TAS Boxes + TAS Vega + TAS Compass [TASMarketProfile]This bundle of 3 TAS Market Profile indicators provides a shaded background that reveals directional bias, colored price bars show clearly when breakout conditions are bullish (green) or bearish (red) as well as 3 real-time dotted lines that show developing commercial balance areas known as “value areas.” These TAS Boxes 3 lines are calculated in real-time and leveraged to identify trade entry zones, trailing stops and targets. The 3 indicators can be activated and applied to a chart simultaneously (as shown) or individually in the Inputs settings tab. This description contains descriptions for all 3 indicators in the order of TAS Boxes, TAS Vega and TAS Compass so you’ll need to scroll below to get to the one you want insight.
∟ ABOUT TAS BOXES:
TAS Boxes (also known as TAS Dynamic Profile) offers a dynamic representation of developing commercial balance areas known as “value areas” and are depicted with 3 colored horizontal dotted lines. Note that the thickness of the dotted lines may be adjusted in the Style settings.
Red Line- Supply / High Value Area (HVA) / Resistance
Cyan Line- Point of Control (POC)
Green Line- Demand / Low Value Area (LVA) / Support
The TAS Boxes calculate and display in real-time intrabar and are finalized at the close of the bar. The levels may dynamically update intrabar and move and this is viewed as foreshadowing of where new value areas may be attempting to appear next. When the market is between the top and bottom lines, the market is considered “in value” or “in balance.” When the market closes outside the top or bottom lines, the market is considered out of value/unbalanced and in breakout mode in that direction.
INPUT SETTINGS FOR TAS BOXES:
There are 3 inputs for TAS Boxes and below you’ll find the default settings:
MinSignal_123: 2 (only options are 1, 2, or 3)
Length: 7
MapLength: 7
MinSignal_123 -- Measures how established the commercial interest creating the balance area must be to create a new TAS Box. In other words, this input is a measure of the strength of the box.
Length –- Takes into consideration the relative “momentum” behind the move and how extended the move must be before the formation of new TAS Box levels.
MapLength –- Specifies the number of bars of data used to create the parameters of the TAS Box.
In summary, the first two inputs determine how often a new TAS Box will appear. The higher the input numbers the less often and harder it is to establish a new TAS Box, and vice versa. The last input simply determines how much data is included in the calculation of the new TAS Box.
While we recommend the default 2-7-7 as standard inputs for most traders as they work well with any tradable instrument with sufficient liquidity, other input combinations can be explored per the user’s preferences for varying sensitivity to market conditions and how recent of market conditions. Other settings to consider are 2-14-7 or 3-4-50. We invite the user to explore the cause and effect of changing the settings but doing so only after they have mastered an understanding of the strategy deployment with the defaults. The vast majority of users do not change the default settings.
WHAT MARKETS AND TIMEFRAMES CAN BE TRADED?
TAS Boxes can be displayed on Stocks, ETFs, futures, Forex and digital currencies. TAS Boxes can be applied to a chart of any time frame (e.g. 1-minute, 5-minute, 20-minute, daily, weekly, etc.) and will also function with many other style charts such as Range and Renko. Boxes displayed on longer time frames designate more significant balance areas and can be used to locate higher probability entries. Boxes on shorter time frames can be used to identify if the tradable instrument is currently in balance or breaking out, and pinpoint entries accordingly.
INTERPRETATION AND BASIC RULES:
HEIGHT OF BOXES: The height of the TAS Boxes from top line to bottom line is a measure of volatility. When taller Boxes are present and subsequent Boxes expand, this means the volatility of the market has increased. When the height of the Boxes is smaller or contracting, then we are experiencing a market in decreasing volatility or consolidating.
WIDTH OF BOXES: The width of the TAS Boxes are a measure of significance. The longer TAS Boxes have remained at the same levels, the higher the impact they will generally have as support or resistance levels, and in the instances they are breached the market may experience fast and vertical movement.
The TAS Boxes are used to identify high-probability zones for trading both inside the range of the Boxes and also when in breakout mode outside the Boxes:
>>> When price is trading within the boundaries of a normal to wide range commercial
balance area, we can consider trades within the range of the Boxes and should look for entries around the support (green line) or resistance (red line) areas with profit targets around the POC (cyan line) or opposite boundary.
>>> When taking trades near both the upper and lower boundaries, we like to see the POC
near the middle of the box’s range. This is known as a “symmetrical box” as pictured below.
>>> If the POC is plotted tightly close to or at the same price level as the green or red line, we refer to this as forming a “wall” or "plywood" and anticipate stronger commercial interest providing support or resistance in those areas.
>>> When trading above or below the current box, price is said to be in breakout/breakdown mode. During these modes, one should be getting out of any opposing positions that are not in the direction of the breakout. Not all breakout/breakdowns are created equal. Moves outside of TAS Boxes when the vertical distance from Top to Bottom is minimal will tend to have more powerful moves, especially in instances when there are recent long-range bars in the direction of the break.
>>> When markets are breaking out or down outside of Boxes, if there is sizeable space before you encounter recent historal TAS Boxes levels that is favorable for good follow through of the move. Prior TAS Boxes levels do serve as as areas the market may encounter friction and go sideways for a period of time.
MANAGING RISK WITH STOP LOSSES:
We highly recommend the use of stop losses when trading. You can place stop losses outside of the 3 lines of TAS Boxes and trail them behind the market as new Boxes appear in the direction of the trade. You may also move trailing stops among the 3 levels to suit your risk tolerance (e.g. when market is in breakout mode, trailing it from out the Boxes to outside the POC level or opposing level). You can start your initial stop outside the opposite of all 3 lines or on the other side of the POC for lower risk.
∟ ABOUT TAS VEGA:
TAS Vega changes the coloring of the price bars to provide a more meaningful interpretation of when markets are in balance (based on TAS Boxes) or in bullish/bearish breakout mode. There are four colors generated for TAS Vega:
GREEN – Bullish breakout / Don’t be short
RED – Bearish breakdown / Don’t be long
ORANGE – 1st bar back inside TAS Boxes after prior move outside.
GRAY – Balanced, each subsequent bar after the 1st bar closes inside Boxes.
INTERPRETATION AND BASIC RULES:
WHEN VEGA IS GREEN:
Don’t be short.
Consider longs only or retain existing long positions.
Entering on the bar close above the Boxes is higher probability than intrabar entry.
Many consecutive bar closes above Boxes increases probability of eventual move higher.
WHEN VEGA IS RED:
Don’t be long.
Consider shorts only or retain existing short positions.
Entering on the bar close below the Boxes is higher probability than intrabar entry.
Many consecutive bar closes below Boxes increases probability of eventual move lower.
WHEN VEGA IS ORANGE:
If orange due to closing back inside Boxes of your initial entry Box, hold.
If orange due to closing inside a new Box appearing in the direction of your trade (higher Boxes for longs, lower Boxes for short) consider this a potential 1st tier profit-taking opportunity for multi-lot/shares positions. If single units, exit is at the trader's discretion contingent on the extent of the move.
It is prudent risk management to also use the appearance of orange closed bars as a reminder to trail your stop loss behind the new TAS Boxes levels.
Many times you may see many orange bars over a series of bars (not consecutive, however) and this means the market continues to explore both sides of TAS Boxes and is indecisive about intentions. Be cautious at these times.
WHEN VEGA IS GRAY:
Gray bars simply means the bar has closed in balance within the value area of TAS Boxes.
Gray bars are not a cue to exit a position necessarily. It is just a visual that the bar has closed in the value area. Often a trending move will have many periods that the market closes back inside new Boxes that are appearing in the direction of the trend and your largest trades will require that you simply adjust your trailing stop rather than exit with gray bars.
It is prudent risk management to also use the appearance of orange closed bars as a reminder to trail your stop loss behind the new TAS Boxes levels.
Many times you may see many orange bars over a series of bars (not consecutive, however) and this means the market continues to explore both sides of TAS Boxes and is indecisive about intentions. Be cautious at these times.
The user can adjust the coloring of the TAS Vega bars in Style settings.
∟ ABOUT TAS COMPASS:
TAS Compass changes the background color of the chart to reveal the directional bias of the market. It may be applied to charts in any timeframe for stocks, ETFs, futures, Forex and digital currencies.
There are two colors generated for TAS Compass:
GREEN – Bullish directional bias
RED – Bearish directional bias
INTERPRETATION AND BASIC RULES:
The directional bias is established (or changes) when a bar closes outside of TAS Boxes levels. When a market closes above the TAS Boxes, it will establish a bullish bias (green background) and this will remain intact until there is a close below the TAS Boxes. At the time there is a bar close below the TAS Boxes, then the TAS Compass bias changes to bearish bias (red background). This sequence continues back and forth indefinitely. When using TAS Compass, one should still follow the prudent rules and best practices of TAS Boxes as there may be opportunities to exit a losing position sooner by doing so even in the instance a TAS Compass directional bias has not changed.
TAS Compass can be used as a stand-alone visual cue on a chart, but will have accentuated value when used in conjunction with TAS Boxes and TAS Vega indicators included within this bundle.
Below is an example showing TAS Compass with TAS Boxes in order to show how the closes outside of TAS Boxes is the trigger to the background color change logic.
Trade Well My Friends,
Cerca negli script per "stop loss"
[Fedra Algotrading Strategy Trailing Stop]Algotrading strategy optimized for cryptocurrencies. Originally conceived to trade automatically through bots (that's how I use it), it also works to get signals and trade manually in any exchange.
It works in spot.
Buy the dip:
Attempts to buy on the dip, finding entries when the price makes abrupt dips that break deviation of the linear regression of the last periods.
Trend Detection:
Determines whether the market is in an uptrend or downtrend by crossing 2 SMAs + super trend in different temporalities. This affects the performance of the strategy. It works as a filter to avoid making entries in a downtrend. It also includes other advanced filters to find the best selling price on losses.
Break Even:
If the market enters a downtrend with an open trade, the Break Even sell is triggered, (configurable, default 1.5%). The intention is to close the trade as soon as possible, but without losses. The value of 1.5% is intended to cover commission costs and a possible spread.
Conditional SL Level: Determines a tolerance level in %, from which it is allowed to sell at a loss, while the price is above this level, the scrip will only sell at a profit.
% Trailing Stop Loss. The Stop Loss is placed a % below the price and accompanies it in the rises to make the most of an uptrend.
It allows you to easily configure the backtest period to optimize the parameters for consistent results.
The strategy calculates by default a commission of 0.1% on each trade to make the backtest more "pessimistic".
Includes advanced features for compatibility with different bots platforms in the market.
Risk management by % of equity or by maximum series of losses.
////////////////SPANISH///////////////////
Estrategia de Algotrading optimizada para criptomonedas. Originalmente concebida para operar de manera automática mediante bots (así la utilizo yo), funciona también para obtener señales y operar manualmente en cualquier exchange.
Funciona en spot.
Buy the dip:
Intenta comprar en el dip, encontrando entradas cuando el precio hace bajadas abruptas que rompen la desviación de la regresión lineal de los últimos periodos
Detección de Trend:
Determina si el mercado tiene una tendencia alcista o bajista mediante el cruce de 2 SMAs + super trend en distintas temporalidades. Esto afecta el funcionamiento de la estrategia. Funciona como filtro para evitar realizar entradas en una tendencia bajista. Incluye también otros filtros avanzados para encontrar el mejor precio de venta en pérdidas.
Break Even:
Si el mercado entra en tendencia bajista con una operación abierta, se activa la venta en Break Even, (configurable, por defecto 1.5%). La intención es cerrar la operación lo antes posible, pero sin pérdidas. El valor de 1.5% está pensado para cubrir los costos de comisiones y un posible spread.
Nivel de SL Condicional: Determina un nivel de tolerancia en %, a partir del cual se permite la venta en pérdidas, mientras el precio esté sobre este nivel, el scripto sólo venderá en ganancias
% Trailing Stop Loss. El Stop Loss se ubica un % debajo del precio y lo acompaña en las subidas para aprovechar al máximo un uptrend.
Permite configurar de manera muy fácil el periodo de backtest para optimizar los parámetros para resultados consistentes.
La estrategia calcula por defecto una comisión de 0.1% en cada operación para que el backtest sea más "pesimista".
