Fibonacci ATR Fusion - Strategy [presentTrading]Open-script again! This time is also an ATR-related strategy. Enjoy! :)
If you have any questions, let me know, and I'll help make this as effective as possible.
█ Introduction and How It Is Different
The Fibonacci ATR Fusion Strategy is an advanced trading approach that uniquely integrates Fibonacci-based weighted averages with the Average True Range (ATR) to identify and capitalize on significant market trends.
Unlike traditional strategies that rely on single indicators or static parameters, this method combines multiple timeframes and dynamic volatility measurements to enhance precision and adaptability. Additionally, it features a 4-step Take Profit (TP) mechanism, allowing for systematic profit-taking at various levels, which optimizes both risk management and return potential in long and short market positions.
BTCUSD 6hr Performance
█ Strategy, How It Works: Detailed Explanation
The Fibonacci ATR Fusion Strategy utilizes a combination of technical indicators and weighted averages to determine optimal entry and exit points. Below is a breakdown of its key components and operational logic.
🔶 1. Enhanced True Range Calculation
The strategy begins by calculating the True Range (TR) to measure market volatility accurately.
TR = max(High - Low, abs(High - Previous Close), abs(Low - Previous Close))
High and Low: Highest and lowest prices of the current trading period.
Previous Close: Closing price of the preceding trading period.
max: Selects the largest value among the three calculations to account for gaps and limit movements.
🔶 2. Buying Pressure (BP) Calculation
Buying Pressure (BP) quantifies the extent to which buyers are driving the price upwards within a period.
BP = Close - True Low
Close: Current period's closing price.
True Low: The lower boundary determined in the True Range calculation.
🔶 3. Ratio Calculation for Different Periods
To assess the strength of buying pressure relative to volatility, the strategy calculates a ratio over various Fibonacci-based timeframes.
Ratio = 100 * (Sum of BP over n periods) / (Sum of TR over n periods)
n: Length of the period (e.g., 8, 13, 21, 34, 55).
Sum of BP: Cumulative Buying Pressure over n periods.
Sum of TR: Cumulative True Range over n periods.
This ratio normalizes buying pressure, making it comparable across different timeframes.
🔶 4. Weighted Average Calculation
The strategy employs a weighted average of ratios from multiple Fibonacci-based periods to smooth out signals and enhance trend detection.
Weighted Avg = (w1 * Ratio_p1 + w2 * Ratio_p2 + w3 * Ratio_p3 + w4 * Ratio_p4 + Ratio_p5) / (w1 + w2 + w3 + w4 + 1)
w1, w2, w3, w4: Weights assigned to each ratio period.
Ratio_p1 to Ratio_p5: Ratios calculated for periods p1 to p5 (e.g., 8, 13, 21, 34, 55).
This weighted approach emphasizes shorter periods more heavily, capturing recent market dynamics while still considering longer-term trends.
🔶 5. Simple Moving Average (SMA) of Weighted Average
To further smooth the weighted average and reduce noise, a Simple Moving Average (SMA) is applied.
Weighted Avg SMA = SMA(Weighted Avg, m)
- m: SMA period (e.g., 3).
This smoothed line serves as the primary signal generator for trade entries and exits.
🔶 6. Trading Condition Thresholds
The strategy defines specific threshold values to determine optimal entry and exit points based on crossovers and crossunders of the SMA.
Long Condition = Crossover(Weighted Avg SMA, Long Entry Threshold)
Short Condition = Crossunder(Weighted Avg SMA, Short Entry Threshold)
Long Exit = Crossunder(Weighted Avg SMA, Long Exit Threshold)
Short Exit = Crossover(Weighted Avg SMA, Short Exit Threshold)
Long Entry Threshold (T_LE): Level at which a long position is triggered.
Short Entry Threshold (T_SE): Level at which a short position is triggered.
Long Exit Threshold (T_LX): Level at which a long position is exited.
Short Exit Threshold (T_SX): Level at which a short position is exited.
These conditions ensure that trades are only executed when clear trends are identified, enhancing the strategy's reliability.
Previous local performance
🔶 7. ATR-Based Take Profit Mechanism
When enabled, the strategy employs a 4-step Take Profit system to systematically secure profits as the trade moves in the desired direction.
TP Price_1 Long = Entry Price + (TP1ATR * ATR Value)
TP Price_2 Long = Entry Price + (TP2ATR * ATR Value)
TP Price_3 Long = Entry Price + (TP3ATR * ATR Value)
TP Price_1 Short = Entry Price - (TP1ATR * ATR Value)
TP Price_2 Short = Entry Price - (TP2ATR * ATR Value)
TP Price_3 Short = Entry Price - (TP3ATR * ATR Value)
- ATR Value: Calculated using ATR over a specified period (e.g., 14).
- TPxATR: User-defined multipliers for each take profit level.
- TPx_percent: Percentage of the position to exit at each TP level.
This multi-tiered exit strategy allows for partial position closures, optimizing profit capture while maintaining exposure to potential further gains.
█ Trade Direction
The Fibonacci ATR Fusion Strategy is designed to operate in both long and short market conditions, providing flexibility to traders in varying market environments.
Long Trades: Initiated when the SMA of the weighted average crosses above the Long Entry Threshold (T_LE), indicating strong upward momentum.
Short Trades: Initiated when the SMA of the weighted average crosses below the Short Entry Threshold (T_SE), signaling robust downward momentum.
Additionally, the strategy can be configured to trade exclusively in one direction—Long, Short, or Both—based on the trader’s preference and market analysis.
█ Usage
Implementing the Fibonacci ATR Fusion Strategy involves several steps to ensure it aligns with your trading objectives and market conditions.
1. Configure Strategy Parameters:
- Trading Direction: Choose between Long, Short, or Both based on your market outlook.
- Trading Condition Thresholds: Set the Long Entry, Short Entry, Long Exit, and Short Exit thresholds to define when to enter and exit trades.
2. Set Take Profit Levels (if enabled):
- ATR Multipliers: Define how many ATRs away from the entry price each take profit level is set.
- Take Profit Percentages: Allocate what percentage of the position to close at each TP level.
3. Apply to Desired Chart:
- Add the strategy to the chart of the asset you wish to trade.
- Observe the plotted Fibonacci ATR and SMA Fibonacci ATR indicators for visual confirmation.
4. Monitor and Adjust:
- Regularly review the strategy’s performance through backtesting.
- Adjust the input parameters based on historical performance and changing market dynamics.
5. Risk Management:
- Ensure that the sum of take profit percentages does not exceed 100% to avoid over-closing positions.
- Utilize the ATR-based TP levels to adapt to varying market volatilities, maintaining a balanced risk-reward ratio.
█ Default Settings
Understanding the default settings is crucial for optimizing the Fibonacci ATR Fusion Strategy's performance. Here's a precise and simple overview of the key parameters and their effects:
🔶 Key Parameters and Their Effects
1. Trading Direction (`tradingDirection`)
- Default: Both
- Effect: Determines whether the strategy takes both long and short positions or restricts to one direction. Selecting Both allows maximum flexibility, while Long or Short can be used for directional bias.
2. Trading Condition Thresholds
Long Entry (long_entry_threshold = 58.0): Higher values reduce false positives but may miss trades.
Short Entry (short_entry_threshold = 42.0): Lower values capture early short trends but may increase false signals.
Long Exit (long_exit_threshold = 42.0): Exits long positions early, securing profits but potentially cutting trends short.
Short Exit (short_exit_threshold = 58.0): Delays short exits to capture favorable movements, avoiding premature exits.
3. Take Profit Configuration (`useTakeProfit` = false)
- Effect: When enabled, the strategy employs a 4-step TP mechanism to secure profits at multiple levels. By default, it is disabled to allow users to opt-in based on their trading style.
4. ATR-Based Take Profit Multipliers
TP1 (tp1ATR = 3.0): Sets the first TP at 3 ATRs for initial profit capture.
TP2 (tp2ATR = 8.0): Targets larger trends, though less likely to be reached.
TP3 (tp3ATR = 14.0): Optimizes for extreme price moves, seldom triggered.
5. Take Profit Percentages
TP Level 1 (tp1_percent = 12%): Secures 12% at the first TP.
TP Level 2 (tp2_percent = 12%): Exits another 12% at the second TP.
TP Level 3 (tp3_percent = 12%): Closes an additional 12% at the third TP.
6. Weighted Average Parameters
Ratio Periods: Fibonacci-based intervals (8, 13, 21, 34, 55) balance responsiveness.
Weights: Emphasizes recent data for timely responses to market trends.
SMA Period (weighted_avg_sma_period = 3): Smoothens data with minimal lag, balancing noise reduction and responsiveness.
7. ATR Period (`atrPeriod` = 14)
Effect: Sets the ATR calculation length, impacting TP sensitivity to volatility.
🔶 Impact on Performance
- Sensitivity and Responsiveness:
- Shorter Ratio Periods and Higher Weights: Make the weighted average more responsive to recent price changes, allowing quicker trade entries and exits but increasing the likelihood of false signals.
- Longer Ratio Periods and Lower Weights: Provide smoother signals with fewer false positives but may delay trade entries, potentially missing out on significant price moves.
- Profit Taking:
- ATR Multipliers: Higher multipliers set take profit levels further away, targeting larger price movements but reducing the probability of reaching these levels.
- Fixed Percentages: Allocating equal percentages at each TP level ensures consistent profit realization and risk management, preventing overexposure.
- Trade Direction Control:
- Selecting Specific Directions: Restricting trades to Long or Short can align the strategy with market trends or personal biases, potentially enhancing performance in trending markets.
- Risk Management:
- Take Profit Percentages: Dividing the position into smaller percentages at multiple TP levels helps lock in profits progressively, reducing risk and allowing the remaining position to ride further trends.
- Market Adaptability:
- Weighted Averages and ATR: By combining multiple timeframes and adjusting to volatility, the strategy adapts to different market conditions, maintaining effectiveness across various asset classes and timeframes.
---
If you want to know more about ATR, can also check "SuperATR 7-Step Profit".
Enjoy trading.
Presenttrading
SuperATR 7-Step Profit - Strategy [presentTrading] Long time no see!
█ Introduction and How It Is Different
The SuperATR 7-Step Profit Strategy is a multi-layered trading approach that integrates adaptive Average True Range (ATR) calculations with momentum-based trend detection. What sets this strategy apart is its sophisticated 7-step take-profit mechanism, which combines four ATR-based exit levels and three fixed percentage levels. This hybrid approach allows traders to dynamically adjust to market volatility while systematically capturing profits in both long and short market positions.
Traditional trading strategies often rely on static indicators or single-layered exit strategies, which may not adapt well to changing market conditions. The SuperATR 7-Step Profit Strategy addresses this limitation by:
- Using Adaptive ATR: Enhances the standard ATR by making it responsive to current market momentum.
- Incorporating Momentum-Based Trend Detection: Identifies stronger trends with higher probability of continuation.
- Employing a Multi-Step Take-Profit System: Allows for gradual profit-taking at predetermined levels, optimizing returns while minimizing risk.
BTCUSD 6hr Performance
█ Strategy, How It Works: Detailed Explanation
The strategy revolves around detecting strong market trends and capitalizing on them using an adaptive ATR and momentum indicators. Below is a detailed breakdown of each component of the strategy.
🔶 1. True Range Calculation with Enhanced Volatility Detection
The True Range (TR) measures market volatility by considering the most significant price movements. The enhanced TR is calculated as:
TR = Max
Where:
High and Low are the current bar's high and low prices.
Previous Close is the closing price of the previous bar.
Abs denotes the absolute value.
Max selects the maximum value among the three calculations.
🔶 2. Momentum Factor Calculation
To make the ATR adaptive, the strategy incorporates a Momentum Factor (MF), which adjusts the ATR based on recent price movements.
Momentum = Close - Close
Stdev_Close = Standard Deviation of Close over n periods
Normalized_Momentum = Momentum / Stdev_Close (if Stdev_Close ≠ 0)
Momentum_Factor = Abs(Normalized_Momentum)
Where:
Close is the current closing price.
n is the momentum_period, a user-defined input (default is 7).
Standard Deviation measures the dispersion of closing prices over n periods.
Abs ensures the momentum factor is always positive.
🔶 3. Adaptive ATR Calculation
The Adaptive ATR (AATR) adjusts the traditional ATR based on the Momentum Factor, making it more responsive during volatile periods and smoother during consolidation.
Short_ATR = SMA(True Range, short_period)
Long_ATR = SMA(True Range, long_period)
Adaptive_ATR = /
Where:
SMA is the Simple Moving Average.
short_period and long_period are user-defined inputs (defaults are 3 and 7, respectively).
🔶 4. Trend Strength Calculation
The strategy quantifies the strength of the trend to filter out weak signals.
Price_Change = Close - Close
ATR_Multiple = Price_Change / Adaptive_ATR (if Adaptive_ATR ≠ 0)
Trend_Strength = SMA(ATR_Multiple, n)
🔶 5. Trend Signal Determination
If (Short_MA > Long_MA) AND (Trend_Strength > Trend_Strength_Threshold):
Trend_Signal = 1 (Strong Uptrend)
Elif (Short_MA < Long_MA) AND (Trend_Strength < -Trend_Strength_Threshold):
Trend_Signal = -1 (Strong Downtrend)
Else:
Trend_Signal = 0 (No Clear Trend)
🔶 6. Trend Confirmation with Price Action
Adaptive_ATR_SMA = SMA(Adaptive_ATR, atr_sma_period)
If (Trend_Signal == 1) AND (Close > Short_MA) AND (Adaptive_ATR > Adaptive_ATR_SMA):
Trend_Confirmed = True
Elif (Trend_Signal == -1) AND (Close < Short_MA) AND (Adaptive_ATR > Adaptive_ATR_SMA):
Trend_Confirmed = True
Else:
Trend_Confirmed = False
Local Performance
🔶 7. Multi-Step Take-Profit Mechanism
The strategy employs a 7-step take-profit system
█ Trade Direction
The SuperATR 7-Step Profit Strategy is designed to work in both long and short market conditions. By identifying strong uptrends and downtrends, it allows traders to capitalize on price movements in either direction.
