Crypto Volatility Bitcoin Correlation Strategy Description:
The Crypto Volatility Bitcoin Correlation Strategy is designed to leverage market volatility specifically in Bitcoin (BTC) using a combination of volatility indicators and trend-following techniques. This strategy utilizes the VIXFix (a volatility indicator adapted for crypto markets) and the BVOL7D (Bitcoin 7-Day Volatility Index from BitMEX) to identify periods of high volatility, while confirming trends with the Exponential Moving Average (EMA). These components work together to offer a comprehensive system that traders can use to enter positions when volatility and trends are aligned in their favor.
Key Features:
VIXFix (Volatility Index for Crypto Markets): This indicator measures the highest price of Bitcoin over a set period and compares it with the current low price to gauge market volatility. A rise in VIXFix indicates increasing market volatility, signaling that large price movements could occur.
BVOL7D (Bitcoin 7-Day Volatility Index): This volatility index, provided by BitMEX, measures the volatility of Bitcoin over the past 7 days. It helps traders monitor the recent volatility trend in the market, particularly useful when making short-term trading decisions.
Exponential Moving Average (EMA): The 50-period EMA acts as a trend indicator. When the price is above the EMA, it suggests the market is in an uptrend, and when the price is below the EMA, it suggests a downtrend.
How It Works:
Long Entry: A long position is triggered when both the VIXFix and BVOL7D indicators are rising, signaling increased volatility, and the price is above the 50-period EMA, confirming that the market is trending upward.
Exit: The strategy exits the position when the price crosses below the 50-period EMA, which signals a potential weakening of the uptrend and a decrease in volatility.
This strategy ensures that traders only enter positions when the volatility aligns with a clear trend, minimizing the risk of entering trades during periods of market uncertainty.
Testing and Timeframe:
This strategy has been tested on Bitcoin using the daily timeframe, which provides a longer-term perspective on market trends and volatility. However, users can adjust the timeframe according to their trading preferences. It is crucial to note that this strategy does not include comprehensive risk management, aside from the exit condition when the price crosses below the EMA. Users are strongly advised to implement their own risk management techniques, such as setting appropriate stop-loss levels, to safeguard their positions during high volatility periods.
Utility:
The Crypto Volatility Bitcoin Correlation Strategy is particularly well-suited for traders who aim to capitalize on the high volatility often seen in the Bitcoin market. By combining volatility measurements (VIXFix and BVOL7D) with a trend-following mechanism (EMA), this strategy helps identify optimal moments for entering and exiting trades. This approach ensures that traders participate in potentially profitable market moves while minimizing exposure during times of uncertainty.
Use Cases:
Volatility-Based Entries: Traders looking to take advantage of market volatility spikes will find this strategy useful for timing entry points during market swings.
Trend Confirmation: By using the EMA as a confirmation tool, traders can avoid entering trades that go against the trend, which can result in significant losses during volatile market conditions.
Risk Management: While the strategy exits when price falls below the EMA, it is important to recognize that this is not a full risk management system. Traders should use caution and integrate additional risk measures, such as stop-losses and position sizing, to better manage potential losses.
How to Use:
Step 1: Monitor the VIXFix and BVOL7D indicators. When both are rising and the Bitcoin price is above the EMA, the strategy will trigger a long entry, indicating that the market is experiencing increased volatility with a confirmed uptrend.
Step 2: Exit the position when the price drops below the 50-period EMA, signaling that the trend may be reversing or weakening, reducing the likelihood of continued upward price movement.
This strategy is open-source and is intended to help traders navigate volatile market conditions, particularly in Bitcoin, using proven indicators for volatility and trend confirmation.
Risk Disclaimer:
This strategy has been tested on the daily timeframe of Bitcoin, but users should be aware that it does not include built-in risk management except for the below-EMA exit condition. Users should be extremely cautious when using this strategy and are encouraged to implement their own risk management, such as using stop-losses, position sizing, and setting appropriate limits. Trading involves significant risk, and this strategy does not guarantee profits or prevent losses. Past performance is not indicative of future results. Always test any strategy in a demo environment before applying it to live markets.
D-ETH
Quatro SMA Strategy [4h]Hello, I would like to present to you The "Quatro SMA" strategy
Strategy is based on four simple moving averages of different lengths and monitoring trading volume. The key idea is to identify strong market trends by comparing short-term moving averages with the long-term SMA. The strategy generates buy signals when all short-term SMAs are above the SMA(200) and the volume confirms the strength of the move. Similarly, sell signals are generated when all short-term SMAs are below the SMA(200), and the volume is sufficiently high.
The strategy manages risk by applying a stop loss and three different Take Profit levels (TP1, TP2, TP3), with varying percentages of the position closed at each level.
Each Take Profit level is triggered at a specific percentage gain, with the position being closed gradually depending on the achieved targets. The percentage of the position closed at each TP level is also defined by the user.
Indicators and Parameters:
Simple Moving Averages (SMA):
The script utilizes four simple moving averages with different lengths (4, 16, 32, 200). The first three SMAs (SMA1, SMA2, SMA3) are used to determine the trend direction, while the fourth SMA (with a length of 200) serves as a support/resistance line.
Volume:
The script monitors trading volume and checks if the current volume exceeds 2.5 times the average volume of the last 40 candles. High volume is considered as confirmation of trend strength.
Entry Conditions:
- Long Position: Triggered when SMA1 > SMA2 > SMA3, the closing price is above SMA(200), and the volume condition is met.
- Short Position: Triggered when SMA1 < SMA2 < SMA3, the closing price is below SMA(200), and the volume condition is met.
Exit Conditions:
- Long Position: Closed when SMA1 < SMA2 < SMA3 and the closing price is above SMA(200).
- Short Position: Closed when SMA1 > SMA2 > SMA3 and the closing price is below SMA(200).
to determine the level of stop loss and target point I used a piece of code by RafaelZioni, here is the script from which a piece of code was taken
I hope the strategy will be helpful, as always, best regards and safe trades
;)
1000SATS and ORDI Market Cap RatioSure! Here is a detailed description and usage guide for your TradingView indicator:
### Indicator Description
**Title**: 1000SATS/ORDI Market Cap Ratio
**Description**: The "1000SATS/ORDI Market Cap Ratio" indicator calculates and visualizes the market capitalization ratio between 1000SATS and ORDI. This indicator allows traders and investors to analyze the relative market strength and valuation trends of 1000SATS compared to ORDI over time. By tracking this ratio, users can gain insights into market dynamics and potential trading opportunities between these two assets.
