OPEN-SOURCE SCRIPT
Scalp Slayer (i)
Updated
📊 The Foundation: Core Parameters and Inputs
Filter Number: This parameter is the cornerstone of the script’s sensitivity control. It adjusts the threshold for market volatility that the script considers significant enough for a trade. By default, it's set to 1.5, striking a balance between aggressiveness and conservatism. Traders can tweak this number to make the script more or less sensitive to price fluctuations. A higher number captures smaller, more frequent price movements, ideal for an aggressive trading style. Conversely, a lower number filters out minor noise, focusing on more substantial movements.
EMA Trend Period: The Exponential Moving Average (EMA) is critical for identifying the market's direction. The script uses an EMA calculated over a default period of 50 bars to discern whether the market is trending up or down. This helps in making decisions that align with the overall market trend, thereby increasing the likelihood of successful trades.
Lookback Period: This parameter, set to 20 periods by default, is used to calculate recent highs and lows. These values are crucial for setting realistic take profit and stop-loss levels, as they reflect recent market behavior. The lookback period helps the script adapt to current market conditions by analyzing recent price actions to identify key support and resistance levels.
Color Settings: For enhanced visualization, the script allows customization of colors for take profit and stop-loss markers. By default, take profit levels are marked in orange, and stop-loss levels in red. This color coding helps traders quickly identify important levels on the chart.
Visibility Controls: The script includes options to toggle the display of buy and sell labels, as well as to enable or disable strategy plotting for backtesting and real-time analysis. These controls help traders tailor the script’s visual output to their preferences, making it easier to focus on key trading signals.
🛠️ The Mechanics: How "Scalp Slayer (i)" Operates
1. Calculating the Trading Range and Trend EMA
True Range Calculation: The script begins by calculating the true range, which is the difference between the high and low prices of a bar. This measure of volatility is crucial for identifying significant price movements.
EMA of True Range: The script then smooths the true range using an Exponential Moving Average (EMA). This helps filter out minor price fluctuations, ensuring that the script only reacts to meaningful changes in price. The sensitivity of this filter is adjusted by the filter number, which multiplies the EMA to fine-tune the script's responsiveness to price changes.
Trend EMA: To determine the market’s trend, the script calculates an EMA over the close prices for the specified trend period (default is 50). This trend EMA acts as a benchmark for identifying whether the market is trending up or down. The script uses this trend filter to ensure trades are made in the direction of the prevailing market trend, thereby reducing the risk of trading against the trend.
2. Identifying Recent Highs and Lows
Recent Highs and Lows: The script uses the lookback period to identify the highest and lowest prices over a set number of bars. These recent highs and lows serve as reference points for setting take profit and stop-loss levels. By analyzing recent price action, the script ensures that these levels are relevant to current market conditions, providing a dynamic and contextually accurate approach to risk management.
🔄 Strategic Entry and Exit Conditions
3. Defining Buy and Sell Conditions
Buy Condition: The script establishes a set of criteria for entering a buy trade. First, the closing price must be above the trend EMA, indicating an upward trend. Additionally, the script looks for a sequence of candles showing progressively higher closes, signifying strong upward momentum. The current trading range must exceed the EMA of the true range, confirming that the market is experiencing significant movement. This combination of trend alignment and momentum ensures that buy trades are placed in favorable market conditions.
Sell Condition: Similarly, for sell trades, the script requires the closing price to be below the trend EMA, indicating a downward trend. It also checks for a sequence of candles with progressively lower closes, indicating strong downward momentum. The trading range must again exceed the EMA of the true range, ensuring that the market is moving significantly. These conditions help ensure that sell trades are only taken when the market is likely to continue moving downwards, increasing the chances of profitable trades.
4. Executing Trades and Setting Profit Targets
Long Entry: When the buy condition is met, the script enters a long position at the closing price of the confirmation bar. It then sets a take profit level at the recent high, which serves as a realistic target based on recent price action. The stop-loss level is set at the recent low, providing a safety net against adverse price movements. This approach ensures that trades are closed at optimal points, maximizing profit while minimizing risk.
Short Entry: When the sell condition is met, the script enters a short position at the closing price of the confirmation bar. The take profit level is set at the recent low, and the stop-loss level is set at the recent high. This setup ensures that short trades are closed at favorable levels, capturing gains while protecting against potential losses.