Long Trades: Initiated when the market shows strong upward momentum and the trend is confirmed.
Short Trades: Initiated when the market exhibits strong downward momentum and the trend is confirmed.
█ Usage
To implement the SuperATR 7-Step Profit Strategy:
1. Configure the Strategy Parameters:
- Adjust the short_period, long_period, and momentum_period to match the desired sensitivity.
- Set the trend_strength_threshold to control how strong a trend must be before acting.
2. Set Up the Multi-Step Take-Profit Levels:
- Define ATR multipliers and fixed percentage levels according to risk tolerance and profit goals.
- Specify the percentage of the position to close at each level.
3. Apply the Strategy to a Chart:
- Use the strategy on instruments and timeframes where it has been tested and optimized.
- Monitor the positions and adjust parameters as needed based on performance.
4. Backtest and Optimize:
- Utilize TradingView's backtesting features to evaluate historical performance.
- Adjust the default settings to optimize for different market conditions.
█ Default Settings
Understanding default settings is crucial for optimal performance.
Short Period (3): Affects the responsiveness of the short-term MA.
Effect: Lower values increase sensitivity but may produce more false signals.
Long Period (7): Determines the trend baseline.
Effect: Higher values reduce noise but may delay signals.
Momentum Period (7): Influences adaptive ATR and trend strength.
Effect: Shorter periods react quicker to price changes.
Trend Strength Threshold (0.5): Filters out weaker trends.
Effect: Higher thresholds yield fewer but stronger signals.
ATR Multipliers: Set distances for ATR-based exits.
Effect: Larger multipliers aim for bigger moves but may reduce hit rate.
Fixed TP Levels (%): Control profit-taking on smaller moves.
Effect: Adjusting these levels affects how quickly profits are realized.
Exit Percentages: Determine how much of the position is closed at each TP level.
Effect: Higher percentages reduce exposure faster, affecting risk and reward.
Adjusting these variables allows you to tailor the strategy to different market conditions and personal risk preferences.
By integrating adaptive indicators and a multi-tiered exit strategy, the SuperATR 7-Step Profit Strategy offers a versatile tool for traders seeking to navigate varying market conditions effectively. Understanding and adjusting the key parameters enables traders to harness the full potential of this strategy.
VIDYA ProTrend Multi-Tier ProfitHello! This time is about a trend-following system.
VIDYA is quite an interesting indicator that adjusts dynamically to market volatility, making it more responsive to price changes compared to traditional moving averages. Balancing adaptability and precision, especially with the more aggressive short trade settings, challenged me to fine-tune the strategy for a variety of market conditions.
█ Introduction and How it is Different
The "VIDYA ProTrend Multi-Tier Profit" strategy is a trend-following system that combines the VIDYA (Variable Index Dynamic Average) indicator with Bollinger Bands and a multi-step take-profit mechanism.
Unlike traditional trend strategies, this system allows for more adaptive profit-taking, adjusting for long and short positions through distinct ATR-based and percentage-based targets. The innovation lies in its dynamic multi-tier approach to profit-taking, especially for short trades, where more aggressive percentages are applied using a multiplier. This flexibility helps adapt to various market conditions by optimizing trade management and profit allocation based on market volatility and trend strength.
BTCUSD 6hr performance
█ Strategy, How it Works: Detailed Explanation
The core of the "VIDYA ProTrend Multi-Tier Profit" strategy lies in the dual VIDYA indicators (fast and slow) that analyze price trends while accounting for market volatility. These indicators work alongside Bollinger Bands to filter trade entries and exits.
🔶 VIDYA Calculation
The VIDYA indicator is calculated using the following formula:
Smoothing factor (𝛼):
alpha = 2 / (Length + 1)
VIDYA formula:
VIDYA(t) = alpha * k * Price(t) + (1 - alpha * k) * VIDYA(t-1)
Where:
k = |Chande Momentum Oscillator (MO)| / 100
🔶 Bollinger Bands as a Volatility Filter
Bollinger Bands are calculated using a rolling mean and standard deviation of price over a specified period:
Upper Band:
BB_upper = MA + (K * stddev)
Lower Band:
BB_lower = MA - (K * stddev)
Where:
MA is the moving average,
K is the multiplier (typically 2), and
stddev is the standard deviation of price over the Bollinger Bands length.
These bands serve as volatility filters to identify potential overbought or oversold conditions, aiding in the entry and exit logic.
🔶 Slope Calculation for VIDYA
The slopes of both fast and slow VIDYAs are computed to assess the momentum and direction of the trend. The slope for a given VIDYA over its length is:
Slope = (VIDYA(t) - VIDYA(t-n)) / n
Where:
n is the length of the lookback period. Positive slope indicates bullish momentum, while negative slope signals bearish momentum.
LOCAL picture
🔶 Entry and Exit Conditions
- Long Entry: Occurs when the price moves above the slow VIDYA and the fast VIDYA is trending upward. Bollinger Bands confirm the signal when the price crosses the upper band, indicating bullish strength.
- Short Entry: Happens when the price drops below the slow VIDYA and the fast VIDYA trends downward. The signal is confirmed when the price crosses the lower Bollinger Band, showing bearish momentum.
- Exit: Based on VIDYA slopes flattening or reversing, or when the price hits specific ATR or percentage-based profit targets.
🔶 Multi-Step Take Profit Mechanism
The strategy incorporates three levels of take profit for both long and short trades:
- ATR-based Take Profit: Each step applies a multiple of the ATR (Average True Range) to the entry price to define the exit point.
The first level of take profit (long):
TP_ATR1_long = Entry Price + (2.618 * ATR)
etc.
█ Trade Direction
The strategy offers flexibility in defining the trading direction:
- Long: Only long trades are considered based on the criteria for upward trends.
- Short: Only short trades are initiated in bearish trends.
- Both: The strategy can take both long and short trades depending on the market conditions.
█ Usage
To use the strategy effectively:
- Adjust the VIDYA lengths (fast and slow) based on your preference for trend sensitivity.
- Use Bollinger Bands as a filter for identifying potential breakout or reversal scenarios.
- Enable the multi-step take profit feature to manage positions dynamically, allowing for partial exits as the price reaches specified ATR or percentage levels.
- Leverage the short trade multiplier for more aggressive take profit levels in bearish markets.
This strategy can be applied to different asset classes, including equities, forex, and cryptocurrencies. Adjust the input parameters to suit the volatility and characteristics of the asset being traded.
█ Default Settings
The default settings for this strategy have been designed for moderate to trending markets:
- Fast VIDYA Length (10): A shorter length for quick responsiveness to price changes. Increasing this length will reduce noise but may delay signals.
- Slow VIDYA Length (30): The slow VIDYA is set longer to capture broader market trends. Shortening this value will make the system more reactive to smaller price swings.
- Minimum Slope Threshold (0.05): This threshold helps filter out weak trends. Lowering the threshold will result in more trades, while raising it will restrict trades to stronger trends.
Multi-Step Take Profit Settings
- ATR Multipliers (2.618, 5.0, 10.0): These values define how far the price should move before taking profit. Larger multipliers widen the profit-taking levels, aiming for larger trend moves. In higher volatility markets, these values might be adjusted downwards.
- Percentage Levels (3%, 8%, 17%): These percentage levels define how much the price must move before taking profit. Increasing the percentages will capture larger moves, while smaller percentages offer quicker exits.
- Short TP Multiplier (1.5): This multiplier applies more aggressive take profit levels for short trades. Adjust this value based on the aggressiveness of your short trade management.
Each of these settings directly impacts the performance and risk profile of the strategy. Shorter VIDYA lengths and lower slope thresholds will generate more trades but may result in more whipsaws. Higher ATR multipliers or percentage levels can delay profit-taking, aiming for larger trends but risking partial gains if the trend reverses too early.
Overnight Positioning w EMA - Strategy [presentTrading]I've recently started researching Market Timing strategies, and it’s proving to be quite an interesting area of study. The idea of predicting optimal times to enter and exit the market, based on historical data and various indicators, brings a dynamic edge to trading. Additionally, it is integrated with the 3commas bot for automated trade execution.
I'm still working on it. Welcome to share your point of view.
█ Introduction and How it is Different
The "Overnight Positioning with EMA " is designed to capitalize on market inefficiencies during the overnight trading period. This strategy takes a position shortly before the market closes and exits shortly after it opens the following day. What sets this strategy apart is the integration of an optional Exponential Moving Average (EMA) filter, which ensures that trades are aligned with the underlying trend. The strategy provides flexibility by allowing users to select between different global market sessions, such as the US, Asia, and Europe.
It is integrated with the 3commas bot for automated trade execution and has a built-in mechanism to avoid holding positions over the weekend by force-closing positions on Fridays before the market closes.
BTCUSD 20 mins Performance
█ Strategy, How it Works: Detailed Explanation
The core logic of this strategy is simple: enter trades before market close and exit them after market open, taking advantage of potential price movements during the overnight period. Here’s how it works in more detail:
🔶 Market Timing
The strategy determines the local market open and close times based on the selected market (US, Asia, Europe) and adjusts entry and exit points accordingly. The entry is triggered a specific number of minutes before market close, and the exit is triggered a specific number of minutes after market open.
🔶 EMA Filter
The strategy includes an optional EMA filter to help ensure that trades are taken in the direction of the prevailing trend. The EMA is calculated over a user-defined timeframe and length. The entry is only allowed if the closing price is above the EMA (for long positions), which helps to filter out trades that might go against the trend.
The EMA formula:
```
EMA(t) = +
```
Where:
- EMA(t) is the current EMA value
- Close(t) is the current closing price
- n is the length of the EMA
- EMA(t-1) is the previous period's EMA value
🔶 Entry Logic
The strategy monitors the market time in the selected timezone. Once the current time reaches the defined entry period (e.g., 20 minutes before market close), and the EMA condition is satisfied, a long position is entered.
- Entry time calculation:
```
entryTime = marketCloseTime - entryMinutesBeforeClose * 60 * 1000
```
🔶 Exit Logic
Exits are triggered based on a specified time after the market opens. The strategy checks if the current time is within the defined exit period (e.g., 20 minutes after market open) and closes any open long positions.
- Exit time calculation:
exitTime = marketOpenTime + exitMinutesAfterOpen * 60 * 1000
🔶 Force Close on Fridays
To avoid the risk of holding positions over the weekend, the strategy force-closes any open positions 5 minutes before the market close on Fridays.
- Force close logic:
isFriday = (dayofweek(currentTime, marketTimezone) == dayofweek.friday)
█ Trade Direction
This strategy is designed exclusively for long trades. It enters a long position before market close and exits the position after market open. There is no shorting involved in this strategy, and it focuses on capturing upward momentum during the overnight session.
█ Usage
This strategy is suitable for traders who want to take advantage of price movements that occur during the overnight period without holding positions for extended periods. It automates entry and exit times, ensuring that trades are placed at the appropriate times based on the market session selected by the user. The 3commas bot integration also allows for automated execution, making it ideal for traders who wish to set it and forget it. The strategy is flexible enough to work across various global markets, depending on the trader's preference.
█ Default Settings
1. entryMinutesBeforeClose (Default = 20 minutes):
This setting determines how many minutes before the market close the strategy will enter a long position. A shorter duration could mean missing out on potential movements, while a longer duration could expose the position to greater price fluctuations before the market closes.
2. exitMinutesAfterOpen (Default = 20 minutes):
This setting controls how many minutes after the market opens the position will be exited. A shorter exit time minimizes exposure to market volatility at the open, while a longer exit time could capture more of the overnight price movement.
3. emaLength (Default = 100):
The length of the EMA affects how the strategy filters trades. A shorter EMA (e.g., 50) reacts more quickly to price changes, allowing more frequent entries, while a longer EMA (e.g., 200) smooths out price action and only allows entries when there is a stronger underlying trend.
The effect of using a longer EMA (e.g., 200) would be:
```
EMA(t) = +
```
4. emaTimeframe (Default = 240):
This is the timeframe used for calculating the EMA. A higher timeframe (e.g., 360) would base entries on longer-term trends, while a shorter timeframe (e.g., 60) would respond more quickly to price movements, potentially allowing more frequent trades.
5. useEMA (Default = true):
This toggle enables or disables the EMA filter. When enabled, trades are only taken when the price is above the EMA. Disabling the EMA allows the strategy to enter trades without any trend validation, which could increase the number of trades but also increase risk.
6. Market Selection (Default = US):
This setting determines which global market's open and close times the strategy will use. The selection of the market affects the timing of entries and exits and should be chosen based on the user's preference or geographic focus.
Bitcoin CME-Spot Z-Spread - Strategy [presentTrading]This time is a swing trading strategy! It measures the sentiment of the Bitcoin market through the spread of CME Bitcoin Futures and Bitfinex BTCUSD Spot prices. By applying Bollinger Bands to the spread, the strategy seeks to capture mean-reversion opportunities when prices deviate significantly from their historical norms
█ Introduction and How it is Different
The Bitcoin CME-Spot Bollinger Bands Strategy is designed to capture mean-reversion opportunities by exploiting the spread between CME Bitcoin Futures and Bitfinex BTCUSD Spot prices. The strategy uses Bollinger Bands to detect when the spread between these two correlated assets has deviated significantly from its historical norm, signaling potential overbought or oversold conditions.
What sets this strategy apart is its focus on spread trading between futures and spot markets rather than price-based indicators. By applying Bollinger Bands to the spread rather than individual prices, the strategy identifies price inefficiencies across markets, allowing traders to take advantage of the natural reversion to the mean that often occurs in these correlated assets.
BTCUSD 8hr Performance
█ Strategy, How It Works: Detailed Explanation
The strategy relies on Bollinger Bands to assess the volatility and relative deviation of the spread between CME Bitcoin Futures and Bitfinex BTCUSD Spot prices. Bollinger Bands consist of a moving average and two standard deviation bands, which help measure how much the spread deviates from its historical mean.
