This is a first attempt to automate what my current strategy when trading is. It uses 2 timeframes: the one you are currently using to see the chart and an "anchor trend" which is a higher order frame. Supported timeframes are: 1m, 5m, 15m, 30m, 1H, 4H, 1D, 1W
The Strategy relies on two indicators:
Squeeze Momentum Indicator [LazyBear]
CMF
How does it works? It looks for a moment when the following conditions are met. For Long:
Positive directionality in SQZM monitor in anchor timeframe
Positive directionality in SQZM monitor in current timeframe
Recent minimum in CMF
For Short:
Negative directionality in SQZM monitor in anchor timeframe
Negative directionality in SQZM monitor in current timeframe
Recent maximum in CMF
After a BUY or SELL order is executed the plot will start showing two lines: A TP line, and a SL line. The TP and SL move dynamically based on a greedy algorithm based on 3 input parameters.
Min Profit to Start Moving SL (%): Sets an initial target for the trade.
Maximum Possible of SL (%): This is the maximum amount possible for SL. If volatility is not too high, a shorter SL will be chosen based on Kaufman's Stops method
Take profit factor: Is how much portion of the target I am taking as profit once the target is reached
Example for 5% Min profit: When the first target is reached (+5%), the SL will be updated to 2.5% over the enter price. When the second target is reached (+10%), the SL will be updated to 5% over the enter price. Note: The strategy might abandon the position prematurely if a contrary signal is received while the trade is opened, and will change direction.
The Strategy has been backtested mostly for crypto. It might be good for stocks too, but the parameters mentioned might need some adjustments since price moves at a different rate. Recommended timeframe is 4H for BTC , and 30min/1H for alts.
Comments and ideas are more than welcome!
เอกสารเผยแพร่
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Fixed repainting issues and added some parameters improvements
I tried, looks good backward but seems like a repainting issue with it if I'm not wrong.
sabertoothtiger
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Live tested briefly on 1min so maybe 1min is more prone to repainting.. have you experienced it yourself?
SayMyNameWW
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@sabertoothtiger, It does have a repainting issue. I think it is related to the look ahead on the anchor trend. I will try to get that one fixed soon. Nevertheless, I do not recommend using this strategy in such small timeframes.
30m or more is what best works IMHO. I guess it could be adapted to smaller timeframes by changing TP and SL parameters, but I haven't been back testing that option yet
sabertoothtiger
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@SayMyNameWW, yeah good point! I like to test on small tf just to get the alerts configured correctly but yeah will give it a shot at a larger tf properly
SayMyNameWW
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@sabertoothtiger, would you mind giving it another try? I have been doing a few changes that should avoid the repainting issues.
ostavme
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@SayMyNameWW, I checked on the 1m timeframe, a big problem repainting with it. In general, the strategy is very good, it would be cool to solve the problem with the repainting. Thank you for your work, if you make changes, I'm ready to test it!))
sabertoothtiger
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@SayMyNameWW, yeah seems to repaint still. Have you been running it yourself and what timeframe?