### Indicator Usage
**Purpose**:
- To compare the market capitalizations of 1000SATS and ORDI.
- To identify potential undervaluation or overvaluation of 1000SATS relative to ORDI.
- To assist in making informed trading and investment decisions based on market cap trends.
**How to Use**:
1. **Add the Indicator to Your Chart**:
- Open TradingView and navigate to your chart.
- Click on the "Indicators" button at the top of the chart.
- Select "Pine Editor" and paste the provided script.
- Click "Add to Chart" to apply the indicator.
2. **Interpret the Ratio**:
- The indicator will plot a line representing the ratio of the market capitalization of 1000SATS to ORDI.
- A rising ratio indicates that the market cap of 1000SATS is increasing relative to ORDI, suggesting stronger market performance or higher valuation of 1000SATS.
- A falling ratio indicates that the market cap of 1000SATS is decreasing relative to ORDI, suggesting weaker market performance or lower valuation of 1000SATS.
3. **Analyze Trends**:
- Use the indicator to spot trends and potential reversal points in the market cap ratio.
- Combine the ratio analysis with other technical indicators and chart patterns to enhance your trading strategy.
4. **Set Alerts**:
- Set custom alerts on the ratio to notify you of significant changes or specific thresholds being reached, enabling timely decision-making.
**Example**:
- If the ratio is consistently rising, it may indicate a good opportunity to consider 1000SATS as a stronger investment relative to ORDI.
- Conversely, if the ratio is falling, it may be a signal to reevaluate the strength of 1000SATS compared to ORDI.
**Note**: Always conduct thorough analysis and consider other market factors before making trading decisions based on this indicator.
### Script
```pinescript
//@version=4
study("1000SATS and ORDI Market Cap Ratio", shorttitle="1000SATS/ORDI Ratio", overlay=true)
// Define the circulating supply for ORDI and 1000SATS
ORDI_supply = 21000000 // Circulating supply of ORDI
SATS_1000_supply = 2100000000000 // Circulating supply of 1000SATS
// Fetch the price data for ORDI
ordi_price = security("BINANCE:ORDIUSDT", timeframe.period, close)
// Fetch the price data for 1000SATS
sats_1000_price = security("BINANCE:1000SATSUSDT", timeframe.period, close)
// Calculate the market capitalizations
ordi_market_cap = ordi_price * ORDI_supply
sats_1000_market_cap = sats_1000_price * SATS_1000_supply
// Calculate the market cap ratio
ratio = sats_1000_market_cap / ordi_market_cap
// Plot the ratio
plot(ratio, title="1000SATS/ORDI Market Cap Ratio", color=color.blue, linewidth=2)
```
This description and usage guide should help users understand the purpose and functionality of your indicator, as well as how to effectively apply it in their trading activities on TradingView.
Multi ETH Rolling APY Calculator [presentTrading]This one is for SEC paves way for Ethereum ETFs in boost for crypto!
█ Introduction and How it is Different
The "Multi ETH Rolling APY Calculator" is a sophisticated Pine Script tool designed to analyze the annualized difference between Ethereum (ETH) spot and futures prices. This tool is essential for identifying arbitrage opportunities and assessing market sentiment, offering traders invaluable insights into market dynamics. By calculating the premium or discount of futures contracts relative to the spot price and annualizing this figure based on the time until each contract's expiration, the Multi ETH Rolling APY Calculator provides a clear view of potential profit margins and market trends.
Unlike traditional trading indicators that focus solely on price movements or technical patterns, this calculator delves deeper into the futures market, providing a dual-purpose tool. It not only helps in spotting arbitrage opportunities but also serves as a gauge for the emotional state of the market, thereby offering a more comprehensive analysis of market conditions. This dual functionality sets it apart, making it a must-have for traders looking to navigate the volatile cryptocurrency trading landscape effectively.
Historical backtesting has revealed that Bitcoin's Rolling APY can serve as a robust indicator of market sentiment:
- Below 0%: Often indicates panic or 'end-of-world' scenarios.
- 0-5%: Signifies extreme market fear.
- 5-10%: Reflects a calm market environment.
- 10-15%: Suggests a moderately warm market.
- 15-20%: Indicates an overheated market.
- **Above 20%: Signals FOMO (fear of missing out).
█ Strategy, How it Works: Detailed Explanation
The Multi ETH Rolling APY Calculator employs a systematic approach to derive its insights. The process is broken down into several steps, each contributing to the overall analysis:
🔶 Data Fetching: The script first fetches the necessary data, including the closing prices of Ethereum's spot market and selected futures contracts. These futures contracts are typically set to expire at different dates, providing a broad perspective on market expectations over time.
🔶 Time and Expiration: The tool takes into account the current time and the expiration dates of the futures contracts. This helps in calculating the number of days remaining until each contract's expiration.
🔶 Premium Calculations: The premium or discount of each futures contract relative to the spot price is computed. This is done by subtracting the spot price from the futures price and then dividing the result by the spot price. This calculation gives a percentage that represents the premium or discount.
🔶 Annualized Percentage Yield (APY) Calculations: The calculated premium or discount is then annualized based on the number of days remaining until the contract's expiration. This involves multiplying the premium or discount by the factor (365 / days remaining) to annualize the figure. If the user chooses not to annualize the numbers, this step is skipped.
🔶 Plotting Results: The annualized yields are then plotted on a chart, allowing traders to visualize the potential returns from different futures contracts. The plots are color-coded for easy differentiation and quick analysis.
By following this structured approach, the Multi ETH Rolling APY Calculator provides traders with clear, actionable insights into market dynamics and potential arbitrage opportunities.
█ Trade Direction
While this tool does not provide direct trading signals, it informs traders about potential arbitrage opportunities and the prevailing market sentiment. Traders can leverage this data to make strategic decisions, aligning long or short positions with the anticipated market movements and arbitrage conditions.