🔶 Spread Calculation:
The spread is calculated by subtracting the Bitfinex spot price from the CME Bitcoin futures price:
Spread = CME Price - Bitfinex Price
This spread represents the difference between the futures and spot markets, which may widen or narrow based on supply and demand dynamics in each market. By analyzing the spread, the strategy can detect when prices are too far apart (potentially overbought or oversold), indicating a trading opportunity.
🔶 Bollinger Bands Calculation:
The Bollinger Bands for the spread are calculated using a simple moving average (SMA) and the standard deviation of the spread over a defined period.
1. Moving Average (SMA):
The simple moving average of the spread (mu_S) over a specified period P is calculated as:
mu_S = (1/P) * sum(S_i from i=1 to P)
Where S_i represents the spread at time i, and P is the lookback period (default is 200 bars). The moving average provides a baseline for the normal spread behavior.
2. Standard Deviation:
The standard deviation (sigma_S) of the spread is calculated to measure the volatility of the spread:
sigma_S = sqrt((1/P) * sum((S_i - mu_S)^2 from i=1 to P))
3. Upper and Lower Bollinger Bands:
The upper and lower Bollinger Bands are derived by adding and subtracting a multiple of the standard deviation from the moving average. The number of standard deviations is determined by a user-defined parameter k (default is 2.618).
- Upper Band:
Upper Band = mu_S + (k * sigma_S)
- Lower Band:
Lower Band = mu_S - (k * sigma_S)
These bands provide a dynamic range within which the spread typically fluctuates. When the spread moves outside of these bands, it is considered overbought or oversold, potentially offering trading opportunities.
Local view
🔶 Entry Conditions:
- Long Entry: A long position is triggered when the spread crosses below the lower Bollinger Band, indicating that the spread has become oversold and is likely to revert upward.
Spread < Lower Band
- Short Entry: A short position is triggered when the spread crosses above the upper Bollinger Band, indicating that the spread has become overbought and is likely to revert downward.
Spread > Upper Band
🔶 Risk Management and Profit-Taking:
The strategy incorporates multi-step take profits to lock in gains as the trade moves in favor. The position is gradually reduced at predefined profit levels, reducing risk while allowing part of the trade to continue running if the price keeps moving favorably.
Additionally, the strategy uses a hold period exit mechanism. If the trade does not hit any of the take-profit levels within a certain number of bars, the position is closed automatically to avoid excessive exposure to market risks.
█ Trade Direction
The trade direction is based on deviations of the spread from its historical norm:
- Long Trade: The strategy enters a long position when the spread crosses below the lower Bollinger Band, signaling an oversold condition where the spread is expected to narrow.
- Short Trade: The strategy enters a short position when the spread crosses above the upper Bollinger Band, signaling an overbought condition where the spread is expected to widen.
These entries rely on the assumption of mean reversion, where extreme deviations from the average spread are likely to revert over time.
█ Usage
The Bitcoin CME-Spot Bollinger Bands Strategy is ideal for traders looking to capitalize on price inefficiencies between Bitcoin futures and spot markets. It’s especially useful in volatile markets where large deviations between futures and spot prices occur.
- Market Conditions: This strategy is most effective in correlated markets, like CME futures and spot Bitcoin. Traders can adjust the Bollinger Bands period and standard deviation multiplier to suit different volatility regimes.
- Backtesting: Before deployment, backtesting the strategy across different market conditions and timeframes is recommended to ensure robustness. Adjust the take-profit steps and hold periods to reflect the trader’s risk tolerance and market behavior.
█ Default Settings
The default settings provide a balanced approach to spread trading using Bollinger Bands but can be adjusted depending on market conditions or personal trading preferences.
🔶 Bollinger Bands Period (200 bars):
This defines the number of bars used to calculate the moving average and standard deviation for the Bollinger Bands. A longer period smooths out short-term fluctuations and focuses on larger, more significant trends. Adjusting the period affects the responsiveness of the strategy:
- Shorter periods (e.g., 100 bars): Makes the strategy more reactive to short-term market fluctuations, potentially generating more signals but increasing the risk of false positives.
- Longer periods (e.g., 300 bars): Focuses on longer-term trends, reducing the frequency of trades and focusing only on significant deviations.
🔶 Standard Deviation Multiplier (2.618):
The multiplier controls how wide the Bollinger Bands are around the moving average. By default, the bands are set at 2.618 standard deviations away from the average, ensuring that only significant deviations trigger trades.
- Higher multipliers (e.g., 3.0): Require a more extreme deviation to trigger trades, reducing trade frequency but potentially increasing the accuracy of signals.
- Lower multipliers (e.g., 2.0): Make the bands narrower, increasing the number of trade signals but potentially decreasing their reliability.
🔶 Take-Profit Levels:
The strategy has four take-profit levels to gradually lock in profits:
- Level 1 (3%): 25% of the position is closed at a 3% profit.
- Level 2 (8%): 20% of the position is closed at an 8% profit.
- Level 3 (14%): 15% of the position is closed at a 14% profit.
- Level 4 (21%): 10% of the position is closed at a 21% profit.
Adjusting these take-profit levels affects how quickly profits are realized:
- Lower take-profit levels: Capture gains more quickly, reducing risk but potentially cutting off larger profits.
- Higher take-profit levels: Let trades run longer, aiming for bigger gains but increasing the risk of price reversals before profits are locked in.
🔶 Hold Days (20 bars):
The strategy automatically closes the position after 20 bars if none of the take-profit levels are hit. This feature prevents trades from being held indefinitely, especially if market conditions are stagnant. Adjusting this:
- Shorter hold periods: Reduce the duration of exposure, minimizing risks from market changes but potentially closing trades too early.
- Longer hold periods: Allow trades to stay open longer, increasing the chance for mean reversion but also increasing exposure to unfavorable market conditions.
By understanding how these default settings affect the strategy’s performance, traders can optimize the Bitcoin CME-Spot Bollinger Bands Strategy to their preferences, adapting it to different market environments and risk tolerances.
Multi-Step FlexiSuperTrend - Indicator [presentTrading]This version of the indicator is built upon the foundation of a strategy version published earlier. However, this indicator version focuses on providing visual insights and alerts for traders, rather than executing trades. This one is mostly for @thorcmt.
█ Introduction and How it is Different
The **Multi-Step FlexiSuperTrend Indicator** is a versatile tool designed to provide traders with a highly customizable and flexible approach to trend analysis. Unlike traditional supertrend indicators, which focus on a single factor or threshold, the **FlexiSuperTrend** allows users to define multiple levels of take-profit targets and incorporate different trend normalization methods.
It comes with several advanced customization features, including multi-step take profits, deviation plotting, and trend normalization, making it suitable for both novice and expert traders.
BTCUSD 6hr Performance
█ Strategy, How It Works: Detailed Explanation
The **Multi-Step FlexiSuperTrend** works by calculating a supertrend based on multiple factors and incorporating oscillations from trend deviations. Here’s a breakdown of how it functions:
🔶 SuperTrend Calculation
At the heart of the indicator is the SuperTrend formula, which dynamically adjusts based on price movements.
🔶 Normalization of Deviations
To enhance accuracy, the **FlexiSuperTrend** calculates multiple deviations from the trend and normalizes them.
🔶 Multi-Step Take Profit Levels
The indicator allows setting up to three take profit levels, which are displayed via price level alerts. lows traders to exit part of their position at various profit intervals.
For more detail, please check the strategy version - Multi-Step-FlexiSuperTrend-Strategy:
and 'FlexiSuperTrend-Strategy'
█ Trade Direction
The **Multi-Step FlexiSuperTrend Indicator** supports both long and short trade directions.
This flexibility allows traders to adapt to trending, volatile, or sideways markets.
█ Usage
To use the **FlexiSuperTrend Indicator**, traders can set up their preferences for the following key features:
- **Trading Direction**: Choose whether to focus on long, short, or both signals.
- **Indicator Source**: The price source to calculate the trend (e.g., close, hl2).
- **Indicator Length**: The number of periods to calculate the ATR and trend (the larger the value, the smoother the trend).
- **Starting and Increment Factor**: These adjust how reactive the trend is to price movements. The starting factor dictates how far the initial trend band is from the price, and the increment factor adjusts subsequent trend deviations.
The indicator then displays buy and sell signals on the chart, along with alerts for each take-profit level.
Local picture
█ Default Settings
The default settings of the **Multi-Step FlexiSuperTrend** are carefully designed to provide an optimal balance between sensitivity and accuracy. Let’s examine these default parameters and their effect on performance:
🔶 Indicator Length (Default: 10)
The **Indicator Length** determines the lookback period for the ATR calculation. A smaller value makes the indicator more reactive to price changes, but may generate more false signals. A longer length smooths the trend and reduces noise but may delay signals.
Effect on performance: Shorter lengths perform better in volatile markets, while longer lengths excel in trending markets.
🔶 Starting Factor (Default: 0.618)
This factor adjusts the starting distance of the SuperTrend from the current price. The smaller the starting factor, the closer the trend is to the price, making it more sensitive. Conversely, a larger factor allows more distance, reducing sensitivity but filtering out false signals.
Effect on performance: A smaller factor provides quicker signals but can lead to frequent false positives. A larger factor generates fewer but more reliable signals.
🔶 Increment Factor (Default: 0.382)
The **Increment Factor** controls how the trend bands adjust as the price moves. It increases the distance of the bands from the price with each iteration.
Effect on performance: A higher increment factor can result in wider stop-loss or trend reversal bands, allowing for longer trends to develop without frequent exits. A lower factor keeps the bands closer to the price and is more suited for shorter-term trades.
🔶 Take Profit Levels (Default: 2%, 8%, 18%)
The default take-profit levels are set at 2%, 8%, and 18%. These values represent the thresholds at which the trader can partially exit their positions. These multi-step levels are highly customizable depending on the trader’s risk tolerance and strategy.
Effect on performance: Lower take-profit levels (e.g., 2%) capture small, quick profits in volatile markets, while higher levels (8%-18%) allow for a more gradual exit in strong trends.
🔶 Normalization Method (Default: None)
The default normalization method is **None**, meaning the deviations are not normalized. However, enabling normalization (e.g., **Max-Min**) can improve the clarity of the indicator’s signals in volatile or choppy markets by smoothing out the noise.
Effect on performance: Using a normalization method can reduce the effect of extreme deviations, making signals more stable and less prone to false positives.
Multi-Step FlexiMA - Strategy [presentTrading]It's time to come back! hope I can not to be busy for a while.
█ Introduction and How It Is Different
The FlexiMA Variance Tracker is a unique trading strategy that calculates a series of deviations between the price (or another indicator source) and a variable-length moving average (MA). Unlike traditional strategies that use fixed-length moving averages, the length of the MA in this system varies within a defined range. The length changes dynamically based on a starting factor and an increment factor, creating a more adaptive approach to market conditions.
This strategy integrates Multi-Step Take Profit (TP) levels, allowing for partial exits at predefined price increments. It enables traders to secure profits at different stages of a trend, making it ideal for volatile markets where taking full profits at once might lead to missed opportunities if the trend continues.
BTCUSD 6hr Performance
█ Strategy, How It Works: Detailed Explanation
🔶 FlexiMA Concept
The FlexiMA (Flexible Moving Average) is at the heart of this strategy. Unlike traditional MA-based strategies where the MA length is fixed (e.g., a 50-period SMA), the FlexiMA varies its length with each iteration. This is done using a **starting factor** and an **increment factor**.
The formula for the moving average length at each iteration \(i\) is:
`MA_length_i = indicator_length * (starting_factor + i * increment_factor)`
Where:
- `indicator_length` is the user-defined base length.
- `starting_factor` is the initial multiplier of the base length.
- `increment_factor` increases the multiplier in each iteration.
Each iteration applies a **simple moving average** (SMA) to the chosen **indicator source** (e.g., HLC3) with a different length based on the above formula. The deviation between the current price and the moving average is then calculated as follows:
`deviation_i = price_current - MA_i`
These deviations are normalized using one of the following methods:
- **Max-Min normalization**:
`normalized_i = (deviation_i - min(deviations)) / range(deviations)`
- **Absolute Sum normalization**:
`normalized_i = deviation_i / sum(|deviation_i|)`
The **median** and **standard deviation (stdev)** of the normalized deviations are then calculated as follows:
`median = median(normalized deviations)`
For the standard deviation:
`stdev = sqrt((1/(N-1)) * sum((normalized_i - mean)^2))`
These values are plotted to provide a clear indication of how the price is deviating from its variable-length moving averages.
For more detail:
🔶 Multi-Step Take Profit
This strategy uses a multi-step take profit system, allowing for exits at different stages of a trade based on the percentage of price movement. Three take-profit levels are defined:
- Take Profit Level 1 (TP1): A small, quick profit level (e.g., 2%).
- Take Profit Level 2 (TP2): A medium-level profit target (e.g., 8%).
- Take Profit Level 3 (TP3): A larger, more ambitious target (e.g., 18%).
At each level, a corresponding percentage of the trade is exited:
- TP Percent 1: E.g., 30% of the position.
- TP Percent 2: E.g., 20% of the position.
- TP Percent 3: E.g., 15% of the position.
This approach ensures that profits are locked in progressively, reducing the risk of market reversals wiping out potential gains.
Local
🔶 Trade Entry and Exit Conditions
The entry and exit signals are determined by the interaction between the **SuperTrend Polyfactor Oscillator** and the **median** value of the normalized deviations:
- Long entry: The SuperTrend turns bearish, and the median value of the deviations is positive.
- Short entry: The SuperTrend turns bullish, and the median value is negative.
Similarly, trades are exited when the SuperTrend flips direction.
* The SuperTrend Toolkit is made by @EliCobra
█ Trade Direction
The strategy allows users to specify the desired trade direction:
- Long: Only long positions will be taken.
- Short: Only short positions will be taken.
- Both: Both long and short positions are allowed based on the conditions.
This flexibility allows the strategy to adapt to different market conditions and trading styles, whether you're looking to buy low and sell high, or sell high and buy low.
█ Usage
This strategy can be applied across various asset classes, including stocks, cryptocurrencies, and forex. The primary use case is to take advantage of market volatility by using a flexible moving average and multiple take-profit levels to capture profits incrementally as the market moves in your favor.