Incluye funciones avanzadas para compatibilidad con diferentes plataforma de bots del mercado.
Administración de risego por % del capital o por máxima serie de pérdidas
ATR Combined IndicatorHow to Use and Adjust the ATR Stop-Loss & Risk Manager Indicator in TradingView
The ATR Stop-Loss & Risk Manager indicator is designed to help traders visualize Average True Range (ATR)-based stop-loss levels and assess risk. Here's a step-by-step guide on how to use it and adjust its settings.
Adding the Indicator to Your Chart
Open TradingView and select your desired chart and time frame.
Click on the Pine Editor at the bottom of the screen.
Paste the provided script into the editor and click Add to Chart.
Once added, the indicator will appear on your chart with ATR values, stop-loss levels, and a risk table.
Indicator Outputs
ATR Line: A line representing the Average True Range (ATR) value, providing a measure of market volatility.
Stop-Loss Levels:
Stop Loss High: A green line above the current price, representing the suggested stop-loss level for long positions.
Stop Loss Low: A red line below the current price, representing the suggested stop-loss level for short positions.
Risk Table:
Displays the ATR value multiplied by a user-defined risk multiplier in a table on the chart.
Configuring the Settings
To customize the indicator for your trading strategy, click the gear icon next to the indicator’s name in the Indicators pane.
1. ATR Settings
ATR Period: Adjust the number of bars used to calculate the ATR. Common values include 14 (default) or 20. Shorter periods respond faster to price changes, while longer periods smooth volatility.
Smoothing Method:
Choose between RMA, SMA, EMA, or WMA for the ATR calculation:
RMA (default): A variation of the moving average commonly used in ATR.
SMA: Simple Moving Average, giving equal weight to all bars in the calculation.
EMA: Exponential Moving Average, which gives more weight to recent bars.
WMA: Weighted Moving Average, emphasizing recent prices linearly.
2. Multipliers
ATR Multiplier for Table: Adjust this to scale the ATR value displayed in the table. For example:
Set it to 1.0 to display the exact ATR.
Increase or decrease it to align with your risk tolerance.
Stop Loss Multiplier: Adjust this to change how far the stop-loss levels are plotted from the current price. For example:
Use 1.5 (default) for moderate levels.
Increase for wider stops or decrease for tighter stops.
3. Table Customization
Table Position: Select where the table appears on the chart:
Top Right (default), Top Left, Bottom Right, Bottom Left, Middle Right, or Middle Left.
Border Color: Choose the border color for the table.
Background Color: Set the table's background color.
Text Color: Customize the table text color for better visibility.
4. Visualization
Stop-Loss High and Low Lines:
Use these lines to determine potential stop-loss levels for your trades based on the ATR and stop-loss multiplier.
Green for Stop Loss High (long positions).
Red for Stop Loss Low (short positions).
Practical Use Cases
Volatility-Based Stop Losses:
Use the stop-loss lines to set dynamic stop-loss levels based on market volatility.
Adjust the multipliers to match your trading style:
Tight stops for scalping or day trading.
Wider stops for swing or position trading.
Risk Assessment:
Use the ATR value in the table to gauge market volatility before entering trades.
Higher ATR values indicate more volatile markets, requiring wider stops.
Position Sizing:
Incorporate the ATR value into your position-sizing strategy. For example:
Divide your account risk (e.g., 1% of equity) by the ATR to calculate position size.
TDGS Dynamic Grid Trading Strategy [CoinFxPro]Advanced Dynamic Grid Trading Strategy
Logic and Working Principle:
This strategy uses a dynamic grid system to support both long and short trades. Grid trading aims to capitalize on price fluctuations within a predefined range by executing buy and sell orders systematically. The system calculates grid levels based on a base price and dynamically trades within these levels.
Grid Levels:
Grid levels are calculated based on the initial price and the user-defined grid spacing percentage.
Long Mode: Buys when the price decreases and sells when the price increases.
Short Mode: Sells when the price increases and buys when the price decreases.
Grid Updates:
Grid levels are recalculated based on the market price when the price moves by a user-defined update percentage.
For example;
In Long mode, when the price shows an upward trend, that is, when it rises by the Grid Update Percentage specified by the user, Grid levels are recreated and trades are made according to the new grid levels. While the price and grid levels are updated according to the new price, the Stop level is also updated upwards and the stop is followed with the TrailingStop logic.
In short mode, the same system operates with reverse logic. In other words, as prices decrease downwards, the grids are updated downwards when the Grid update percentage determined by the user decreases. The stop level is also updated accordingly.
The difference of the strategy from other Gridbots is that the grid levels are automatically updated and the levels are recreated with the price percentage difference determined by the user. Old levels can be tracked on the chart.
As the price updates, the self-updating grid levels are updated upwards in long mode and downwards in short mode.
The number of buying lots and selling lots are separated, allowing both trading within the position and the opportunity to collect lots and increase the position.
When trading with the grid trading logic, when buying and selling between grids, there is no repeated purchase at the same level unless there is a sale at the upper grid level. In this way, each level will be traded within itself.
For example, in a long condition, when the price is going up, after deducting the selling lot from the buying lot at each level, the remaining lots will be collected while the price is going up and an opportunity will be provided from the price rise.
Different preferences have been added to the profit taking conditions, allowing the robot to continue or stop after profit taking, if desired.
The system, which acts entirely according to user parameters, constantly updates itself as long as it moves in the direction determined by itself, and in these conditions, transactions are carried out according to profit or stop conditions.
Parameters:
Grid Parameters:
Settings such as buy lot size, sell lot size, grid count, and grid spacing percentage allow flexibility and customization.
Risk Management:
Stop loss (%) and take profit (%) levels help limit potential losses and secure profits at predefined thresholds.
Objective:
The goal of this strategy is to systematically capitalize on market price fluctuations through automated grid trading. This method is particularly effective in volatile markets where the price oscillates within a specific range.
The strategy works with a complete algorithm logic, and in appropriate instruments (especially instruments with depth and transaction volume should be preferred), buying and selling transactions are made according to the parameters determined at the beginning, and if the conditions go beyond the conditions, the stop is made, and when the profit taking conditions are met, it takes profit and prices according to the determined value. When it is updated, the values are updated again and the parameter works algorithmically.
Risk Management Recommendations:
Initial Capital: Grid trading involves frequent transactions, so sufficient initial capital is essential.
Stop Loss: Always set stop loss levels to prevent significant losses.
Grid Count and Spacing: A higher number of grids provides more trading opportunities but using grids that are too close may increase transaction costs due to small price movements.
First of all, it is important for risk management that you choose instruments that have depth and high transaction volume.
Strategy results may differ as a result of the parameters entered. Therefore, before trading in your real account, it is recommended that you start real transactions after backtesting with different parameters.
If you are stuck on something, you can mention it in the comments.
Consecutive Higher/Lower Closes with Breakout LineIndicator Description:
"Four Consecutive Higher/Lower Closes with Auto Breakout Line Timeframe" is a custom TradingView indicator designed to help traders identify key breakout points based on consecutive price action. It combines two main features:
Four Consecutive Higher/Lower Closes – Detects bullish or bearish momentum through consecutive higher or lower closing prices.
Auto Breakout Line – Plots a breakout line that adapts to the timeframe of the chart, helping to visualize potential breakout levels and trends.
Features:
Higher/Lower Close Detection: The indicator tracks and plots lines when there are four consecutive higher closes (bullish) or four consecutive lower closes (bearish). This can signal a trend or momentum in the market.
Breakout Line: It draws an adaptive breakout line that adjusts based on the selected timeframe (i.e., the chart interval), helping traders visually identify breakout levels across different timeframes.
Timeframe Adaptability: The indicator automatically adjusts the breakout line timeframe based on the chart interval (e.g., 15 minutes for lower timeframes and 1 day for higher timeframes).
Customizable Timeframe and Color: The default color for breakout lines is purple, but it is customizable. You can also enable/disable the breakout line through the settings.
How to Use This Indicator for Trading:
1. Trading with Consecutive Higher/Lower Closes:
Bullish Signal: When the indicator detects four consecutive higher closes, it signifies increasing buying momentum. Traders might consider taking long positions when this occurs, especially if the price continues to close higher.
Bearish Signal: When the indicator detects four consecutive lower closes, it signals increasing selling pressure. Traders might consider taking short positions if the price continues to close lower.
Confirmation: The fourth consecutive higher or lower close should be confirmed with additional analysis, such as candlestick patterns, support/resistance levels, or volume.
2. Using the Breakout Line:
The breakout line is designed to help traders identify potential breakout levels. When the price approaches or crosses this line, it could indicate that the market is either breaking out in the direction of the trend or failing to continue the trend.
Bullish Breakout: If the price crosses the breakout line upwards (after four consecutive higher closes), it may confirm that a bullish breakout is in progress. This can be a good opportunity to take a long position.
Bearish Breakout: If the price crosses the breakout line downwards (after four consecutive lower closes), it may confirm that a bearish breakout is occurring. This can be an opportunity to take a short position.
Avoid False Breakouts: It is important not to react to every price move crossing the breakout line. Wait for additional confirmation signals like higher volume, candlestick patterns (e.g., bullish or bearish engulfing), or other technical indicators (e.g., RSI, MACD) to confirm the breakout's validity.
How to Avoid Fake Breakouts:
A fake breakout occurs when the price moves beyond a breakout level but then quickly reverses back inside the range, trapping traders who took positions in the breakout direction.
Here are strategies to avoid fake breakouts:
1. Volume Confirmation:
A valid breakout is often supported by higher volume. If the price crosses the breakout line but the volume is low, it's more likely to be a fake breakout. Always check the volume when a breakout occurs.
Look for volume spikes that accompany the breakout. A surge in volume confirms the market's conviction in the new trend.
2. Candlestick Patterns:
Bullish/bearish engulfing patterns or Doji candles can provide important insights into potential reversals. If a breakout occurs but is immediately followed by a bearish engulfing candle, it's a sign that the breakout may be false.
Also, check for candlestick formations at key support or resistance levels for confirmation.
3. Time Confirmation:
Wait for the close of the current bar to confirm the breakout. A breakout within a single bar without closing above or below a significant level could be a false move.
Sometimes the market will test the breakout level before committing to the direction. This is common in volatile or choppy market conditions.
4. Use of Other Indicators:
RSI (Relative Strength Index): An overbought or oversold condition can indicate a potential reversal after a breakout.
MACD (Moving Average Convergence Divergence): Watch for a MACD crossover that aligns with the breakout direction to confirm the move.
5. Use Stop Losses:
A key rule in avoiding fake breakouts is to always use stop-loss orders. Set your stop-loss just outside the breakout level to avoid excessive losses if the price reverses.
Trailing stops can also help lock in profits if the price moves in your favor but may reverse at a later point.
Summary:
The Four Consecutive Higher/Lower Closes with Auto Breakout Line Timeframe indicator is a valuable tool for identifying strong trends and potential breakouts in the market. By combining consecutive close patterns with dynamic breakout levels, it can help traders spot bullish or bearish momentum and make more informed trading decisions. However, always confirm breakouts with volume, candlestick patterns, and other technical indicators to avoid fake breakouts and reduce the risk of false signals.
By using this indicator along with prudent risk management strategies, traders can improve their chances of entering and exiting trades at the right time while avoiding unnecessary losses from false breakouts.
ADX Breakout Strategy█ OVERVIEW
The ADX Breakout strategy leverages the Average Directional Index (ADX) to identify and execute breakout trades within specified trading sessions. Designed for the NQ and ES 30-minute charts, this strategy aims to capture significant price movements while managing risk through predefined stop losses and trade limits.
This strategy was taken from a strategy that was posted on YouTube. I would link the video, but I believe is is "against house rules".
█ CONCEPTS
The strategy is built upon the following key concepts:
ADX Indicator: Utilizes the ADX to gauge the strength of a trend. Trades are initiated when the ADX value is below a certain threshold, indicating potential for trend development.
Trade Session Management: Limits trading to specific hours to align with optimal market activity periods.
Risk Management: Implements a fixed dollar stop loss and restricts the number of trades per session to control exposure.
█ FEATURES
Customizable Stop Loss: Set your preferred stop loss amount to manage risk effectively.