█ Usage
By inputting specific parameters related to their market analysis, traders can monitor discrepancies in Bitcoin’s pricing across different timelines, which is especially beneficial for those involved in derivatives trading, arbitrage, and sentiment analysis.
█ Default Settings
- Resolution: Controls the frequency of data (default is daily).
- Show numbers in annual: Determines whether APY is displayed on an annual basis.
- Base Symbol and Future Symbols: Specify the spot and futures markets for analysis.
ETH Long/Short Ratio BITFINEX - (ALPHRACTAL)Indicator Description: ETH Long/Short Ratio BITFINEX - (ALPHRACTAL)
The ETH Long/Short Ratio BITFINEX - (ALPHRACTAL) indicator provides a detailed analysis of Ethereum (ETH) long and short positions in USD and USDT on the Bitfinex exchange. This indicator is ideal for traders who want to monitor market behavior and better understand the relationship between long and short positions.
Features:
USD and USDT Long/Short Ratio:
Calculates and displays the ratio between long and short ETH positions in USD and USDT.
Helps identify market trends and the relative strength between buyers and sellers.
Color Configuration:
Allows customization of chart colors for clear and distinct visualization of USD and USDT ratios.
Uses colors with adjustable transparency to enhance chart visibility.
Label Display:
Option to show or hide labels indicating the type of ratio (USD or USDT) at the latest chart value.
Labels are useful for quickly identifying the visualized ratio.
Display Control:
Option to enable or disable the display of individual USD and USDT ratio charts.
Flexibility to view only the relevant data for your analysis.
How to Use:
Add the indicator to your chart to visualize the long/short ratios of ETH in USD and USDT.
Adjust colors and transparency as per your preference for better visual distinction.
Use the option to show or hide labels for quick identification of the data.
Analyze the relationship between long and short positions to make informed trading decisions, observing market buying and selling trends.
Example Use Cases:
Market Sentiment Analysis: An increase in the Long/Short ratio may indicate bullish sentiment among traders, while a decrease may indicate bearish sentiment.
Identifying Opportunities: Significant discrepancies between USD and USDT ratios may signal arbitrage opportunities or alert to significant market movements.
This indicator is a powerful tool for Ethereum traders who want a deeper understanding of market behavior and the dynamics of long and short positions on Bitfinex. Add the ETH Long/Short Ratio BITFINEX - (ALPHRACTAL) to your technical analysis toolkit and gain an edge in your trading strategy.
Calculus Free Trend Strategy for Crypto & StocksObjective :
The Correlation Channel Trading Strategy is designed to identify potential entry points based on the relationship between price movements and a correlation channel. The strategy aims to capture trends within the channel while managing risk effectively.
Parameters :
Length: Determines the period for calculating moving averages and the true range, influencing the sensitivity of the strategy to price movements.
Multiplier: Adjusts the width of the correlation channel, providing flexibility to adapt to different market conditions.
Inputs :
Asset Symbol: Allows users to specify the financial instrument for analysis.
Timeframe: Defines the timeframe for data aggregation, enabling customization based on trading preferences.
Plot Correlation Channel: Optional input to visualize the correlation channel on the price chart.
Methodology :
Data Acquisition: The strategy fetches OHLC (Open, High, Low, Close) data for the specified asset and timeframe. In this case we use COINBASE:BTCUSD
Calculation of Correlation Channel: It computes the squared values for OHLC data, calculates the average value (x), and then calculates the square root of x to derive the source value. Additionally, it calculates the True Range as the difference between high and low prices.
Moving Averages: The strategy calculates moving averages (MA) for the source value and the True Range, which form the basis for defining the correlation channel.
Upper and Lower Bands: Using the MA and True Range, the strategy computes upper and lower bands of the correlation channel, with the width determined by the multiplier.
Entry Conditions: Long positions are initiated when the price crosses above the upper band, signaling potential overbought conditions. Short positions are initiated when the price crosses below the lower band, indicating potential oversold conditions.
Exit Conditions: Stop-loss mechanisms are incorporated directly into the entry conditions to manage risk. Long positions are exited if the price falls below a predefined stop-loss level, while short positions are exited if the price rises above the stop-loss level.
Strategy Approach: The strategy aims to capitalize on trends within the correlation channel, leveraging systematic entry signals while actively managing risk through stop-loss orders.
Backtest Details : For the purpose of this test I used the entire data available for BTCUSD Coinbase, with 10% of capital allocation and 0.1% comission for entry/exit(0.2% total). Can be also used with other both directly correlated with current settings of BTC or with new ones
Advantages :
Provides a systematic approach to trading based on quantifiable criteria.
Offers flexibility through customizable parameters to adapt to various market conditions.
Integrates risk management through predefined stop-loss mechanisms.
Limitations :
Relies on historical price data and technical indicators, which may not always accurately predict future price movements.
May generate false signals during periods of low volatility or erratic price behavior.
Requires continuous monitoring and adjustment of parameters to maintain effectiveness.
Conclusion :
The Correlation Channel Trading Strategy offers traders a structured framework for identifying potential entry points within a defined price channel. By leveraging moving averages and true range calculations, the strategy aims to capture trends while minimizing risk through stop-loss mechanisms. While no strategy can guarantee success in all market conditions, the Correlation Channel Trading Strategy provides a systematic approach to trading that can enhance decision-making and risk management for traders.
Cyatophilum Bands PresetsThis is a pre-configured strategy for swing trading Bitcoin on the 2 hours chart, Ethereum on the 4 hours, and BNB on the 2 hours. (More presets can be added later on)
Built upon my generic indicator "Cyatophilum Bands D.E.", this indicator removes the struggle of having to copy all the settings, instead, a single dropdown input lets you choose the preset.
More info about the complete strategy here:
The strategy has been backtested over 5 years of historical data and forward tested for +4 months (since january 2023) with the goal to beat buy and hold returns .
The indicator shows real time strategy results and has custom alerts for BUY and SELL signals which can be used to automate the strategy.
When creating your alert, first set your alert messages in the indicator settings. Then, select the indicator and create the alert using "alert() function calls only".
A warning will appear on the chart if the preset and chart configuration is incorrect.
Plots like bands and trailing lines are disabled by default to improve performance but can be turned on in the style tab.
BNBUSDT 2H
A combination of deviation and ATR bands based on Donchian channels.