How to Use:
1. Configure the Inputs: Start by adjusting the **Indicator Length**, **Starting Factor**, and **Increment Factor** to suit your chosen asset. The defaults work well for most markets, but fine-tuning them can improve performance.
2. Set the Take Profit Levels: Adjust the three **TP levels** and their corresponding **percentages** based on your risk tolerance and the expected volatility of the market.
3. Monitor the Strategy: The SuperTrend and the FlexiMA variance tracker will provide entry and exit signals, automatically managing the positions and taking profits at the pre-set levels.
█ Default Settings
The default settings for the strategy are configured to provide a balanced approach that works across different market conditions:
Indicator Length (10):
This controls the base length for the moving average. A lower length makes the moving average more responsive to price changes, while a higher length smooths out fluctuations, making the strategy less sensitive to short-term price movements.
Starting Factor (1.0):
This determines the initial multiplier applied to the moving average length. A higher starting factor will increase the average length, making it slower to react to price changes.
Increment Factor (1.0):
This increases the moving average length in each iteration. A larger increment factor creates a wider range of moving average lengths, allowing the strategy to track both short-term and long-term trends simultaneously.
Normalization Method ('None'):
Three methods of normalization can be applied to the deviations:
- None: No normalization applied, using raw deviations.
- Max-Min: Normalizes based on the range between the maximum and minimum deviations.
- Absolute Sum: Normalizes based on the total sum of absolute deviations.
Take Profit Levels:
- TP1 (2%): A quick exit to capture small price movements.
- TP2 (8%): A medium-term profit target for stronger trends.
- TP3 (18%): A long-term target for strong price moves.
Take Profit Percentages:
- TP Percent 1 (30%): Exits 30% of the position at TP1.
- TP Percent 2 (20%): Exits 20% of the position at TP2.
- TP Percent 3 (15%): Exits 15% of the position at TP3.
Effect of Variables on Performance:
- Short Indicator Lengths: More responsive to price changes but prone to false signals.
- Higher Starting Factor: Slows down the response, useful for longer-term trend following.
- Higher Increment Factor: Widens the variability in moving average lengths, making the strategy adapt to both short-term and long-term price trends.
- Aggressive Take Profit Levels: Allows for quick profit-taking in volatile markets but may exit positions prematurely in strong trends.
The default configuration offers a moderate balance between short-term responsiveness and long-term trend capturing, suitable for most traders. However, users can adjust these variables to optimize performance based on market conditions and personal preferences.
Multi-Step FlexiSuperTrend - Strategy [presentTrading]At the heart of this endeavor is a passion for continuous improvement in the art of trading
█ Introduction and How it is Different
The "Multi-Step FlexiSuperTrend - Strategy " is an advanced trading strategy that integrates the well-known SuperTrend indicator with a nuanced and dynamic approach to market trend analysis. Unlike conventional SuperTrend strategies that rely on static thresholds and fixed parameters, this strategy introduces multi-step take profit mechanisms that allow traders to capitalize on varying market conditions in a more controlled and systematic manner.
What sets this strategy apart is its ability to dynamically adjust to market volatility through the use of an incremental factor applied to the SuperTrend calculation. This adjustment ensures that the strategy remains responsive to both minor and major market shifts, providing a more accurate signal for entries and exits. Additionally, the integration of multi-step take profit levels offers traders the flexibility to scale out of positions, locking in profits progressively as the market moves in their favor.
BTC 6hr Long/Short Performance
█ Strategy, How it Works: Detailed Explanation
The Multi-Step FlexiSuperTrend strategy operates on the foundation of the SuperTrend indicator, but with several enhancements that make it more adaptable to varying market conditions. The key components of this strategy include the SuperTrend Polyfactor Oscillator, a dynamic normalization process, and multi-step take profit levels.
🔶 SuperTrend Polyfactor Oscillator
The SuperTrend Polyfactor Oscillator is the heart of this strategy. It is calculated by applying a series of SuperTrend calculations with varying factors, starting from a defined "Starting Factor" and incrementing by a specified "Increment Factor." The indicator length and the chosen price source (e.g., HLC3, HL2) are inputs to the oscillator.
The SuperTrend formula typically calculates an upper and lower band based on the average true range (ATR) and a multiplier (the factor). These bands determine the trend direction. In the FlexiSuperTrend strategy, the oscillator is enhanced by iteratively applying the SuperTrend calculation across different factors. The iterative process allows the strategy to capture both minor and significant trend changes.
For each iteration (indexed by `i`), the following calculations are performed:
1. ATR Calculation: The Average True Range (ATR) is calculated over the specified `indicatorLength`:
ATR_i = ATR(indicatorLength)
2. Upper and Lower Bands Calculation: The upper and lower bands are calculated using the ATR and the current factor:
Upper Band_i = hl2 + (ATR_i * Factor_i)
Lower Band_i = hl2 - (ATR_i * Factor_i)
Here, `Factor_i` starts from `startingFactor` and is incremented by `incrementFactor` in each iteration.
3. Trend Determination: The trend is determined by comparing the indicator source with the upper and lower bands:
Trend_i = 1 (uptrend) if IndicatorSource > Upper Band_i
Trend_i = 0 (downtrend) if IndicatorSource < Lower Band_i
Otherwise, the trend remains unchanged from the previous value.
4. Output Calculation: The output of each iteration is determined based on the trend:
Output_i = Lower Band_i if Trend_i = 1
Output_i = Upper Band_i if Trend_i = 0
This process is repeated for each iteration (from 0 to 19), creating a series of outputs that reflect different levels of trend sensitivity.
Local
🔶 Normalization Process
To make the oscillator values comparable across different market conditions, the deviations between the indicator source and the SuperTrend outputs are normalized. The normalization method can be one of the following:
1. Max-Min Normalization: The deviations are normalized based on the range of the deviations:
Normalized Value_i = (Deviation_i - Min Deviation) / (Max Deviation - Min Deviation)
2. Absolute Sum Normalization: The deviations are normalized based on the sum of absolute deviations:
Normalized Value_i = Deviation_i / Sum of Absolute Deviations
This normalization ensures that the oscillator values are within a consistent range, facilitating more reliable trend analysis.
For more details:
🔶 Multi-Step Take Profit Mechanism
One of the unique features of this strategy is the multi-step take profit mechanism. This allows traders to lock in profits at multiple levels as the market moves in their favor. The strategy uses three take profit levels, each defined as a percentage increase (for long trades) or decrease (for short trades) from the entry price.
1. First Take Profit Level: Calculated as a percentage increase/decrease from the entry price:
TP_Level1 = Entry Price * (1 + tp_level1 / 100) for long trades
TP_Level1 = Entry Price * (1 - tp_level1 / 100) for short trades
The strategy exits a portion of the position (defined by `tp_percent1`) when this level is reached.
2. Second Take Profit Level: Similar to the first level, but with a higher percentage:
TP_Level2 = Entry Price * (1 + tp_level2 / 100) for long trades
TP_Level2 = Entry Price * (1 - tp_level2 / 100) for short trades
The strategy exits another portion of the position (`tp_percent2`) at this level.
3. Third Take Profit Level: The final take profit level:
TP_Level3 = Entry Price * (1 + tp_level3 / 100) for long trades
TP_Level3 = Entry Price * (1 - tp_level3 / 100) for short trades
The remaining portion of the position (`tp_percent3`) is exited at this level.
This multi-step approach provides a balance between securing profits and allowing the remaining position to benefit from continued favorable market movement.
█ Trade Direction
The strategy allows traders to specify the trade direction through the `tradeDirection` input. The options are:
1. Both: The strategy will take both long and short positions based on the entry signals.
2. Long: The strategy will only take long positions.
3. Short: The strategy will only take short positions.
This flexibility enables traders to tailor the strategy to their market outlook or current trend analysis.
█ Usage
To use the Multi-Step FlexiSuperTrend strategy, traders need to set the input parameters according to their trading style and market conditions. The strategy is designed for versatility, allowing for various market environments, including trending and ranging markets.
Traders can also adjust the multi-step take profit levels and percentages to match their risk management and profit-taking preferences. For example, in highly volatile markets, traders might set wider take profit levels with smaller percentages at each level to capture larger price movements.
The normalization method and the incremental factor can be fine-tuned to adjust the sensitivity of the SuperTrend Polyfactor Oscillator, making the strategy more responsive to minor market shifts or more focused on significant trends.
█ Default Settings
The default settings of the strategy are carefully chosen to provide a balanced approach between risk management and profit potential. Here is a breakdown of the default settings and their effects on performance:
1. Indicator Length (10): This parameter controls the lookback period for the ATR calculation. A shorter length makes the strategy more sensitive to recent price movements, potentially generating more signals. A longer length smooths out the ATR, reducing sensitivity but filtering out noise.
2. Starting Factor (0.618): This is the initial multiplier used in the SuperTrend calculation. A lower starting factor makes the SuperTrend bands closer to the price, generating more frequent trend changes. A higher starting factor places the bands further away, filtering out minor fluctuations.
3. Increment Factor (0.382): This parameter controls how much the factor increases with each iteration of the SuperTrend calculation. A smaller increment factor results in more gradual changes in sensitivity, while a larger increment factor creates a wider range of sensitivity across the iterations.
4. Normalization Method (None): The default is no normalization, meaning the raw deviations are used. Normalization methods like Max-Min or Absolute Sum can make the deviations more consistent across different market conditions, improving the reliability of the oscillator.
5. Take Profit Levels (2%, 8%, 18%): These levels define the thresholds for exiting portions of the position. Lower levels (e.g., 2%) capture smaller profits quickly, while higher levels (e.g., 18%) allow positions to run longer for more significant gains.
6. Take Profit Percentages (30%, 20%, 15%): These percentages determine how much of the position is exited at each take profit level. A higher percentage at the first level locks in more profit early, reducing exposure to market reversals. Lower percentages at higher levels allow for a portion of the position to benefit from extended trends.
Multi-Step Vegas SuperTrend - strategy [presentTrading]Long time no see! I am back : ) Please allow me to gain some warm-up.
█ Introduction and How it is Different
The "Vegas SuperTrend Strategy" is an enhanced trading strategy that leverages both the Vegas Channel and SuperTrend indicators to generate buy and sell signals.
What sets this strategy apart from others is its dynamic adjustment to market volatility and its multi-step take profit mechanism. Unlike traditional single-step profit-taking approaches, this strategy allows traders to systematically scale out of positions at predefined profit levels, thereby optimizing their risk-reward ratio and maximizing potential gains.
BTCUSD 6hr performance
█ Strategy, How it Works: Detailed Explanation
The Vegas SuperTrend Strategy combines the strengths of the Vegas Channel and SuperTrend indicators to identify market trends and generate trade signals. The following subsections delve into the details of how each component works and how they are integrated.
🔶 Vegas Channel Calculation
The Vegas Channel is based on a simple moving average (SMA) and the standard deviation (STD) of the closing prices over a specified period. The channel is defined by upper and lower bounds that are dynamically adjusted based on market volatility.
Simple Moving Average (SMA):
SMA_vegas = (1/N) * Σ(Close_i) for i = 0 to N-1
where N is the length of the Vegas Window.
Standard Deviation (STD):
STD_vegas = sqrt((1/N) * Σ(Close_i - SMA_vegas)^2) for i = 0 to N-1
Vegas Channel Upper and Lower Bounds:
VegasChannelUpper = SMA_vegas + STD_vegas
VegasChannelLower = SMA_vegas - STD_vegas
The details are here:
🔶 Trend Detection and Trade Signals
The strategy determines the current market trend based on the closing price relative to the SuperTrend bounds:
Market Trend:
MarketTrend = 1 if Close > SuperTrendPrevLower
-1 if Close < SuperTrendPrevUpper
Previous Trend otherwise
Trade signals are generated when there is a shift in the market trend:
Bullish Signal: When the market trend shifts from -1 to 1.
Bearish Signal: When the market trend shifts from 1 to -1.
🔶 Multi-Step Take Profit Mechanism
The strategy incorporates a multi-step take profit mechanism that allows for partial exits at predefined profit levels. This helps in locking in profits gradually and reducing exposure to market reversals.
Take Profit Levels:
The take profit levels are calculated as percentages of the entry price:
TakeProfitLevel_i = EntryPrice * (1 + TakeProfitPercent_i/100) for long positions
TakeProfitLevel_i = EntryPrice * (1 - TakeProfitPercent_i/100) for short positions
Multi-steps take profit local picture:
█ Trade Direction
The trade direction can be customized based on the user's preference:
Long: The strategy only takes long positions.
Short: The strategy only takes short positions.
Both: The strategy can take both long and short positions based on the market trend.
█ Usage
To use the Vegas SuperTrend Strategy, follow these steps:
Configure Input Settings:
- Set the ATR period, Vegas Window length, SuperTrend Multiplier, and Volatility Adjustment Factor.
- Choose the desired trade direction (Long, Short, Both).
- Enable or disable the take profit mechanism and set the take profit percentages and amounts for each step.
█ Default Settings
The default settings of the strategy are designed to provide a balanced approach to trading. Below is an explanation of each setting and its effect on the strategy's performance:
ATR Period (10): This setting determines the length of the ATR used in the SuperTrend calculation. A longer period smoothens the ATR, making the SuperTrend less sensitive to short-term volatility. A shorter period makes the SuperTrend more responsive to recent price movements.
Vegas Window Length (100): This setting defines the period for the Vegas Channel's moving average. A longer window provides a broader view of the market trend, while a shorter window makes the channel more responsive to recent price changes.
SuperTrend Multiplier (5): This base multiplier adjusts the sensitivity of the SuperTrend to the ATR. A higher multiplier makes the SuperTrend less sensitive, reducing the frequency of trade signals. A lower multiplier increases sensitivity, generating more signals.
Volatility Adjustment Factor (5): This factor dynamically adjusts the SuperTrend multiplier based on the width of the Vegas Channel. A higher factor increases the sensitivity of the SuperTrend to changes in market volatility, while a lower factor reduces it.
