Ichimoku EMA RSI - Crypto only long StrategyHey there!
Here I show you an Ichimoku Cloud Strategy.
I discovered the strategy on a YouTube channel and tried to transfer it as a strategy into a script.
He said in his video that you would make more profit with this strategy than holding the coin.
Tested with the crypto pair ETH/USDT in the four hour chart.
Period: beginning of 2017 until today.
The strategy should also work with foreign exchange. But then the settings have to be adjusted.
There is the possibility to activate two EMA's and a Stochastic RSI .
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How does the strategy work?
ENTRY
The green Ichimoku lead line must above the red Ichimoku lead line - only the two lead lines are activated.
A green candle must closed above the green lead line.
EXIT
A red candle must close below the green Ichimoku lead line.
OPTIONAL ENTRY
EMA
Once you activate the EMA , long positions will only be taken once the EMA1 is above the EMA2.
Thereby I could observe a significant increase of the profit as well as a decrease of the maximum drawdown.
RSI
As soon as you activate the Stochastic RSI , long positions are only taken when the K line is above the D line.
In the future, I may add an oversold - undersold parameter.
The results of the strategy are without commissions and levers.
If you have any questions or feedback, please let me know in the comments.
If you need more information about the strategy and want to know exactly how to apply it, check out my profile.
I wish you good luck with the strategy!
Moving Averages
HMA_ATR StrategyATR with HMA experimental minimalist bot for ETHBTC .
A strategy for use by Automated Algorithm systems.
Different from normal ATR as it uses HMA for smoothing.
Example settings result shown here on chart include commission 0.5%
MACD Trendprediction Strategy V1A trend following indicator based on the MACD and EMA. In this case, signals are not generated by crossing the signal lines as with the MACD, but as soon as the distance between the signal lines increases or decreases. A profit factor of 1.6-3.5 is achieved.
Ein Trendfolge-Indikator, auf der Basis des MACD und EMA. Dabei werden Signale nicht wie bei dem MACD per Kreuzung der Signallinien generiert, sondern sobald ein der Abstand der Signallinien zu oder abnimmt.
Combo Backtest 123 Reversal & Recursive Moving Trend Average This is combo strategies for get a cumulative signal.
First strategy
This System was created from the Book "How I Tripled My Money In The
Futures Market" by Ulf Jensen, Page 183. This is reverse type of strategies.
The strategy buys at market, if close price is higher than the previous close
during 2 days and the meaning of 9-days Stochastic Slow Oscillator is lower than 50.
The strategy sells at market, if close price is lower than the previous close price
during 2 days and the meaning of 9-days Stochastic Fast Oscillator is higher than 50.
Second strategy
Taken from an article "The Yen Recused" in the December 1998 issue of TASC,
written by Dennis Meyers. He describes the Recursive MA in mathematical terms
as "recursive polynomial fit, a technique that uses a small number of past values
of the estimated price and today's price to predict tomorrows price."
Red bars color - short position. Green is long.
WARNING:
- For purpose educate only
- This script to change bars colors.
EMA+RSI Pump & Drop Swing Sniper (SL+TP) - StrategyThis is the strategy version of the 'EMA-RSI-Pump-Drop-Swing-Sniper-With-Alerts':
Some additions with this strategy:
~Added Stop loss & Take profit control. In Settings > Inputs if the Stop Loss is at .051 that means it's 5.1% and the Take Profit at .096 is 9.6%. If you wish to remove the TP and SL just change the value to 1.00 and it would be the same as it being 100% TP and SL which is likely to never be hit.
~Added Backtesting by changing the month/date/year in Settings > Inputs
~Added a 2nd EMA line to assist with the long entry signals. I only use this for long entry & exits, though you could use the long exits as Short entries too. I just personally don't do short trading on Bitcoin.
This is using an EMA and RSI with slightly modified settings to give good entry and exit points while looking at Bitcoin. I use this on a 1-hour and 4-hour chart and with other indicators to find good positions to enter a trade or exit if things are turning red.