ETHUSDT 4H
A combination of deviation and ATR bands based on SMA and an ATR trailing stop.
BTCUSDT 2H
Based on Donchian channels breakout type with a tight 2% stop loss, and a 3% take profit that gets disabled when price is trending up to let the trailing stop do its job.
Disclaimer: Backtest results are not representative of future results.
Trendmaster - Crypto Flow IndexWhat it is:
The Trendmaster Crypto Flow Index is a unique tool designed to give you an overview of the performance of different Crypto market sectors and sub-sectors. It helps you to identify where you should be focusing your investments for maximum portfolio efficiency and profitability.
What it does:
The Crypto Flow Index presents a visual overview of the flows of retail and institutional capital into the four main market sectors: Large Caps, Alts Coins, Shit Coins, and Stable Coins as well as several other sub-sectors. Each sector is assigned a "Flow Score", which indicates its current performance, demand, and strength in percentage terms. The "Flow Score" also provides insights into the current stage of the market cycle and the typical over and underperformances of assets that correlate to it. Additionally, the index factors in the sector have a "Correlation" to the broader market, allowing you to see the best sectors for trading and investing, either for positional hedging or differential plays.
How to Use it:
To use the Trendmaster Crypto Flow Index, you can simply observe the evolving colored line within the indicator and the table overview. You can identify which sectors are outperforming or underperforming the general market and make informed decisions about where to direct your focus and funds. By monitoring the transitions of Flow between sectors, you can gain invaluable insights into the market cycle and the typical over and underperformances of assets that correlate to it. This information will help you to maximize portfolio efficiency by targeting different market sectors based on their performance to the overall cryptocurrency market. The index covers different sectors, including Large caps, Alts, Shit, Stables, AI, Defi, Dex, Exchange, Gaming, Meme, Metaverse, Nft, Privacy, Smart, and Sports.
Examples of Cryptocurrencies represented in the different market sectors:
Large caps: The biggest market cap cryptocurrencies such as BTC and ETH.
Alts: High-cap and high-volume digital assets that are smaller than large caps, such as LTC and XRP.
Shit coins: Smaller cap projects that are highly speculative and experience significant price volatility, such as BAT and HOT.
Stables: Fiat-pegged assets that provide a stable value, such as USDT and USDC.
AI: Projects that are based on artificial intelligence, such as FET and AGIX.
DeFi: Leverages high volume smart contract platforms to provide financial products in crypto, mainly ERC20 tokens such as LINK and AAVE.
DEX: Decentralized exchanges with their own utility tokens, such as UNI and SUSHI.
Exchange: Centralized exchanges with their own utility tokens, such as BNB and CRO.
Gaming: Web3/crypto gaming platforms with their own utility tokens, such as AXS and GMT.
Meme: Similar to shit coins, but with no real functionality and based purely on social media and memes, such as DOGE and SHIB.
Metaverse: Projects that aim to provide Metaverse assets such as virtual land and assets, such as MANA and SAND.
NFT: Non-fungible tokens with their own token or NFT-based platforms that have their own utility tokens, such as APE and LOOKS.
Privacy: Anonymous and privacy-focused chains, such as XMR and ZEC.
Smart: Projects that provide smart contract alternatives to ETH, such as ADA and AVAX.
Sports: Fan tokens based on real-world sports teams or platforms that support and distribute them, such as CHZ and FLOW.
Pre-market Highs & Lows on regular trading hours (RTH) chartShows pre-market highs and lows on RTH or ETH chart
-Pre-market duration user input (default is 16 'bar hours'; covering the time from S&P RTH close at 4pm >> 9:30am RTH open next day
-Displays on both RTH and ETH charts
-Written for ES (ES1! or e.g ESM2023), but tested and working on SPY, SPX
-Works across timeframes
Example usage on Electronic trading hours (ETH) chart; showing the 'bar hours' user input lookback duration visually
Regular vs Electronic Trading hours Gap (RTH vs ETH); 4pm-9:30am-Shows the gap between 4pm close and 9:30am open; the Regular trading hours Vs Electronic trading hours Gap (RTH vs ETH).
-Displays this as a box starting at 9:30am, whose bottom is the 9:30am open; top is previous day's 4pm close.
-Displays when chart is toggled to either of ETH or RTH.
-Useful reminder of area above/below opening bell price that price often has a tendency to want to fill in, partially or fully
--(all times here refer to America/New_York timezone)
//Options:
~Number of past boxes to show
~Extend boxes fully to the right
~Box background color, border color, and opacities
//Limitations:
-works only on timeframes 30mins or lower (works on 1,2,5,10,15,30minutes)
-will not work on non-typical low timeframes (like 4min or 7min) since they are not divisible into 30
Dynamic Volume Oscillator [CryptoScripts]The Dynamic Volume Oscillator uses a combination of volume and momentum to nail whenever a reversal is likely to happen. I've also included divergences (both regular and hidden) that you can toggle on/off and adjust the settings to fit your trading style.
Colors - The green wave indicates an uptrend while the purple wave indicates a downtrend.
Overbought/Oversold - Green backgrounds indicate the DVO is oversold and a reversal to the upside is likely to happen within the next few candles. Red backgrounds indicate the DVO is overbought and a reversal to the downside is likely to happen within the next few candles. You can adjust the levels to trigger when the signal flashes. Experiment with different timeframes/altcoins to see which settings work best. Some coins are more volatile than others and lower timeframes tend to reach higher levels vs higher timeframes.
Divergences - The settings of 1 and 3 for the lookbacks are so the divergence signal appears only 1 candle before the actual divergence happens (on the replay tool) vs 4-5 candles from other indicators. This means your entry on a divergence signal is 2 candles after it prints (for backtesting purposes).
Alerts - I also added alerts for Overbought, Oversold, Regular and Hidden Bearish/Bullish Divergences.
Let me know if you have any questions! Enjoy :)
Altcoin Dominance (without ETH) Excluding Stablecoins UnsymetricAltcoin Dominance (without ETH) Excluding Stablecoins Unsymetric
The purpose of the script is to show Altcoin's strength without Ethereum once we exclude stablecoins.
So we look into all altcoins besides eth and besides stablecoins divided by a value of eth+btc
ETH Dominance Excluding StablecoinsETH Dominance Excluding Stablecoins.