Take Profit Percentages (3.0%, 6.0%, 12.0%, 21.0%): These settings define the profit levels at which portions of the trade are exited. They help in locking in profits progressively as the trade moves in favor.
Take Profit Amounts (25%, 20%, 10%, 15%): These settings determine the percentage of the position to exit at each take profit level. They are distributed to ensure that significant portions of the trade are closed as the price reaches the set levels, reducing exposure to reversals.
Adjusting these settings can significantly impact the strategy's performance. For instance, increasing the ATR period or the SuperTrend multiplier can reduce the number of trades, potentially improving the win rate but also missing out on some profitable opportunities. Conversely, lowering these values can increase trade frequency, capturing more short-term movements but also increasing the risk of false signals.
TSI w SuperTrend decision - Strategy [presentTrading]This strategy aims to improve upon the performance of Traidngview's newly published "Trend Strength Index" indicator by incorporating the SuperTrend for better trade execution and risk management. Enjoy :)
█ Introduction and How it is Different
The "TSI with SuperTrend Decision - Strategy" combines the Trend Strength Index (TSI) with SuperTrend indicators to determine entry and exit points. Unlike traditional strategies that rely solely on one indicator, this method leverages the strengths of both TSI and SuperTrend to provide a more nuanced and adaptive trading strategy.
This dual approach allows for capturing trends more effectively, especially in volatile markets.
BTCUSD 8h LS Performance
█ Strategy, How it Works: Detailed Explanation
🔶 Trend Strength Index (TSI)
The TSI is a momentum oscillator that shows both the direction and strength of a trend. It is calculated by comparing the price movement with the bar index over a specified period. The formula for TSI is as follows:
```
TSI = (PC / |PC|)
where:
PC = Change in price over the period
```
In this strategy, TSI is calculated using the closing prices and a default period of 64 bars. The TSI values help identify overbought and oversold conditions, providing signals for potential market reversals.
🔶 SuperTrend Indicator
The SuperTrend is a trend-following indicator based on the average true range (ATR). It helps in identifying the direction of the market trend. The SuperTrend calculation involves:
```
SuperTrend = HLC3 ± (Factor * ATR)
where:
HLC3 = (High + Low + Close) / 3
Factor = User-defined multiplier
ATR = Average True Range over a period
```
The SuperTrend settings in this strategy include a length of 10 bars and a factor of 3.0.
Last Bull Cycle of BTC
🔶 Entry and Exit Conditions
The strategy uses the TSI and SuperTrend together to determine entry and exit points:
- Long Entry: When the SuperTrend indicates a downward trend (st.d < 0) and the TSI is above the oversold level (-0.241).
- Long Exit: When the SuperTrend indicates an upward trend (st.d > 0) and the TSI is below the overbought level (0.241).
- Short Entry: When the SuperTrend indicates an upward trend (st.d > 0) and the TSI is below the overbought level (0.241).
- Short Exit: When the SuperTrend indicates a downward trend (st.d < 0) and the TSI is above the oversold level (-0.241).
█ Trade Direction
The strategy allows users to select the trade direction through the `tradeDirection` input. The options are:
- Both: Enables both long and short trades.
- Long: Enables only long trades.
- Short: Enables only short trades.
█ Default Settings
- TSI Length: 64
- SuperTrend Length: 10
- SuperTrend Factor: 3.0
- Trade Direction: Both
- Take Profit (%): 30.0
- Stop Loss (%): 20.0
Impact of Default Settings
- TSI Length: A longer TSI period smooths out noise but may lag in identifying trends. A shorter period is more responsive but can generate false signals.
- SuperTrend Length: A shorter length provides quicker signals but can be prone to whipsaws. A longer length is more reliable but may delay entries and exits.
- SuperTrend Factor: A higher factor increases the distance of the SuperTrend from the price, reducing sensitivity to minor price fluctuations.
- Trade Direction: Allows flexibility in trading strategies by enabling both long and short trades based on market conditions.
- Take Profit and Stop Loss: These settings manage risk by automatically closing trades at predefined profit or loss levels. Higher percentages provide larger potential gains but also higher risk.
Strategic Multi-Step Supertrend - Strategy [presentTrading]The code is mainly developed for me to stimulate the multi-step taking profit function for strategies. The result shows the drawdown can be reduced but at the same time reduced the profit as well. It can be a heuristic for futures leverage traders.
█ Introduction and How it is Different
The "Strategic Multi-Step Supertrend" is a trading strategy designed to leverage the power of multiple steps to optimize trade entries and exits across the Supertrend indicator. Unlike traditional strategies that rely on single entry and exit points, this strategy employs a multi-step approach to take profit, allowing traders to lock in gains incrementally. Additionally, the strategy is adaptable to both long and short trades, providing a comprehensive solution for dynamic market conditions.
This template strategy lies in its dual Supertrend calculation, which enhances the accuracy of trend detection and provides more reliable signals for trade entries and exits. This approach minimizes false signals and increases the overall profitability of trades by ensuring that positions are entered and exited at optimal points.
BTC 6h L/S Performance
█ Strategy, How It Works: Detailed Explanation
The "Strategic Multi-Step Supertrend Trader" strategy utilizes two Supertrend indicators calculated with different parameters to determine the direction and strength of the market trend. This dual approach increases the robustness of the signals, reducing the likelihood of entering trades based on false signals. Here is a detailed breakdown of how the strategy operates:
🔶 Supertrend Indicator Calculation
The Supertrend indicator is a trend-following overlay on the price chart, typically used to identify the direction of the trend. It is calculated using the Average True Range (ATR) to ensure that the indicator adapts to market volatility. The formula for the Supertrend indicator is:
Upper Band = (High + Low) / 2 + (Factor * ATR)
Lower Band = (High + Low) / 2 - (Factor * ATR)
Where:
- High and Low are the highest and lowest prices of the period.
- Factor is a user-defined multiplier.
- ATR is the Average True Range over a specified period.
The Supertrend changes its direction based on the closing price in relation to these bands.
🔶 Entry-Exit Conditions
The strategy enters long positions when both Supertrend indicators signal an uptrend, and short positions when both indicate a downtrend. Specifically:
- Long Condition: Supertrend1 < 0 and Supertrend2 < 0
- Short Condition: Supertrend1 > 0 and Supertrend2 > 0
- Long Exit Condition: Supertrend1 > 0 and Supertrend2 > 0
- Short Exit Condition: Supertrend1 < 0 and Supertrend2 < 0
🔶 Multi-Step Take Profit Mechanism
The strategy features a multi-step take profit mechanism, which allows traders to lock in profits incrementally. This is achieved through four user-configurable take profit levels. For each level, the strategy specifies a percentage increase (for long trades) or decrease (for short trades) in the entry price at which a portion of the position is exited:
- Step 1: Exit a portion of the trade at Entry Price * (1 + Take Profit Percent1 / 100)
- Step 2: Exit a portion of the trade at Entry Price * (1 + Take Profit Percent2 / 100)
- Step 3: Exit a portion of the trade at Entry Price * (1 + Take Profit Percent3 / 100)
- Step 4: Exit a portion of the trade at Entry Price * (1 + Take Profit Percent4 / 100)
This staggered exit strategy helps in locking profits at multiple levels, thereby reducing risk and increasing the likelihood of capturing the maximum possible profit from a trend.
BTC Local
█ Trade Direction
The strategy is highly flexible, allowing users to specify the trade direction. There are three options available:
- Long Only: The strategy will only enter long trades.
- Short Only: The strategy will only enter short trades.
- Both: The strategy will enter both long and short trades based on the Supertrend signals.
This flexibility allows traders to adapt the strategy to various market conditions and their own trading preferences.
█ Usage
1. Add the strategy to your trading platform and apply it to the desired chart.
2. Configure the take profit settings under the "Take Profit Settings" group.
3. Set the trade direction under the "Trade Direction" group.
4. Adjust the Supertrend settings in the "Supertrend Settings" group to fine-tune the indicator calculations.
5. Monitor the chart for entry and exit signals as indicated by the strategy.
█ Default Settings
- Use Take Profit: True
- Take Profit Percentages: Step 1 - 6%, Step 2 - 12%, Step 3 - 18%, Step 4 - 50%
- Take Profit Amounts: Step 1 - 12%, Step 2 - 8%, Step 3 - 4%, Step 4 - 0%
- Number of Take Profit Steps: 3
- Trade Direction: Both
- Supertrend Settings: ATR Length 1 - 10, Factor 1 - 3.0, ATR Length 2 - 11, Factor 2 - 4.0
These settings provide a balanced starting point, which can be customized further based on individual trading preferences and market conditions.
BBTrend w SuperTrend decision - Strategy [presentTrading]This strategy aims to improve upon the performance of Traidngview's newly published "BB Trend" indicator by incorporating the SuperTrend for better trade execution and risk management. Enjoy :)
█Introduction and How it is Different
The "BBTrend w SuperTrend decision - Strategy " is a trading strategy designed to identify market trends using Bollinger Bands and SuperTrend indicators. What sets this strategy apart is its use of two Bollinger Bands with different lengths to capture both short-term and long-term market trends, providing a more comprehensive view of market dynamics. Additionally, the strategy includes customizable take profit (TP) and stop loss (SL) settings, allowing traders to tailor their risk management according to their preferences.
BTCUSD 4h Long Performance
█ Strategy, How It Works: Detailed Explanation
The BBTrend strategy employs two key indicators: Bollinger Bands and SuperTrend.
🔶 Bollinger Bands Calculation:
- Short Bollinger Bands**: Calculated using a shorter period (default 20).
- Long Bollinger Bands**: Calculated using a longer period (default 50).
- Bollinger Bands use the standard deviation of price data to create upper and lower bands around a moving average.
Upper Band = Middle Band + (k * Standard Deviation)
Lower Band = Middle Band - (k * Standard Deviation)
🔶 BBTrend Indicator:
- The BBTrend indicator is derived from the absolute differences between the short and long Bollinger Bands' lower and upper values.
BBTrend = (|Short Lower - Long Lower| - |Short Upper - Long Upper|) / Short Middle * 100
🔶 SuperTrend Indicator:
- The SuperTrend indicator is calculated using the average true range (ATR) and a multiplier. It helps identify the market trend direction by plotting levels above and below the price, which act as dynamic support and resistance levels. * @EliCobra makes the SuperTrend Toolkit. He is GOAT.
SuperTrend Upper = HL2 + (Factor * ATR)
SuperTrend Lower = HL2 - (Factor * ATR)
The strategy determines market trends by checking if the close price is above or below the SuperTrend values:
- Uptrend: Close price is above the SuperTrend lower band.
- Downtrend: Close price is below the SuperTrend upper band.
Short: 10 Long: 20 std 2
Short: 20 Long: 40 std 2
Short: 20 Long: 40 std 4
█ Trade Direction
The strategy allows traders to choose their trading direction:
- Long: Enter long positions only.
- Short: Enter short positions only.
- Both: Enter both long and short positions based on market conditions.
█ Usage
To use the "BBTrend - Strategy " effectively:
1. Configure Inputs: Adjust the Bollinger Bands lengths, standard deviation multiplier, and SuperTrend settings.
2. Set TPSL Conditions: Choose the take profit and stop loss percentages to manage risk.
3. Choose Trade Direction: Decide whether to trade long, short, or both directions.
4. Apply Strategy: Apply the strategy to your chart and monitor the signals for potential trades.
█ Default Settings
The default settings are designed to provide a balance between sensitivity and stability:
- Short BB Length (20): Captures short-term market trends.
- Long BB Length (50): Captures long-term market trends.
- StdDev (2.0): Determines the width of the Bollinger Bands.
- SuperTrend Length (10): Period for calculating the ATR.
- SuperTrend Factor (12): Multiplier for the ATR to adjust the SuperTrend sensitivity.
- Take Profit (30%): Sets the level at which profits are taken.
- Stop Loss (20%): Sets the level at which losses are cut to manage risk.
Effect on Performance
- Short BB Length: A shorter length makes the strategy more responsive to recent price changes but can generate more false signals.
- Long BB Length: A longer length provides smoother trend signals but may be slower to react to price changes.
- StdDev: Higher values create wider bands, reducing the frequency of signals but increasing their reliability.
- SuperTrend Length and Factor: Shorter lengths and higher factors make the SuperTrend more sensitive, providing quicker signals but potentially more noise.
- Take Profit and Stop Loss: Adjusting these levels affects the risk-reward ratio. Higher take profit percentages can increase gains but may result in fewer closed trades, while higher stop loss percentages can decrease the likelihood of being stopped out but increase potential losses.
Bitcoin Futures vs. Spot Tri-Frame - Strategy [presentTrading]Prove idea with a backtest is always true for trading.
I developed and open-sourced it as an educational material for crypto traders to understand that the futures and spot spread may be effective but not be as effective as they might think. It serves as an indicator of sentiment rather than a reliable predictor of market trends over certain periods. It is better suited for specific trading environments, which require further research.
█ Introduction and How it is Different
The "Bitcoin Futures vs. Spot Tri-Frame Strategy" utilizes three different timeframes to calculate the Z-Score of the spread between BTC futures and spot prices on Binance and OKX exchanges. The strategy executes long or short trades based on composite Z-Score conditions across the three timeframes.
The spread refers to the difference in price between BTC futures and BTC spot prices, calculated by taking a weighted average of futures prices from multiple exchanges (Binance and OKX) and subtracting a weighted average of spot prices from the same exchanges.
BTCUSD 1D L/S Performance
█ Strategy, How It Works: Detailed Explanation
🔶 Calculation of the Spread
The spread is the difference in price between BTC futures and BTC spot prices. The strategy calculates the spread by taking a weighted average of futures prices from multiple exchanges (Binance and OKX) and subtracting a weighted average of spot prices from the same exchanges. This spread serves as the primary metric for identifying trading opportunities.
Spread = Weighted Average Futures Price - Weighted Average Spot Price
🔶 Z-Score Calculation
The Z-Score measures how many standard deviations the current spread is from its historical mean. This is calculated for each timeframe as follows:
Spread Mean_tf = SMA(Spread_tf, longTermSMA)
Spread StdDev_tf = STDEV(Spread_tf, longTermSMA)
Z-Score_tf = (Spread_tf - Spread Mean_tf) / Spread StdDev_tf
Local performance
🔶 Composite Entry Conditions
The strategy triggers long and short entries based on composite Z-Score conditions across all three timeframes:
- Long Condition: All three Z-Scores must be greater than the long entry threshold.
