Strategy Development: Price Levels & Time Processing
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I’m currently working on a trading script designed to identify optimal stop-loss and take-profit levels based on market structure and volatility.
Day TF
Short entry: $101,460.15 with a stop-loss at $105,330.08
TP levels tested down to $82,110
Despite it played out ok I still need additional validation that will come with time. Point is to keep enhancing the script so most of the time price does not pass 5th take profit considering latest periods between consecutive Long & Short signals.
3H TF Alternatively, I picked different timeframe for another layer of performance evaluation from another perspective.
Long entry: $84,201.84 with a stop-loss at $82,967.61
TP levels tested up to $90,372.97
Blue TP means the closing price reached the level, while gray - did not.
⏱ TIMING Many traders focus on price levels but overlook the time duration between long and short signals. However, understanding how long trends last is just as crucial as knowing where price might go.
Why does this matter?
If your strategy enters a long trade too soon after a short trade, you might be catching a dead-cat bounce rather than a real reversal.
If your signals occur too frequently, the system may be overreacting to market noise rather than identifying meaningful trend shifts.
Tracking the duration of trend phases helps you align with market cycles rather than getting whipsawed by short-term fluctuations.
The results will be viewed carefully and will be used to improve the logic (code-wise) for better trend detection; stop-loss placements to avoid unnecessary stop-outs; refined entry timing.
The end goal is to make the strategy learn from both aspects of past data - price and time to completely eliminate a need for any user inputs.
Please, let me know:
How you incorporate time-based analysis (other than fixed cycles) into your trading.
If you would want this strategy available for public.
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.