It's important to know this strategy was made as a request by another user that was using the indicator version. I don't use this as a trading strategy by itself, I use the visuals it gives as a confirmation with other indicators to find the best possible entry and exit positions.
If you click on the EMA line it will color the bars of the chart based on if they are above or below the EMA - This is just visually helpful for me to see the active trend.
Make sure you hover over or click on the EMA line to see the colors of the candles change - it's not visible by default or without doing this.
Tripple super Trend + EMA + RSI StrategyGreetings!
Here I show you the Tripple Super Trend Strategy.
I discovered the strategy on a YouTube channel and tried to transfer it as a strategy into a script.
Tested with the currency pair EUR/USD in the one hour chart.
Period: beginning of 2020 until today.
The strategy should also work with cryptocurrencies. But then the settings have to be adjusted.
There is the possibility to activate only long or only short position.
The EMA can be used in a time different from the chart.
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How does the strategy work?
For long positions, the candle must be above the EMA .
The candle must be closed above at least two of the supertrend lines.
The stochastic RSI must show oversold and the k line must cross over the D line.
For short positions, the candle must be below the EMA .
The candle must be closed below at least two of the supertrend lines.
The stochastic RSI must indicate overbought and the K line must cross below the D line.
The stop loss is determined with the "lowest low/highest high lookback".
The profit factor is multiplied by the value of the lowest low/highest high lookback.
The results of the strategy are without commissions and levers.
If you have any questions or feedback, please let me know in the comments.
In the future I will add other types of stop loss / take profits. (ATR; %; eg.)
If you need more information about the strategy and want to know exactly how to apply it, check out my profile.
I wish you good luck with the strategy!
[EURUSD60] BB Expansion StrategyOverview
This is a strategy that can be used in the EURUSD 60 time frame.
It is a trend-following method that uses Bollinger Bands Expansions.
The idea of using Bollinger Bands expansion is well known to the general public, but I don’t know any strategy that this idea has been PINE coded.
The three main components of this strategy are as follows.
・Long term BB and Short term BB : When the short term BB expands more than the long term BB, it suggests the occurrence of a trend.
・14EMA of 240 t/f : The direction of 14EMA of the upper time frame is used as the trend direction.
・ATR lines : As a stop-loss line and a take-profit line.
Description
Fig. Long entry pattern
Fig. Short entry pattern
・Description of lines
Gray : Large BB (=Long term BB)
White : Small BB (=Short term BB)
Blue or Red line : Upper t/f EMA(default: 14EMA), blue is up-trend, red is down-trend
Yellow : Stop loss line by ATR(the term is 14)
Purple : Take profit line by ATR(the term is 14)
・Description of strategy
First of all, when the small BB expands more than the large BB, this strategy detects the occurrence of a trend.
Second, When the price crosses over or crosses under small BB basis, this strategy entries long or short to trend direction (by upper time frame 14EMA).
The default stop-loss range is three times ATR value, and the default take-profit target is 1.5 times the stop-loss range (=risk reward ratio is 1.5).
Atrend by OTSAtrend is a indiactor used to identify long and short term trends it uses MACD, RSI, ATR, and a DEMA along with some pieces from supertrend, the indicator works good on 1-4 hour time frame
Moving Average - IntradayMoving Average Intraday Strategy
Basic moving average strategy purpose built for intraday trading. It uses two simple moving averages & takes a positions on crossover.
Position is reversed when signal changes by using double quantity. Once the intraday session is over & if the position is open; it is squared off.
Users can define intraday session during which the strategy will run.
Parameters:
Intraday Session - Defines the duration for which the strategy should execute.
Short Term Moving Average Period
Long Term Moving Average Period
MACD/RVSI/Stoch/RSI/EXP(Drawdown)I have been trying for several months to get a script to work on the 1min and this one gives some good backtest results. This script will also work on higher timeframes however, I've not extensively tested on higher timeframes. My aim was to get results on about 20 crypto coins then run the 1min bots in parallel looking for small frequent profits across all the coins. If you would like me to try and fit backtest results to any coin or pair on any timeframe please do get in touch anytime.
