Buying Selling Volume StrategyFirst I would like to give the original credit and thanks to @ceyhun for his amazing volume script.
The way I decided to convert it into a strategy is divided into multiple types.
First, I decided in order to smooth out the values and make it more accurate to adapt the values to multiple timeframes.
After that I took the initial values from the buyers and sellers , and made a rest operation between them to have a flat difference between the power of both sides.
WIth that later on I decided to to apply a volatility filter,in this case bollinger bands, in order to find out potential leading trends.
At the same time in order to filter even more, I decided to make use as well for weekly VWAP values of the asset used.
Lastly I added a dynamic risk management into it , based on the ATR Daily values of the asset values.
As for the rules used, for example for long, I am looking that the price of the asset is above the weekly VWAP, after that I am checking that the MTF volume rest operation is both bullish and above the upper side of the bollinger.
For short we would want the asset to be below the weekly VWAP, and the volume to be bearish and above the upper side of bollinger.
The exit is either based on daily ATR values multipliers, or if we have a reverse condition.
If you have any questions, please let me know !
Volume
Volume ValueWhen VelocityTitle: Volume ValueWhen Velocity Trading Strategy
▶ Introduction:
The " Volume ValueWhen Velocity " trading strategy is designed to generate long position signals based on various technical conditions, including volume thresholds, RSI (Relative Strength Index), and price action relative to the Simple Moving Average (SMA). The strategy aims to identify potential buy opportunities when specific criteria are met, helping traders capitalize on potential bullish movements.
▶ How to use and conditions
★ Important : Only on Spot Binance BINANCE:BTCUSDT
Name: Volume ValueWhen Velocity
Operating mode: Long on Spot BINANCE BINANCE:BTCUSDT
Timeframe: Only one hour
Market: Crypto
currency: Bitcoin only
Signal type: Medium or short term
Entry: All sections in the Technical Indicators and Conditions section must be saved to enter (This is explained below)
Exit: Based on loss limit and profit limit It is removed in the settings section
Backtesting:
⁃ Exchange: BINANCE BINANCE:BTCUSDT
⁃ Pair: BTCUSDT
⁃ Timeframe:1h
⁃ Fee: 0.1%
- Initial Capital: 1,000 USDT
- Position sizing: 500 usdt
-Trading Range: 2022-07-01 11:30 ___ 2023-07-21 14:30
▶ Strategy Settings and Parameters:
1. `strategy(title='Volume ValueWhen Velocity', ...`: Sets the strategy title, initial capital, default quantity type, default quantity value, commission value, and trading currency.
↬ Stop-Loss and Take-Profit Settings:
1. long_stoploss_value and long_stoploss_percentage : Define the stop-loss percentage for long positions.
2. long_takeprofit_value and long_takeprofit_percentage : Define the take-profit percentage for long positions.
↬ ValueWhen Occurrence Parameters:
1. occurrence_ValueWhen_1 and occurrence_ValueWhen_2 : Control the occurrences of value events.
2. `distance_value`: Specifies the minimum distance between occurrences of ValueWhen 1 and ValueWhen 2.
↬ RSI Settings:
1. rsi_over_sold and rsi_length : Define the oversold level and RSI length for RSI calculations.
↬ Volume Thresholds:
1. volume_threshold1 , volume_threshold2 , and volume_threshold3 : Set the volume thresholds for multiple volume conditions.
↬ ATR (Average True Range) Settings:
1. atr_small and atr_big : Specify the periods used to calculate the Average True Range.
▶ Date Range for Back-Testing:
1. start_date, end_date, start_month, end_month, start_year, and end_year : Define the date range for back-testing the strategy.
▶ Technical Indicators and Conditions:
1. rsi: Calculates the Relative Strength Index (RSI) based on the defined RSI length and the closing prices.
2. was_over_sold: Checks if the RSI was oversold in the last 10 bars.
3. getVolume and getVolume2 : Custom functions to retrieve volume data for specific bars.
4. firstCandleColor : Evaluates the color of the first candle based on different timeframes.
5. sma : Calculates the Simple Moving Average (SMA) of the closing price over 13 periods.
6. numCandles : Counts the number of candles since the close price crossed above the SMA.
7. atr1 : Checks if the ATR_small is less than ATR_big for the specified security and timeframe.
8. prevClose, prevCloseBarsAgo, and prevCloseChange : ValueWhen functions to calculate the change in the close price between specific occurrences.
9. atrval: A condition based on the ATR_value3.
▶ Buy Signal Condition:
Condition: A combination of multiple volume conditions.
buy_signal: The final buy signal condition that considers various technical conditions and their interactions.
▶ Long Strategy Execution:
1. The strategy will enter a long position (buy) when the buy_signal condition is met and within the specified date range.
2. A stop-loss and take-profit will be set for the long position to manage risk and potential profits.
▶ Conclusion:
The " Volume ValueWhen Velocity " trading strategy is designed to identify long position opportunities based on a combination of volume conditions, RSI, and price action. The strategy aims to capitalize on potential bullish movements and utilizes a stop-loss and take-profit mechanism to manage risk and optimize potential returns. Traders can use this strategy as a starting point for their own trading systems or further customize it to suit their preferences and risk appetite. It is crucial to thoroughly back-test and validate any trading strategy before deploying it in live markets.
↯ Disclaimer:
Risk Management is crucial, so adjust stop loss to your comfort level. A tight stop loss can help minimise potential losses. Use at your own risk.
How you or we can improve? Source code is open so share your ideas!
Leave a comment and smash the boost button!