The purpose of the script is to show Ethereum's strength relative to other cryptocurrencies.
Pretty much shows ETH Dominance in comparison to Market Cap once we exclude the 5 largest stablecoins.
VWMA/SMA 3Commas BotThis strategy utilizes two pairs of different Moving Averages, two Volume-Weighted Moving Averages (VWMA) and two Simple Moving Averages (SMA).
There is a FAST and SLOW version of each VWMA and SMA.
The concept behind this strategy is that volume is not taken into account when calculating a Simple Moving Average.
Simple Moving Averages are often used to determine the dominant direction of price movement and to help a trader look past any short-term volatility or 'noise' from price movement, and instead determine the OVERALL direction of price movement so that one can trade in that direction (trend-following) or look for opportunities to trade AGAINST that direction (fading).
By comparing the different movements of a Volume-Weighted Moving Average against a Simple Moving Average of the same length, a trader can get a better picture of what price movements are actually significant, helping to reduce false signals that might occur from only using Simple Moving Averages.
The practical applications of this strategy are identifying dominant directional trends. These can be found when the Volume Weighted Moving Average is moving in the same direction as the Simple Moving Average, and ideally, tracking above it.
This would indicate that there is sufficient volume supporting an uptrend or downtrend, and thus gives traders additional confirmation to potentially look for a trade in that direction.
One can initially look for the Fast VWMA to track above the Fast SMA as your initial sign of bullish confirmation (reversed for downtrending markets). Then, when the Fast VWMA crosses over the Slow SMA, one can determine additional trend strength. Finally, when the Slow VWMA crosses over the Slow SMA, one can determine that the trend is truly strong.
Traders can choose to look for trade entries at either of those triggers, depending on risk tolerance and risk appetite.
Furthermore, this strategy can be used to identify divergence or weakness in trending movements. This is very helpful for identifying potential areas to exit one's trade or even look for counter-trend trades (reversals).
These moments occur when the Volume-Weighted Moving Average, either fast or slow, begins to trade in the opposite direction as their Simple Moving Average counterpart.
For instance, if price has been trending upwards for awhile, and the Fast VWMA begins to trade underneath the Fast SMA, this is an indication that volume is beginning to falter. Uptrends need appropriate volume to continue moving with momentum, so when we see volume begin to falter, it can be a potential sign of an upcoming reversal in trend.
Depending on how quickly one wants to enter into a movement, one could look for crosses of the Fast VWMA under/over the Fast SMA, crosses of the Fast VWMA over/under the Slow SMA, or crosses over/under of the Slow VWMA and the Slow SMA.
This concept was originally published here on TradingView by ProfitProgrammers.
Here is a link to his original indicator script:
I have added onto this concept by:
converting the original indicator into a strategy tester for backtesting
adding the ability to conveniently test long or short strategies, or both
adding the ability to calculate dynamic position sizes
adding the ability to calculate dynamic stop losses and take profit levels using the Average True Range
adding the ability to exit trades based on overbought/oversold crosses of the Stochastic RSI
conveniently switch between different thresholds or speeds of the Moving Average crosses to test different strategies on different asset classes
easily hook this strategy up to 3Commas for automation via their DCA bot feature
Full credit to ProfitProgrammers for the original concept and idea.
Any feedback or suggestions are greatly appreciated.
Time Based Crypto DayTrade StrategyThis is a time based strategy, designed to enter and exit within the same day of the week, using different hours for entry and exit.
The script is long only direction, and it has no risk management inside, so use it with caution.
At the same time you can also calculate each individual hour return within a certain day, and make your own idea about the best moments to be enter.
In order to filter a bit from the bad trades, I have applied an ATR filter, to check if that volatility is rising in order to help eliminate some of the bad trades when there is no volatility around.
For this example, on BTC, it seems that for the last years, on tuesday and thursday, enterring at the beginning of the daily candle, 01:00hours and exit at 00:00 hours, seems to give positive results giving the idea that can be converted in some sort of edge into our favor.
However dont take this entirelly for granted and conduct your own searches
ETHUSDT Long-Short using EMA,OBV,ADX,LinearReg,DXY(No repaint)This script strategy is used to follow the trending EMA with a delta difference (Price-EMA) to know when to enter and with 5 variables mentioned below, stop loss is below EMA line all the time in long and above EMA line in short, is like a trailing stop after candle is closed. Hard stop is also placed to prevent big candles movements, also correlation between VIX and ETH when the correlation is <-0.2 the position can be opened.
Indicators used:
EMA , OBV , ADX , Linear regression and Dollar Index trending, Leverage is available for Long and Short positions.
LONG
When Price is above EMA and price-ema difference is smaller than "Long delta Price/MA"
OBV(4hrs) is above OBV-EMA(110)
Linear regression is strong
ADX is strong >50
DXY is trending down
SHORT
When Price is below EMA and ema-price difference is smaller than "Long delta Price/MA"
OBV(4hrs) is below OBV-EMA(110)
Linear regression is weak
ADX is weak <50
DXY is trending up
BINANCE:ETHUSDT 30 minutes Timeframe
Trend Following based on Trend ConfidenceThis is a Trend Following strategy based on the Trend Confidence indicator.
The goal of this strategy is to be a simple Trend Following strategy, but also to be as precise as possible when it comes to the question 'how confident are we that a linear trend is ongoing?'. For this we calculate the 'confidence' of a linear trend in the past number of closing prices. The idea of this strategy is that past a certain confidence, the ongoing linear trend is more likely to continue than not.
Trend Confidence:
The Trend Confidence shows us how strong of a linear trend the price has made in the past number (given by Length parameter) of closing prices. The steepness of the price change makes the Trend Confidence more extreme (more positive for an uptrend or more negative for a downtrend), and the deviation from a straight line makes the Trend Confidence less extreme (brings the confidence closer to 0). This way we can filter out signals by wild/sudden price moves that don't follow a clear linear trend.
Math behind the Trend Confidence:
A linear fit is made on the past number of closing prices, using Ordinary Linear Regression. We have the steepness of the linear fit: b in y=a+bx . And we have the standard deviation of the distances from the closing prices to the linear fit: sd . The Trend Confidence is the ratio b/sd .
