Momentum Edge Strategy - 1D BTC OptimizedMomentum Edge Strategy - 1D BTC Optimized
Description
The Momentum Edge Strategy - 1D BTC Optimized is a trend-following and momentum-based trading strategy specifically designed and optimized for Bitcoin (BTC) on the Daily (1D) timeframe. This strategy leverages a confluence of proven technical indicators, including the Ichimoku Cloud, MACD Histogram, and Bollinger Band Width, to identify high-probability trading opportunities in trending markets.
By incorporating multi-timeframe analysis (Weekly trend confirmation) and adaptive risk management using ATR-based stop-loss levels, this strategy ensures robust performance with minimal drawdowns. It is ideal for swing traders looking to capture significant price movements while maintaining strong capital preservation.
Key Features
Trend Detection with Ichimoku Cloud:
Determines whether the market is trending bullish or bearish by analyzing price action relative to the Ichimoku Cloud.
Momentum Confirmation with MACD Histogram:
Confirms trade entries by analyzing bullish or bearish momentum using the MACD histogram.
Volatility Filtering with Bollinger Band Width:
Ensures trades are only executed in sufficiently volatile markets, reducing false signals in low-volatility conditions.
Multi-Timeframe Trend Confirmation:
Aligns entries on the Daily (1D) chart with the broader Weekly (1W) trend for enhanced signal reliability.
Dynamic Risk Management:
Uses ATR-based stop-loss levels that adapt to market volatility, ensuring tight risk control while allowing trades to breathe.
Strong Backtesting Results:
Optimized for Bitcoin on the Daily timeframe, achieving:
Net Profit: +10.80%.
Profit Factor: 2.593.
Percent Profitable: 50.70%.
Max Drawdown: -1.47%.
How It Works
Long Entry Conditions:
Price is above the Ichimoku Cloud.
MACD histogram is greater than -0.05.
Weekly trend confirmation (price above 50-period SMA on Weekly chart).
Bollinger Band Width exceeds the threshold (> 0.02).
Short Entry Conditions:
Price is below the Ichimoku Cloud.
MACD histogram is less than 0.
Weekly trend confirmation indicates bearish conditions (price below 50-period SMA on Weekly chart).
Bollinger Band Width exceeds the threshold (> 0.02).
Stop-Loss Logic:
Stop-loss levels are dynamically adjusted based on ATR and Bollinger Band Width:
In low-volatility conditions, stop-loss is set at recent highs/lows.
In high-volatility conditions, stop-loss is set using ATR multipliers.
Recommended Timeframe and Asset
Optimized for Bitcoin (BTC) on the Daily (1D) timeframe.
While designed for BTC, it may also perform well on other cryptocurrencies with similar trend-driven characteristics after proper backtesting and optimization.
Disclaimers
Not Financial Advice:
This script is provided for educational purposes only and should not be considered financial or investment advice. Always consult a qualified financial advisor before making trading decisions.
Use at Your Own Risk:
Trading involves significant risk, including the potential loss of all invested capital. Past performance is not indicative of future results.
Backtesting Limitations:
Backtesting results are based on historical data and do not account for slippage, spreads, or execution delays in live trading environments.
Timeframe-Specific Optimization:
This strategy has been specifically optimized for Bitcoin on the Daily timeframe. Performance may vary significantly on other assets or timeframes.
User Responsibility:
Users are encouraged to backtest and optimize this strategy for their specific use case before deploying it in live trading.
Users can adjust key parameters such as:
1. ATR Length (`atrLength`) and Multiplier (`atrMultiplier`) to fine-tune risk management.
2. Bollinger Band Width Threshold (`bbWidthThreshold`) to adapt volatility filtering to different assets or market conditions.
Final Thoughts
The Momentum Edge Strategy - 1D BTC Optimized has demonstrated elite-level performance metrics during backtesting on Bitcoin on the 1D timeframe. But backtesting doesn't tell the future, so study how it works, use at your own risk and enjoyment, and let me know any recommendations.