Trade Session Configuration: Define the trading hours to focus on the most active market periods.
Entry Conditions: Enter long positions when the price breaks above the highest close in the lookback window and the ADX indicates potential trend strength.
Trade Limits: Restrict the number of trades per session to maintain disciplined trading.
Automated Exit: Automatically closes all positions at the end of the trading session to avoid overnight risk.
█ HOW TO USE
Configure Inputs :
Stop Loss ($): Set the maximum loss per trade.
Trade Session: Define the active trading hours.
Highest Lookback Window: Specify the number of bars to consider for the highest close.
Apply the Strategy :
Add the ADX Breakout strategy to your chart on TradingView.
Ensure you are using a 30-minute timeframe for optimal performance.
█ LIMITATIONS
Market Conditions: The strategy is optimized for trending markets and may underperform in sideways or highly volatile conditions.
Timeframe Specific: Designed specifically for 30-minute charts; performance may vary on different timeframes.
Single Asset Focus: Primarily tested on NQ and ES instruments; effectiveness on other symbols is not guaranteed.
█ DISCLAIMER
This ADX Breakout strategy is provided for educational and informational purposes only. It is not financial advice and should not be construed as such. Trading involves significant risk, and you may incur substantial losses. Always perform your own analysis and consider your financial situation before using this or any other trading strategy. The source material for this strategy is publicly available in the comments at the beginning of the code script. This strategy has been published openly for anyone to review and verify its methodology and performance.
Rsi Long-Term Strategy [15min]Hello, I would like to present to you The "RSI Long-Term Strategy" for 15min tf
The "RSI Long-Term Strategy " is designed for traders who prefer a combination of momentum and trend-following techniques. The strategy focuses on entering long positions during significant market corrections within an overall uptrend, confirmed by both RSI and volume. The use of long-term SMAs ensures that trades are made in line with the broader market trend. The stop-loss feature provides risk management by limiting losses on trades that do not perform as expected. This strategy is particularly well-suited for longer-term traders who monitor 15-minute charts but look for substantial trend reversals or continuations.
Indicators and Parameters:
Relative Strength Index (RSI):
- The RSI is calculated using a 10-period length. It measures the magnitude of recent price changes to evaluate overbought or oversold conditions. The script defines oversold conditions when the RSI is at or below 30 and overbought conditions when the RSI is at or above 70.
Volume Condition:
-The strategy incorporates a volume condition where the current volume must be greater than 2.5 times the 20-period moving average of volume. This is used to confirm the strength of the price movement.
Simple Moving Averages (SMA):
- The strategy uses two SMAs: SMA1 with a length of 250 periods and SMA2 with a length of 500 periods. These SMAs help identify long-term trends and generate signals based on their crossover.
Strategy Logic:
Entry Logic:
A long position is initiated when all the following conditions are met:
The RSI indicates an oversold condition (RSI ≤ 30).
SMA1 is above SMA2, indicating an uptrend.
The volume condition is satisfied, confirming the strength of the signal.
Exit Logic:
The strategy closes the long position when SMA1 crosses under SMA2, signaling a potential end of the uptrend (a "Death Cross").
Stop-Loss:
A stop-loss is set at 5% below the entry price to manage risk and limit potential losses.
Buy and sell signals are highlighted with circles below or above bars:
Green Circle : Buy signal when RSI is oversold, SMA1 > SMA2, and the volume condition is met.
Red Circle : Sell signal when RSI is overbought, SMA1 < SMA2, and the volume condition is met.
Black Cross: "Death Cross" when SMA1 crosses under SMA2, indicating a potential bearish signal.
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
;)
MAHA Luxmi AI Candles [Overlay]The MAHA Luxmi AI Candles trading indicator is a sophisticated tool designed to assist traders in identifying potential trading opportunities by utilizing a combination of Moving Average (MA) and Heikin-Ashi (HA) techniques, further enhanced with a custom formula. Here’s a detailed breakdown of its functionalities:
1. Integration of MA and HA Techniques
MAHA stands for Moving Average and Heikin-Ashi. This indicator modifies these traditional techniques with a unique custom formula, aiming to provide more accurate and reliable signals for traders. The combination enhances the smoothing effect of Moving Averages with the trend indication of Heikin-Ashi candles.
2. Four-Colored Candles for Trend Indication
The indicator uses a color-coded system to denote different market conditions and potential trading opportunities:
- Green Candles: These candles indicate a potential long opportunity. The appearance of a green candle suggests that the market is showing bullish tendencies, prompting traders to consider entering a long position.
- Blue Candles: These candles signify an active pullback within a bullish trend. The blue candle warns traders of a possible temporary reversal within the overall bullish trend, suggesting caution and the need for confirmation before continuing with a long position or preparing for a potential reversal.
- Red Candles: These candles represent a potential short opportunity. A red candle indicates bearish market conditions, signaling traders to consider entering a short position.
- Yellow Candles: These candles denote an active pullback within a bearish trend. The presence of a yellow candle indicates a temporary reversal within the bearish trend, urging traders to be cautious with short positions and look for signs of continuation or reversal.
3. MAHA Bars for Distance and Area of Interest
In addition to the colored candles, the MAHA Luxmi AI Candles indicator also plots MAHA bars. These bars share the same color coding and usage as the candles, providing a consistent visual representation of market conditions:
- Green Bars: Indicate a potential long opportunity, aligning with green candles.
- Blue Bars: Show an active pullback in a bullish trend, aligning with blue candles.
- Red Bars: Represent a potential short opportunity, aligning with red candles.
- Yellow Bars: Indicate an active pullback in a bearish trend, aligning with yellow candles.
The MAHA bars help traders gauge the distance between the current price and the area of interest, enhancing their understanding of how close or far the price is from key levels identified by the MAHA formula. This aids in making better decisions regarding entry and exit points.
4. Trailing Stop Loss Feature
The base of the MAHA Bars can also be used as a trailing stop loss. This feature provides a dynamic stop loss level that adjusts with the market, helping traders lock in profits and limit losses by following the trend. When the price moves favorably, the trailing stop loss adjusts accordingly, ensuring that traders can capitalize on market movements while minimizing risk.
Usage and Benefits
- Trend Identification: The color-coded system simplifies the identification of market trends and potential reversals, making it easier for traders to understand market dynamics at a glance.
- Pullback and Reversal Alerts: The blue and yellow candles/bars alert traders to potential pullbacks and reversals, providing crucial information for managing trades and avoiding false signals.
- Distance Measurement: The MAHA bars help traders measure the distance between the current price and the areas of interest, enhancing their ability to assess the risk and potential reward of trades.
- Trailing Stop Loss: The base of the MAHA Bars can be used as a trailing stop loss, providing a dynamic risk management tool that adapts to market conditions.
Overall, the MAHA Luxmi AI Candles trading indicator is a powerful tool for traders looking to leverage the combined strengths of Moving Averages and Heikin-Ashi techniques. The intuitive color-coded system, additional MAHA bars, and the trailing stop loss feature make it an essential component of a trader’s toolkit for identifying trends, managing risk, and identifying trading opportunities.
GKD-BT Optimizer SCSC Backtest [Loxx]The Giga Kaleidoscope GKD-BT Optimizer SCSC Backtest (Solo Confirmation Super Complex) is a Backtest module included in AlgxTrading's "Giga Kaleidoscope Modularized Trading System." (see the section Giga Kaleidoscope (GKD) Modularized Trading System below for an explanation of the GKD trading system)
**the backtest data rendered to the chart above and all screenshots below use $5 commission per trade and 10% equity per trade with $1 million initial capital**
█ GKD-BT Optimizer SCSC Backtest
The GKD-BT Optimizer SCSC Backtest is a comprehensive backtesting module designed to optimize the combination of key GKD indicators within AlgxTrading's "Giga Kaleidoscope Modularized Trading System." This module facilitates precise strategy refinement by allowing traders to configure and optimize the following critical GKD indicators:
GKD-B Baseline
GKD-V Volatility/Volume
GKD-C Confirmation 1
GKD-C Continuation
Each indicator is equipped with an "Optimizer" mode, enabling dynamic feedback and iterative improvements directly into the backtesting environment. This integrated approach ensures that each component contributes effectively to the overall strategy, providing a robust framework for achieving optimized trading outcomes.
The GKD-BT Optimizer supports granular test configurations including a single take profit and stop loss setting, and allows for targeted testing within specified date ranges to simulate forward testing with historical data. This feature is essential for evaluating the resilience and effectiveness of trading strategies under various market conditions.
Furthermore, the module is designed with user-centric features such as:
Customizable Trading Panel: Displays critical backtest results and trade statistics, which can be shown or hidden as per user preference.
Highlighting Thresholds: Users can set thresholds for Total Percent Wins, Percent Profitable, and Profit Factor, which helps in quickly identifying the most relevant metrics for analysis.
The detailed setup ensures that traders can not only adjust their strategies based on historical performance but also fine-tune their approach to meet specific trading objectives.
🔶 To configure this indicator: ***all GKD indicators listed below are all included in the AlgxTrading trading system package***
1. Add GKD-C Confirmation, GKD-B Baseline, GKD-V Volatility/Volume, and GKD-C Continuation to your chart
2. In the GKD-B Baseline indicator, change "Baseline Type" to "Optimizer"
3. In the GKD-V Volatility/Volume indicator, change "Volatility/Volume Type" to "Optimizer"
4. In the GKD-C Confirmation 1 indicator, change "Confirmation Type" to "Optimizer"
5. In the GKD-C Continuation indicator, change "Confirmation Type" to "Optimizer"
An example of steps 2-5. In the screenshot example below, we change the value "Confirmation Type" in the GKD-C Fisher Transform indicator to "Optimizer"
6. In the GKD-BT Optimizer SCSC Backtest, import the value "Input into NEW GKD-BT Backtest" from the GKD-B Baseline indicator into the field "Import GKD-B Baseline indicator"
7. In the GKD-BT Optimizer SCSC Backtest, import the value "Input into NEW GKD-BT Backtest" from the GKD-V Volatility/Volume indicator into the field "Import GKD-V Volatility/Volume indicator"
8. In the GKD-BT Optimizer SCSC Backtest, import the value "Input into NEW GKD-BT Backtest" from the GKD-C Confirmation 1 indicator into the field "Import GKD-C Confirmation 1 indicator"
9. In the GKD-BT Optimizer SCSC Backtest, import the value "Input into NEW GKD-BT Backtest" from the GKD-C Continuation indicator into the field "Import GKD-C Continuation indicator"
An example of steps 6-9. In the screenshot example below, we import the value "Input into NEW GKD-BT Backtest" from the GKD-C Fisher Transform indicator into the GKD-BT Optimizer SCSC Backtest
10. Decide which of the 5 indicators you wish to optimize in first in the GKD-BT Optimizer SCSC Backtest. Change the value of the import from "Input into NEW GKD-BT Backtest" to "Input into NEW GKD-BT Optimizer Signals"
An example of step 10. In the screenshot example below, we chose to optimize the Confirmation 1 indicator, the GKD-C Fisher Transform. We change the value of the field "Import GKD-C Confirmation 1 indicator" from "Input into NEW GKD-BT Backtest" to "Input into NEW GKD-BT Optimizer Signals"
11. In the GKD-BT Optimizer SCSC Backtest and under the "Optimization Settings", use the dropdown menu "Optimization Indicator" to select the type of indicator you selected from step 12 above: "Baseline", "Volatility/Volume", "Confirmation 1", or "Continuation"
12. In the GKD-BT Optimizer SCSC Backtest and under the "Optimization Settings", import the value "Input into NEW GKD-BT Optimizer Start" from the indicator you selected to optimize in step 12 above into the field "Import Optimization Indicator Start"
13. In the GKD-BT Optimizer SCSC Backtest and under the "Optimization Settings", import the value "Input into NEW GKD-BT Optimizer Skip" from the indicator you selected to optimize in step 12 above into the field "Import Optimization Indicator Skip"
An example of step 11. In the screenshot example below, we select "Confirmation 1" from the "Optimization Indicator" dropdown menu
An example of steps 12 and 13. In the screenshot example below, we import "Import Optimization Indicator Start" and "Import Optimization Indicator Skip" from the GKD-C Fisher Transform indicator into their respective fields
🔶 This backtest includes the following metrics
Net profit: Overall profit or loss achieved.