Entries and Exits:
For entry and exit points we look at how extreme the Trend Confidence is. The strategy is based on the assumption that past a certain confidence level, the ongoing linear trend is more likely to continue than not.
So when the Trend Confidence passes above the 'Long entry" threshold, we go Long. After that when the Trend Confidence passes under the 'Long exit' threshold, we exit. The Long entry should be a positive value so that we go Long once a linear uptrend with enough confidence has been detected.
When the Trend Confidence passes below the 'Short entry' threshold, we go Short. After that when the Trend Confidence passes above the 'Short exit' threshold, we exit. The Short entry should be a negative value so that we go Short once a linear downtrend with enough confidence has been detected.
Default Parameters:
The strategy is intended for BTC-USD market, 4 hour timeframe. The strategy also works on ETH-USD with similar parameters.
The Length is arbitrarily set at 30, this means we look at the past 30 closing prices to determine a linear trend. Note that changing the length will change the range of Trend Confidence values encountered.
The default entry and exit thresholds for Longs and Shorts do not mirror each other. This is because the BTC-USD market goes up more heavily and more often than it goes down. So the ideal parameters for Longs and Shorts are not the same.
The positive results of the strategy remain when the parameters are slightly changed (robustness check).
The strategy uses 100% equity per trade, but has a 10% stop loss so that a maximum of 10% is risked per trade.
Commission is set at 0.1% as is the highest commission for most crypto exchanges.
Slippage is set at 5 ticks, source for this is theblock.co.
Ichimoku Cloud with MACD and Trailing Stop Loss (by Coinrule)The Ichimoku Cloud is a collection of technical indicators that show support and resistance levels, as well as momentum and trend direction. It does this by taking multiple averages and plotting them on a chart. It also uses these figures to compute a “cloud” that attempts to forecast where the price may find support or resistance in the future.
The Ichimoku Cloud was developed by Goichi Hosoda, a Japanese journalist, and published in the late 1960s. It provides more data points than the standard candlestick chart. While it seems complicated at first glance, those familiar with how to read the charts often find it easy to understand with well-defined trading signals.
The Ichimoku Cloud is composed of five lines or calculations, two of which comprise a cloud where the difference between the two lines is shaded in.
The lines include a nine-period average, a 26-period average, an average of those two averages, a 52-period average, and a lagging closing price line.
The cloud is a key part of the indicator. When the price is below the cloud, the trend is down. When the price is above the cloud, the trend is up.
The above trend signals are strengthened if the cloud is moving in the same direction as the price. For example, during an uptrend, the top of the cloud is moving up, or during a downtrend, the bottom of the cloud is moving down.
The MACD is a trend following momentum indicator and provides identification of short-term trend direction. In this variation it utilises the 12-period as the fast and 26-period as the slow length EMAs, with signal smoothing set at 9.
This strategy combines the Ichimoku Cloud with the MACD indicator to better enter trades.
Long/Exit orders are placed when three basic signals are triggered.
Long Position:
Tenkan-Sen is above the Kijun-Sen
Chikou-Span is above the close of 26 bars ago
Close is above the Kumo Cloud
MACD line crosses over the signal line
Exit Position:
Price increases 3% trailing
Price decreases 3% trailing
The script is backtested from 1 June 2022 and provides good returns.
The strategy assumes each order is using 30% of the available coins to make the results more realistic and to simulate you only ran this strategy on 30% of your holdings. A trading fee of 0.1% is also taken into account and is aligned to the base fee applied on Binance.
Wave Fusion By CryptoScriptsThe Wave Fusion indicator is finally here! This indicator is a combination of the Wave Strength Oscillator and RSVP Extractor. It used a combination of momentum waves, volume, price, RSI, and statistical analysis to help nail down whenever the current price is overextended and due for a reversal. I'm currently using the 1D timeframe for BTC but feel free to experiment on different timeframes to see what works best for you. In the description below, I'll go over each signal, how it's derived, and how to use them!
Oversold (Green shaded area) - The oversold indication appears whenever all oscillators are oversold and is usually a good indicator that a reversal to the upside is around the corner (at least for a short period). Be advised these are the weakest of the three signals so I recommend using this signal with other indicators (such as my MFI Pro).
Overbought (Red shaded area) - The overbought indication appears whenever all oscillators are overbought and is usually a good indicator that a reversal to the downside is around the corner (at least for a short period). Be advised these are the weakest of the three signals so I recommend using this signal with other indicators (such as my MFI Pro).
Green Diamond - The green diamonds indicate whenever one or more oscillators are oversold AND one or more oscillators are outside of the bollinger bands, which is great for catching reversals to the upside. These may come two or three at a time so it may be best to wait until they have all printed before entering.
Red Diamond - The red diamonds indicate whenever one or more oscillators are overbought AND one or more oscillators are outside of the bollinger bands which is great for catching reversals to the downside (as seen in the chart). These may come two or three at a time so it may be best to wait until they have all printed before entering.
Rocket - The rocket symbol occurs whenever ALL oscillators are oversold and one or more oscillators are outside of the bollinger bands . This is great for catching reversals to the upside but may come two or three at a time so it may be best to wait until they have all printed before entering.
Red Alarm - The red alarm symbol occurs whenever ALL oscillators are overbought and one or more oscillators are outside of the bollinger bands . This is great for catching reversals to the downside but may come two or three at a time so it may be best to wait until they have all printed before entering.
Moon - The Moon symbol occurs whenever ALL oscillators are oversold and ALL oscillators are outside of the bollinger bands . This is great for catching reversals to the upside but may come two or three at a time so it may be best to wait until they have all printed before entering.
Blood Moon - The red alarm symbol occurs whenever ALL oscillators are overbought and ALL oscillators are outside of the bollinger bands . This is great for catching reversals to the downside but may come two or three at a time so it may be best to wait until they have all printed before entering.
Strongest to Weakest Buy Signals - Moon --> Rocket --> Green Diamond --> Green Shaded Area
Strongest to Weakest Sell Signals - Blood Moon --> Red Alarm --> Red Diamond --> Red Shaded Area
Input Options
Show Histogram - I also included a Histogram in the indicator to help gauge the level of buys/sell strength but kept it hidden for the default levels (i.e a green diamond with a red histogram bar is usually a good sign a reversal is about to happen to the upside whereas a green diamond with a green histogram bar may indicate a false reversal and there's still more room to the downside until a red bar appears. Always backtest this!)