It's based on several indicators which are combined and then a newish way for the stop loss to implement based on an exponential rising which limits the time in each trade unless the price moves in the direction of the trade. The other useful feature is drawdown minimization which previously made all of my 1minute bot attempts non-practical due to differences between backtesting and actually running the bot(s) live.
Its possible at the top to paste in strategy comments which can be used through web-hooks for auto trading bots. Leaving these blank just defaults to the pre-programmed comments that provide some indication of why a trade was exited.
It is possible to select for Short and/or Long trades. Note however, that there are exponential markers on the charts for both long and short trades in any setting. I found that this way the bot worked well with regards to timing.
The next part of the user interface settings gets a bit tricky so try and use the sample parameters provided below. For example, select a crypto coin then try some of the options below until a reasonable backtest result in obtained (or select the best from the parameter groups tested) then move down the settings interface to optimise with the remaining settings.
So 'Use MACD/RVSI', 'RSI clause' and 'Use Stochastic' are set to true for the below sample settings (1min timeframe).
MACD/RVSI Confluence Resolution (1min, 2min, 5min, 10min, 1hour)
Timeframe RSI (1min, 2min, 3min, 15min, 1hour)
FastStoch, SlowStoch (1min, 45min: 5min, 30min: 1min, 1hour: 5min, 1hour)
Eg. for FTX:ETHPERP (MACD/RVSI Confluence Resolution=1hour, Timeframe RSI= 1min, FastStoch = 1min, SlowStoch = 45min)
Setting the timings is tricky - there is a lot going on. Have a look at the chart and select/deselect the options. The MACD/RVSI Confluence Resolution shows red and green vertical regions on the chart background. The Timeframe RSI colors the candle bodies red and green. These go green if the RSI crossed over 31% or red in the RSI crossed under 69%. The MACD/RVSI Confluence Resolution is explained in more detail in one of my other scripts. Then the Slow Stoch colors above and below the price action with red or green lines depending if on an uptrend or downtrend (approximately). Where there is also an up/down trend on the faster timeframe stoch there are vertical shaded fill regions between the slow stop above/below lines.
With all the above conditions selected to represent the data (looking at strategy backtest results whilst adjusting) there is a reasonable approximation to a credible trade.
So once an ok backtest result is obtained by selecting timing settings. Its ontot the Stop Ramp Settings. This is an exponential line which rises rapidly after a period of time thus exiting the trade or going upwards with the trade. It kind of limits the maximum time a trade will stay in position which forms part of the timing aspect of this bot. Look at the chart exponential red lines and adjust the settings, along with the backtest results to select a good timing.
Then its the Drawdown Catcher and the Take Profit Setting. Start with the drawdown catcher disabled i.e. set to zero. Put in a conservative Take Profit, for example if a Take Profit at 6% gives the best backtest results, go for 4% to account for differences between backtest results and actual live bot performance.
Then start to increase the Drawdown Catcher. This shades a lime region where the bot will not enter a trade. I found that with most trades using this bot, if the price action moved in the direction of the trade (long or short) at the onset - this gave most of the good results (high probability of positive trade). Also if a trade entered at the start price and when south, the accumilated drawdown from these failing trades made all previous 1min bot attempt non=profitable in practice (even with good backtest results). The exp timing and also this drawdown reduction strategies seem to be the thing which makes this approach credible.
Try to go for settings that give a very high change of positive trade. For example, an 85% profitable trades will probably provide say 55% positive trades in practice as its always highly possible to just fit the parameters to the exact position/trade timings - and in reality going forwards these don't play out the same. Also a Profit Factor of 2 is about the minimum I would accept - again this provides for example a Profit Factor of 1.2 in practive.