BTFD strategy [3min]Hello
I would like to introduce a very simple strategy to buy lows and sell with minimal profit
This strategy works very well in the markets when there is no clear trend and in other words, the trend going sideways
this strategy works very well for stable financial markets like spx500, nasdaq100 and dow jones 30
two indicators were used to determine the best time to enter the market:
volume + rsi values
volume is usually the number of stocks or contracts traded over a certain period of time. Thus, it is an important indicator of market activity and liquidity. Each transaction constitutes an individual exchange between the buyer and the seller and constitutes the trading volume of a given instrument or asset.
The RSI measures the strength of uptrends versus downtrends. The signal is the entry or exit of the indicator value of the oversold or overbought level of the market. It is assumed that a value below or equal 30 indicates an oversold level of the market, and an RSI value above or equal 70 indicates an overbought level.
the strategy uses a maximum of 5 market entries after each candle that meets the condition
uses 5 target point levels to close the position:
tp1= 0.4%
tp2= 0.6%
tp3= 0.8%
tp4= 1.0%
tp5= 1.2%
after reaching a given profit value, a piece of the position is cut off gradually, where tp5 closes 100% of the remaining position
each time you enter a position, a stop loss of 5.0% is set, which is quite a high value, however, when buying each, sometimes very active downward price movement, you need a lot of space for market decisions in which direction it wants to go
to determine the level of stop loss and target point I used a piece of code by RafaelZioni , here is the script from which a piece of code was taken
this strategy is used for automation, however, I would recommend brokers that have the lowest commission values when opening and closing positions, because the strategy generates very high commission costs
Enjoy and trade safe ;)
Powertrend - Volume Range Filter Strategy [wbburgin]The Powertrend is a range filter that is based off of volume, instead of price. This helps the range filter capture trends more accurately than a price-based range filter, because the range filter will update itself from changes in volume instead of changes in price. In certain scenarios this means that the Powertrend will be more profitable than a normal range filter.
Essentials of the Strategy
This is a breakout strategy which works best on trending assets with high volume and liquidity. It should be used on middle to higher timeframes and can be used on all assets that have volume provided by the data source (stocks, crypto, forex). It is long-only as of now. It can work on lower timeframes if you optimize the strategy filters to make less trades or if your exchange/broker is low/no fees, provided that your exchange/broker has high liquidity and volume.
The strategy enters a long position if the range filter is trending upwards and the price crosses over the upper range band, which signifies a price-volume breakout. The strategy closes the long position if the range filter is trending downwards and the price crosses under the lower range band, which signifies a breakdown. Both these conditions can be altered by the three filter options in the settings. The default trend filter is not alterable because it helps prevent false entries and exits that are against the trend.
Settings
The Length setting is the lookback period for the range smoothing.
The ADX Filter setting enables you to turn on an ADX filter, which will halt entries and exits unless the ADX of your customizable length is above a ADX VWMA of that length.
The Range Supertrend setting creates a supertrend from the top and bottom ranges, which can be used to filter entries and exits. The length is customizable. The filter can show you whether the range is making higher highs and lower lows. Below is an example of the Range Supertrend being used as a filter and plotted on-chart:
The VWMA setting halts entries if they are below a customizable length VWMA.
Both the Range Supertrend and the VWMA can also be plotted separately without actually filtering the strategy, so that you can use them independently if you wish. You can turn off the bar color, the highlighting, and the labels if you wish in the settings. A note about the bar color: if the color changes but the strategy does not signal an exit or entry this means that the crossover was against the trend. In these circumstances it may be indicative of a pullback to enter or exit or to add onto your position.
About the Strategy Results Below
A range filter is normally composed of two components - the range filter itself and a smoothing function. In the development of this script I tested both normal and volume-based varieties of the range filter and the smoothing function:
Tests Performed
Volume-based Range x VWMA smoothing
Price-based Range x VWMA smoothing
Price-based Range x EMA smoothing
Volume-based Range x EMA smoothing (final result)
The highest-performing was a volume-based range filter and a normal EMA-based smoothing function, but that does not mean that this strategy will be profitable - exits are based off of signal reversion so I strongly encourage you to develop your own take profits/stop losses for the strategy if you think it may be a good fit for you. The results below are with a commission value of 0.05% (because I built the strategy first for equities), slippage of 3, so if your exchange/broker has a higher fee schedule, I recommend adding filters and/or moving to higher timeframes for the strategy. Additionally, I used 10% of equity in each trade, while using the Range Supertrend filter (the previous upload was unrealistic because it used 100% of equity - missed a 0, apologies, and added in slippage).
Volume-Weighted Supertrend Strategy [wbburgin]This is a script that can be used as a strategy or a standalone indicator.
The Volume-Weighted Supertrend is a supertrend based on a rolling VWAP, instead of a normal price source. The strategy has two components - a supertrend based off of this VWAP (shown on the chart) and a supertrend from volume itself (not plotted on the chart directly). The supertrend from volume is an example of my "Supertrend Any Source" indicator, where a custom ATR is created from non-OHLC data; this is available as both a separate public script and also in my "wbburgin_utils" library for you to use in your own script creation.
The supertrend from volume acts as a confirmation filter for the VWAP-supertrend shown on-chart. If the volume supertrend is trending up and the VWAP-based supertrend is also trending up, a buy signal is generated. Likewise, if the volume supertrend is trending down and the VWAP-supertrend is trending down, a sell signal is generated. The colors are based off of whether both supertrends are trending up or down: green for both up, blue for only price up, orange for only price down, and red for both down.