Total Closed Trades: Total number of closed trades, both winning and losing.
Total Percent Wins: Total wins, whether long or short, for the selected time interval regardless of commissions and other profit-modifying addons.
Percent Profitable: Total wins, whether long or short, that are also profitable, taking commissions into account.
Profit Factor: The ratio of gross profits to gross losses, indicating how much money the strategy made for every unit of money it lost.
Average Profit per Trade: The average gain or loss per trade, calculated by dividing the net profit by the total number of closed trades.
Average Number of Bars in Trade: The average number of bars that elapsed during trades for all closed trades.
🔶 Summary of notable settings not already explained above
🔹 Backtest Properties
These settings define the financial and logistical parameters of the trading simulation, including:
Initial Capital: Specifies the starting balance for the backtest, setting the baseline for measuring profitability and loss.
Order Size: Determines the size of trades, which can be fixed or a percentage of the equity, affecting risk and return.
Order Type: Chooses between fixed contract sizes or a percentage-based order size, allowing for static or dynamic trading volumes.
Commission per Order: Accounts for trading costs, subtracting these from profits to provide a more accurate net performance result.
🔹 Signal Qualifiers
This group of settings establishes criteria related to the strategy's Baseline, and Volatility/Volume indicators in relation to the GKD-C Confirmation 1 indicator, which is crucial for validating trade signals. These include:
Maximum Allowable Post Signal Baseline Cross Bars Back: Sets the maximum number of bars that can elapse after a signal generated by a GKD-C Confirmation 1 indicator triggers. If the GKD-C Confirmation 1 indicator generates a long/short signal that doesn't yet agree with the trend position of the Baseline, then should the Baseline "catch-up" to the long/short trend of the GKD-C Confirmation 1 indicator within the number of bars specified by this setting, then a signal is generated.
Maximum Allowable Post Signal Volatility/Volume Cross Bars Back: Sets the maximum number of bars that can elapse after a signal generated by a GKD-C Confirmation 1 indicator triggers. If the GKD-C Confirmation 1 indicator generates a long/short signal that doesn't yet agree with the position of the Volatility/Volume, then should the Volatility/Volume "catch-up" with the long/short of the GKD-C Confirmation 1 indicator within the number of bars specified by this setting, then a signal is generated.
🔹 Signal Settings
Signal Options: These settings allow users to toggle the visibility of different types of entries based on the strategy criteria, such as standard entries, baseline entries, and continuation entries.
Standard Entry Rules Settings: Detailed criteria for standard entries can be customized here, including conditions on baseline agreement, price within specific zones, and agreement with other confirmation indicators.
1-Candle Rule Standard Entry Rules Settings: Similar to standard entries, but with a focus on conditions that must be met within a one-candle timeframe.
Baseline Entry Rules Settings: Specifies rules for entries based on the baseline, including conditions on confirmation agreement and price zones.
Volatility/Volume Entry Rules Settings: This includes settings for entries based on volatility or volume conditions, with specific rules on confirmation agreement and baseline agreement.
Continuation Entry Rules Settings: This group outlines the conditions for continuation entries, focusing on agreement with baseline and confirmation indicators since the entry signal trigger.
🔹 Volatility Settings
Volatility PnL Settings: Parameters for defining the type of volatility measure to use, its period, and multipliers for profit and stop levels.
Volatility Types Included
Standard Deviation of Logarithmic Returns: Quantifies asset volatility using the standard deviation applied to logarithmic returns, capturing symmetric price movements and financial returns' compound nature.
Exponential Weighted Moving Average (EWMA) for Volatility: Focuses on recent market information by applying exponentially decreasing weights to squared logarithmic returns, offering a dynamic view of market volatility.
Roger-Satchell Volatility Measure: Estimates asset volatility by analyzing the high, low, open, and close prices, providing a nuanced view of intraday volatility and market dynamics.
Close-to-Close Volatility Measure: Calculates volatility based on the closing prices of stocks, offering a streamlined but limited perspective on market behavior.
Parkinson Volatility Measure: Enhances volatility estimation by including high and low prices of the trading day, capturing a more accurate reflection of intraday market movements.
Garman-Klass Volatility Measure: Incorporates open, high, low, and close prices for a comprehensive daily volatility measure, capturing significant price movements and market activity.
Yang-Zhang Volatility Measure: Offers an efficient estimation of stock market volatility by combining overnight and intraday price movements, capturing opening jumps and overall market dynamics.
Garman-Klass-Yang-Zhang Volatility Measure: Merges the benefits of Garman-Klass and Yang-Zhang measures, providing a fuller picture of market volatility including opening market reactions.
Pseudo GARCH(2,2) Volatility Model: Mimics a GARCH(2,2) process using exponential moving averages of squared returns, highlighting volatility shocks and their future impact.
ER-Adaptive Average True Range (ATR): Adjusts the ATR period length based on market efficiency, offering a volatility measure that adapts to changing market conditions.
Adaptive Deviation: Dynamically adjusts its calculation period to offer a nuanced measure of volatility that responds to the market's intrinsic rhythms.
Median Absolute Deviation (MAD): Provides a robust measure of statistical variability, focusing on deviations from the median price, offering resilience against outliers.
Mean Absolute Deviation (MAD): Measures the average magnitude of deviations from the mean price, facilitating a straightforward understanding of volatility.
ATR (Average True Range): Finds the average of true ranges over a specified period, indicating the expected price movement and market volatility.
True Range Double (TRD): Offers a nuanced view of volatility by considering a broader range of price movements, identifying significant market sentiment shifts.
🔹 Other Settings
Backtest Dates: Users can specify the timeframe for the backtest, including start and end dates, as well as the acceptable entry time window.
Volatility Inputs: Additional settings related to volatility calculations, such as static percent, internal filter period for median absolute deviation, and parameters for specific volatility models.
UI Options: Settings to customize the user interface, including table activation, date panel visibility, and aesthetics like color and text size.
Export Options: Allows users to select the type of data to export from the backtest, focusing on metrics like net profit, total closed trades, and average profit per trade.
█ Giga Kaleidoscope (GKD) Modularized Trading System
The GKD Trading System is a comprehensive, algorithmic trading framework from AlgxTrading, designed to optimize trading strategies across various market conditions. It employs a modular approach, incorporating elements such as volatility assessment, trend identification through a baseline, multiple confirmation strategies for signal accuracy, and volume analysis. Key components also include specialized strategies for entry and exit, enabling precise trade execution. The system allows for extensive backtesting, providing traders with the ability to evaluate the effectiveness of their strategies using historical data. Aimed at reducing setup time, the GKD system empowers traders to focus more on strategy refinement and execution, leveraging a wide array of technical indicators for informed decision-making.
🔶 Core components of a GKD Algorithmic Trading System
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system. The GKD algorithm is built on the principles of trend, momentum, and volatility. There are eight core components in the GKD trading algorithm:
🔹 Volatility - In the GKD trading system, volatility is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. There are 17+ different types of volatility available in the GKD system including Average True Range (ATR), True Range Double (TRD), Close-to-Close, Garman-Klass, and more.
🔹 Baseline (GKD-B) - The baseline is essentially a moving average and is used to determine the overall direction of the market. The baseline in the GKD trading system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other GKD indicators.
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards or price is above the baseline, then only long trades are taken, and if the baseline is sloping downwards or price is below the baseline, then only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
🔹 Confirmation 1, Confirmation 2, Continuation (GKD-C) - The GKD trading system incorporates technical confirmation indicators for the generation of its primary long and short signals, essential for its operation.
The GKD trading system distinguishes three specific categories. The first category, Confirmation 1 , encompasses technical indicators designed to identify trends and generate explicit trading signals. The second category, Confirmation 2 , a technical indicator used to identify trends; this type of indicator is primarily used to filter the Confirmation 1 indicator signals; however, this type of confirmation indicator also generates signals*. Lastly, the Continuation category includes technical indicators used in conjunction with Confirmation 1 and Confirmation 2 to generate a special type of trading signal called a "Continuation"
In a full GKD trading system all three categories generate signals. (see the section “GKD Trading System Signals” below)
🔹 Volatility/Volume (GKD-V) - Volatility/Volume indicators are used to measure the amount of buying and selling activity in a market. They are based on the trading Volatility/Volume of the market, and can provide information about the strength of the trend. In the GKD trading system, Volatility/Volume indicators are used to confirm trading signals generated by the various other GKD indicators. In the GKD trading system, Volatility is a proxy for Volume and vice versa.
Volatility/Volume indicators reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by GKD-C confirmation and GKD-B baseline indicators.
🔹 Exit (GKD-E) - The exit indicator in the GKD system is an indicator that is deemed effective at identifying optimal exit points. The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
🔹 Backtest (GKD-BT) - The GKD-BT backtest indicators link all other GKD-C, GKD-B, GKD-E, GKD-V, and GKD-M components together to create a GKD trading system. GKD-BT backtests generate signals (see the section “GKD Trading System Signals” below) from the confluence of various GKD indicators that are imported into the GKD-BT backtest. Backtest types include: GKD-BT solo and full GKD backtest strategies used for a single ticker; GKD-BT optimizers used to optimize a single indicator or the full GKD trading system; GKD-BT Multi-ticker used to backtest a single indicator or the full GKD trading system across up to ten tickers; GKD-BT exotic backtests like CC, Baseline, and Giga Stacks used to test confluence between GKD components to then be injected into a core GKD-BT Multi-ticker backtest or single ticker strategy.
🔹 Metamorphosis (GKD-M) ** - The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, GKD-E, or GKD-V slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
*see the section “GKD Trading System Signals” below
**not a required component of the GKD algorithm
🔶 What does the application of the GKD trading system look like?
Example trading system:
Volatility: Average True Range (ATR) (selectable in all backtests and other related GKD indicators)
GKD-B Baseline: GKD-B Multi-Ticker Baseline using Hull Moving Average
GKD-C Confirmation 1 : GKD-C Advance Trend Pressure
GKD-C Confirmation 2: GKD-C Dorsey Inertia
GKD-C Continuation: GKD-C Stochastic of RSX
GKD-V Volatility/Volume: GKD-V Damiani Volatmeter
GKD-E Exit: GKD-E MFI
GKD-BT Backtest: GKD-BT Multi-Ticker Full GKD Backtest
GKD-M Metamorphosis: GKD-M Baseline Optimizer
**all indicators mentioned above are included in the same AlgxTrading package**
Each module is passed to a GKD-BT backtest module. In the backtest module, all components are combined to formulate trading signals and statistical output. This chaining of indicators requires that each module conform to AlgxTrading's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the various indictor types in the GKD algorithm.
🔶 GKD Trading System Signals
Standard Entry requires a sequence of conditions including a confirmation signal from GKD-C, baseline agreement, price criteria related to the Goldie Locks Zone, and concurrence from a second confirmation and volatility/volume indicators.
1-Candle Standard Entry introduces a two-phase process where initial conditions must be met, followed by a retraction in price and additional confirmations in the subsequent candle, including baseline, confirmations 1 and 2, and volatility/volume criteria.
Baseline Entry focuses on signals generated by the GKD-B Baseline, requiring agreement from confirmation signals, specific price conditions within the Goldie Locks Zone, and a timing condition related to the confirmation 1 signal.
1-Candle Baseline Entry mirrors the baseline entry but adds a requirement for a price retraction and subsequent confirmations in the following candle, maintaining the focus on the baseline's guidance.
Volatility/Volume Entry is predicated on signals from volatility/volume indicators, requiring support from confirmations, price criteria within the Goldie Locks Zone, baseline agreement, and a timing condition for the confirmation 1 signal.
1-Candle Volatility/Volume Entry adapts the volatility/volume entry to include a phase of initial signal and agreement, followed by a retracement phase that seeks further agreement from the system's components in the subsequent candle.
Confirmation 2 Entry is based on the second confirmation signal, requiring the first confirmation's agreement, specific price criteria, agreement from volatility/volume indicators, and baseline, with a timing condition for the confirmation 1 signal.
1-Candle Confirmation 2 Entry adds a retracement requirement to the confirmation 2 entry, necessitating additional agreements from the system's components in the candle following the signal.