5. Managing Take Profit and Stop Loss
Take Profit and Stop Loss Mechanism: The script continually monitors the market for conditions that meet the take profit or stop-loss criteria. For long trades, the script closes the position if the price reaches or exceeds the take profit level, ensuring profits are locked in. It also closes the position if the price drops to or below the stop-loss level, preventing further losses. For short trades, the script closes the position if the price drops to or below the take profit level, or rises to or above the stop-loss level. This dynamic management of trades helps ensure that profits are maximized while risks are minimized.
🌟 Enhanced Visuals and Debugging Features
Customizable and Informative Plots
Buy and Sell Labels: The script includes options to display labels for buy and sell signals on the chart. These labels provide clear visual cues for trading opportunities, making it easy to identify entry points at a glance. Traders can customize the visibility of these labels based on their preferences, helping them focus on the most important signals.
Take Profit and Stop Loss Markers: To aid in monitoring trades, the script displays distinctive markers for take profit and stop-loss levels. These markers are color-coded for easy differentiation and are placed on the chart to provide clear indications of where trades are likely to be closed. This visual representation helps traders quickly assess the status of their trades and make informed decisions.
Trend and Price Plots: The script plots the trend EMA and recent highs/lows on the chart for quick reference. These plots provide a visual representation of key levels and trends, helping traders make more informed decisions based on current market conditions. By displaying these critical levels, the script enhances situational awareness and aids in the decision-making process.
Debugging and Validation Tools
Bar Index Plotting: For those interested in validating the script's performance, the script includes options to plot the bar index. This feature allows traders to monitor the script's behavior in real-time, ensuring that it is functioning as expected. This can be particularly useful for debugging and optimizing the script.
Condition Printing: The script also includes options to print detailed information about take profit and stop-loss conditions. This feature provides insights into the script's decision-making process, helping traders understand why certain trades were executed or closed. By providing transparency into the script's logic, this feature aids in fine-tuning and improving the script's performance.
Filter Number: This parameter is the cornerstone of the script’s sensitivity control. It adjusts the threshold for market volatility that the script considers significant enough for a trade. By default, it's set to 1.5, striking a balance between aggressiveness and conservatism. Traders can tweak this number to make the script more or less sensitive to price fluctuations. A higher number captures smaller, more frequent price movements, ideal for an aggressive trading style. Conversely, a lower number filters out minor noise, focusing on more substantial movements.
EMA Trend Period: The Exponential Moving Average (EMA) is critical for identifying the market's direction. The script uses an EMA calculated over a default period of 50 bars to discern whether the market is trending up or down. This helps in making decisions that align with the overall market trend, thereby increasing the likelihood of successful trades.
Lookback Period: This parameter, set to 20 periods by default, is used to calculate recent highs and lows. These values are crucial for setting realistic take profit and stop-loss levels, as they reflect recent market behavior. The lookback period helps the script adapt to current market conditions by analyzing recent price actions to identify key support and resistance levels.
Color Settings: For enhanced visualization, the script allows customization of colors for take profit and stop-loss markers. By default, take profit levels are marked in orange, and stop-loss levels in red. This color coding helps traders quickly identify important levels on the chart.
Visibility Controls: The script includes options to toggle the display of buy and sell labels, as well as to enable or disable strategy plotting for backtesting and real-time analysis. These controls help traders tailor the script’s visual output to their preferences, making it easier to focus on key trading signals.
🛠️ The Mechanics: How "Scalp Slayer (i)" Operates
1. Calculating the Trading Range and Trend EMA
True Range Calculation: The script begins by calculating the true range, which is the difference between the high and low prices of a bar. This measure of volatility is crucial for identifying significant price movements.
EMA of True Range: The script then smooths the true range using an Exponential Moving Average (EMA). This helps filter out minor price fluctuations, ensuring that the script only reacts to meaningful changes in price. The sensitivity of this filter is adjusted by the filter number, which multiplies the EMA to fine-tune the script's responsiveness to price changes.
Trend EMA: To determine the market’s trend, the script calculates an EMA over the close prices for the specified trend period (default is 50). This trend EMA acts as a benchmark for identifying whether the market is trending up or down. The script uses this trend filter to ensure trades are made in the direction of the prevailing market trend, thereby reducing the risk of trading against the trend.
2. Identifying Recent Highs and Lows
Recent Highs and Lows: The script uses the lookback period to identify the highest and lowest prices over a set number of bars. These recent highs and lows serve as reference points for setting take profit and stop-loss levels. By analyzing recent price action, the script ensures that these levels are relevant to current market conditions, providing a dynamic and contextually accurate approach to risk management.
