x IndicatorsSo I've taken the Lorentzian Machine Learning indicator as well as 2 other support/resistance + supply/demand indicators and added a Bollinger Band strategy to the Machine learning indicator which is now a combination of the Machine Learning indicator and Bollinger strategy and uses the same settings panel to dial in the merged strategy/indicator tool which is now called Machine Learning *Strategy* and not Machine Learning *Indicator.* So far this setup has been working wonders for me. As long as you keep your SL and TP's in order which is made pretty clear by the 2x 'Zones' indicators, you can't really go wrong with this setup. Just keep in mind that this is not financial advice and I am not a professional in finance or anything of that kind so make sure you always do your own homework before placing any trades. This video is me, just a guy enjoying the trading tools made available on TeamViewer, sharing some ideas on the tools I have been enjoying. Hope this video was interesting to a few traders out there. Let me know if you have any Q's and I'll try answer them as best I can.
E
by Y2K_B
DAY TRADING 101: How to Get StartedHello guys! Day trading is a popular way for traders to make money by buying and selling assets within the same trading day. However, before you begin day trading, it's important to understand the basics and develop a solid trading strategy. In this post, we'll cover the basics of day trading and provide some tips on how to get started. First, it's important to understand the different types of securities that you can day trade. Some popular options include stocks, options, futures, and currencies. Each of these securities has its own unique characteristics and requires different strategies, so it's important to choose the one that best fits your goals and risk tolerance. Next, you need to develop a trading plan . Your plan should include your trading strategy, the securities you plan to trade, and your risk management techniques. It's also important to set realistic goals and be prepared to stick to them. Once you have a trading plan in place, you need to practice . You can do this by using a simulation or paper trading account. This will allow you to test your trading strategy and learn from your mistakes before you start risking real money. Another important thing to consider is your risk management . This means understanding the level of risk you're willing to take and setting stop-losses and profit-taking orders to protect your capital. It's also important to maintain a proper risk-reward ratio, which means that the potential profit should be larger than the potential loss. In addition to the above, it's crucial to keep an eye on the market and news , as they can greatly impact your trades, so it's essential to stay updated with the latest news and trends. Finally, keep in mind that day trading requires discipline and patience, so be prepared to put in the time and effort to become a successful trader. To sum it up, day trading can be a great way to make money, but it's important to understand the basics and develop a solid trading strategy. Additionally, you should practice with a simulation or paper trading account, have a proper risk management, stay informed and be prepared to put in the time and effort. Which type of trading do you prefer?
BLACKBULL:US30Education
by m_maia14
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