The settings enable you to change the volume length and the ATR length separately, as well as the multiplier and the source for the price supertrend. If you load the indicator for the first time and see no entries and exits, this is because "Show Strategy Entries and Exits" is disabled in the settings. This is if you plan on using the strategy as an indicator and don't want to be bothered by the entry and exit symbols on the chart. Additionally, for those who like clean charts (like me), you can turn all the labels off in the settings, as well as the highlighting.
My default strategy settings for the strategy results shown below are as follows: 5% equity per trade, 5 degrees of pyramiding, commissions of 0.08% per trade. This strategy doesn't come with stops yet, so please be aware of that before using it to trade - I highly suggest you create your own stops based off of your R/R ratio and personal risk tolerance. Additionally, it works best on trending assets (b/c of the supertrends) with high volume. This might mean it does not work as well on lower timeframes.
DZ Strategy ICTThe script presented is a trading strategy called "Breaker Block Strategy with Price Channel". This strategy uses multiple time frames (1 minute, 5 minutes, 15 minutes, 1 hour, and 4 hours) to detect support and resistance areas on the chart.
The strategy uses parameters such as length, deviations, multiplier, Fibonacci level, move lag and volume threshold for each time frame. These parameters are adjustable by the user.
The script then calculates support and resistance levels using the simple moving average (SMA) and standard deviation (STDEV) of closing prices for each time frame.
It also detects "Breaker Blocks" based on price movement from support and resistance levels, as well as trade volume. A Breaker Block occurs when there is a significant breakout of a support or resistance level with high volume.
Buy and sell signals are generated based on the presence of a Breaker Block and price movement from support and resistance levels. When a buy signal is generated, a buy order is placed, and when a sell signal is generated, a sell order is placed.
The script also plots price channels for each time frame, representing resistance and support levels.
Profit limit levels are set for each time range, indicating that the price levels assigned to positions should be closed with a profit. Stop-loss levels are also set to limit losses in the event of canceled price movements.
In summary, this trading strategy uses a combination of Breaker Block detection, support and resistance levels, price channels and profit limit levels to generate buy and sell signals and manage positions on different time ranges.
BB and KC StrategyThis script is designed as a TradingView strategy that uses Bollinger Bands (BB) and Keltner Channels (KC) as the primary indicators for generating trade signals. It aims to catch potential market trends by comparing the movements of these two popular volatility measures.
Key aspects of this strategy:
1. **Bollinger Bands and Keltner Channels:** Both are volatility-based indicators. The Bollinger Bands consist of a middle band (simple moving average) and two outer bands calculated based on standard deviation, which adjusts itself to market conditions. Keltner Channels are a set of bands placed above and below an exponential moving average of the price. The distance between the bands is calculated based on the Average True Range (ATR), a measure of price volatility.
2. **Entry Signals:** The strategy enters a long position when the upper KC line crosses above the upper BB line and the volume is above its moving average. Conversely, it enters a short position when the lower KC line crosses below the lower BB line and the volume is above its moving average.
3. **Exit Signals:** The strategy exits a position under two conditions. First, if the trade has been open for a certain number of bars defined by the user (default 20 bars). Second, a stop loss and trailing stop are in place to limit potential losses and lock in profits as the price moves favorably. The stop loss is set at a percentage of the entry price (default 1.5% for long and -1.5% for short), and the trailing stop is also a percentage of the entry price (default 2%).
4. **Trade Quantity:** The script allows specifying the investment amount for each trade, set to a default of 1000 currency units.
Remember, this is a strategy script, which means it is used for backtesting and not for real-time signals or live trading. It is also recommended that it is used as a tool to aid your trading, not as a standalone system. As with any strategy, it should be tested over different market conditions and used in conjunction with other aspects of technical and fundamental analysis to ensure robustness and effectiveness.
VWAP Trendfollow Strategy [wbburgin]This is an experimental strategy that enters long when the instrument crosses over the upper standard deviation band of a VWAP and enters short when the instrument crosses below the bottom standard deviation band of the VWAP. I have added a trend filter as well, which stops entries that are opposite to the current trend of the VWAP. The trend filter will reduce total false breakouts, thus improving the % profitable while maintaining the overall returns of the strategy. Because this is a trend-following breakout strategy, the % profitable will typically be low but the average % return will be higher. As a rule, be sure to look at the average winning trade % compared to the average losing trade %, and compare that to the % profitable to judge the effectiveness of a strategy. Factor in fees and slippage as well.
This strategy appears to work better with the lower timeframes, and I was impressed with its results. It also appears to work on a wide range of asset classes. There isn't a stop loss or take profit built-in (other than the reversal signals, which close the current trade), so I would encourage you to expand on the strategy based on your own trading parameters.
You can toggle off the bar colors and the trend filter if you so desire.
Future updates to this script (or ideas of improving on it) might include a take profit level set at one standard deviation past the current level and a stop loss level set at one standard deviation closer to the vwap from the current level - or applying a multiple to the two based off of your reward/risk ratio.
About the strategy results below: this is with commissions of 0.5 % per trade.
Slight Swing Momentum Strategy.Introduction:
The Swing Momentum Strategy is a quantitative trading strategy designed to capture mid-term opportunities in the financial markets by combining swing trading principles with momentum indicators. It utilizes a combination of technical indicators, including moving averages, crossover signals, and volume analysis, to generate buy and sell signals. The strategy aims to identify market trends and capitalize on price momentum for profit generation.
Highlights:
The strategy offers several key highlights that make it unique and potentially attractive to traders:
Swing Trading with Momentum: The strategy combines the principles of swing trading, which aim to capture short-to-medium-term price swings, with momentum indicators that help identify strong price trends and potential breakout opportunities.
Technical Indicator Optimization: The strategy utilizes a selection of optimized technical indicators, including moving averages and crossover signals, to filter out the noise and focus on high-probability trading setups. This optimization enhances the strategy's ability to identify favourable entry and exit points.