PullBack Entry initiates with a baseline signal and agreement from the first confirmation, with a price condition related to volatility. It then looks for price to return within the Goldie Locks Zone and seeks further agreement from the system's components in the subsequent candle.
Continuation Entry allows for the continuation of an active position, based on a previously triggered entry strategy. It requires that the baseline hasn't crossed since the initial trigger, alongside ongoing agreements from confirmations and the baseline.
█ Conclusion
The GKD-BT Optimizer SCSC Backtest is a critical tool within the Giga Kaleidoscope Modularized Trading System, designed for precise strategy refinement and evaluation within the GKD framework. It enables the optimization and testing of various trading indicators and strategies under different market conditions. The module's design facilitates detailed analysis of individual trading components' performance, allowing for the optimization of indicators like Baseline, Volatility/Volume, Confirmation, and Continuation. This optimization process aids traders in identifying the most effective configurations, thereby enhancing trading outcomes and strategy efficiency within the GKD ecosystem.
█ How to Access
You can see the Author's Instructions below to learn how to get access.
GKD-BT Optimizer Full GKD Backtest [Loxx]The Giga Kaleidoscope GKD-BT Optimizer Full GKD Backtest is a Backtest module included in AlgxTrading's "Giga Kaleidoscope Modularized Trading System." (see the section Giga Kaleidoscope (GKD) Modularized Trading System below for an explanation of the GKD trading system)
**the backtest data rendered to the chart above and all screenshots below use $5 commission per trade and 10% equity per trade with $1 million initial capital**
█ GKD-BT Optimizer Full GKD Backtest
The GKD-BT Optimizer Full GKD Backtest is a comprehensive backtesting module designed to optimize the combination of key GKD indicators within AlgxTrading's "Giga Kaleidoscope Modularized Trading System." This module facilitates precise strategy refinement by allowing traders to configure and optimize the following critical GKD indicators:
GKD-B Baseline
GKD-V Volatility/Volume
GKD-C Confirmation 1
GKD-C Confirmation 2
GKD-C Continuation
Each indicator is equipped with an "Optimizer" mode, enabling dynamic feedback and iterative improvements directly into the backtesting environment. This integrated approach ensures that each component contributes effectively to the overall strategy, providing a robust framework for achieving optimized trading outcomes.
The GKD-BT Optimizer supports granular test configurations including a single take profit and stop loss setting, and allows for targeted testing within specified date ranges to simulate forward testing with historical data. This feature is essential for evaluating the resilience and effectiveness of trading strategies under various market conditions.
Furthermore, the module is designed with user-centric features such as:
Customizable Trading Panel: Displays critical backtest results and trade statistics, which can be shown or hidden as per user preference.
Highlighting Thresholds: Users can set thresholds for Total Percent Wins, Percent Profitable, and Profit Factor, which helps in quickly identifying the most relevant metrics for analysis.
The detailed setup ensures that traders can not only adjust their strategies based on historical performance but also fine-tune their approach to meet specific trading objectives.
🔶 To configure this indicator: ***all GKD indicators listed below are all included in the AlgxTrading trading system package***
1. Add GKD-C Confirmation, GKD-B Baseline, GKD-V Volatility/Volume, GKD-C Confirmation 2, and GKD-C Continuation to your chart
2. In the GKD-B Baseline indicator, change "Baseline Type" to "Optimizer"
3. In the GKD-V Volatility/Volume indicator, change "Volatility/Volume Type" to "Optimizer"
4. In the GKD-C Confirmation 1 indicator, change "Confirmation Type" to "Optimizer"
5. In the GKD-C Confirmation 2 indicator, change "Confirmation Type" to "Optimizer"
6. In the GKD-C Continuation indicator, change "Confirmation Type" to "Optimizer"
An example of steps 2-6. In the screenshot example below, we change the value "Confirmation Type" in the GKD-C Fisher Transform indicator to "Optimizer"
7. In the GKD-BT Optimizer Full GKD Backtest, import the value "Input into NEW GKD-BT Backtest" from the GKD-B Baseline indicator into the field "Import GKD-B Baseline indicator"
8. In the GKD-BT Optimizer Full GKD Backtest, import the value "Input into NEW GKD-BT Backtest" from the GKD-V Volatility/Volume indicator into the field "Import GKD-V Volatility/Volume indicator"
9. In the GKD-BT Optimizer Full GKD Backtest, import the value "Input into NEW GKD-BT Backtest" from the GKD-C Confirmation 1 indicator into the field "Import GKD-C Confirmation 1 indicator"
10. In the GKD-BT Optimizer Full GKD Backtest, import the value "Input into NEW GKD-BT Backtest" from the GKD-C Confirmation 2 indicator into the field "Import GKD-C Confirmation 2 indicator"
11. In the GKD-BT Optimizer Full GKD Backtest, import the value "Input into NEW GKD-BT Backtest" from the GKD-C Continuation indicator into the field "Import GKD-C Continuation indicator"
An example of steps 7-11. In the screenshot example below, we import the value "Input into NEW GKD-BT Backtest" from the GKD-C Coppock Curve indicator into the GKD-BT Optimizer Full GKD Backtest
12. Decide which of the 5 indicators you wish to optimize in first in the GKD-BT Optimizer Full GKD Backtest. Change the value of the import from "Input into NEW GKD-BT Backtest" to "Input into NEW GKD-BT Optimizer Signals"
An example of step 12. In the screenshot example below, we chose to optimize the Confirmation 1 indicator, the GKD-C Fisher Transform. We change the value of the field "Import GKD-C Confirmation 1 indicator" from "Input into NEW GKD-BT Backtest" to "Input into NEW GKD-BT Optimizer Signals"
13. In the GKD-BT Optimizer Full GKD Backtest and under the "Optimization Settings", use the dropdown menu "Optimization Indicator" to select the type of indicator you selected from step 12 above: "Baseline", "Volatility/Volume", "Confirmation 1", "Confirmation 2", or "Continuation"
14. In the GKD-BT Optimizer Full GKD Backtest and under the "Optimization Settings", import the value "Input into NEW GKD-BT Optimizer Start" from the indicator you selected to optimize in step 12 above into the field "Import Optimization Indicator Start"
15. In the GKD-BT Optimizer Full GKD Backtest and under the "Optimization Settings", import the value "Input into NEW GKD-BT Optimizer Skip" from the indicator you selected to optimize in step 12 above into the field "Import Optimization Indicator Skip"
An example of step 13. In the screenshot example below, we select "Confirmation 1" from the "Optimization Indicator" dropdown menu
An example of steps 14 and 15. In the screenshot example below, we import "Import Optimization Indicator Start" and "Import Optimization Indicator Skip" from the GKD-C Fisher Transform indicator into their respective fields
🔶 This backtest includes the following metrics
Net profit: Overall profit or loss achieved.
Total Closed Trades: Total number of closed trades, both winning and losing.
Total Percent Wins: Total wins, whether long or short, for the selected time interval regardless of commissions and other profit-modifying addons.
Percent Profitable: Total wins, whether long or short, that are also profitable, taking commissions into account.
Profit Factor: The ratio of gross profits to gross losses, indicating how much money the strategy made for every unit of money it lost.
Average Profit per Trade: The average gain or loss per trade, calculated by dividing the net profit by the total number of closed trades.
Average Number of Bars in Trade: The average number of bars that elapsed during trades for all closed trades.
🔶 Summary of notable settings not already explained above
🔹 Backtest Properties
These settings define the financial and logistical parameters of the trading simulation, including:
Initial Capital: Specifies the starting balance for the backtest, setting the baseline for measuring profitability and loss.
Order Size: Determines the size of trades, which can be fixed or a percentage of the equity, affecting risk and return.
Order Type: Chooses between fixed contract sizes or a percentage-based order size, allowing for static or dynamic trading volumes.
Commission per Order: Accounts for trading costs, subtracting these from profits to provide a more accurate net performance result.
🔹 Signal Qualifiers
This group of settings establishes criteria related to the strategy's Baseline, Volatility/Volume, and Confirmation 2 indicators in relation to the GKD-C Confirmation 1 indicator, which is crucial for validating trade signals. These include:
Maximum Allowable Post Signal Baseline Cross Bars Back: Sets the maximum number of bars that can elapse after a signal generated by a GKD-C Confirmation 1 indicator triggers. If the GKD-C Confirmation 1 indicator generates a long/short signal that doesn't yet agree with the trend position of the Baseline, then should the Baseline "catch-up" to the long/short trend of the GKD-C Confirmation 1 indicator within the number of bars specified by this setting, then a signal is generated.
Maximum Allowable Post Signal Volatility/Volume Cross Bars Back: Sets the maximum number of bars that can elapse after a signal generated by a GKD-C Confirmation 1 indicator triggers. If the GKD-C Confirmation 1 indicator generates a long/short signal that doesn't yet agree with the position of the Volatility/Volume, then should the Volatility/Volume "catch-up" with the long/short of the GKD-C Confirmation 1 indicator within the number of bars specified by this setting, then a signal is generated.
Maximum Allowable Post Signal Confirmation 2 Cross Bars Back: Sets the maximum number of bars that can elapse after a signal generated by a GKD-C Confirmation 1 indicator triggers. If the GKD-C Confirmation 1 indicator generates a long/short signal that doesn't yet agree with the trend position of the Confirmation 2, then should the Confirmation 2 "catch-up" to the long/short trend of the GKD-C Confirmation 1 indicator within the number of bars specified by this setting, then a signal is generated.
🔹 Signal Settings
Signal Options: These settings allow users to toggle the visibility of different types of entries based on the strategy criteria, such as standard entries, baseline entries, and continuation entries.
Standard Entry Rules Settings: Detailed criteria for standard entries can be customized here, including conditions on baseline agreement, price within specific zones, and agreement with other confirmation indicators.
1-Candle Rule Standard Entry Rules Settings: Similar to standard entries, but with a focus on conditions that must be met within a one-candle timeframe.
Baseline Entry Rules Settings: Specifies rules for entries based on the baseline, including conditions on confirmation agreement and price zones.
Volatility/Volume Entry Rules Settings: This includes settings for entries based on volatility or volume conditions, with specific rules on confirmation agreement and baseline agreement.
Confirmation 2 Entry Rules Settings: Settings here define the rules for entries based on a second confirmation indicator, detailing the required agreements and conditions.
Continuation Entry Rules Settings: This group outlines the conditions for continuation entries, focusing on agreement with baseline and confirmation indicators since the entry signal trigger.
🔹 Volatility Settings
Volatility PnL Settings: Parameters for defining the type of volatility measure to use, its period, and multipliers for profit and stop levels.
Volatility Types Included
Standard Deviation of Logarithmic Returns: Quantifies asset volatility using the standard deviation applied to logarithmic returns, capturing symmetric price movements and financial returns' compound nature.
Exponential Weighted Moving Average (EWMA) for Volatility: Focuses on recent market information by applying exponentially decreasing weights to squared logarithmic returns, offering a dynamic view of market volatility.
Roger-Satchell Volatility Measure: Estimates asset volatility by analyzing the high, low, open, and close prices, providing a nuanced view of intraday volatility and market dynamics.
Close-to-Close Volatility Measure: Calculates volatility based on the closing prices of stocks, offering a streamlined but limited perspective on market behavior.
Parkinson Volatility Measure: Enhances volatility estimation by including high and low prices of the trading day, capturing a more accurate reflection of intraday market movements.
Garman-Klass Volatility Measure: Incorporates open, high, low, and close prices for a comprehensive daily volatility measure, capturing significant price movements and market activity.
Yang-Zhang Volatility Measure: Offers an efficient estimation of stock market volatility by combining overnight and intraday price movements, capturing opening jumps and overall market dynamics.
Garman-Klass-Yang-Zhang Volatility Measure: Merges the benefits of Garman-Klass and Yang-Zhang measures, providing a fuller picture of market volatility including opening market reactions.
Pseudo GARCH(2,2) Volatility Model: Mimics a GARCH(2,2) process using exponential moving averages of squared returns, highlighting volatility shocks and their future impact.
ER-Adaptive Average True Range (ATR): Adjusts the ATR period length based on market efficiency, offering a volatility measure that adapts to changing market conditions.