🔄 Strategic Entry and Exit Conditions
3. Defining Buy and Sell Conditions
Buy Condition: The script establishes a set of criteria for entering a buy trade. First, the closing price must be above the trend EMA, indicating an upward trend. Additionally, the script looks for a sequence of candles showing progressively higher closes, signifying strong upward momentum. The current trading range must exceed the EMA of the true range, confirming that the market is experiencing significant movement. This combination of trend alignment and momentum ensures that buy trades are placed in favorable market conditions.
Sell Condition: Similarly, for sell trades, the script requires the closing price to be below the trend EMA, indicating a downward trend. It also checks for a sequence of candles with progressively lower closes, indicating strong downward momentum. The trading range must again exceed the EMA of the true range, ensuring that the market is moving significantly. These conditions help ensure that sell trades are only taken when the market is likely to continue moving downwards, increasing the chances of profitable trades.
4. Executing Trades and Setting Profit Targets
Long Entry: When the buy condition is met, the script enters a long position at the closing price of the confirmation bar. It then sets a take profit level at the recent high, which serves as a realistic target based on recent price action. The stop-loss level is set at the recent low, providing a safety net against adverse price movements. This approach ensures that trades are closed at optimal points, maximizing profit while minimizing risk.
Short Entry: When the sell condition is met, the script enters a short position at the closing price of the confirmation bar. The take profit level is set at the recent low, and the stop-loss level is set at the recent high. This setup ensures that short trades are closed at favorable levels, capturing gains while protecting against potential losses.
5. Managing Take Profit and Stop Loss
Take Profit and Stop Loss Mechanism: The script continually monitors the market for conditions that meet the take profit or stop-loss criteria. For long trades, the script closes the position if the price reaches or exceeds the take profit level, ensuring profits are locked in. It also closes the position if the price drops to or below the stop-loss level, preventing further losses. For short trades, the script closes the position if the price drops to or below the take profit level, or rises to or above the stop-loss level. This dynamic management of trades helps ensure that profits are maximized while risks are minimized.
🌟 Enhanced Visuals and Debugging Features
Customizable and Informative Plots
Buy and Sell Labels: The script includes options to display labels for buy and sell signals on the chart. These labels provide clear visual cues for trading opportunities, making it easy to identify entry points at a glance. Traders can customize the visibility of these labels based on their preferences, helping them focus on the most important signals.
Take Profit and Stop Loss Markers: To aid in monitoring trades, the script displays distinctive markers for take profit and stop-loss levels. These markers are color-coded for easy differentiation and are placed on the chart to provide clear indications of where trades are likely to be closed. This visual representation helps traders quickly assess the status of their trades and make informed decisions.
Trend and Price Plots: The script plots the trend EMA and recent highs/lows on the chart for quick reference. These plots provide a visual representation of key levels and trends, helping traders make more informed decisions based on current market conditions. By displaying these critical levels, the script enhances situational awareness and aids in the decision-making process.
Debugging and Validation Tools
Bar Index Plotting: For those interested in validating the script's performance, the script includes options to plot the bar index. This feature allows traders to monitor the script's behavior in real-time, ensuring that it is functioning as expected. This can be particularly useful for debugging and optimizing the script.
Condition Printing: The script also includes options to print detailed information about take profit and stop-loss conditions. This feature provides insights into the script's decision-making process, helping traders understand why certain trades were executed or closed. By providing transparency into the script's logic, this feature aids in fine-tuning and improving the script's performance.
Release Notes
Input Parameters for Offsets: Added buyLabelOffset and sellLabelOffset as input parameters with a range from -10 to 10.Dynamic Offsets in plotshape: Replaced the static offset values with buyLabelOffset and sellLabelOffset in the plotshape functions for the buy and sell labels.
Now you can adjust the offsets directly through the input parameters in the script settings, providing more flexibility in placing the labels on the chart.
Release Notes
script adjustments/code cleanupRelease Notes
-updated code/cleanup-swing mode added
-swing mode is still under development
Release Notes
code refresh.alert config added. {"content": "Sell SL {{ticker}} at {{close}}"}
Release Notes
refresh on alertsRelease Notes
code refreshtrade-mode update with swing-mode coming soon
strategy coming soon
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.