Risk Management: The strategy incorporates risk management techniques, such as position sizing based on equity and dynamic stop loss levels, to manage risk exposure and protect capital. This helps to minimize drawdowns and preserve profits.
Buy Condition:
The buy condition in the strategy is determined by a combination of factors, including A1, A2, A3, XG, and weeklySlope. Let's break it down:
A1 Condition: The A1 condition checks for specific price relationships. It verifies that the ratio of the highest price to the closing price is less than 1.03, the ratio of the opening price to the lowest price is less than 1.03, and the ratio of the highest price to the previous day's closing price is greater than 1.06. This condition looks for a specific pattern indicating potential bullish momentum.
A2 Condition: The A2 condition checks for price relationships related to the closing price. It verifies that the ratio of the closing price to the opening price is greater than 1.05 or that the ratio of the closing price to the previous day's closing price is greater than 1.05. This condition looks for signs of upward price movement and momentum.
A3 Condition: The A3 condition focuses on volume. It checks if the current volume crosses above the highest volume over the last 60 periods. This condition aims to identify increased buying interest and potentially confirms the strength of the potential upward price movement.
XG Condition: The XG condition combines the A1 and A2 conditions and checks if they are true for both the current and previous bars. It also verifies that the ratio of the closing price to the 5-period EMA crosses above the 9-period SMA of the same ratio. This condition helps identify potential buy signals when multiple factors align, indicating a strong bullish momentum and potential entry point.
Weekly Trend Factor: The weekly slope condition calculates the slope of the 50-period SMA over a weekly timeframe. It checks if the slope is positive, indicating an overall upward trend on a weekly basis. This condition provides additional confirmation that the stock is in an upward trend.
When all of these conditions align, the buy condition is triggered, indicating a favourable time to enter a long position.
Sell Condition:
The sell condition is relatively straightforward in the strategy:
Sell Signal: The sell condition simply checks if the closing price crosses below the 10-period EMA. When this condition is met, it indicates a potential reversal or weakening of the upward price momentum, and a sell signal is generated.
Backtest Outcome:
The strategy was backtested over the period from January 22nd, 1999 to May 3rd, 2023, using daily candlestick charts for the NASDAQ: NVDA. The strategy used an initial capital of 1,000,000 USD, The order quantity is defined as 10% of the equity. The strategy allows for pyramiding with 1 order, and the transaction fee is set at 0.03% per trade. Here are the key outcomes of the backtest:
Net Profit: 539,595.84 USD, representing a return of 53.96%.
Percent Profitable: 48.82%
Total Closed Trades: 127
Profit Factor: 2.331
Max Drawdown: 68,422.70 USD
Average Trade: 4,248.79 USD
Average Number of Bars in Trades: 11, indicating the average duration of the trades.
Conclusion:
In conclusion, the Swing Momentum Strategy is a quantitative trading approach that combines swing trading principles with momentum indicators to identify and capture mid term trading opportunities. The strategy has demonstrated promising results during backtesting, including a significant net profit and a favourable profit factor.
Price Action Trading StrategyIn this strategy, we define the high and low of the previous candle, and then check whether the current candle's high or low is higher or lower than the previous candle's high or low, respectively. If there's a new high, we enter a long position, and if there's a new low, we enter a short position. We also set exit conditions to close the position if the price drops below the previous low or rises above the previous high.
Please note that this is a simple example and should not be used as a standalone trading strategy. It is important to conduct thorough backtesting and consider other factors such as risk management before implementing any trading strategy.
VWAP+15EMA with RSIVWAP+EMA+RSI Strategy for the group MelléCasH
This strategy will enter a long position when the closing price is above both the VWAP and the 15 EMA, and the RSI is above the specified overbought level. It will exit the position when the price falls by the specified stop loss percentage, rises by the specified take profit percentage, or when the trailing stop loss (which trails the highest price achieved after the position was entered by the specified percentage) is hit. The VWAP, EMA, and RSI indicators are also plotted on the chart for reference.
JS-TechTrading: VWAP Momentum_Pullback StrategyGeneral Description and Unique Features of this Script
Introducing the VWAP Momentum-Pullback Strategy (long-only) that offers several unique features:
1. Our script/strategy utilizes Mark Minervini's Trend-Template as a qualifier for identifying stocks and other financial securities in confirmed uptrends.
NOTE: In this basic version of the script, the Trend-Template has to be used as a separate indicator on TradingView (Public Trend-Template indicators are available on TradingView – community scripts). It is recommended to only execute buy signals in case the stock or financial security is in a stage 2 uptrend, which means that the criteria of the trend-template are fulfilled.
2. Our strategy is based on the supply/demand balance in the market, making it timeless and effective across all timeframes. Whether you are day trading using 1- or 5-min charts or swing-trading using daily charts, this strategy can be applied and works very well.
3. We have also integrated technical indicators such as the RSI and the MA / VWAP crossover into this strategy to identify low-risk pullback entries in the context of confirmed uptrends. By doing so, the risk profile of this strategy and drawdowns are being reduced to an absolute minimum.
Minervini’s Trend-Template and the ‘Stage-Analysis’ of the Markets
This strategy is a so-called 'long-only' strategy. This means that we only take long positions, short positions are not considered.
The best market environment for such strategies are periods of stable upward trends in the so-called stage 2 - uptrend.
In stable upward trends, we increase our market exposure and risk.
In sideways markets and downward trends or bear markets, we reduce our exposure very quickly or go 100% to cash and wait for the markets to recover and improve. This allows us to avoid major losses and drawdowns.