Adaptive Deviation: Dynamically adjusts its calculation period to offer a nuanced measure of volatility that responds to the market's intrinsic rhythms.
Median Absolute Deviation (MAD): Provides a robust measure of statistical variability, focusing on deviations from the median price, offering resilience against outliers.
Mean Absolute Deviation (MAD): Measures the average magnitude of deviations from the mean price, facilitating a straightforward understanding of volatility.
ATR (Average True Range): Finds the average of true ranges over a specified period, indicating the expected price movement and market volatility.
True Range Double (TRD): Offers a nuanced view of volatility by considering a broader range of price movements, identifying significant market sentiment shifts.
🔹 Other Settings
Backtest Dates: Users can specify the timeframe for the backtest, including start and end dates, as well as the acceptable entry time window.
Volatility Inputs: Additional settings related to volatility calculations, such as static percent, internal filter period for median absolute deviation, and parameters for specific volatility models.
UI Options: Settings to customize the user interface, including table activation, date panel visibility, and aesthetics like color and text size.
Export Options: Allows users to select the type of data to export from the backtest, focusing on metrics like net profit, total closed trades, and average profit per trade.
█ Giga Kaleidoscope (GKD) Modularized Trading System
The GKD Trading System is a comprehensive, algorithmic trading framework from AlgxTrading, designed to optimize trading strategies across various market conditions. It employs a modular approach, incorporating elements such as volatility assessment, trend identification through a baseline, multiple confirmation strategies for signal accuracy, and volume analysis. Key components also include specialized strategies for entry and exit, enabling precise trade execution. The system allows for extensive backtesting, providing traders with the ability to evaluate the effectiveness of their strategies using historical data. Aimed at reducing setup time, the GKD system empowers traders to focus more on strategy refinement and execution, leveraging a wide array of technical indicators for informed decision-making.
🔶 Core components of a GKD Algorithmic Trading System
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system. The GKD algorithm is built on the principles of trend, momentum, and volatility. There are eight core components in the GKD trading algorithm:
🔹 Volatility - In the GKD trading system, volatility is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. There are 17+ different types of volatility available in the GKD system including Average True Range (ATR), True Range Double (TRD), Close-to-Close, Garman-Klass, and more.
🔹 Baseline (GKD-B) - The baseline is essentially a moving average and is used to determine the overall direction of the market. The baseline in the GKD trading system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other GKD indicators.
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards or price is above the baseline, then only long trades are taken, and if the baseline is sloping downwards or price is below the baseline, then only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
🔹 Confirmation 1, Confirmation 2, Continuation (GKD-C) - The GKD trading system incorporates technical confirmation indicators for the generation of its primary long and short signals, essential for its operation.
The GKD trading system distinguishes three specific categories. The first category, Confirmation 1 , encompasses technical indicators designed to identify trends and generate explicit trading signals. The second category, Confirmation 2 , a technical indicator used to identify trends; this type of indicator is primarily used to filter the Confirmation 1 indicator signals; however, this type of confirmation indicator also generates signals*. Lastly, the Continuation category includes technical indicators used in conjunction with Confirmation 1 and Confirmation 2 to generate a special type of trading signal called a "Continuation"
In a full GKD trading system all three categories generate signals. (see the section “GKD Trading System Signals” below)
🔹 Volatility/Volume (GKD-V) - Volatility/Volume indicators are used to measure the amount of buying and selling activity in a market. They are based on the trading Volatility/Volume of the market, and can provide information about the strength of the trend. In the GKD trading system, Volatility/Volume indicators are used to confirm trading signals generated by the various other GKD indicators. In the GKD trading system, Volatility is a proxy for Volume and vice versa.
Volatility/Volume indicators reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by GKD-C confirmation and GKD-B baseline indicators.
🔹 Exit (GKD-E) - The exit indicator in the GKD system is an indicator that is deemed effective at identifying optimal exit points. The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
🔹 Backtest (GKD-BT) - The GKD-BT backtest indicators link all other GKD-C, GKD-B, GKD-E, GKD-V, and GKD-M components together to create a GKD trading system. GKD-BT backtests generate signals (see the section “GKD Trading System Signals” below) from the confluence of various GKD indicators that are imported into the GKD-BT backtest. Backtest types include: GKD-BT solo and full GKD backtest strategies used for a single ticker; GKD-BT optimizers used to optimize a single indicator or the full GKD trading system; GKD-BT Multi-ticker used to backtest a single indicator or the full GKD trading system across up to ten tickers; GKD-BT exotic backtests like CC, Baseline, and Giga Stacks used to test confluence between GKD components to then be injected into a core GKD-BT Multi-ticker backtest or single ticker strategy.
🔹 Metamorphosis (GKD-M) ** - The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, GKD-E, or GKD-V slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
*see the section “GKD Trading System Signals” below
**not a required component of the GKD algorithm
🔶 What does the application of the GKD trading system look like?
Example trading system:
Volatility: Average True Range (ATR) (selectable in all backtests and other related GKD indicators)
GKD-B Baseline: GKD-B Multi-Ticker Baseline using Hull Moving Average
GKD-C Confirmation 1 : GKD-C Advance Trend Pressure
GKD-C Confirmation 2: GKD-C Dorsey Inertia
GKD-C Continuation: GKD-C Stochastic of RSX
GKD-V Volatility/Volume: GKD-V Damiani Volatmeter
GKD-E Exit: GKD-E MFI
GKD-BT Backtest: GKD-BT Multi-Ticker Full GKD Backtest
GKD-M Metamorphosis: GKD-M Baseline Optimizer
**all indicators mentioned above are included in the same AlgxTrading package**
Each module is passed to a GKD-BT backtest module. In the backtest module, all components are combined to formulate trading signals and statistical output. This chaining of indicators requires that each module conform to AlgxTrading's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the various indictor types in the GKD algorithm.
🔶 GKD Trading System Signals
Standard Entry requires a sequence of conditions including a confirmation signal from GKD-C, baseline agreement, price criteria related to the Goldie Locks Zone, and concurrence from a second confirmation and volatility/volume indicators.
1-Candle Standard Entry introduces a two-phase process where initial conditions must be met, followed by a retraction in price and additional confirmations in the subsequent candle, including baseline, confirmations 1 and 2, and volatility/volume criteria.
Baseline Entry focuses on signals generated by the GKD-B Baseline, requiring agreement from confirmation signals, specific price conditions within the Goldie Locks Zone, and a timing condition related to the confirmation 1 signal.
1-Candle Baseline Entry mirrors the baseline entry but adds a requirement for a price retraction and subsequent confirmations in the following candle, maintaining the focus on the baseline's guidance.
Volatility/Volume Entry is predicated on signals from volatility/volume indicators, requiring support from confirmations, price criteria within the Goldie Locks Zone, baseline agreement, and a timing condition for the confirmation 1 signal.
1-Candle Volatility/Volume Entry adapts the volatility/volume entry to include a phase of initial signal and agreement, followed by a retracement phase that seeks further agreement from the system's components in the subsequent candle.
Confirmation 2 Entry is based on the second confirmation signal, requiring the first confirmation's agreement, specific price criteria, agreement from volatility/volume indicators, and baseline, with a timing condition for the confirmation 1 signal.
1-Candle Confirmation 2 Entry adds a retracement requirement to the confirmation 2 entry, necessitating additional agreements from the system's components in the candle following the signal.
PullBack Entry initiates with a baseline signal and agreement from the first confirmation, with a price condition related to volatility. It then looks for price to return within the Goldie Locks Zone and seeks further agreement from the system's components in the subsequent candle.
Continuation Entry allows for the continuation of an active position, based on a previously triggered entry strategy. It requires that the baseline hasn't crossed since the initial trigger, alongside ongoing agreements from confirmations and the baseline.
█ Conclusion
The GKD-BT Optimizer Full GKD Backtest is a critical tool within the Giga Kaleidoscope Modularized Trading System, designed for precise strategy refinement and evaluation within the GKD framework. It enables the optimization and testing of various trading indicators and strategies under different market conditions. The module's design facilitates detailed analysis of individual trading components' performance, allowing for the optimization of indicators like Baseline, Volatility/Volume, Confirmation, and Continuation. This optimization process aids traders in identifying the most effective configurations, thereby enhancing trading outcomes and strategy efficiency within the GKD ecosystem.
█ How to Access
You can see the Author's Instructions below to learn how to get access.
[TTI] High Volume Close (HVC) Setup📜 ––––HISTORY & CREDITS––––
The High Volume Close (HVC) Setup is a specialised indicator designed for the TradingView platform used to identify specific bar. This tool was developed with the objective of identifying a technical pattern that trades have claimed is significant trading opportunities through a unique blend of volume analysis and price action strategies. It is based on the premise that high-volume bars, when combined with specific price action criteria, can signal key market movements.
The HVC is applicable both for swing and longer term trading and as a technical tool it can be used by traders of any asset type (stocks, ETF, crypto, forex etc).
🦄 –––UNIQUENESS–––
The uniqueness of the HVC Setup lies in its flexibility to determine an important price level based on historically important bar. The idea is to identify significant bars (e.g. those who have created the HIGHEST VOLUME: Ever, Yearly, Quarterly and meet additional criteria from the settings) and plot on the chart the close on that day as a significant level as well as theoretical stop loss and target levels. This approach allows traders to discern high volume bars that are contextually significant — a method not commonly found in standard trading tools.
🎯 ––––WHAT IT DOES––––
The HVC Setup indicator performs a series of calculations to identify high volume close bars/bar (HVC bars) based on the user requirements.
These bars are determined based on the highest volume recorded within a user-inputs:
👉 Period (Ever, Yearly, Quarterly) and must meet additional criteria such as:
👉 a minimum percentage Price Change (change is calculated based on a close/close) and
👉 specific Closing Range requirements for the HVC da.
The theory is that this is a significant bar that is important to know where it is on the chart.
The script includes a comparative analysis of the HVC bar's price against historical price highs (all-time, yearly, quarterly), which provides further context and significance to the identified bars. All of these USER input requirement are then taken into account as a condition to identity the High Volume Close Bar (HVC).
The visual representation includes color-coded bar (default is yellow) and lines to delineate these key trading signals. It then draws a blue line for the place where the close ofthe bar is, a red line that would signify a stop loss and 2 target profit levels equal to 2R and 3R of the risked level (close-stop loss). Additional lines can be turned on/off with their coresponding checkboxes in the settings.
If the user chooses "Ever" for Period - the script will look at the first available bar ever in Tradingview - this is generally the IPO bar;
If the users chooses "Yearly" - the script would look at the highest available bar for a completed year;
If the users chooses "Quarterly" - it would do the same for the quarter. (works on daily timeframe only);
While we have not backtested the performance of the script, this methodology has been widely publicised.
🛠️ ––––HOW TO USE IT––––
To utilize the HVC Setup effectively:
👉Customize Input Settings: Choose the HVC period, percentage change threshold, closing range, stop loss distance, and target multiples according to your trading strategy. Use the tick boxes to enable and disable if a given condition is used within the calculation.
👉Identify HVC Bars: The script highlights HVC bars, indicating potential opportunities based on volume and price action analysis.
👉Interpret Targets and Stop Losses: Use the color-coded lines (green for targets, red for stop losses) to guide your trade entries and exits.
👉Contextual Analysis: Always consider the HVC bar signals in conjunction with overall market trends and additional technical indicators for comprehensive trading decisions.
This script is designed to assist traders in identifying high-potential trading setups by using a combination of volume and price analysis, enhancing traditional methods with a unique, algorithmically driven approach.
CryptoGraph Dynamic DCAA system to backtest and automate comprehensive trading strategies
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🟣 Supporting Your Trades
CryptoGraph Dynamic DCA serves as a comprehensive tool on TradingView, designed to refine your approach to cryptocurrency trading. It utilises dynamic dollar-cost averaging (DCA), based on external indicator sources, to provide structured market entry and exit strategies. Suitable for both short-term trading and long-term portfolio management, CryptoGraph Dynamic DCA can offer a methodical way to support your trading decisions.
The tool offers an intuitive interface with inputs for strategy customisation, visualised preferences, and bot alert configurations. It can assist traders seeking precision, adaptability, and control in their trading activities. In the example on the chart above, we use the CryptoGraph Entry Builder (part of CryptoGraph Dynamic DCA package) as an external source for our initial entry (base order) and our safety orders, as well as an external source for our second take profit, which can be configured to be signal based.
