Universal Algo [Coff3eG]

21 giu

Universal Algo By G

Overview:
Universal Algo By G is a comprehensive LONG-ONLY trading strategy specifically designed for medium to long-term use in cryptocurrency markets, particularly Bitcoin. This algorithm can be manually adjusted to fit the volatility of specific coins, ensuring the best possible results. While it does not generate a large number of trades due to the nature of bull and bear market cycles, it has been rigorously backtested and forward-tested to ensure the strategy is not overfitted.

Core Features:

Integrated Systems: Universal Algo is built around five core systems, each contributing unique analytical perspectives to enhance trade signal reliability. These systems are designed to identify clear trend opportunities for significant gains while also employing logic to navigate through ranging markets effectively.
Optional Ranging Market Filter: Helps filter out noise, potentially enhancing signal clarity.
Market State Detection: Identifies four distinct market states:

• Trending
  
• Ranging
  
• Danger (Possible top)
  
• Possible Bottom
  

Global Liquidity Indicator (GLI) Integration: Leverages GLI values to identify positive liquidity trends.
Volatility Bands: Provides insights into market volatility.
Top and Bottom Detection: Shows possible bottoms with green backgrounds and red backgrounds for possible top detection.

The Market State Detection, GLI, Volatility Bands, and Top and Bottom Detection feature all serve as an expectation management feature.

Additional Features:

Optional Metrics Table: Displays strategy metrics and statistics, providing detailed insights into performance.
Customization Options: The script offers a range of user inputs, allowing for customization of the backtesting starting date, the decision to display the strategy equity curve, among other settings. These inputs cater to diverse trading needs and preferences, offering users control over their strategy implementation.

Operational Parameters:

Customizable Inputs: Users can adjust thresholds to match the coin's volatility, enhancing strategy performance.
Transparency and Logic Insight: While specific calculation details and proprietary indicators are integral to maintaining the uniqueness of Universal Algo, the strategy is grounded on well-established financial analysis techniques. These include momentum analysis, volatility assessments, and adaptive thresholding, among others, to formulate its trade signals. Notably, no single indicator is used in isolation; each indicator is combined with another to enhance signal accuracy and robustness. Some of the indicators include customized versions of the TEMA, Supertrend, Augmented Dickey-Fuller (ADF), and Weekly Positive Directional Movement Index (WPDM), all integrated together to create a cohesive and effective trading strategy.

System Operation:

Universal Algo works by taking the average score of the five core systems used for the signals. Three of these systems have been lengthened out to function as longer-term systems, while the remaining two operate at a slightly faster speed. This combination and averaging of systems help to balance the overall strategy, ensuring it maintains the right amount of speed to remain effective for medium to long-term use with minimal noise. The average score is then compared against customizable thresholds. The strategy will go long if the average score is above the threshold and short if it is below the threshold. This averaging mechanism helps to smooth out individual system anomalies and provides a more robust signal for trading decisions.

Originality and Usefulness:
Universal Algo is an original strategy that combines multiple proprietary and customized indicators to deliver robust trading signals. The strategy integrates various advanced indicators and methodologies, including:

System Indicator: Calculates a cumulative score based on recent price movements, aiding in trend detection.
Median For Loop: Utilizes percentile rank calculations of price data to gauge market direction.
Volatility Stop: A modified volatility-based stop-loss indicator that adjusts based on market conditions.
Supertrend: A customized supertrend indicator that uses percentile ranks and ATR for trend detection.
RSI and DEMA: Combines a modified RSI and DEMA for overbought/oversold conditions.
TEMA: Uses 3 different types of MA for trend detection and standard deviation bands for additional confirmation.