This simple rule gives us a significant advantage over most undisciplined traders and amateurs!
'The Trend is your Friend'. This is a very old but true quote.
What's behind it???
• 98% of stocks made their biggest gains in a Phase 2 upward trend.
• If a stock is in a stable uptrend, this is evidence that larger institutions are buying the stock sustainably.
• By focusing on stocks that are in a stable uptrend, the chances of profit are significantly increased.
• In a stable uptrend, investors know exactly what to expect from further price developments. This makes it possible to locate low-risk entry points.
The goal is not to buy at the lowest price – the goal is to buy at the right price!
Each stock goes through the same maturity cycle – it starts at stage 1 and ends at stage 4
Stage 1 – Neglect Phase – Consolidation
Stage 2 – Progressive Phase – Accumulation
Stage 3 – Topping Phase – Distribution
Stage 4 – Downtrend – Capitulation
This strategy focuses on identifying stocks in confirmed stage 2 uptrends. This in itself gives us an advantage over long-term investors and less professional traders.
By focusing on stocks in a stage 2 uptrend, we avoid losses in downtrends (stage 4) or less profitable consolidation phases (stages 1 and 3). We are fully invested and put our money to work for us, and we are fully invested when stocks are in their stage 2 uptrends.
But how can we use technical chart analysis to find stocks that are in a stable stage 2 uptrend?
Mark Minervini has developed the so-called 'trend template' for this purpose. This is an essential part of our JS-TechTrading pullback strategy. For our watchlists, only those individual values that meet the tough requirements of Minervini's trend template are eligible.
The Trend Template
• 200d MA increasing over a period of at least 1 month, better 4-5 months or longer
• 150d MA above 200d MA
• 50d MA above 150d MA and 200d MA
• Course above 50d MA, 150d MA and 200d MA
• Ideally, the 50d MA is increasing over at least 1 month
• Price at least 25% above the 52w low
• Price within 25% of 52w high
• High relative strength according to IBD.
NOTE: In this basic version of the script, the Trend-Template has to be used as a separate indicator on TradingView (Public Trend-Template indicators are available in TradingView – community scripts). It is recommended to only execute buy signals in case the stock or financial security is in a stage 2 uptrend, which means that the criteria of the trend-template are fulfilled.
This strategy can be applied to all timeframes from 5 min to daily.
The VWAP Momentum-Pullback Strateg y
For the JS-TechTrading VWAP Momentum-Pullback Strategy, only stocks and other financial instruments that meet the selected criteria of Mark Minervini's trend template are recommended for algorithmic trading with this startegy.
A further prerequisite for generating a buy signals is that the individual value is in a short-term oversold state (RSI).
When the selling pressure is over and the continuation of the uptrend can be confirmed by the MA / VWAP crossover after reaching a price low, a buy signal is issued by this strategy.
Stop-loss limits and profit targets can be set variably.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a technical indicator developed by Welles Wilder in 1978. The RSI is used to perform a market value analysis and identify the strength of a trend as well as overbought and oversold conditions. The indicator is calculated on a scale from 0 to 100 and shows how much an asset has risen or fallen relative to its own price in recent periods.
The RSI is calculated as the ratio of average profits to average losses over a certain period of time. A high value of the RSI indicates an overbought situation, while a low value indicates an oversold situation. Typically, a value > 70 is considered an overbought threshold and a value < 30 is considered an oversold threshold. A value above 70 signals that a single value may be overvalued and a decrease in price is likely , while a value below 30 signals that a single value may be undervalued and an increase in price is likely.
For example, let's say you're watching a stock XYZ. After a prolonged falling movement, the RSI value of this stock has fallen to 26. This means that the stock is oversold and that it is time for a potential recovery. Therefore, a trader might decide to buy this stock in the hope that it will rise again soon.
The MA / VWAP Crossover Trading Strategy
This strategy combines two popular technical indicators: the Moving Average (MA) and the Volume Weighted Average Price (VWAP). The MA VWAP crossover strategy is used to identify potential trend reversals and entry/exit points in the market.
The VWAP is calculated by taking the average price of an asset for a given period, weighted by the volume traded at each price level. The MA, on the other hand, is calculated by taking the average price of an asset over a specified number of periods. When the MA crosses above the VWAP, it suggests that buying pressure is increasing, and it may be a good time to enter a long position. When the MA crosses below the VWAP, it suggests that selling pressure is increasing, and it may be a good time to exit a long position or enter a short position.
Traders typically use the MA VWAP crossover strategy in conjunction with other technical indicators and fundamental analysis to make more informed trading decisions. As with any trading strategy, it is important to carefully consider the risks and potential rewards before making any trades.
This strategy is applicable to all timeframes and the relevant parameters for the underlying indicators (RSI and MA/VWAP) can be adjusted and optimized as needed.
Backtesting
Backtesting gives outstanding results on all timeframes and drawdowns can be reduced to a minimum level. In this example, the hourly chart for MCFT has been used.
Settings for backtesting are:
- Period from April 2020 until April 2021 (1 yr)
- Starting capital 100k USD
- Position size = 25% of equity
- 0.01% commission = USD 2.50.- per Trade
- Slippage = 2 ticks
Other comments
• This strategy has been designed to identify the most promising, highest probability entries and trades for each stock or other financial security.
• The RSI qualifier is highly selective and filters out the most promising swing-trading entries. As a result, you will normally only find a low number of trades for each stock or other financial security per year in case you apply this strategy for the daily charts. Shorter timeframes will result in a higher number of trades / year.
• As a result, traders need to apply this strategy for a full watchlist rather than just one financial security.