Long Condition = (Z-Score_tf1 > zScoreLongEntryThreshold) and (Z-Score_tf2 > zScoreLongEntryThreshold) and (Z-Score_tf3 > zScoreLongEntryThreshold)
- Short Condition: All three Z-Scores must be less than the short entry threshold.
Short Condition = (Z-Score_tf1 < zScoreShortEntryThreshold) and (Z-Score_tf2 < zScoreShortEntryThreshold) and (Z-Score_tf3 < zScoreShortEntryThreshold)
█ Trade Direction
The strategy allows the user to specify the trading direction:
- Long: Only long trades are executed.
- Short: Only short trades are executed.
- Both: Both long and short trades are executed based on the Z-Score conditions.
█ Usage
The strategy can be applied to BTC or Crypto trading on major exchanges like Binance and OKX. By leveraging discrepancies between futures and spot prices, traders can exploit market inefficiencies. This strategy is suitable for traders who prefer a statistical approach and want to diversify their timeframes to validate signals.
█ Default Settings
- Input TF 1 (60 minutes): Sets the first timeframe for Z-Score calculation.
- Input TF 2 (120 minutes): Sets the second timeframe for Z-Score calculation.
- Input TF 3 (180 minutes): Sets the third timeframe for Z-Score calculation.
- Long Entry Z-Score Threshold (3): Defines the threshold above which a long trade is triggered.
- Short Entry Z-Score Threshold (-3): Defines the threshold below which a short trade is triggered.
- Long-Term SMA Period (100): The period used to calculate the simple moving average for the spread.
- Use Hold Days (true): Enables holding trades for a specified number of days.
- Hold Days (5): Number of days to hold the trade before exiting.
- TPSL Condition (None): Defines the conditions for taking profit and stop loss.
- Take Profit (%) (30.0): The percentage at which the trade will take profit.
- Stop Loss (%) (20.0): The percentage at which the trade will stop loss.
By fine-tuning these settings, traders can optimize the strategy to suit their risk tolerance and trading style, enhancing overall performance.
Double Vegas SuperTrend Enhanced - Strategy [presentTrading]
█ Introduction and How It Is Different
The "Double Vegas SuperTrend Enhanced" strategy is a sophisticated trading system that combines two Vegas SuperTrend Enhanced. Very Powerful!
Let's celebrate the joy of Children's Day on June 1st! Enjoyyy!
BTCUSD LS performance
The strategy aims to pinpoint market trends with greater accuracy and generate trades that align with the overall market direction.
This approach differentiates itself by integrating volatility adjustments and leveraging the Vegas Channel's width to refine the SuperTrend calculations, resulting in a dynamic and responsive trading system.
Additionally, the strategy incorporates customizable take-profit and stop-loss levels, providing traders with a robust framework for risk management.
-> check Vegas SuperTrend Enhanced - Strategy
█ Strategy, How It Works: Detailed Explanation
🔶 Vegas Channel and SuperTrend Calculations
The strategy initiates by calculating the Vegas Channel, which is derived from a simple moving average (SMA) and the standard deviation (STD) of the closing prices over a specified window length. This channel helps in measuring market volatility and forms the basis for adjusting the SuperTrend indicator.
Vegas Channel Calculation:
- vegasMovingAverage = SMA(close, vegasWindow)
- vegasChannelStdDev = STD(close, vegasWindow)
- vegasChannelUpper = vegasMovingAverage + vegasChannelStdDev
- vegasChannelLower = vegasMovingAverage - vegasChannelStdDev
SuperTrend Multiplier Adjustment:
- channelVolatilityWidth = vegasChannelUpper - vegasChannelLower
- adjustedMultiplier = superTrendMultiplierBase + volatilityAdjustmentFactor * (channelVolatilityWidth / vegasMovingAverage)
The adjusted multiplier enhances the SuperTrend's sensitivity to market volatility, making it more adaptable to changing market conditions.
BTCUSD Local picture.
🔶 Average True Range (ATR) and SuperTrend Values
The ATR is computed over a specified period to measure market volatility. Using the ATR and the adjusted multiplier, the SuperTrend upper and lower levels are determined.
ATR Calculation:
- averageTrueRange = ATR(atrPeriod)
**SuperTrend Calculation:**
- superTrendUpper = hlc3 - (adjustedMultiplier * averageTrueRange)
- superTrendLower = hlc3 + (adjustedMultiplier * averageTrueRange)
The SuperTrend levels are continuously updated based on the previous values and the current market trend direction. The market trend is determined by comparing the closing prices with the SuperTrend levels.
Trend Direction:
- If close > superTrendLowerPrev, then marketTrend = 1 (bullish)
- If close < superTrendUpperPrev, then marketTrend = -1 (bearish)
🔶 Trade Entry and Exit Conditions
The strategy generates trade signals based on the alignment of both SuperTrends. Trades are executed only when both SuperTrends indicate the same market direction.
Entry Conditions:
- Long Position: Both SuperTrends must signal a bullish trend.
- Short Position: Both SuperTrends must signal a bearish trend.
Exit Conditions:
- Positions are exited if either SuperTrend reverses its trend direction.
- Additional conditions include holding periods and configurable take-profit and stop-loss levels.
█ Trade Direction
The strategy allows traders to specify the desired trade direction through a customizable input setting. Options include:
- Long: Only enter long positions.
- Short: Only enter short positions.
- Both: Enter both long and short positions based on the market conditions.
█ Usage
To utilize the "Double Vegas SuperTrend Enhanced" strategy, traders need to configure the input settings according to their trading preferences and market conditions. The strategy includes parameters for ATR periods, Vegas Channel window lengths, SuperTrend multipliers, volatility adjustment factors, and risk management settings such as hold days, take-profit, and stop-loss percentages.
█ Default Settings
The strategy comes with default settings that can be adjusted to fit individual trading styles:
- trade Direction: Both (allows trading in both long and short directions for maximum flexibility).
- ATR Periods: 10 for SuperTrend 1 and 5 for SuperTrend 2 (shorter ATR period results in more sensitivity to recent price movements).
- Vegas Window Lengths: 100 for SuperTrend 1 and 200 for SuperTrend 2 (longer window length results in smoother moving averages and less sensitivity to short-term volatility).
- SuperTrend Multipliers: 5 for SuperTrend 1 and 7 for SuperTrend 2 (higher multipliers lead to wider SuperTrend channels, reducing the frequency of trades).
- Volatility Adjustment Factors: 5 for SuperTrend 1 and 7 for SuperTrend 2 (higher adjustment factors increase the responsiveness to changes in market volatility).
- Hold Days: 5 (defines the minimum duration a position is held, ensuring trades are not exited prematurely).
- Take Profit: 30% (sets the target profit level to lock in gains).
- Stop Loss: 20% (sets the maximum acceptable loss level to mitigate risk).
Dual RSI Differential - Strategy [presentTrading]█ Introduction and How it is Different
The Dual RSI Differential Strategy introduces a nuanced approach to market analysis and trading decisions by utilizing two Relative Strength Index (RSI) indicators calculated over different time periods. Unlike traditional strategies that employ a single RSI and may signal premature or delayed entries, this method leverages the differential between a shorter and a longer RSI. This approach pinpoints more precise entry and exit points, providing a refined tool for traders to exploit market conditions effectively, particularly in overbought and oversold scenarios.
Most important: it is a good eductional code for swing trading.
For beginners, this Pine Script provides a complete function that includes crucial elements such as holding days and the option to configure take profit/stop loss settings:
- Hold Days: This feature ensures that trades are not exited too hastily, helping traders to ride out short-term market volatility. It's particularly valuable for swing trading where maintaining positions slightly longer can lead to capturing significant trends.
- TPSL Condition (None by default): This setting allows traders to focus solely on the strategy's robust entry and exit signals without being constrained by preset profit or loss limits. This flexibility is crucial for learning to adjust strategy settings based on personal risk tolerance and market observations.
BTCUSD 6h LS Performance
█ Strategy, How It Works: Detailed Explanation
🔶 RSI Calculation:
The RSI is a momentum oscillator that measures the speed and change of price movements. It is calculated using the formula:
RSI = 100 - (100 / (1 + RS))
Where RS (Relative Strength) = Average Gain of up periods / Average Loss of down periods.
🔶 Dual RSI Setup:
This strategy involves two RSI indicators:
RSI_Short (RSI_21): Calculated over a short period (21 days).
RSI_Long (RSI_42): Calculated over a longer period (42 days).
Differential Calculation:
The strategy focuses on the differential between these two RSIs:
RSI Differential = RSI_Long - RSI_Short
This differential helps to identify when the shorter-term sentiment diverges from longer-term trends, signaling potential trading opportunities.
BTCUSD Local picuture
🔶 Signal Triggers:
Entry Signal: A buy (long) signal is triggered when the RSI Differential exceeds -5, suggesting strengthening short-term momentum. Conversely, a sell (short) signal occurs when the RSI Differential falls below +5, indicating weakening short-term momentum.
Exit Signal: Trades are generally exited when the RSI Differential reverses past these thresholds, indicating a potential momentum shift.
█ Trade Direction
This strategy accommodates various trading preferences by allowing selections among long, short, or both directions, thus enabling traders to capitalize on diverse market movements and volatility.
█ Usage
The Dual RSI Differential Strategy is particularly suited for:
Traders who prefer a systematic approach to capture market trends.
Those who seek to minimize risks associated with rapid and unexpected market movements.
Traders who value strategies that can be finely tuned to different market conditions.
█ Default Settings
- Trading Direction: Both — allows capturing of upward and downward market movements.
- Short RSI Period: 21 days — balances sensitivity to market movements.
- Long RSI Period: 42 days — smoothens out longer-term fluctuations to provide a clearer market trend.
- RSI Difference Level: 5 — minimizes false signals by setting a moderate threshold for action.
Use Hold Days: True — introduces a temporal element to trading strategy, holding positions to potentially enhance outcomes.
- Hold Days: 5 — ensures that trades are not exited too hastily, helping to ride out short-term volatility.
- TPSL Condition: None — enables traders to focus solely on the strategy's entry and exit signals without preset profit or loss limits.
- Take Profit Percentage: 15% — aims for significant market moves to lock in profits.
- Stop Loss Percentage: 10% — safeguards against large losses, essential for long-term capital preservation.
Price Based Z-Trend - Strategy [presentTrading]█ Introduction and How it is Different
Z-score: a statistical measurement of a score's relationship to the mean in a group of scores.
Simple but effective approach.
The "Price Based Z-Trend - Strategy " leverages the Z-score, a statistical measure that gauges the deviation of a price from its moving average, normalized against its standard deviation. This strategy stands out due to its simplicity and effectiveness, particularly in markets where price movements often revert to a mean. Unlike more complex systems that might rely on a multitude of indicators, the Z-Trend strategy focuses on clear, statistically significant price movements, making it ideal for traders who prefer a streamlined, data-driven approach.
BTCUSD 6h LS Performance
█ Strategy, How It Works: Detailed Explanation
🔶 Calculation of the Z-score
"Z-score is a statistical measurement that describes a value's relationship to the mean of a group of values. Z-score is measured in terms of standard deviations from the mean. If a Z-score is 0, it indicates that the data point's score is identical to the mean score. A Z-score of 1.0 would indicate a value that is one standard deviation from the mean. Z-scores may be positive or negative, with a positive value indicating the score is above the mean and a negative score indicating it is below the mean."
The Z-score is central to this strategy. It is calculated by taking the difference between the current price and the Exponential Moving Average (EMA) of the price over a user-defined length, then dividing this by the standard deviation of the price over the same length:
z = (x - μ) /σ
Local
🔶 Trading Signals
Trading signals are generated based on the Z-score crossing predefined thresholds:
- Long Entry: When the Z-score crosses above the positive threshold.
- Long Exit: When the Z-score falls below the negative threshold.
- Short Entry: When the Z-score falls below the negative threshold.
- Short Exit: When the Z-score rises above the positive threshold.
█ Trade Direction
The strategy allows users to select their preferred trading direction through an input option.
█ Usage
To use this strategy effectively, traders should first configure the Z-score thresholds according to their risk tolerance and market volatility. It's also crucial to adjust the length for the EMA and standard deviation calculations based on historical performance and the expected "noise" in price data.
The strategy is designed to be flexible, allowing traders to refine settings to better capture profitable opportunities in specific market conditions.
█ Default Settings
- Trade Direction: Both
- Standard Deviation Length: 100
- Average Length: 100
- Threshold for Z-score: 1.0
- Bar Color Indicator: Enabled
These settings offer a balanced starting point but can be customized to suit various trading styles and market environments. The strategy's parameters are designed to be adjusted as traders gain experience and refine their approach based on ongoing market analysis.
Z-score is a must-learn approach for every algorithmic trader.
Vegas SuperTrend Enhanced - Strategy [presentTrading]█ Introduction and How it is Different
The "Vegas SuperTrend Enhanced - Strategy " trading strategy represents a novel integration of two powerful technical analysis tools: the Vegas Channel and the SuperTrend indicator. This fusion creates a dynamic, adaptable strategy designed for the volatile and fast-paced cryptocurrency markets, particularly focusing on Bitcoin trading.
Unlike traditional trading strategies that rely on a static set of rules, this approach modifies the SuperTrend's sensitivity to market volatility, offering traders the ability to customize their strategy based on current market conditions. This adaptability makes it uniquely suited to navigating the often unpredictable swings in cryptocurrency valuations, providing traders with signals that are both timely and reflective of underlying market dynamics.
BTC 6h LS
█ Strategy, How it Works: Detailed Explanation
This is an innovative approach that combines the volatility-based Vegas Channel with the trend-following SuperTrend indicator to create dynamic trading signals. This section delves deeper into the mechanics and mathematical foundations of the strategy.