However all being said - I think its possible with this bot on the 1min across lots of coins - with regularly updating settings - to make profits. (Not financial advice)
Please do get in touch if you would like me to fit this bot to anytimeframe to any trade.
MoonFlag PhD
[Sidders] LTFDIV - Strategy version (beta)Strategy version of my previously released LTF divergence scalper. Currently being beta tested prior to full release as a premium indicator.
Description of the indicator: The indicator uses several trades of divergences and overbought/oversold levels (which can be defined) of several indicators on the 1 minute timeframe. Long signals are only given if the overall trend is bullish (determined by either moving averages or the Ichimoku system). Short signals are only given if the overall trend is bearish (determined yet again by either the moving averages or the Ichimoku system).
The strategy contains several additional filters that can be applied to sharpen the strategy and improve overall winrate and profitability. Additionally it contains a multitude of different ways of setting your stoplosses and setting your profit targets. I've also included many other customization options, such as time zones, trading periods and even the possibility to base the entire strategy on Ichimoku (either classic or crypto settings) instead of moving averages. The sky is the limit with regards to customization.
Lastly, but still a major feature: I've included a way to automate the strategy through the use of 3Comma bots. This takes away the need to sit behind your pc and trade the strategy yourself and automates everything after you've set it up properly.
Access to the strategy is currently limited. A full release will follow in the coming week. If you're interested, send me a message and I can more details (e.g. pricing). Cheers!
Coinbase to Binance premium indicator/strategy
1) Offers bar/ma chart of premium
2) Offers different trading strats based on premium(ma cross, premium value cross, smoothed premium value cross)
supersmoother code credited to someone else from tradingview
Simple MACD strategy Simple macd strategy
Rules:
if MACD bullish crosses below 0 and above 200 EMA a buy signal is created
if MACD bearish crosses above 0 and below 200 EMA a sell signal is created
best settings for winrate and profit :
1. is taking 1:1 trades so with a tp of 2% and sl of 2% winrate is around 62%
Yusram Mount MaV - Day MaV CrossOver Strgty
This indicator shows the comparison between the 7-day fast simple average and the monthly slow average of 5 bars. The red line indicates the monthly green and blue lines the daily average. If the Green-Blue line crosses the red upwards, it is a buy signal and the opposite is a sell signal. As soon as it turns green blue without waiting for the sell signal, a sell signal is created. If you are trading fast, you can consider turning green to blue as an opportunity. In the long run, the red intersection can be interpreted as a Stop point.
I hope it will be useful to everyone.
You can also find the strategy indicator with the same name.
I got the name of this indicator from my daughter's name. The meaning of the name Yüsra means "convenience". I hope this indicator will help you.Yüsram Mount HO - Day HO
Khair - Day Trade StrategyBollinger band breakout with non-standard deviation along with profit targets
Best used when applied for intraday trading. Users can customize length and deviation and test what works best for them.
Trade both long and shorts, the user also has the option to limit to long-only or both.
This strategy only works intraday interval, so it means when you try to apply it to day/week/month it won't apply.
Technicals Rating Strategy v420Ichimoku, HMA, RSI, Stoch, CCI, MACD, Technicals Rating Strategy is a trading Bot that looks at these chosen indicators and assigns a value to each, then calculates the result of adding each indicators result value to a overall rating, which is then compared to a user set level. Here seen on Bitcoin, it has the broker fee included in the testing result. If you choose to use it on Forex etc, perhaps remove the broker fee which is unrealistic for FX trading.
It has a Win/Loss ratio of only 40% wins, but it catches the big moves and thats the main thing, so if ELON MUSK had of used this strategy instead of BUY and HOLD, he could of made 700% instead of 7% (as is, may, 2021)
Mainly intended for use as Automated TRADE BOT.
(imagine if Elon Musk did use this bot with his 1.3 billion $ worth of BTC, the drawdown would be like, half a billion or something haha (p.s.- use smaller lotsize % to get smaller drawdown, but then smaller profit....) )
For use with any pair and timeframe. In fact there is a timeframe setting to set the strategy to look at alternative timeframe from chart, but as default will just be set to charts timeframe.