Extended Price Volume Trend Strategy : EducationalThe Extended Price Volume Trend (EPVT) is a technical indicator that is used to identify potential trend changes and measure the strength of a trend. In this strategy, we combine the EPVT with other indicators to create a trading system that aims to capture trend reversals and momentum shifts.
The EPVT indicator is calculated by taking the cumulative volume and multiplying it by the percentage change in price. We then find the highest and lowest values of this indicator over a certain period of time to determine the baseline. The difference between the EPVT and the baseline is then plotted on a chart to create the EPVT line.
To use this indicator for trading, we look for crossovers of the EPVT line with zero. When the EPVT crosses above zero, it indicates that buying pressure is increasing, and we may consider taking a long position. Conversely, when the EPVT crosses below zero, it indicates that selling pressure is increasing, and we may consider taking a short position.
To further refine our trading signals, we use three take-profit levels, which we set as a percentage of the current EPVT value. We also use a simple moving average to provide additional confirmation of trend changes.
In summary, the EPVT trading strategy is a technical analysis-based approach to trading that aims to identify potential trend reversals and momentum shifts. By combining the EPVT indicator with other technical tools, we can create a comprehensive trading system that provides clear entry and exit signals for both long and short positions. Please note that this strategy is for educational purposes only and should not be taken as financial advice.
Last Price minus Open Price Intraday VolumeLast Price minus Open Price Intraday Volume
Change in price from day Open price to Last Price indicate the stock price movement. Last Price minus Open Price Intraday Volume indicator is framed on volume change during change in price from day Open price to Last Price. It takes into account the average intraday volume based on intraday length of bars and actual volume attributed to change in price from day Open Price to Last Price. The indicator reflects the change in trend .By analyzing the position of price on the basis of average change in volume during intraday with that of volume attributed to change in price from day open Price to Last price one may decide upon the course of trade.
DISCLAIMER: For educational and entertainment purposes only. Nothing in this content should be interpreted as financial advice or a recommendation to buy or sell any sort of security or investment including all types of crypto.
Strategy Myth-Busting #7 - MACDBB+SSL+VSF - [MYN]This is part of a new series we are calling "Strategy Myth-Busting" where we take open public manual trading strategies and automate them. The goal is to not only validate the authenticity of the claims but to provide an automated version for traders who wish to trade autonomously.
Our seventh one we are automating is the "Magic MACD Indicator: Crazy Accurate Scalping Trading Strategy ( 74% Win Rate )" strategy from "TradeIQ" who claims to have backtested this manually and achieved 427% profit with a 74% winrate over 100 trades in just a 4 months. I was unable to emulate these results consistently accommodating for slippage and commission but even so the results and especially the high win-rate and low markdown is pretty impressive and quite respectable.
This strategy uses a combination of 3 open-source public indicators:
AK MACD BB v 1.00 by Algokid
SSL Hybrid by Mihkel00
Volume Strength Finder by Saravanan_Ragavan
This is considered a trend following Strategy. AK MACD BB is being used as the primary short term trend direction indicator with an interesting approach of using Bollinger Bands to define an upper and lower range and upon the MACD going above the upper Bollinger Bands, it's indicative of an up trend, where as if the MACD is below the lower Bollinger Band, it's indicative of a down trend. To eliminate false signals, SSL Hyrbid is used as a trend confirmation filter, confirming and eliminating false signals from the MACD BB. It does this by validating the price action is above the the EMA and the SSL is positive that is a confirmation of an uptrend. When the price action is below the EMA and the SSL is negative, that is an confirmation of a downtrend. To avoid taking trades during ranged markets, VSF Buyer's Strength is used so the buyers/sellers strength and must be above 50% or the trade will not be inititiated.
Trading Rules
5 min candles but other lower time frames even below 5m work quite well too.
Best results can be found by tweaking these 2 input parameters:
Number Of bars to look back to ensure MACD isn't above/below Zero Line
Number Of bars back to look for SSL pullback
Long Entry when these conditions are true
AK MACD BB BB issues a new continuation long signal. A new green circle must appear on the indicator and these circles should not be touching across the zero level while they were previously red
SSL Hybrid price action closes above the EMA and the line is blue color and then creates a pullback . The pullback is confirmed when the color changes from blue to gray or from blue to red.
VSF Buyers strength above 50% at the time the MACD indicator issues a new long signal.
Short Entry when these conditions are true
AK MACD BB issues a new continuation short signal. A new red circle must appear on the indicator and these circles should not be touching across the zero level while they were previously green
SSL Hybrid price action closes below the EMA and the line is red color then it has to create a pullback . The pullback is confirmed when the color changes from red to gray or from red to blue.
VSF Sellers strength above 50% at the time the MACD indicator issues a new short signal.
Stop Loss at EMA Line with TP Target 1.5x the risk
If you know of or have a strategy you want to see myth-busted or just have an idea for one, please feel free to message me.
Sine Wave TheoryThere are some ideas out there that the market is like a collection of quantum events and that it could all be broken down into sine waves. I created this script to put that to the test.
The idea is simple, I tested 3 different factors that could be put into sine wave form.
1.) Bar Change
2.) Volume Average Change
3.) Coin Flip
For the bar change, I simply allow the sine wave to move upwards or downwards if the bars have changed color in their sequence. For example, if there were 3 red bars and 1 green bar, it would not move the sine wave up or down until the green bar appeared.
For the average volume change, it was the same idea, except that the sine wave could only move up or down if the volume had moved up or below the average value of the length given for calculating the average volume.
Finally, the coin flip simply simulates flipping a coin, and allows the sine wave to move one direction or the other once it has a side that is different from the previous chosen side. For example, heads, heads, heads, tails (once it flipped to tails, this would allow it to move a direction).
