Hi everyone!
In this post I would like to present my personal indicator for short-term strategies on cryptocurrencies called iCryptoScalper, but let me first introduce myself:
I am a theoretical physicist with a deep passion for trading and mathematical modelling of the financial markets.
I started trading cryptocurrencies more than 4 years ago and, throughout this period, I got more and more involved in trying to describe the mechanisms governing
the price action at lower timeframes like 1, 5 and 15 minutes.
As a beginner, I started with the usual "buy and hold" strategy, the safest but also boring option. Afterthat, I tried to get more involved on speed trading
and scalping and, as it happens to all the beginners, I went through many mistakes.
At the beginning, trying to find the best scalping strategy, was a very difficult task and I barely managed to perform well, mostly because every trade were overwhelmed
by my emotional approach and the fear of missing the right entry point and/or exit point. However, thanks to these difficulties, I understood that I needed
an algorithmic procedure to improve my performances and overtake the emotional approach, with a more technical approach: a mathematical guide that precisely tells me how to behave in the best way possible to be profitable.
To achieve this goal, I put all my efforts in trying to write a consistent mathematical model able to give me all the statistical informations I needed to reach
the best performances and, of course, the best possible profits.
The iCryptoScalper is an explicit mathematical tool to be used for scalping strategies and optimized for different cryptocurrency pairs on 15/30 min timeframes.
The script gives you many useful informations and details regarding the current and subsequent trade, accompanied with a detailed overview on both the last 20 short
and long trade results.
Let us have a look to all the detailed informations the script shows to you:
CHART
- Lines: The script plots for you the Entry price (yellow line), the Stop Loss price (red line) and a series of 8 Take Profit levels (green lines).
- Background: The green background color indicates that the script is in a long position, viceversa, the red background color indicates that the script is in a short position.
- Labels: The blue labels indicate the maximum achieved profit for each trade.
- Alerts: The script shows two types of alerts, the "prepare to #" one and the true entry one. The prepare alert is very useful to understand when the strategy is going
to enter a specific trade, thus giving you the possibility to set up all the necessary Entry/SL/TP levels on your favorite trading platform.
- Crosses: The green and red crosses are precisely located at the corresponding long and short entry price for the next trade, thus giving you a preview on the target price
that has to be reached for the indicator to enter. They are computed thanks to a mathematical model I set up and optimized for each cryptocurrency pair.
PANEL
- Overview: This part shows you two probability tables for the last 20 long and short trades each. The first table indicates the set of probabilities of reaching the corresponding TP level, whereas the second table shows the conditional probability, namely the probability of reaching a certain profit level once the previous one has been achieved.
Below the tables you can find three quantities again referring to the last 20 long and short trades: the Average Maximum Profit, the Average Maximum Drawdown and the Average Risk/Reward Ratio.
Last but not least, the correlation between the current asset and BTC is displayed together with the current BTC status.
- Active Trade: This part collects all the data related to the current trade status.
- Next Trade: This part collects all the data related to the next trade status.
ATTENTION!
Please notice that the equity line you see in the "Strategy Tester" section of TradingView is unreliable compared to the real performances of the script. This is due to the
fact that the TradingView engine is designed for backtesting automatic trading strategies and not real-time trading bots.
An example is the following: Bob buys 1 BTC-PERP contract at 10000$, setting the Stop Loss at 9000$. The price of the perpetual then goes to 12000$ and then go back hitting the Stop Loss. For the TradingView Engine this is a
trade with a permanent loss of 1000$. However, for the iCryptoScalper users, the trade is perfectly fine thanks to the numerous TP levels (and corresponding probabilities) given by the script within the trade window.