🟣 Features
External Entry/Exit sources: The strategy is designed to assist with accurate market entries and exits by utilising signals from external indicators. It offers the flexibility to tailor your trading approach, providing an opportunity to leverage the analytical capabilities of various indicators available on TradingView.
Strategic Direction Control: Configure your strategy to go long, short, or both, adapting to market trends and your trading style.
Leverage Customisation: Tailor your leverage settings for isolated or cross margin to align with your risk tolerance, a liquidation estimation level is plotted on the chart, based on your input settings.
Diverse Entry Points: Utilise base orders and safety orders to diversify your entry points, reducing risk and enhancing potential returns.
Tailored Order Size: Fine-tune your order sizes using margin percentages or fixed contract sizes to fit your strategy’s requirements.
Profit Taking & Loss Prevention: Set take profit levels and stop losses with percentage or ATR-based parameters to secure profits and minimise losses. Options for moving the stop loss to entry after Take Profit 1, with an adjustable buffer, give you control over your risk management.
Max Safety Orders Count: Determine the maximum number of safety orders to manage risk effectively.
Price Deviation for DCA Orders: Specify the minimum price deviation percentage to trigger DCA orders, ensuring strategic order placement.
DCA Size Method: Choose from scaling or fixed-size DCA orders to align with your capital allocation strategy.
Visualisation & Alerts: Analyse your strategy’s performance with a backtest results table and configure bot alerts for automated trading. Auto configuration methods are integrated for multiple automated trading platforms.
🟣 Features Impression
🟣 Usage Guide
1. Strategy Configuration:
Select the appropriate cryptocurrency pair and exchange that corresponds to your trading preferences.
Choose your desired chart timeframe to align with your trading strategy’s temporal scope.
Ensure that you’re utilising the regular candle type for consistent and reliable data interpretation.
Pick an external entry source to trigger your trades based on predefined indicators or conditions.
Determine your take profit and stop loss levels to manage risks and secure earnings effectively.
Configure your DCA (Dollar-Cost Averaging) settings, including safety orders and the scaling method, to enhance entry points and manage investment distribution.
Always consult the tooltips next to each strategy input, to better understand their functions.
2. Backtest and Analysis:
Run backtests with your configured parameters to assess the strategy’s potential performance.
Review the backtest results and statistics tables to understand the strategy’s effectiveness, risk profile, and profitability.
3. Automated Trading Platform Integration:
Connect the strategy to a compatible automated trading platform to enable real-time execution of trades.
Within the trading platform, ensure the proper API setup of the bot’s configuration to align with the signals from the tool.
4. Alert Configuration in TradingView:
Set up the alert conditions in the TradingView tool to match your strategy triggers for entry, exit, take profit, and stop loss.
Configure the connection parameters within the tool to communicate effectively with your chosen automated trading platform
Activate the alerts, ensuring they are set to trigger actions such as order placement, adjustments, or closures as per your strategy’s logic.
5. Capital Management:
Confirm that your initial capital and order size are logically set, keeping in mind that the sum of all deals, especially when using pyramiding with safety orders, should not exceed your initial capital to avoid overexposure.
🟣 Trade Example
A clear example of a trade. Base order entry, safety order 1 fills, take profit 1 hits at 1%, the remainder of the position runs until the exit signal fires.
🟣 Warning
This tool has been developed to support your trading analysis, yet it’s important to acknowledge the inherent risks associated with trading. It is advisable to perform thorough research, assess your risk tolerance, and utilise this tool as one element of an overall trading strategy. Ensure that you only trade with capital that you are prepared to risk. In addition, due to the complexity of the tool, bugs may be found. Please alert us whenever you think you have found a bug in the system.
GKD-C Jurik-Filtered Random Walk Index [Loxx]Giga Kaleidoscope GKD-C Jurik-Filtered Random Walk Index is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ Giga Kaleidoscope Modularized Trading System
What is Loxx's "Giga Kaleidoscope Modularized Trading System"?
The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading.
What is the NNFX algorithmic trading strategy?
The NNFX (No-Nonsense Forex) trading system is a comprehensive approach to Forex trading that is designed to simplify the process and remove the confusion and complexity that often surrounds trading. The system was developed by a Forex trader who goes by the pseudonym "VP" and has gained a significant following in the Forex community.
The NNFX trading system is based on a set of rules and guidelines that help traders make objective and informed decisions. These rules cover all aspects of trading, including market analysis, trade entry, stop loss placement, and trade management.
Here are the main components of the NNFX trading system:
1. Trading Philosophy: The NNFX trading system is based on the idea that successful trading requires a comprehensive understanding of the market, objective analysis, and strict risk management. The system aims to remove subjective elements from trading and focuses on objective rules and guidelines.
2. Technical Analysis: The NNFX trading system relies heavily on technical analysis and uses a range of indicators to identify high-probability trading opportunities. The system uses a combination of trend-following and mean-reverting strategies to identify trades.
3. Market Structure: The NNFX trading system emphasizes the importance of understanding the market structure, including price action, support and resistance levels, and market cycles. The system uses a range of tools to identify the market structure, including trend lines, channels, and moving averages.
4. Trade Entry: The NNFX trading system has strict rules for trade entry. The system uses a combination of technical indicators to identify high-probability trades, and traders must meet specific criteria to enter a trade.
5. Stop Loss Placement: The NNFX trading system places a significant emphasis on risk management and requires traders to place a stop loss order on every trade. The system uses a combination of technical analysis and market structure to determine the appropriate stop loss level.
6. Trade Management: The NNFX trading system has specific rules for managing open trades. The system aims to minimize risk and maximize profit by using a combination of trailing stops, take profit levels, and position sizing.
Overall, the NNFX trading system is designed to be a straightforward and easy-to-follow approach to Forex trading that can be applied by traders of all skill levels.
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Jurik-Filtered Random Walk Index as shown on the chart above
Confirmation 2: Williams Percent Range
Continuation: Fisher Transform
Exit: Rex Oscillator
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain.
Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm)
Standard Entry
1. GKD-C Confirmation 1 Signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
6. GKD-C Confirmation 1 signal was less than 7 candles prior
Continuation Entry
1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously
2. GKD-B Baseline hasn't crossed since entry signal trigger
3. GKD-C Confirmation Continuation Indicator signals
4. GKD-C Confirmation 1 agrees
5. GKD-B Baseline agrees
6. GKD-C Confirmation 2 agrees
1-Candle Rule Standard Entry
1. GKD-C Confirmation 1 signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
1-Candle Rule Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 1 signal was less than 7 candles prior
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
PullBack Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is beyond 1.0x Volatility of Baseline
Next Candle:
1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
█ GKD-C Jurik-Filtered Random Walk Index
What is the Jurik Filter?
The Jurik Filter is a technical analysis tool that is used to filter out market noise and identify trends in financial markets. It was developed by Mark Jurik in the 1990s and is based on a non-linear smoothing algorithm that provides a more accurate representation of price movements.
Traditional moving averages, such as the Simple Moving Average ( SMA ) or Exponential Moving Average ( EMA ), are linear filters that produce a lag between price and the moving average line. This can cause false signals during periods of market volatility , which can result in losses for traders and investors.
The Jurik Filter is designed to address this issue by incorporating a damping factor into the smoothing algorithm. This damping factor adjusts the filter's responsiveness to the changes in price, allowing it to filter out market noise without overshooting price peaks and valleys.
The Jurik Filter is calculated using a mathematical formula that takes into account the current and past prices of an asset, as well as the volatility of the market. This formula incorporates the damping factor and produces a smoother price curve than traditional moving average filters.
One of the advantages of the Jurik Filter is its ability to adjust to changing market conditions. The damping factor can be adjusted to suit different securities and time frames, making it a versatile tool for traders and investors.
Traders and investors often use the Jurik Filter in conjunction with other technical analysis tools, such as the MACD or RSI , to confirm or complement their trading strategies. By filtering out market noise and identifying trends in the financial markets, the Jurik Filter can help improve the accuracy of trading signals and reduce the risks of false signals during periods of market volatility .
Overall, the Jurik Filter is a powerful technical analysis tool that can help traders and investors make more informed decisions about buying and selling securities. By providing a smoother price curve and reducing false signals, it can help improve trading performance and reduce risk in volatile markets.
What is the Random Walk Index?
The Random Walk Index (RWI) is a technical analysis indicator used in financial markets to determine whether a stock or index is trending or moving in a random manner. It was developed by Michael Poulos in the 1990s and is based on the concept of a random walk.
A random walk is a mathematical model that describes a process in which a variable moves randomly over time. In the context of financial markets, a random walk implies that the price movements of a stock or index are essentially unpredictable, and any movement is just as likely to go up as it is to go down.
The RWI attempts to measure the randomness of a stock or index by comparing its actual price movements with a theoretical random walk. The indicator calculates the ratio of the actual distance traveled by the price to the expected distance of a random walk, over a given period of time.
Here are the steps to calculate the RWI:
Calculate the average distance traveled by the price for the given period of time (e.g. 10 days).
Calculate the cumulative distance between the price and its moving average for the same period of time.
Calculate the standard deviation of the cumulative distance.
Divide the average distance by the standard deviation to get the RWI.
The RWI typically ranges between 0 and 1. If the RWI is close to 0, it suggests that the price is moving randomly, while a value close to 1 indicates that the price is trending.
Traders use the RWI to help identify when a stock or index is trending or moving in a random manner. A high RWI value indicates that the market is trending and may be a good time to enter or exit a trade. Conversely, a low RWI value indicates that the market is not trending, and traders should avoid entering or exiting trades based on trend-following strategies.
It is worth noting that the RWI is not a perfect indicator and may produce false signals, particularly during periods of low volatility. Traders should always use the RWI in combination with other technical indicators and fundamental analysis to make informed trading decisions.
What is Jurik-Filtered Random Walk Index?
Jurik-Filtered Random Walk Index applies Jurik Smoothing halfway through the calculation process to filter out noise thereby producing a cleaner output signal.
Requirements
Inputs
Confirmation 1 and Solo Confirmation: GKD-V Volatility / Volume indicator
Confirmation 2: GKD-C Confirmation indicator
Outputs
Confirmation 2 and Solo Confirmation Complex: GKD-E Exit indicator
Confirmation 1: GKD-C Confirmation indicator
Continuation: GKD-E Exit indicator
Solo Confirmation Simple: GKD-BT Backtest strategy
Additional features will be added in future releases.
GKD-C Juirk-Filtered QQE Histogram [Loxx]Giga Kaleidoscope GKD-C Juirk-Filtered QQE Histogram is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ Giga Kaleidoscope Modularized Trading System
What is Loxx's "Giga Kaleidoscope Modularized Trading System"?
The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading.
What is the NNFX algorithmic trading strategy?
The NNFX (No-Nonsense Forex) trading system is a comprehensive approach to Forex trading that is designed to simplify the process and remove the confusion and complexity that often surrounds trading. The system was developed by a Forex trader who goes by the pseudonym "VP" and has gained a significant following in the Forex community.
The NNFX trading system is based on a set of rules and guidelines that help traders make objective and informed decisions. These rules cover all aspects of trading, including market analysis, trade entry, stop loss placement, and trade management.
Here are the main components of the NNFX trading system:
1. Trading Philosophy: The NNFX trading system is based on the idea that successful trading requires a comprehensive understanding of the market, objective analysis, and strict risk management. The system aims to remove subjective elements from trading and focuses on objective rules and guidelines.
2. Technical Analysis: The NNFX trading system relies heavily on technical analysis and uses a range of indicators to identify high-probability trading opportunities. The system uses a combination of trend-following and mean-reverting strategies to identify trades.
3. Market Structure: The NNFX trading system emphasizes the importance of understanding the market structure, including price action, support and resistance levels, and market cycles. The system uses a range of tools to identify the market structure, including trend lines, channels, and moving averages.
4. Trade Entry: The NNFX trading system has strict rules for trade entry. The system uses a combination of technical indicators to identify high-probability trades, and traders must meet specific criteria to enter a trade.