Detail picture to show :
🔶 Vegas Channel Calculation
The Vegas Channel serves as the foundation of this strategy, employing a simple moving average (SMA) coupled with standard deviation to define the upper and lower bounds of the trading channel. This channel adapts to price movements, offering a visual representation of potential support and resistance levels based on historical price volatility.
🔶 SuperTrend Indicator Adjustment
Central to the strategy is the SuperTrend indicator, which is adjusted according to the width of the Vegas Channel. This adjustment is achieved by modifying the SuperTrend's multiplier based on the channel's volatility, allowing the indicator to become more sensitive during periods of high volatility and less so during quieter market phases.
🔶 Trend Determination and Signal Generation
The market trend is determined by comparing the current price with the SuperTrend values. A shift from below to above the SuperTrend line signals a potential bullish trend, prompting a "buy" signal, whereas a move from above to below indicates a bearish trend, generating a "sell" signal. This methodology ensures that trades are entered in alignment with the prevailing market direction, enhancing the potential for profitability.
BTC 6h Local
█ Trade Direction
A distinctive feature of this strategy is its configurable trade direction input, allowing traders to specify whether they wish to engage in long positions, short positions, or both. This flexibility enables users to tailor the strategy according to their risk tolerance, trading style, and market outlook, providing a personalized trading experience.
█ Usage
To utilize the "Vegas SuperTrend - Enhanced" strategy effectively, traders should first adjust the input settings to align with their trading preferences and the specific characteristics of the asset being traded. Monitoring the strategy's signals within the context of overall market conditions and combining its insights with other forms of analysis can further enhance its effectiveness.
█ Default Settings
- Trade Direction: Both (allows trading in both directions)
- ATR Period for SuperTrend: 10 (determines the length of the ATR for volatility measurement)
- Vegas Window Length: 100 (sets the length of the SMA for the Vegas Channel)
- SuperTrend Multiplier Base: 5 (base multiplier for SuperTrend calculation)
- Volatility Adjustment Factor: 5.0 (adjusts SuperTrend sensitivity based on Vegas Channel width)
These default settings provide a balanced approach suitable for various market conditions but can be adjusted to meet individual trading needs and objectives.
Bitcoin Leverage Sentiment - Strategy [presentTrading]█ Introduction and How it is Different
The "Bitcoin Leverage Sentiment - Strategy " represents a novel approach in the realm of cryptocurrency trading by focusing on sentiment analysis through leveraged positions in Bitcoin. Unlike traditional strategies that primarily rely on price action or technical indicators, this strategy leverages the power of Z-Score analysis to gauge market sentiment by examining the ratio of leveraged long to short positions. By assessing how far the current sentiment deviates from the historical norm, it provides a unique lens to spot potential reversals or continuation in market trends, making it an innovative tool for traders who wish to incorporate market psychology into their trading arsenal.
BTC 4h L/S Performance
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█ Strategy, How It Works: Detailed Explanation
🔶 Data Collection and Ratio Calculation
Firstly, the strategy acquires data on leveraged long (**`priceLongs`**) and short positions (**`priceShorts`**) for Bitcoin. The primary metric of interest is the ratio of long positions relative to the total of both long and short positions:
BTC Ratio=priceLongs / (priceLongs+priceShorts)
This ratio reflects the prevailing market sentiment, where values closer to 1 indicate a bullish sentiment (dominance of long positions), and values closer to 0 suggest bearish sentiment (prevalence of short positions).
🔶 Z-Score Calculation
The Z-Score is then calculated to standardize the BTC Ratio, allowing for comparison across different time periods. The Z-Score formula is:
Z = (X - μ) / σ
Where:
- X is the current BTC Ratio.
- μ is the mean of the BTC Ratio over a specified period (**`zScoreCalculationPeriod`**).
- σ is the standard deviation of the BTC Ratio over the same period.
The Z-Score helps quantify how far the current sentiment deviates from the historical norm, with high positive values indicating extreme bullish sentiment and high negative values signaling extreme bearish sentiment.
🔶 Signal Generation: Trading signals are derived from the Z-Score as follows:
Long Entry Signal: Occurs when the BTC Ratio Z-Score crosses above the thresholdLongEntry, suggesting bullish sentiment.
- Condition for Long Entry = BTC Ratio Z-Score > thresholdLongEntry
Long Exit/Short Entry Signal: Triggered when the BTC Ratio Z-Score drops below thresholdLongExit for exiting longs or below thresholdShortEntry for entering shorts, indicating a shift to bearish sentiment.
- Condition for Long Exit/Short Entry = BTC Ratio Z-Score < thresholdLongExit or BTC Ratio Z-Score < thresholdShortEntry
Short Exit Signal: Happens when the BTC Ratio Z-Score exceeds the thresholdShortExit, hinting at reducing bearish sentiment and a potential switch to bullish conditions.
- Condition for Short Exit = BTC Ratio Z-Score > thresholdShortExit
🔶Implementation and Visualization: The strategy applies these conditions for trade management, aligning with the selected trade direction. It visualizes the BTC Ratio Z-Score with horizontal lines at entry and exit thresholds, illustrating the current sentiment against historical norms.
█ Trade Direction
The strategy offers flexibility in trade direction, allowing users to choose between long, short, or both, depending on their market outlook and risk tolerance. This adaptability ensures that traders can align the strategy with their individual trading style and market conditions.
█ Usage
To employ this strategy effectively:
1. Customization: Begin by setting the trade direction and adjusting the Z-Score calculation period and entry/exit thresholds to match your trading preferences.
2. Observation: Monitor the Z-Score and its moving average for potential trading signals. Look for crossover events relative to the predefined thresholds to identify entry and exit points.
3. Confirmation: Consider using additional analysis or indicators for signal confirmation, ensuring a comprehensive approach to decision-making.
█ Default Settings
- Trade Direction: Determines if the strategy engages in long, short, or both types of trades, impacting its adaptability to market conditions.
- Timeframe Input: Influences signal frequency and sensitivity, affecting the strategy's responsiveness to market dynamics.
- Z-Score Calculation Period: Affects the strategy’s sensitivity to market changes, with longer periods smoothing data and shorter periods increasing responsiveness.
- Entry and Exit Thresholds: Set the Z-Score levels for initiating or exiting trades, balancing between capturing opportunities and minimizing false signals.
- Impact of Default Settings: Provides a balanced approach to leverage sentiment trading, with adjustments needed to optimize performance across various market conditions.
Crypto MVRV ZScore - Strategy [PresentTrading]█ Introduction and How it is Different
The "Crypto Valuation Extremes: MVRV ZScore - Strategy " represents a cutting-edge approach to cryptocurrency trading, leveraging the Market Value to Realized Value (MVRV) Z-Score. This metric is pivotal for identifying overvalued or undervalued conditions in the crypto market, particularly Bitcoin. It assesses the current market valuation against the realized capitalization, providing insights that are not apparent through conventional analysis.
BTCUSD 6h Long/Short Performance
Local
█ Strategy, How It Works: Detailed Explanation
The strategy leverages the Market Value to Realized Value (MVRV) Z-Score, specifically designed for cryptocurrencies, with a focus on Bitcoin. This metric is crucial for determining whether Bitcoin is currently undervalued or overvalued compared to its historical 'realized' price. Below is an in-depth explanation of the strategy's components and calculations.
🔶Conceptual Foundation
- Market Capitalization (MC): This represents the total dollar market value of Bitcoin's circulating supply. It is calculated as the current price of Bitcoin multiplied by the number of coins in circulation.
- Realized Capitalization (RC): Unlike MC, which values all coins at the current market price, RC is computed by valuing each coin at the price it was last moved or traded. Essentially, it is a summation of the value of all bitcoins, priced at the time they were last transacted.
- MVRV Ratio: This ratio is derived by dividing the Market Capitalization by the Realized Capitalization (The ratio of MC to RC (MVRV Ratio = MC / RC)). A ratio greater than 1 indicates that the current price is higher than the average price at which all bitcoins were purchased, suggesting potential overvaluation. Conversely, a ratio below 1 suggests undervaluation.
🔶 MVRV Z-Score Calculation
The Z-Score is a statistical measure that indicates the number of standard deviations an element is from the mean. For this strategy, the MVRV Z-Score is calculated as follows:
MVRV Z-Score = (MC - RC) / Standard Deviation of (MC - RC)
This formula quantifies Bitcoin's deviation from its 'normal' valuation range, offering insights into market sentiment and potential price reversals.
🔶 Spread Z-Score for Trading Signals
The strategy refines this approach by calculating a 'spread Z-Score', which adjusts the MVRV Z-Score over a specific period (default: 252 days). This is done to smooth out short-term market volatility and focus on longer-term valuation trends. The spread Z-Score is calculated as follows:
Spread Z-Score = (Market Z-Score - MVVR Ratio - SMA of Spread) / Standard Deviation of Spread
Where:
- SMA of Spread is the simple moving average of the spread over the specified period.
- Spread refers to the difference between the Market Z-Score and the MVRV Ratio.
🔶 Trading Signals
- Long Entry Condition: A long (buy) signal is generated when the spread Z-Score crosses above the long entry threshold, indicating that Bitcoin is potentially undervalued.
- Short Entry Condition: A short (sell) signal is triggered when the spread Z-Score falls below the short entry threshold, suggesting overvaluation.
These conditions are based on the premise that extreme deviations from the mean (as indicated by the Z-Score) are likely to revert to the mean over time, presenting opportunities for strategic entry and exit points.
█ Practical Application
Traders use these signals to make informed decisions about opening or closing positions in the Bitcoin market. By quantifying market valuation extremes, the strategy aims to capitalize on the cyclical nature of price movements, identifying high-probability entry and exit points based on historical valuation norms.
█ Trade Direction
A unique feature of this strategy is its configurable trade direction. Users can specify their preference for engaging in long positions, short positions, or both. This flexibility allows traders to tailor the strategy according to their risk tolerance, market outlook, or trading style, making it adaptable to various market conditions and trader objectives.
█ Usage
To implement this strategy, traders should first adjust the input parameters to align with their trading preferences and risk management practices. These parameters include the trade direction, Z-Score calculation period, and the thresholds for long and short entries. Once configured, the strategy automatically generates trading signals based on the calculated spread Z-Score, providing clear indications for potential entry and exit points.
It is advisable for traders to backtest the strategy under different market conditions to validate its effectiveness and adjust the settings as necessary. Continuous monitoring and adjustment are crucial, as market dynamics evolve over time.
█ Default Settings
- Trade Direction: Both (Allows for both long and short positions)
- Z-Score Calculation Period: 252 days (Approximately one trading year, capturing a comprehensive market cycle)
- Long Entry Threshold: 0.382 (Indicative of moderate undervaluation)
- Short Entry Threshold: -0.382 (Signifies moderate overvaluation)
These default settings are designed to balance sensitivity to market valuation extremes with a pragmatic approach to trade execution. They aim to filter out noise and focus on significant market movements, providing a solid foundation for both new and experienced traders looking to exploit the unique insights offered by the MVRV Z-Score in the cryptocurrency market.
Crypto Stablecoin Supply - Indicator [presentTrading]█ Introduction and How it is Different
The "Stablecoin Supply - Indicator" differentiates itself by focusing on the aggregate supply of major stablecoins—USDT, USDC, and DAI—rather than traditional price-based metrics. Its premise is that fluctuations in the total supply of these stablecoins can serve as leading indicators for broader market movements, offering traders a unique vantage point to anticipate shifts in market sentiment.
BTCUSD 6h for recent bull market
BTCUSD 8h
█ Strategy, How it Works: Detailed Explanation
🔶 Data Collection
The strategy begins with the collection of the closing supply for USDT, USDC, and DAI stablecoins. This data is fetched using a specified timeframe (**`tfInput`**), allowing for flexibility in analysis periods.
🔶 Supply Calculation
The individual supplies of USDT, USDC, and DAI are then aggregated to determine the total stablecoin supply within the market at any given time. This combined figure serves as the foundation for the subsequent statistical analysis.
🔶 Z-Score Computation
The heart of the indicator's strategy lies in the computation of the Z-Score, which is a statistical measure used to identify how far a data point is from the mean, relative to the standard deviation. The formula for the Z-Score is:
Z = (X - μ) / σ
Where:
- Z is the Z-Score
- X is the current total stablecoin supply (TotalStablecoinClose)
- μ (mu) is the mean of the total stablecoin supply over a specified length (len)
- σ (sigma) is the standard deviation of the total stablecoin supply over the same length
A moving average of the Z-Score (**`zScore_ma`**) is calculated over a short period (defaulted to 3) to smooth out the volatility and provide a clearer signal.
🔶 Signal Interpretation
The Z-Score itself is plotted, with its color indicating its relation to a defined threshold (0.382), serving as a direct visual cue for market sentiment. Zones are also highlighted to show when the Z-Score is within certain extreme ranges, suggesting overbought or oversold conditions.
Bull -> Bear
█ Trade Direction
- **Entry Threshold**: A Z-Score crossing above 0.382 suggests an increase in stablecoin supply relative to its historical average, potentially indicating bullish market sentiment or incoming capital flow into cryptocurrencies.
- **Exit Threshold**: Conversely, a Z-Score dropping below -0.382 may signal a reduction in stablecoin supply, hinting at bearish sentiment or capital withdrawal.
█ Usage
Traders can leverage the "Stablecoin Supply - Indicator" to gain insights into the underlying market dynamics that are not immediately apparent through price analysis alone. It is particularly useful for identifying potential shifts in market sentiment before they are reflected in price movements. By integrating this indicator with other technical analysis tools, traders can develop a more rounded and informed trading strategy.
█ Default Settings
- Timeframe Input (`tfInput`): Allows users to specify the timeframe for data collection, adding flexibility to the analysis.
- Z-Score Length (`len`): Set to 252 by default, representing the period over which the mean and standard deviation of the stablecoin supply are calculated.
- Color Coding: Uses distinct colors (green for bullish, red for bearish) to indicate the Z-Score's position relative to its thresholds, enhancing visual clarity.
- Extreme Range Fill: Highlights areas between defined high and low Z-Score thresholds with distinct colors to indicate potential overbought or oversold conditions.