Show Overbought/Oversold Levels - This is if you want to ignore all of the green/red shaded areas and only focus on the diamonds and rocket/alarm signals
Wave Overbought/Oversold Levels - Free free to change to value of the overbought/oversold levels to change where the green/red shades areas print
Momentum Overbought/Oversold Levels - Free free to change to value of the overbought/oversold levels to change where the green/red shades areas print
Histogram Length - This will not change anything with the signals but I included it so you can change the visuals if it helps you
Momentum Length - This will change where the signals plot
Momentum Signal - This only changes the yellow signal line and nothing else. It's not incorporated into any equation
Average Length - This will change where the signals plot
Alerts
I've set alerts on this indicator for each icon (Oversold, Overbought, Green Diamond, Red Diamond, Rocket, Red Alarm, Moon , Blood Moon). I HIGHLY recommend setting the alerts for Candle Close so that you can be sure the signal is confirmed.
You may notice that the indicator can give multiple signals back-to-back or be overbought/oversold for multiple candles. When this happens, it's best to look at other indicators such as the MFI Pro, MACD, etc to nail the best entry and have confluence with your decision. With that said, having multiple signals back-to-back can also be an indication that the move is close to happening. This indicator works with crypto and stocks as well.
If you have any questions or would like to purchase this indicator, please comment below or PM me. I also made a video tutorial for the indicator on my Youtube channel (link is next to my profile pic)
Be advised past performance is not indicative of future returns. Backtest EVERY timeframe and NEVER blindly take signals! Also, never invest more than you can afford to lose.
Enjoy :)
Linear EDCA v1.2Strategy Description:
Linear EDCA (Linear Enhanced Dollar Cost Averaging) is an enhanced version of the DCA fixed investment strategy. It has the following features:
1. Take the 1100-day SMA as a reference indicator, enter the buy range below the moving average, and enter the sell range above the moving average
2. The order to buy and sell is carried out at different "speed", which are set with two linear functions, and you can change the slope of the linear function to achieve different trading position control purposes
3. This fixed investment is a low-frequency strategy and only works on a daily level cycle
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Strategy backtest performance:
BTCUSD (September 2014~September 2022): Net profit margin 26378%, maximum floating loss 47.12% (2015-01-14)
ETHUSD (August 2018~September 2022): Net profit margin 1669%, maximum floating loss 49.63% (2018-12-14)
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How the strategy works:
Buying Conditions:
The closing price of the day is below the 1100 SMA, and the ratio of buying positions is determined by the deviation of the closing price from the moving average and the buySlope parameter
Selling Conditions:
The closing price of the day is above the 1100 SMA, and the ratio of the selling position is determined by the deviation of the closing price and the moving average and the sellSlope parameter
special case:
When the sellOffset parameter>0, it will maintain a small buy within a certain range above the 1100 SMA to avoid prematurely starting to sell
The maximum ratio of a single buy position does not exceed defInvestRatio * maxBuyRate
The maximum ratio of a single sell position does not exceed defInvestRatio * maxSellRate
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Version Information:
Current version v1.2 (the first officially released version)
v1.2 version setting parameter description:
defInvestRatio: The default fixed investment ratio, the strategy will calculate the position ratio of a single fixed investment based on this ratio and a linear function. The default 0.025 represents 2.5% of the position
buySlope: the slope of the linear function of the order to buy, used to control the position ratio of a single buy
sellSlope: the slope of the linear function of the order to sell, used to control the position ratio of a single sell
sellOffset: The offset of the order to sell. If it is greater than 0, it will keep a small buy within a certain range to avoid starting to sell too early
maxSellRate: Controls the maximum sell multiple. The maximum ratio of a single sell position does not exceed defInvestRatio * maxSellRate
maxBuyRate: Controls the maximum buy multiple. The maximum ratio of a single buy position does not exceed defInvestRatio * maxBuyRate
maPeriod: the length of the moving average, 1100-day MA is used by default
smoothing: moving average smoothing algorithm, SMA is used by default
useDateFilter: Whether to specify a date range when backtesting
settleOnEnd: If useDateFilter==true, whether to close the position after the end date
startDate: If useDateFilter==true, specify the backtest start date
endDate: If useDateFilter==true, specify the end date of the backtest
investDayofweek: Invest on the day of the week, the default is to close on Monday
intervalDays: The minimum number of days between each invest. Since it is calculated on a weekly basis, this number must be 7 or a multiple of 7
The v1.2 version data window indicator description (only important indicators are listed):
MA: 1100-day SMA
RoR%: floating profit and loss of the current position
maxLoss%: The maximum floating loss of the position. Note that this floating loss represents the floating loss of the position, and does not represent the floating loss of the overall account. For example, the current position is 1%, the floating loss is 50%, the overall account floating loss is 0.5%, but the position floating loss is 50%
maxGain%: The maximum floating profit of the position. Note that this floating profit represents the floating profit of the position, and does not represent the floating profit of the overall account.
