Amrullah Deep Liquidity for S&P 500

3 feb 2020

Amrullah Deep Liquidity (ADL)

Amrullah Deep Liquidity (ADL) is a high profit factor strategy based on models designed by Muhd Amrullah.

Choosing your trading pair that you are planning to backtest

Check that you have been given access to Amrullah Deep Liquidity (ADL). Select SPX500USD with the default 4H time frame. Once done, open Indicators > Invite-Only Scripts > Amrullah Deep Liquidity %.

Choosing your initial capital that you want to begin backtesting

Go to Settings > Properties > Initial Capital and type in the amount of capital you're starting with. For the SPX500USD trading pair, the initial capital is denominated in USD.

Adjusting your equity at risk until the trades match your risk profile and comfort level

Go to Inputs > Equity Risk and adjust the value you are comfortable with. To analyse performance, you also want to choose the Start Year, Start Month and Start Date. Select lower equity risk for trades that you intend to take without the use of leverage. You can select an equity risk from 0.001 to 0.05 or all the way to 1.

Finding the time frame with the highest profit factor

Profit factor is defined as the gross profit a strategy makes across a defined period of time divided by its gross loss. You may choose to scroll through other time frames to find better models. You can select a different time frame from 1 min to 1H or all the way to 1M. Once you find the model you desire, you are encouraged to check that the model has a backtested profit factor of >3.5. You can then begin looking through the Performance Summary to find other detailed statistics.

Analysing the equity curve from the Amrullah Deep Liquidity (ADL) strategy

A green equity curve indicates that the trades are accumulating profits. A red equity curve indicates that the trades are accumulating losses. A healthy equity curve is one that is green and grows steadily to the right and upward direction.

Analysing the display arrows on the chart

Amrullah Deep Liquidity (ADL) tells you when to take a trade and how much to put in a trade. ADL can do this as the model identifies inventory risk in traders and market makers in the chosen market. On your Tradingview chart, ADL will display an arrow that tells you when to enter a trade. You can also see the amount to trade beside the arrow.

Opting for a trial

Yes you may opt for a trial which has limited availability.

The author's background and experience

My career in software and deep learning development spans across more than 5 years. At work, I lead a team to solve core computer vision tasks for large companies. I continually read all kinds of computer science books and papers, and follows progress on tools used in financial markets.