By integrating considerations of stablecoin supply into the analytical framework, the "Stablecoin Supply - Indicator" offers a novel perspective on cryptocurrency market dynamics, enabling traders to make more nuanced and informed decisions.
PresentTrend RMI Synergy - Strategy [presentTrading] █ Introduction and How it is Different
The "PresentTrend RMI Synergy Strategy" is the combined power of the Relative Momentum Index (RMI) and a custom presentTrend indicator. This strategy introduces a multifaceted approach, integrating momentum analysis with trend direction to offer traders a more nuanced and responsive trading mechanism.
BTCUSD 6h L/S Performance
Local
█ Strategy, How It Works: Detailed Explanation
The "PresentTrend RMI Synergy Strategy" intricately combines the Relative Momentum Index (RMI) and a custom SuperTrend indicator to create a powerful tool for traders.
🔶 Relative Momentum Index (RMI)
The RMI is a variation of the Relative Strength Index (RSI), but instead of using price closes against itself, it measures the momentum of up and down movements in price relative to previous prices over a given period. The RMI for a period length `N` is calculated as follows:
RMI = 100 - 100/ (1 + U/D)
where:
- `U` is the average upward price change over `N` periods,
- `D` is the average downward price change over `N` periods.
The RMI oscillates between 0 and 100, with higher values indicating stronger upward momentum and lower values suggesting stronger downward momentum.
RMI = 21
RMI = 42
For more information - RMI Trend Sync - Strategy :
🔶 presentTrend Indicator
The presentTrend indicator combines the Average True Range (ATR) with a moving average to determine trend direction and dynamic support or resistance levels. The presentTrend for a period length `M` and a multiplier `F` is defined as:
- Upper Band: MA + (ATR x F)
- Lower Band: MA - (ATR x F)
where:
- `MA` is the moving average of the close price over `M` periods,
- `ATR` is the Average True Range over the same period,
- `F` is the multiplier to adjust the sensitivity.
The trend direction switches when the price crosses the presentTrend bands, signaling potential entry or exit points.
presentTrend length = 3
presentTrend length = 10
For more information - PresentTrend - Strategy :
🔶 Strategy Logic
Entry Conditions:
- Long Entry: Triggered when the RMI exceeds a threshold, say 60, indicating a strong bullish momentum, and when the price is above the presentTrend, confirming an uptrend.
- Short Entry: Occurs when the RMI drops below a threshold, say 40, showing strong bearish momentum, and the price is below the present trend, indicating a downtrend.
Exit Conditions with Dynamic Trailing Stop:
- Long Exit: Initiated when the price crosses below the lower presentTrend band or when the RMI falls back towards a neutral level, suggesting a weakening of the bullish momentum.
- Short Exit: Executed when the price crosses above the upper presentTrend band or when the RMI rises towards a neutral level, indicating a reduction in bearish momentum.
Equations for Dynamic Trailing Stop:
- For Long Positions: The exit price is set at the lower SuperTrend band once the entry condition is met.
- For Short Positions: The exit price is determined by the upper SuperTrend band post-entry.
These dynamic trailing stops adjust as the market moves, providing a method to lock in profits while allowing room for the position to grow.
This strategy's strength lies in its dual analysis approach, leveraging RMI for momentum insights and presentTrend for trend direction and dynamic stops. This combination offers traders a robust framework to navigate various market conditions, aiming to capture trends early and exit positions strategically to maximize gains and minimize losses.
█ Trade Direction
The strategy provides flexibility in trade direction selection, offering "Long," "Short," or "Both" options to cater to different market conditions and trader preferences. This adaptability ensures that traders can align the strategy with their market outlook, risk tolerance, and trading goals.
█ Usage
To utilize the "PresentTrend RMI Synergy Strategy," traders should input their preferred settings in the Pine Script™ and apply the strategy to their charts. Monitoring RMI for momentum shifts and adjusting positions based on SuperTrend signals can optimize entry and exit points, enhancing potential returns while managing risk.
█ Default Settings
1. RMI Length: 21
The 21-period RMI length strikes a balance between capturing momentum and filtering out market noise, offering a medium-term outlook on market trends.
2. Super Trend Length: 7
A SuperTrend length of 7 periods is chosen for its responsiveness to price movements, providing a dynamic framework for trend identification without excessive sensitivity.
3. Super Trend Multiplier: 4.0
The multiplier of 4.0 for the SuperTrend indicator widens the trend bands, focusing on significant market moves and reducing the impact of minor fluctuations.
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The "PresentTrend RMI Synergy Strategy" represents a significant step forward in trading strategy development, blending momentum and trend analysis in a unique way. By providing a detailed framework for understanding market dynamics, this strategy empowers traders to make more informed decisions.
AI SuperTrend x Pivot Percentile - Strategy [PresentTrading]█ Introduction and How it is Different
The AI SuperTrend x Pivot Percentile strategy is a sophisticated trading approach that integrates AI-driven analysis with traditional technical indicators. Combining the AI SuperTrend with the Pivot Percentile strategy highlights several key advantages:
1. Enhanced Accuracy in Trend Prediction: The AI SuperTrend utilizes K-Nearest Neighbors (KNN) algorithm for trend prediction, improving accuracy by considering historical data patterns. This is complemented by the Pivot Percentile analysis which provides additional context on trend strength.
2. Comprehensive Market Analysis: The integration offers a multi-faceted approach to market analysis, combining AI insights with traditional technical indicators. This dual approach captures a broader range of market dynamics.
BTC 6H L/S Performance
Local
█ Strategy: How it Works - Detailed Explanation
🔶 AI-Enhanced SuperTrend Indicators
1. SuperTrend Calculation:
- The SuperTrend indicator is calculated using a moving average and the Average True Range (ATR). The basic formula is:
- Upper Band = Moving Average + (Multiplier × ATR)
- Lower Band = Moving Average - (Multiplier × ATR)
- The moving average type (SMA, EMA, WMA, RMA, VWMA) and the length of the moving average and ATR are adjustable parameters.
- The direction of the trend is determined based on the position of the closing price in relation to these bands.
2. AI Integration with K-Nearest Neighbors (KNN):
- The KNN algorithm is applied to predict trend direction. It uses historical price data and SuperTrend values to classify the current trend as bullish or bearish.
- The algorithm calculates the 'distance' between the current data point and historical points. The 'k' nearest data points (neighbors) are identified based on this distance.
- A weighted average of these neighbors' trends (bullish or bearish) is calculated to predict the current trend.
For more please check: Multi-TF AI SuperTrend with ADX - Strategy
🔶 Pivot Percentile Analysis
1. Percentile Calculation:
- This involves calculating the percentile ranks for high and low prices over a set of predefined lengths.
- The percentile function is typically defined as:
- Percentile = Value at (P/100) × (N + 1)th position
- Where P is the desired percentile, and N is the number of data points.
2. Trend Strength Evaluation:
- The calculated percentiles for highs and lows are used to determine the strength of bullish and bearish trends.
- For instance, a high percentile rank in the high prices may indicate a strong bullish trend, and vice versa for bearish trends.
For more please check: Pivot Percentile Trend - Strategy
🔶 Strategy Integration
1. Combining SuperTrend and Pivot Percentile:
- The strategy synthesizes the insights from both AI-enhanced SuperTrend and Pivot Percentile analysis.
- It compares the trend direction indicated by the SuperTrend with the strength of the trend as suggested by the Pivot Percentile analysis.
2. Signal Generation:
- A trading signal is generated when both the AI-enhanced SuperTrend and the Pivot Percentile analysis agree on the trend direction.
- For instance, a bullish signal is generated when both the SuperTrend is bullish, and the Pivot Percentile analysis shows strength in bullish trends.
🔶 Risk Management and Filters
- ADX and DMI Filter: The strategy uses the Average Directional Index (ADX) and the Directional Movement Index (DMI) as filters to assess the trend's strength and direction.
- Dynamic Trailing Stop Loss: Based on the SuperTrend indicator, the strategy dynamically adjusts stop-loss levels to manage risk effectively.
This strategy stands out for its ability to combine real-time AI analysis with established technical indicators, offering traders a nuanced and responsive tool for navigating complex market conditions. The equations and algorithms involved are pivotal in accurately identifying market trends and potential trade opportunities.
█ Usage
To effectively use this strategy, traders should:
1. Understand the AI and Pivot Percentile Indicators: A clear grasp of how these indicators work will enable traders to make informed decisions.
2. Interpret the Signals Accurately: The strategy provides bullish, bearish, and neutral signals. Traders should align these signals with their market analysis and trading goals.
3. Monitor Market Conditions: Given that this strategy is sensitive to market dynamics, continuous monitoring is crucial for timely decision-making.
4. Adjust Settings as Needed: Traders should feel free to tweak the input parameters to suit their trading preferences and to respond to changing market conditions.
█Default Settings and Their Impact on Performance
1. Trading Direction (Default: "Both")
Effect: Determines whether the strategy will take long positions, short positions, or both. Adjusting this setting can align the strategy with the trader's market outlook or risk preference.
2. AI Settings (Neighbors: 3, Data Points: 24)
Neighbors: The number of nearest neighbors in the KNN algorithm. A higher number might smooth out noise but could miss subtle, recent changes. A lower number makes the model more sensitive to recent data but may increase noise.
Data Points: Defines the amount of historical data considered. More data points provide a broader context but may dilute recent trends' impact.
3. SuperTrend Settings (Length: 10, Factor: 3.0, MA Source: "WMA")
Length: Affects the sensitivity of the SuperTrend indicator. A longer length results in a smoother, less sensitive indicator, ideal for long-term trends.
Factor: Determines the bandwidth of the SuperTrend. A higher factor creates wider bands, capturing larger price movements but potentially missing short-term signals.
MA Source: The type of moving average used (e.g., WMA - Weighted Moving Average). Different MA types can affect the trend indicator's responsiveness and smoothness.
4. AI Trend Prediction Settings (Price Trend: 10, Prediction Trend: 80)
Price Trend and Prediction Trend Lengths: These settings define the lengths of weighted moving averages for price and SuperTrend, impacting the responsiveness and smoothness of the AI's trend predictions.
5. Pivot Percentile Settings (Length: 10)
Length: Influences the calculation of pivot percentiles. A shorter length makes the percentile more responsive to recent price changes, while a longer length offers a broader view of price trends.
6. ADX and DMI Settings (ADX Length: 14, Time Frame: 'D')
ADX Length: Defines the period for the Average Directional Index calculation. A longer period results in a smoother ADX line.
Time Frame: Sets the time frame for the ADX and DMI calculations, affecting the sensitivity to market changes.
7. Commission, Slippage, and Initial Capital
These settings relate to transaction costs and initial investment, directly impacting net profitability and strategy feasibility.
FlexiMA x FlexiST - Strategy [presentTrading]█ Introduction and How it is Different
The FlexiMA x FlexiST Strategy blends two analytical methods - FlexiMA and FlexiST, which are opened in my early post.
- FlexiMA calculates deviations between an indicator source and a dynamic moving average, controlled by a starting factor and increment factor.
- FlexiST, on the other hand, leverages the SuperTrend model, adjusting the Average True Range (ATR) length for a comprehensive trend-following oscillator.
This synergy offers traders a more nuanced and multifaceted tool for market analysis.
BTC 6H L/S Performance
Local
█ Strategy, How It Works: Detailed Explanation
The strategy combines two components: FlexiMA and FlexiST, each utilizing unique methodologies to analyze market trends.
🔶FlexiMA Component:
- Calculates deviations between an indicator source and moving averages of variable lengths.
- Moving average lengths are dynamically adjusted using a starting factor and increment factor.
- Deviations are normalized and analyzed to produce median and standard deviation values, forming the FlexiMA oscillator.
Length indicator (50)
🔶FlexiST Component:
- Uses SuperTrend indicators with varying ATR (Average True Range) lengths.
- Trends are identified based on the position of the indicator source relative to the SuperTrend bands.
- Deviations between the indicator source and SuperTrend values are calculated and normalized.
Starting Factor (5)
🔶Combined Strategy Logic:
- Entry Signals:
- Long Entry: Triggered when median values of both FlexiMA and FlexiST are positive.
- Short Entry: Triggered when median values of both FlexiMA and FlexiST are negative.
- Exit Signals:
- Long Exit: Triggered when median values of FlexiMA or FlexiST turn negative.
- Short Exit: Triggered when median values of FlexiMA or FlexiST turn positive.
This strategic blend of FlexiMA and FlexiST allows for a nuanced analysis of market trends, providing traders with signals based on a comprehensive view of market momentum and trend strength.
█ Trade Direction
The strategy is designed to cater to various trading preferences, offering "Long", "Short", and "Both" options. This flexibility allows traders to align the strategy with their specific market outlook, be it bullish, bearish, or a combination of both.
█ Usage
Traders can effectively utilize the FlexiMA x FlexiST Strategy by first selecting their desired trade direction. The strategy then generates entry signals when the conditions for either the FlexiMA or FlexiST are met, indicating potential entry points in the market. Conversely, exit signals are generated when the conditions for these indicators diverge, thus signaling a potential shift in market trends and suggesting a strategic exit point.
█ Default Settings
1. Indicator Source (HLC3): Provides a balanced and stable price source, reducing the impact of extreme market fluctuations.
2. Indicator Lengths (20 for FlexiMA, 10 for FlexiST): Longer FlexiMA length smooths out short-term fluctuations, while shorter FlexiST length allows for quicker response to market changes.
3. Starting Factors (1.0 for FlexiMA, 0.618 for FlexiST): Balanced start for FlexiMA and a harmonized approach for FlexiST, resonating with natural market cycles.
4. Increment Factors (1.0 for FlexiMA, 0.382 for FlexiST): FlexiMA captures a wide range of market behaviors, while FlexiST provides a gradual transition to capture finer trend shifts.
5. Normalization Methods ('None'): Uses raw deviations, suitable for markets where absolute price movements are more significant.
6. Trade Direction ('Both'): Allows strategy to consider both long and short opportunities, ideal for versatile market engagement.
*More details:
1. FlexiMA
2. FlexiST
