As I progress through my journey, I have come to the realization that it is time to give back. This script isn't a life changer, but it has the building blocks for a motivated individual to optimize the parameters and have a production script ready to go.
I adapted this indicator to a strategy for crypto markets. 15 minute time frame has worked best for me.
It is a standard deviation script that has 3 important user configured parameters. These 3 things are what the end user should tweak for optimum returns. They are.... 1) Lookback Length - I have had luck with it set to 20, but any value from 1-1000 it will accept. 2) stopPer - Stop Loss percentage of each trade 3) takePer - Take Profit percentage of each trade
2 and 3 above are where you will see significant changes in returns by altering them and trying different percentages. An experienced pinescript programmer can take this and build on it even more. If you do, I ask that you please share the script with the community in an open-source fashion.
It also already accounts for the commission percentage of 0.075% that Binance.US uses for people who pay fees with BNB.
How it works... It calculates a weighted standard deviation of the price for the lookback period set (so 20 candles is default). It recalculates each time a new candle is printed. It trades when price lows crossunder the bottom of that deviation channel, and sells when price highs crossover the top of that deviation channel. It works best in mid to long term sideways channels / Wyckoff accumulation periods.
I'll use this as a learning opportunity for newcomers as well. When you have a viable/decent strategy and you see a drawdown like the middle of this one, where the red part shoots down into the blue... that typically means it is holding onto trades too long. You can increase the amount of trades by lowering the take profit and stop loss percentage among other things.