positionPercent%: position percentage
positionAvgPrice: position average holding cost
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策略说明：
Linear EDCA（Linear Enhanced Dollar Cost Averaging）是一个DCA定投策略的增强版本，它具有如下特性：
1. 以1100日SMA均线作为参考指标，在均线以下进入定买区间，在均线以上进入定卖区间
2. 定买和定卖以不同的“速率”进行，它们用两条线性函数设定，并且你可以通过改变线性函数的斜率，以达到不同的买卖仓位控制的目的
3. 本定投作为低频策略，只在日级别周期工作
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策略回测表现：
BTCUSD（2014年09月~2022年09月）：净利润率26378%，最大浮亏47.12%（2015-01-14）
ETHUSD（2018年08~2022年09月）：净利润率1669%，最大浮亏49.63%（2018-12-14）
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策略工作原理：
买入条件：
当日收盘价在 1100 SMA 之下，由收盘价和均线的偏离度，以及buySlope参数决定买入仓位比例
卖出条件：
当日收盘价在 1100 SMA之上，由收盘价和均线的偏离度，以及sellSlope参数决定卖出仓位比例
特例：
当sellOffset参数>0，则在 1100 SMA以上一定范围内还会保持小幅买入，避免过早开始卖出
单次买入仓位比例最大不超过 defInvestRatio * maxBuyRate
单次卖出仓位比例最大不超过 defInvestRatio * maxSellRate
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版本信息：
当前版本v1.2（第一个正式发布的版本）
v1.2版本设置参数说明：
defInvestRatio: 默认定投比例，策略会根据此比例和线性函数计算得出单次定投的仓位比例。默认0.025代表2.5%仓位
buySlope: 定买的线性函数斜率，用来控制单次买入的仓位倍率
sellSlope: 定卖的线性函数斜率，用来控制单次卖出的仓位倍率
sellOffset: 定卖的偏移度，如果大于0，则在一定范围内还会保持小幅买入，避免过早开始卖出
maxSellRate: 控制最大卖出倍率。单次卖出仓位比例最大不超过 defInvestRatio * maxSellRate
maxBuyRate: 控制最大买入倍率。单次买入仓位比例最大不超过 defInvestRatio * maxBuyRate
maPeriod: 均线长度，默认使用1100日MA
smoothing: 均线平滑算法，默认使用SMA
useDateFilter: 回测时是否要指定日期范围
settleOnEnd: 如果useDateFilter==true，在结束日之后是否平仓所持有的仓位平仓
startDate: 如果useDateFilter==true，指定回测开始日期
endDate: 如果useDateFilter==true，指定回测结束日期
investDayofweek: 每次在周几定投，默认在每周一收盘
intervalDays: 每次定投之间的最小间隔天数，由于是按周计算，所以此数字必须是7或7的倍数
v1.2版本数据窗口指标说明（只列出重要指标）：
MA：1100日SMA
RoR%: 当前仓位的浮动盈亏
maxLoss%: 仓位曾经的最大浮动亏损，注意此浮亏代表持仓仓位的浮亏情况，并不代表整体账户浮亏情况。例如当前仓位是1%，浮亏50%，整体账户浮亏是0.5%，但仓位浮亏是50%
maxGain%: 仓位曾经的最大浮动盈利，注意此浮盈代表持仓仓位的浮盈情况，并不代表整体账户浮盈情况。
positionPercent%: 仓位持仓占比
positionAvgPrice: 仓位平均持仓成本
Simple RSI and SMA Long and Short (by Coinrule)The relative strength index ( RSI ) is a momentum indicator used in technical analysis . RSI measures the speed and magnitude of a security's recent price changes to evaluate overvalued or undervalued conditions in the price of that security. The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100. The RSI can do more than point to overbought and oversold securities. It can also indicate securities that may be primed for a trend reversal or corrective pullback in price. It can signal when to buy and sell. Traditionally, an RSI reading of 70 or above indicates an overbought situation. A reading of 30 or below indicates an oversold condition.
A simple moving average ( SMA ) calculates the average of a selected range of prices, usually closing prices, by the number of periods in that range.
The Strategy enters and closes the trade when the following conditions are met:
LONG
SMA100 is greater than SMA150
RSI is greater than 50
SHORT
SMA100 is less than SMA150
RSI is less than 50
When a long position is opened, it remains open until the conditions for a short are met at which point the long position is closed and the short position is opened. Then, when the conditions for the long position are met, the short will be closed and a long will be opened.
This strategy is back tested from 1 January 2022 to simulate how the strategy would work in a bear market. The strategy provides good returns.
The strategy assumes each order is using 30% of the available coins to make the results more realistic and to simulate you only ran this strategy on 30% of your holdings. A trading fee of 0.1% is also taken into account and is aligned to the base fee applied on Binance.
QQE Student's T-Distribution Bollinger Bands ScreenerThis script scans 20 custom symbols and displays the QQE Students T-Distribution Bollinger Bandwidth as a percentage, the quarter segment percentage, a score that tells you what segment of the band the price is in, and what direction the market is going in. This is useful because it can tell you how volatile a market is and how much reward is in the market. It also tells you what direction the market is going in so you can pick a symbol that has the best looking reward. I really hope that this script complements the group of indicators I have made so far. Here is a list of the other two indicators related to this script.
Please enjoy!
Crypto Map Dashboard v1.0🔰Overview
Charts are an essential part of working with data, as they are a way to condense large amounts of data into an easy to understand format. Visualizations of data can bring out insights to someone looking at the data for the first time, as well as convey findings to others who won’t see the raw data. There are countless chart types out there, each with different use cases. Often, the most difficult part of creating a data visualization is figuring out which chart type is best for the task at hand.
What are the types of metrics, features, or other variables that you plan on plotting? Although it depended on some multiple factors!
But my choices of the chart type for this Crypto datas was Pie chart or Donut char for crypto dominances ,and Colum (Bar) chart for Total MarketCaps .
The audiences that I plan on presenting this for them could be all tradingviewrs , especially crypto lovers ,or those who just aim to have an initial exploration for themselves ,like me!
so this indicator mostly could be an educational indicator script for pine coders !
We can use the " Crypto Map Dashboard " indicator to Get an quick overview of the crypto market and monitor where the smart money Flow changing by comparing the dominances and totals Caps .
In general, it consists of 4 parts:
✅1 =>> Table1 : If you like to see and compare and monitor the changes of dominances of (Bitcoin, Ethereum, Usdt , Usdc , etc.) and their market cap in different times you can see the table on The upper-right corner.
✅2 =>> Table2: Also, in the table lower-right corner, you can see the changes of the totals(Total, Total2 , Total3 and TotalDefi) in the same time periods.
✅3 =>> pie chart or donut chart: By viewing this , you understand better about Table1 Datas, that it depicts exactly how Dominance is distributed and specialized.
✅4 =>> column chart (bar chart) : And in the last you can clearly compare the total marketcaps and see how far they are from their ATHs.
You also can even notice the entry and exit of liquidity from the crypto market!
I must also mention that I am definitely still a beginner compared to more experienced pine coders, and there may be some bugs in my codes and calculations, but I am an open person and I welcome your comments ,Also Let me know if you have any questions.
Lots of Love to all tradingviewers and pineCoder ,Cheers!💚❤️💙