1daychart
Gann Swing Strategy [1 Bar - Multi Layer]Use this Strategy to Fine-tune inputs for your Gann swing strategy.
Strategy allows you to fine-tune the indicator for 1 TimeFrame at a time; cross Timeframe Input fine-tuning is done manually after exporting the chart data.
MEANINGFUL DESCRIPTION:
The Gann Swing Chart using the One-Bar type, also known as the Minor Trend Chart, is designed to follow single-bar movements in the market. It helps identify trends by tracking price movements. When the market makes a higher high than the previous bar from a low price, the One-Bar trend line moves up, indicating a new high and establishing the previous low as a One-Bar bottom. Conversely, when the market makes a lower low than the previous bar from a high price, the One-Bar swing line moves down, marking a new low and setting the previous high as a One-Bar top. The crossing of these swing tops and bottoms indicates a change in trend direction.
HOW TO USE THE INDICATOR / Gann-swing Strategy:
The indicator shows 1, 2, and 3-bar swings. The strategy triggers a buy when the price crosses the previously determined high.
HOW TO USE THE STRATEGY:
Strategy to Fine-Tune Inputs for Your Gann Swing Strategy
This strategy allows for the fine-tuning of indicators for one timeframe at a time. Cross-timeframe input fine-tuning is done manually after exporting the chart data.
Meaningful Description:
The Gann Swing Chart using the One-Bar type, also known as the Minor Trend Chart, is designed to follow single-bar movements in the market. It helps identify trends by tracking price movements. When the market makes a higher high than the previous bar from a low price, the One-Bar trend line moves up, indicating a new high and establishing the previous low as a One-Bar bottom. Conversely, when the market makes a lower low than the previous bar from a high price, the One-Bar swing line moves down, marking a new low and setting the previous high as a One-Bar top. The crossing of these swing tops and bottoms indicates a change in trend direction.
How to Use the Indicator / Gann-Swing Strategy:
The indicator shows 1, 2, and 3-bar swings. The strategy triggers a buy when the price crosses the previously determined high.
How to Use the Strategy:
The strategy initiates a buy if the price breaks 1, 2, or 3-bar highs, or any combination thereof. Use the inputs to determine which highs or lows need to be crossed for the strategy to go long or short.
ORIGINALITY & USEFULNESS:
The One-Bar Swing Chart stands out for its simplicity and effectiveness in capturing minor market trends. Developed by meomeo105, this Gann high and low algorithm forms the basis of the strategy. I used my approach to creating strategy out of Gann swing indicator.
DETAILED DESCRIPTION:
What is a Swing Chart?
Swing charts help traders visualize price movements and identify trends by focusing on price highs and lows. They are instrumental in spotting trend reversals and continuations.
What is the One-Bar Swing Chart?
The One-Bar Swing Chart, also known as the Minor Trend Chart, follows single-bar price movements. It plots upward swings from a low price when a higher high is made, and downward swings from a high price when a lower low is made.
Key Features:
Trend Identification : Highlights minor trends by plotting swing highs and lows based on one-bar movements.
Simple Interpretation : Crossing a swing top indicates an uptrend, while crossing a swing bottom signals a downtrend.
Customizable Periods : Users can adjust the period to fine-tune the sensitivity of the swing chart to market movements.
Practical Application:
Bullish Trend : When the One-Bar Swing line moves above a previous swing top, it indicates a bullish trend.
Bearish Trend : When the One-Bar Swing line moves below a previous swing bottom, it signals a bearish trend.
Trend Reversal : Watch for crossings of swing tops and bottoms to detect potential trend reversals.
The One-Bar Swing Chart is a powerful tool for traders looking to capture and understand market trends. By following the simple rules of swing highs and lows, it provides clear and actionable insights into market direction.
Why the Strategy Uses 100% Allocation of a Portfolio:
This strategy allocates 100% of the portfolio to trading this specific pair, which does not mean 100% of all capital but 100% of the allocated trading capital for this pair. The strategy is swing-based and does not use take profit (TP) or stop losses.