Better BollingersThe Bollinger Band strategy is a powerful and effective tool for automated trading in high volatility markets. The trouble is that, by itself, it is not very profitable. We need a way to know if the volatility we're seeing is part of a larger trend in the direction we want to trade in. Doing this, we can avoid entering long trades during a macro downtrending market meaning we can use tighter stop losses and open trades with more confidence than if we didn't have an idea of the larger market trend.
This script is ideal for, and geared towards, users of the 3commas automated trading platform. It behaves similarly to the familiar TA Presets BB-20- family of strategies but includes other indicators to help weed out some of the noise in a highly volatile market. Additionally, users who are not on Binance.com, but using 3commas for trading, now have access to signals comparable to those provided by the builtin signals for Binance.com.
Fibonacci EMA averages (21, 34, 55, 89, 144)Just a simple script that plots the following EMA averages that are based on the fibonacci sequence: 21, 34, 55, 89, 144
Crypto momentum strategyThis strategy is based on LazyBear's Squeeze Momentum indicator. It analyzes when the trend in the momentum is shifting, locating the peaks and the valleys, and takes those as sell and buy signals respectively. This is a long strategy, so it also takes into consideration the 50 period Exponential Moving Average to identify upward trends. If the closing price of the candle is above the 50EMA, and the slope of the 50EMA is trending upwards, then the buy signal is executed. If these conditions are not met, the buy signal is ignored.
This strategy works well with crypto trading on the day/week charts.
It has a profit ratio of 4:1 on average, and roughly half of the trades are profitable.
Qullamaggie BreakoutThe intent of this strategy is to buy breakouts with a tight stop on smaller timeframes in the direction of the longer term trend. Default longer term trend is the daily, but the user can choose any timeframe to use for the SMAs (which act as filters and trailing stops).
Exit the trade using a trailing stop of a close below either the 10 MA or 20 MA (user choice) on that larger timeframe as the position moves in your favor (i.e. whenever position price rises above the MA). This is one area where this script could use a little work or some human intervention - when the trade is entered right in the vicinity of the moving averages, you get some whipsaw. Not sure how to avoid that at this point though if you want to look at those longer term moving averages as your exit criteria.
Option of using daily ATR as a measure of finding contracting ranges and ensuring a decent risk/reward. (If the difference between the breakout point and your stop level is below a certain % of ATR, it could possibly find those consolidating periods.)
EMA_cumulativeVolume_crossover[Strategy V2]This is variation of EMA_cumulativeVolume_crossover strategy.
instead of cumulative volume crossover, I have added the EMA to cumulative volume of same EMA length.
when EMA crossover EMACumulativeVolume , BUY
when already in LONG position and price crossing over EMACumulativeVolume*2 (orange line in the chart) , Add more
Partial Exit , when RSI 5 crossdown 90
Close All when EMA cross down EMACumulativeVolume
Note
Black Line on the chart is the historical value of EMACumulativeVolume . when EMA area is green and price touch this line closes above it , you can consider consider BUY
I have tested it on SPY , QQQ and UDOW on hourly chart.
EMA setting 25 is working for all of these.
but SPY produces better results on EMA 35 setting
warning
This strategy is published educational purposes only.
SignalCAVE Strategy BuilderYou can create strategies without writing single line of Pine Script code!
Do backtesting, set alerts and explore algorithmic trading with using SignalCAVE Strategy Builder on TradingView.
SignalCAVE Strategy Builder for TradingView
SignalCAVE is a tool that help you to create strategies in TradingView. SignalCAVE offers flexible strategy builder panel enabling users to backtest and set alerts with custom conditions (selected indicators and parameters).
CAPABILITIES
You can define rules and conditions for “Long” and “Short” signals.
“Stop Loss” or “Take Profit” functions can be activated with providing percentage values.
“Only Long”, “Only Short” or both “Long and Short” signals can be used at the same time.