The sine wave trading theory that I watched claimed that if you know the correct sine wave # (which is how large the peak is, and/or the sine wave count which is how many peaks and valleys occur) that you can successfully predict future trades. Their claims that the reason it does not look like a perfect sine wave for these events is because there is different amounts of trading going on, thus the timing will be slightly off.
I am posting this to disagree with their ideas. For example, if you select to turn on trading for coin flip and turn off bar change, you will see the coin flip did better on the default settings!
It just so happens that any setting will eventually be good, making all the sine wave variations just completely random if you win or not.
I posted this to demonstrate how silly trading sine waves is. The real trick is using cosine and tangent waves... lol j/k
I hope this helps someone avoid this scam concept.
volume rsi strategy by pro trader123this strategy includes volume and rsi and plots a buy signal when rsi is below 30 with high average volume and takes profit when the rsi 14 ema crosses rsi
Coral Trend Pullback Strategy (TradeIQ)Description:
Strategy is taken from the TradeIQ YouTube video called "I Finally Found 80% Win Rate Trading Strategy For Crypto".
Check out the full video for further details/clarification on strategy entry/exit conditions.
The default settings are exactly as TradeIQ described in his video.
However I found some better results by some tweaking settings, increasing R:R ratio and by turning off confirmation indicators.
This would suggest that perhaps the current confirmation indicators are not the best options. I'm happy to try add some other optional confirmation indicators if they look to be more effective.
Recommended timeframe: 1H
Strategy incorporates the following features:
Risk management:
Configurable X% loss per stop loss
Configurable R:R ratio
Trade entry:
Based on strategy conditions below
Trade exit:
Based on strategy conditions below
Backtesting:
Configurable backtesting range by date
Trade drawings:
Each entry condition indicator can be turned on and off
TP/SL boxes drawn for all trades. Can be turned on and off
Trade exit information labels. Can be turned on and off
NOTE: Trade drawings will only be applicable when using overlay strategies
Alerting:
Alerts on LONG and SHORT trade entries
Debugging:
Includes section with useful debugging techniques
Strategy conditions
Trade entry:
LONG
C1: Coral Trend is bullish
C2: At least 1 candle where low is above Coral Trend since last cross above Coral Trend
C3: Pullback happens and price closes below Coral Trend
C4: Coral Trend colour remains bullish for duration of pullback
C5: After valid pullback, price then closes above Coral Trend
C6: Optional confirmation indicators (choose either C6.1 or C6.2 or NONE):
C6.1: ADX and DI (Single indicator)
C6.1.1: Green line is above red line
C6.1.2: Blue line > 20
C6.1.3: Blue trending up over last 1 candle
C6.2: Absolute Strengeh Histogram + HawkEye Volume Indicator (Two indicators combined)
C6.2.1: Absolute Strengeh Histogram colour is blue
C6.2.2: HawkEye Volume Indicator colour is green
SHORT
C1: Coral Trend is bearish
C2: At least 1 candle where high is below Coral Trend since last cross below Coral Trend
C3: Pullback happens and price closes above Coral Trend
C4: Coral Trend colour remains bearish for duration of pullback
C5: After valid pullback, price then closes below Coral Trend
C6: Optional confirmation indicators (choose either C6.1 or C6.2 or NONE):
C6.1: ADX and DI (Single indicator)
C6.1.1: Red line is above green line
C6.1.2: Blue line > 20
C6.1.3: Blue trending up over last 1 candle
C6.2: Absolute Strengeh Histogram + HawkEye Volume Indicator (Two indicators combined)
C6.2.1: Absolute Strengeh Histogram colour is red
C6.2.2: HawkEye Volume Indicator colour is red
NOTE: All the optional confirmation indicators cannot be overlayed with Coral Trend so feel free to add each separately to the chart for visual purposes
Trade exit:
Stop Loss: Calculated by recent swing low over previous X candles (configurable with "Local High/Low Lookback")
Take Profit: Calculated from R:R multiplier * Stop Loss size
Credits
Strategy origin: TradeIQ's YouTube video called "I Finally Found 80% Win Rate Trading Strategy For Crypto"
It combines the following indicators for trade entry conditions:
Coral Trend Indicator by @LazyBear (Main indicator)
Absolute Strength Histogram | jh by @jiehonglim (Optional confirmation indicator)
Indicator: HawkEye Volume Indicator by @LazyBear (Optional confirmation indicator)
ADX and DI by @BeikabuOyaji (Optional confirmation indicator)
VWAP Push StrategyThis strategy is unfortunately not finished yet.
A pretty simple strategy. If price broke through VWAP and had three consecutive candles following the breakthroughs trend, the high of the third candle will be drawn. If this happened after a crossover of the vwap and price breaks through the high of the third candle, strategy will go long. Short will be the same after crossing under the vwap. A long or short will be closed after crossing the vwap in the opposite direction, so the vwap is kind of a trailing stop.
Unfortunately, I could not manage to stop the script from entering multiple times into one drawn high or low. Of course, if a high was crossed the script should wait for a new formed high before entering a new long. If someone would find a solution to this, it would be great, because I think it is a nice strategy .
Should work great scalping 5min charts (when scripting, I used the SPX for reference).
scalping with market facilitationThis strategy is for scalping low timeframes for 10 pips. I have yet to see a strategy with this unique combo of indicators.
First we have volume indicator market facilitation, where we are looking for volume and mfi to be up, then we want the adx 5 to be above level 30 and above its ema period 3, then if these conditions are good we take shorts when ema 8 is below ema 100 and longs when ema8 is above ema 100 with parabolic sar in its propet place, also to verify trend we have obv over or under its ema of 55 and macd line over its signal line.
