OPEN-SOURCE SCRIPT
Combined Strategy (Modernized)
Stop-Loss and Take-Profit:
I added stop-loss and take-profit levels based on the ATR (Average True Range). This helps dynamically adjust to market volatility. The stop-loss is set to 2x ATR, and the take-profit is set to 4x ATR.
Trailing Stop:
A trailing stop is added with a multiplier of 1.5x ATR, ensuring that if the market continues to move in your favor, profits are locked in without exiting too early.
Risk-Based Position Sizing:
The position size is calculated based on the risk per trade, which is set to 1% of the account equity. The stop-loss distance (based on ATR) is used to determine how much to risk in each trade.
Exit Conditions:
I kept the same exit conditions but added the trailing stop to help capture more profit if the market trends strongly.
Conclusion:
This updated script adds essential risk management components like stop-loss, take-profit, and trailing stops to improve performance and reduce risk. It also incorporates dynamic position sizing to prevent large losses and to better manage equity. You can further optimize this strategy by running backtests and adjusting the parameters (ATR multipliers, EMA periods, RSI thresholds) based on the cryptocurrency pair and timeframe you are trading.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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