Detailed Explanation of Components and Their Interaction:

RSI (Relative Strength Index): Used to identify overbought and oversold conditions. In Universal Algo, RSI is combined with DEMA (Double Exponential Moving Average) to smooth the price data and provide clearer signals.
ATR (Average True Range): Used to measure market volatility. ATR is incorporated into the Volatility Stop and Supertrend indicators to adjust stop-loss levels and trend detection based on current market conditions.
DEMA (Double Exponential Moving Average): Provides a smoother price trend compared to traditional moving averages, reducing lag and making it easier to identify trend changes.
Modified TEMA (Triple Exponential Moving Average): Similar to DEMA but provides even greater smoothing, reducing lag further and enhancing trend detection accuracy.
Volatility Stop: Utilizes ATR to dynamically set stop-loss levels that adapt to changing market volatility. This helps in protecting profits and minimizing losses.
Customized Supertrend: Uses ATR and percentile ranks to determine trend direction and strength. This indicator helps in capturing major trends while filtering out market noise.
Median For Loop: Calculates percentile ranks of price data over a specified period to assess market direction. This helps in identifying potential reversals and trend continuations.
HMA (Hull Moving Average): A fast-acting moving average that reduces lag while maintaining smoothness. It helps in quickly identifying trend changes.
SMA (Simple Moving Average): A traditional moving average that provides baseline trend information. Combined with HMA and other indicators, it forms a comprehensive trend detection system.

Universal Algo offers a sophisticated blend of advanced indicators and proprietary logic that is not available in free or open-source scripts. Here are some reasons why it is worth paying for:

1. Customization and Flexibility: The strategy provides a high degree of customization, allowing users to adjust various parameters to suit their trading style and market conditions. This flexibility is often not available in free scripts.
   
2. Proprietary Indicators: The use of proprietary and customized indicators such as the TEMA, Supertrend, ADF, and WPDM ensures that the strategy is unique and not replicable by free or open-source scripts.
   
3. Integrated Systems: The strategy combines multiple systems and indicators to provide a more comprehensive and reliable trading signal. This integration helps to smooth out anomalies and reduces noise, providing clearer trading opportunities.
   
4. Rigorous Testing: Universal Algo has undergone extensive backtesting and forward-testing to ensure its robustness and reliability. The results demonstrate its ability to perform well under various market conditions, offering users confidence in its effectiveness.
   
5. Detailed Metrics and Analysis: The optional metrics table provides users with detailed insights into the strategy's performance, including metrics like equity, drawdown, Sharpe ratio, and more. This level of detail helps traders make informed decisions.
   
6. Value Addition: By providing a strategy that combines advanced indicators, customization options, and thorough testing, Universal Algo adds significant value to traders looking for a reliable and adaptable trading tool.
   

Realistic Trading Conditions:

Backtesting and Forward-Testing: Rigorous testing ensures performance and reliability, with a focus on prudent risk management. Default properties include an initial capital of $1000, 0 pyramiding, 20 slippage, 0.05% commission, and using 5% of equity for trades.
The strategy is designed and tested with a focus on achieving a balance between risk and reward, striving for robustness and reliability rather than unrealistic profitability promises. Realistic trading conditions are considered, including appropriate account size, commission, slippage, and sustainable risk levels per trade.

Concluding Thoughts:
Universal Algo By G is offered to the TradingView community as a robust tool for enhancing market analysis and trading strategies. It is designed with a commitment to quality, innovation, and adaptability, aiming to provide valuable insights and decision support across various market conditions. Potential users are encouraged to evaluate Universal Algo within the context of their overall trading approach and objectives.

26 lug

Note di rilascio

Updated Feature: Market State
The Market State feature is a new addition that distinguishes between bull and bear markets, providing an overarching view of the market's long-term direction. Unlike the Market Bias, which indicates mean-reverting or trending periods, the Market State is designed to reflect the broader market environment. This feature is exclusively represented in the strategy's table, offering traders an easy reference to understand whether the market is generally bullish or bearish, thereby enhancing decision-making and strategy alignment with prevailing market conditions.

26 lug

Note di rilascio

Market State feature bug fix

24 ago

Note di rilascio

Enhanced the settings by adding 'Tooltips' to provide clearer explanations for each input's purpose.

1 set

Note di rilascio

Improved "Bottom Detection" feature

18 set

Note di rilascio

Removed metrics table in case of copyright issues.

Updated calculation of the "Strength" for a more "long-term" approach

if you would like to see the metrics, pls DM via TV

25 set

Note di rilascio

Bug Fix on ''Strength" value

25 set

Note di rilascio

Author's Note