I have heikenashi bars on with the regular priceline showing so j see actual price levels, when i get a buy signal i set a buystop above the high of that bar and have a stoploss of 7.5 pips and a take profit of 10 pips, reverse for sells, i have to use metatrader to trade so i use this as my signals to trade.
Note this is not advice trade at your own risk no guarantees in anything in life, but i wanted to share this for it is helping me with my trades to be more strict and semi mechanical. I use it for forex time frames 1 3 5 15 mjn
Strategy - Trend Chaser - PSeTrend Chaser for Philippine Stock Exchange - LONG ONLY
-Elvin Kennedy Latayan 2022
3LS | 3 Line Strike Strategy [Kintsugi Trading]What is the 3LS | 3 Line Strike Strategy?
Incorporating the 3 Line Strike candlestick pattern into our strategy was inspired by Arty at The Moving Average and the amazing traders at TheTrdFloor .
The Three Line Strike is a trend continuation candlestick pattern consisting of four candles. Depending on their heights and collocation, a bullish or a bearish trend continuation can be predicted.
In a symphony of trend analysis, price action, and volume we can find and place high-probability trades with the 3LS Strategy.
How to use it!
----- First, start by choosing a Stop-Loss Strategy, Stop PIP Size, and Risk/Reward Ratio -----
- Stop-Loss Strategy
Fixed PIP Size – This uses the top/bottom of the indicator candle and places a TP based on the chosen Risk:Reward ratio.
ATR Trail (No set Target Profit, only uses ATR Stop)
ATR Trail-Stop (Has set Target Profit, however, stop is based on ATR inputs)
**If you choose an ATR Stop-Loss Strategy - input the desired ATR period and Multiple you would like the stop to be calculated at**
**ATR Stop-Loss Strategies have a unique alert setup for Auto-Trading. See Auto-Trading Section**
- Risk/Reward Ratio = If you have a .5 risk/reward, it means you are risking $100 to make $50.
- Additional Stop PIP Size = Number of PIPs over the default stop location of the top or bottom of the indicator candle.
----- Next, we set the Session Filter -----
Set the Timezone and Trade Session you desire. If no specific session is desired, simply set the Trade Session to 00:00 - 00:00.
----- Next, we set the Moving Average Cloud Fill -----
Enter the Fast and Slow Moving Average Length used to calculate trend direction:
MA Period Fast
MA Period Slow
These inputs will determine whether the strategy looks for Long or Short positions.
----- Next, we set the VSA – Volume Spread Analysis Settings -----
Check the box to show the indicator at the bottom of the chart if desired.
This is just a different visual output of the VSA | Volume Spread Analysis indicator available for free under the community indicators tab. You can add that indicator to your chart and see the same output in candle format.
In combination with the Moving Average Cloud, the Volume Spread Analysis will help us determine when to take a trade and in what direction.
The strategy is essentially looking for small reversals going against the overall trend and placing a trade once that reversal ends and the price moves back in the direction of the overall trend.
The 3LS Strategy utilizes confirmation between trend, volume, and price action to place high probability trades.
The VSA is completely customizable by:
Moving Average Length
MA-1 Multiplier
MA-2 Multiplier
MA-3 Multiplier
Check out the VSA | Volume Spread Analysis indicator in the community scripts section under the indicators tab to use this awesome resource on other strategies.
----- Next, we have the option to view the automated KT Bull/Bear Signals -----
Check the boxes to show the buy-sell signal on the chart if desired.
----- Next, we set the risk we want to use if Auto Trading the strategy -----
I always suggest using no more than 1-3% of your total account balance per trade. Remember, if you have multiple strategies triggering per day with each using 1%, the total percent at risk will be much larger.
For Example – if you have 10 strategies each risking 1% your total risk is 10% of your account, not 1%! Be mindful to only use 1-3% of your total account balance across all strategies, not just each individual one.
----- Finally, we backtest our ideas -----
After using the 'Strategy Tester' tab on TradingView to thoroughly backtest your predictions you are ready to take it to the next level - Automated Trading!
This was my whole reason for creating the script. If you work a full-time job, live in a time zone that is hard to trade, or just don't have the patience, this will be a game-changer for you as it was for me.
Auto-Trading
When it comes to auto-trading this strategy I have included two options in the script that utilize the alert messages generated by TradingView.
*Note: Please trade on a demo account until you feel comfortable enough to use real money, and then please stick to 1%-2% of your total account value in risk per trade.*
AutoView
PineConnector
**ATR Auto-Trading Alert Setup**
How to create alerts on 3 Line Strike Strategy
For Trailing Stops:
1) Adjust autoview/pineconnector settings
2) Click "add alert"
3) Select "Condition" = Strategy Name
4) Select "Order Fills Only" from the drop-down
3) Remove template message text from "message" box and place the exact text. '{{strategy.order.alert_message}}'
4) Click "create"
For Fixed Pip Stop:
1) Adjust autoview/pineconnector settings
2) Click "add alert"
3) Select "Condition" = Strategy Name
4) Select "alert() function calls only"
5) I like to title my Alert Name the same thing I named it as an Indicator Template to keep track
Good luck with your trading!
I11L Long Put/Call Ratio InversionThe Strategy uses the Put/Call Options Ratio Inversaion as a Signal and Implements simple Money Management rules.
It is adjusted for the NDX and for the SPX in the 30min Range.
The Oscilation has to be finetuned to reflect the correct Reversal point.
A good indicator of the correct Reversal Point is a solid range of good backtesting results..