Available Indicators
EMA, SMA, WMA, HMA, RSI, MACD, Stochastic, Bollinger Bands, SuperTrend, Parabolic SAR, DMI, ATR, CCI, CMF, ROC, Ichimoku, OHLC Prices
How to Set Strategy Rules?
On SignalCAVE strategy settings screen, there are four types of input groups. You can populate these input boxes based on your strategy.
A: First indicator’s parameter and index value selection area
First Input: First indicator selection.
Second Input: First indicator’s parameter selection. If you want to use default parameters, select “Default Parameters”. If you want to use custom parameters, select “Custom Parameters”. If your selection was custom, then you need to fill “P:A” input boxes to assign your custom parameter.
Third Input: First indicator’s index selection. Default parameter is “0”, If you want to get previous value of indicator/price, you can type positive numbers.
?: Condition and Interval selection area.
You can select “Upper (>), Lower (<), Upper or Equal (>=), Lower or Equal (<=), CrossOver (⬆), CrossUnder (⬇)” conditions and time frame interval for calculation both first (A:) and second (B:) indicator.
B: Second indicator’s parameter and index value selection area
First Input: Second indicator selection.
Second Input: Second indicator’s parameter selection. You may use either default parameters, or custom parameters. If your selection was custom, then you need to fill “P:B” input boxes to assign your custom parameter.
Third Input: Second indicator’s index selection. Default parameter is “0”, If you want to get previous values of indicator/price, you can type positive numbers.
P:A First indicator’s custom parameter settings. If selected indicator has less then four parameters, you can fill unnecessary fields with “0” value.
P:B Second indicator’s custom parameter settings. If selected indicator has less then four parameters, you can fill unnecessary fields with “0” value.
DASHBOARD
After you build the strategy with SignalCAVE, you can see rules and conditions on dashboard with chart view screen.
Hint: By adding multiple times of SignalCAVE strategy on your chart screen, you can build more then one strategy.
STRATEGY TESTER / BACKTEST RESULTS
You can see strategy backtest results from “Strategy Tester” panel.
By changing parameters or strategy rules (strategy optimization), you may get better results. These results does not guarantee a success for future trades.
ALERT SETTINGS
If you want to get notify about your strategy outputs (Long Entry, Long Exit, Short Entry, Short Exit, Stop, Take Profit) you can set an “Alert”.
You can click “Alert” button to create a new alert. Make sure on “Conditions” selection must be “SignalCAVE” strategy.
Paste to “Message” field exactly the text below.
{{strategy.order.alert_message}}
Hint: By setting a single alarm, you can get notifications for all outputs.
Do your alerts modifies when you change the strategy conditions or parameters?
While the strategy got updated, its alerts still use the strategy’s state from the time when we made the alert (TradingView Wiki, 2018b).
This has the advantage that, once we made a script alert, we can change the script’s input options, change chart settings, or remove the script from to the chart. All of that won’t affect our existing alert. That gives a lot of flexibility to keep interacting with the chart and script.
But there’s also a disadvantage: if we do want our script’s alerts to change, we first need to remove the existing alerts. Then we have to create and configure new alerts based on the indicator’s updated code or settings.
MA Cross + Strategy by RealmixTwo Moving Average with crossmarker and strategy when both indicators are crossing for a possible position
FCMS - Time in x Timing - The Market - StudyTime in x Timing - The Market
█ DISCLAIMER
THIS IS NOT AN INVESTMENT ADVICE
The use of strategy functions doesn't compile recurring investments/contributions as used in this study, so disregard the results of the strategy tester.
As seen in the style/plots lists, I calculate the results in internal variables to analyze historical results.
prnt.sc
Anyway, this is only a historical study and past performance is no guarantee of future results
█ CONCEPTS
There is a discussion about Timing x Time in the market.
The point of this discussion is between buying in the better moment, against exposing yourself to the market as soon as possible.
Anyone who argues that the most important factor is the time exposed to the asset, no matter when, is usually based on the SP500 asset.
As shown in the image above, a hypothetical investor who made a single investment of US $ 1500.00 in December 1999, was trapped by a volatility of approximately 10% in the period, followed by a loss of around 50% in the following years. In December 2012, this investment was finally positive, and after 20 years it accumulated a gain of 180% - without reducing inflation in the period.
█ Timing the news
When an asset reaches a new historic high, the idea of "time in the market is the best strategy" gains momentum, after all, at this "moment" everyone previously exposed to the asset is making a profit, regardless of inflation or any benchmark.
█ Time in the market
Considering using this strategy, we can define 3 points for a brief analysis:
1. Asset
SPX is used as a reference for this type of statement due to the difficulty of finding another one with such consistency, liquidity, ease of access and time of history.
2. Long Term
We cannot consider it a long term strategy, as it never has a predetermined term
3. Recurring contributions.
To generate an average cost spread over periods of high and low, opening the possibility to realize positions with profit in eventual needs.
As shown in the image below, if this hypothetical investor made monthly contributions since the date of the first contributions, he would have the possibility of making profits between the period from October 2004 to September 2008, returning to the loss until October 2010, and then with a profit of 100% over the total amount invested.
Below, an example of an asset in a downtrend with the final balance returning below the total volume invested.
█ First Conclusion
> Recurring contributions (3) to an asset (1) during a downtrend will increase the loss for an indefinite period (2).
> Recurring contributions (3) to an asset (1) during an uptrend are more important than immediate exposure to the asset, regardless of the term (2).
> Recurring contributions (3) in an asset (1) in a region of possible long-term top (2), will negatively affect profitability even considering the resumption of the upward trend in an indefinite period.
█ Timing the market
As shown in the image below, following the strategy above: a single contribution in the amount of US$ 1000.00 at the worst moment (Dec / 2017), the hypothetical investor would have hold a loss of over 80%. At the moment it accumulates 89% of profit, having reached the maximum of 200% at the beginning of the year.
By making monthly contributions since the date of the first contribution, this investor would have the possibility to make profits from May 2019, accumulating 335% profit at the moment.
Adding the condition of buying the maximum cost of 10% above the average price of the last 200 days, the final result is little affected, and reduces losses in the initial investment period.
Adding the condition of taking profit of 50% of the position when the price is above the average of the last 200 days, and reinvesting 50% of the cash obtained in the next purchase opportunity (paying a maximum of 10% above the average of the last 200 days), the profit cumulative final price drops to 270%, but the realized profit already exceeds the total amount invested, which eliminates future risk of the operation. (favorable risk-return ratio)
Adding the condition to reinvest 50% of the cash flow, with the condition to buy when the price is below 20% away from the average of the last 200 days, the final result would be more than 400% of retained earnings, and realized profit in cash greater than the total amount invested.
█ Other Assets
It's possible to analyze other assets, including dividend yield and earnings for the equity formula. This way we can analyse assets more fairly.
ITSA4
BOVA11
█ Final Conclusion
> Exposing yourself early to a good opportunity may be good, but the risk of doing so at the wrong time could delay your projects indefinitely.
> Investment recurrence is the main driver for your future results.
> Setting a maximum value for making entries reduces short-term fluctuation but, in the long run, the effect is almost imperceptible.
> The realization of profits at favorable times considerably reduces the risk and volatility of the balance, in addition to providing cash for better opportunities in the short and medium term.
> Taking advantage of part of this cash flow for purchases in moments of opportunity, enhances future earnings.
Even an extremely simple strategy like the one used in the examples above, offers a better risk return for the investor compared to the immediate exposure to an asset.
Thus arises the desire to study more sophisticated strategies, as we will see in the future
█ Challenges
Time in the market
- Find good assets (1) to make recurring contributions (3) for an indeterminate period (2).
Timing the market
- Reading the markets to position yourself in favor of the more probable trends at certain times with predetermined terms.