5. Stop Loss Placement: The NNFX trading system places a significant emphasis on risk management and requires traders to place a stop loss order on every trade. The system uses a combination of technical analysis and market structure to determine the appropriate stop loss level.
6. Trade Management: The NNFX trading system has specific rules for managing open trades. The system aims to minimize risk and maximize profit by using a combination of trailing stops, take profit levels, and position sizing.
Overall, the NNFX trading system is designed to be a straightforward and easy-to-follow approach to Forex trading that can be applied by traders of all skill levels.
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Juirk-Filtered QQE Histogram as shown on the chart above
Confirmation 2: Williams Percent Range
Continuation: Fisher Transform
Exit: Rex Oscillator
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain.
Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm)
Standard Entry
1. GKD-C Confirmation 1 Signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
6. GKD-C Confirmation 1 signal was less than 7 candles prior
Continuation Entry
1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously
2. GKD-B Baseline hasn't crossed since entry signal trigger
3. GKD-C Confirmation Continuation Indicator signals
4. GKD-C Confirmation 1 agrees
5. GKD-B Baseline agrees
6. GKD-C Confirmation 2 agrees
1-Candle Rule Standard Entry
1. GKD-C Confirmation 1 signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
1-Candle Rule Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 1 signal was less than 7 candles prior
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
PullBack Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is beyond 1.0x Volatility of Baseline
Next Candle:
1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
█ GKD-C Juirk-Filtered QQE Histogram
What is Parabolic-Weighted Velocity?
Parabolic-Weighted Velocity (PWV) is a mathematical model used in sports science to estimate the velocity of an athlete during a given movement or exercise. This model uses a parabolic weighting function to give more importance to the velocities achieved in the middle of the movement and less importance to the velocities achieved at the beginning and end of the movement.
PWV takes into account the acceleration and deceleration of an athlete during the movement, and uses this information to calculate an average velocity. The model assumes that the athlete moves at a constant velocity during the middle portion of the movement and that the velocity increases and decreases smoothly at the beginning and end of the movement.
The parabolic weighting function used in PWV is based on the principle of impulse momentum, which states that the change in momentum of an object is equal to the impulse applied to it. The impulse is calculated as the force applied to an object multiplied by the time during which the force is applied. By giving more weight to the velocities achieved during the middle of the movement, PWV takes into account the impulse generated during this period of the movement.
PWV is commonly used in sports science to measure the performance of athletes during activities such as sprinting, jumping, and throwing. It is often used in conjunction with other metrics such as power and force to provide a comprehensive picture of an athlete's performance. Additionally, PWV can be used to compare the performance of different athletes or to track an athlete's progress over time.
Overall, Parabolic-Weighted Velocity is a useful tool in sports science for estimating an athlete's velocity during a movement or exercise, taking into account the acceleration and deceleration of the athlete during the movement.
What is QQE?
Quantitative Qualitative Estimation (QQE) is a technical analysis indicator used to identify trends and trading opportunities in financial markets. It is based on a combination of two popular technical analysis indicators - the Relative Strength Index (RSI) and Moving Averages (MA).
The QQE indicator uses a smoothed RSI to determine the trend direction, and a moving average of the smoothed RSI to identify potential trend changes. The indicator then plots a series of bands above and below the moving average to indicate overbought and oversold conditions in the market.
The QQE indicator is designed to provide traders with a reliable signal that confirms the strength of a trend or indicates a possible trend reversal. It is particularly useful for traders who are looking to trade in markets that are trending strongly, but also want to identify when a trend is losing momentum or reversing.
Traders can use QQE in a number of different ways, including as a confirmation tool for other indicators or as a standalone indicator. For example, when used in conjunction with other technical analysis tools like support and resistance levels, the QQE indicator can help traders identify key entry and exit points for their trades.
One of the main advantages of the QQE indicator is that it is designed to be more reliable than other indicators that can generate false signals. By smoothing out the price action, the QQE indicator can provide traders with more accurate and reliable signals, which can help them make more profitable trading decisions.
In conclusion, QQE is a popular technical analysis indicator that traders use to identify trends and trading opportunities in financial markets. It combines the RSI and moving average indicators and is designed to provide traders with reliable signals that confirm the strength of a trend or indicate a possible trend reversal.
What is the Jurik Filter?
The Jurik Filter is a technical analysis tool that is used to filter out market noise and identify trends in financial markets. It was developed by Mark Jurik in the 1990s and is based on a non-linear smoothing algorithm that provides a more accurate representation of price movements.
Traditional moving averages, such as the Simple Moving Average ( SMA ) or Exponential Moving Average ( EMA ), are linear filters that produce a lag between price and the moving average line. This can cause false signals during periods of market volatility , which can result in losses for traders and investors.
The Jurik Filter is designed to address this issue by incorporating a damping factor into the smoothing algorithm. This damping factor adjusts the filter's responsiveness to the changes in price, allowing it to filter out market noise without overshooting price peaks and valleys.
The Jurik Filter is calculated using a mathematical formula that takes into account the current and past prices of an asset, as well as the volatility of the market. This formula incorporates the damping factor and produces a smoother price curve than traditional moving average filters.
One of the advantages of the Jurik Filter is its ability to adjust to changing market conditions. The damping factor can be adjusted to suit different securities and time frames, making it a versatile tool for traders and investors.
Traders and investors often use the Jurik Filter in conjunction with other technical analysis tools, such as the MACD or RSI , to confirm or complement their trading strategies. By filtering out market noise and identifying trends in the financial markets, the Jurik Filter can help improve the accuracy of trading signals and reduce the risks of false signals during periods of market volatility .
Overall, the Jurik Filter is a powerful technical analysis tool that can help traders and investors make more informed decisions about buying and selling securities. By providing a smoother price curve and reducing false signals, it can help improve trading performance and reduce risk in volatile markets.
This indicator contains 7 different types of RSI:
RSX
Regular
Slow
Rapid
Harris
Cuttler
Ehlers Smoothed
What is RSI?
RSI stands for Relative Strength Index . It is a technical indicator used to measure the strength or weakness of a financial instrument's price action.
The RSI is calculated based on the price movement of an asset over a specified period of time, typically 14 days, and is expressed on a scale of 0 to 100. The RSI is considered overbought when it is above 70 and oversold when it is below 30.
Traders and investors use the RSI to identify potential buy and sell signals. When the RSI indicates that an asset is oversold, it may be considered a buying opportunity, while an overbought RSI may signal that it is time to sell or take profits.
It's important to note that the RSI should not be used in isolation and should be used in conjunction with other technical and fundamental analysis tools to make informed trading decisions.
What is RSX?
Jurik RSX is a technical analysis indicator that is a variation of the Relative Strength Index Smoothed ( RSX ) indicator. It was developed by Mark Jurik and is designed to help traders identify trends and momentum in the market.
The Jurik RSX uses a combination of the RSX indicator and an adaptive moving average (AMA) to smooth out the price data and reduce the number of false signals. The adaptive moving average is designed to adjust the smoothing period based on the current market conditions, which makes the indicator more responsive to changes in price.
The Jurik RSX can be used to identify potential trend reversals and momentum shifts in the market. It oscillates between 0 and 100, with values above 50 indicating a bullish trend and values below 50 indicating a bearish trend . Traders can use these levels to make trading decisions, such as buying when the indicator crosses above 50 and selling when it crosses below 50.
The Jurik RSX is a more advanced version of the RSX indicator, and while it can be useful in identifying potential trade opportunities, it should not be used in isolation. It is best used in conjunction with other technical and fundamental analysis tools to make informed trading decisions.
What is Slow RSI?
Slow RSI is a variation of the traditional Relative Strength Index ( RSI ) indicator. It is a more smoothed version of the RSI and is designed to filter out some of the noise and short-term price fluctuations that can occur with the standard RSI .
The Slow RSI uses a longer period of time than the traditional RSI , typically 21 periods instead of 14. This longer period helps to smooth out the price data and makes the indicator less reactive to short-term price fluctuations.
Like the traditional RSI , the Slow RSI is used to identify potential overbought and oversold conditions in the market. It oscillates between 0 and 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. Traders often use these levels as potential buy and sell signals.
The Slow RSI is a more conservative version of the RSI and can be useful in identifying longer-term trends in the market. However, it can also be slower to respond to changes in price, which may result in missed trading opportunities. Traders may choose to use a combination of both the Slow RSI and the traditional RSI to make informed trading decisions.
What is Rapid RSI?
Same as regular RSI but with a faster calculation method
What is Harris RSI?
Harris RSI is a technical analysis indicator that is a variation of the Relative Strength Index ( RSI ). It was developed by Larry Harris and is designed to help traders identify potential trend changes and momentum shifts in the market.
The Harris RSI uses a different calculation formula compared to the traditional RSI . It takes into account both the opening and closing prices of a financial instrument, as well as the high and low prices. The Harris RSI is also normalized to a range of 0 to 100, with values above 50 indicating a bullish trend and values below 50 indicating a bearish trend .
Like the traditional RSI , the Harris RSI is used to identify potential overbought and oversold conditions in the market. It oscillates between 0 and 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. Traders often use these levels as potential buy and sell signals.
The Harris RSI is a more advanced version of the RSI and can be useful in identifying longer-term trends in the market. However, it can also generate more false signals than the standard RSI . Traders may choose to use a combination of both the Harris RSI and the traditional RSI to make informed trading decisions.
What is Cuttler RSI?
Cuttler RSI is a technical analysis indicator that is a variation of the Relative Strength Index ( RSI ). It was developed by Curt Cuttler and is designed to help traders identify potential trend changes and momentum shifts in the market.
The Cuttler RSI uses a different calculation formula compared to the traditional RSI . It takes into account the difference between the closing price of a financial instrument and the average of the high and low prices over a specified period of time. This difference is then normalized to a range of 0 to 100, with values above 50 indicating a bullish trend and values below 50 indicating a bearish trend .
Like the traditional RSI , the Cuttler RSI is used to identify potential overbought and oversold conditions in the market. It oscillates between 0 and 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. Traders often use these levels as potential buy and sell signals.
The Cuttler RSI is a more advanced version of the RSI and can be useful in identifying longer-term trends in the market. However, it can also generate more false signals than the standard RSI . Traders may choose to use a combination of both the Cuttler RSI and the traditional RSI to make informed trading decisions.
What is Ehlers Smoothed RSI?
Ehlers smoothed RSI is a technical analysis indicator that is a variation of the Relative Strength Index ( RSI ). It was developed by John Ehlers and is designed to help traders identify potential trend changes and momentum shifts in the market.
The Ehlers smoothed RSI uses a different calculation formula compared to the traditional RSI . It uses a smoothing algorithm that is designed to reduce the noise and random fluctuations that can occur with the standard RSI . The smoothing algorithm is based on a concept called "digital signal processing" and is intended to improve the accuracy of the indicator.
Like the traditional RSI , the Ehlers smoothed RSI is used to identify potential overbought and oversold conditions in the market. It oscillates between 0 and 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. Traders often use these levels as potential buy and sell signals.
The Ehlers smoothed RSI can be useful in identifying longer-term trends and momentum shifts in the market. However, it can also generate more false signals than the standard RSI . Traders may choose to use a combination of both the Ehlers smoothed RSI and the traditional RSI to make informed trading decisions.
What is Juirk-Filtered QQE Histogram ?
This indicator is a complex combiation of Jurik filtering with QQE output.
Requirements
Inputs
Confirmation 1 and Solo Confirmation: GKD-V Volatility / Volume indicator
Confirmation 2: GKD-C Confirmation indicator
Outputs
Confirmation 2 and Solo Confirmation Complex: GKD-E Exit indicator
Confirmation 1: GKD-C Confirmation indicator
Continuation: GKD-E Exit indicator
Solo Confirmation Simple: GKD-BT Backtest strategy
Additional features will be added in future releases.
GKD-C Super 6x [Loxx]Giga Kaleidoscope GKD-C Super 6x: RSI, MACD, Stochastic, Loxxer, CCI, & Velocity is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ Giga Kaleidoscope Modularized Trading System
What is Loxx's "Giga Kaleidoscope Modularized Trading System"?
The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading.
What is the NNFX algorithmic trading strategy?
The NNFX (No-Nonsense Forex) trading system is a comprehensive approach to Forex trading that is designed to simplify the process and remove the confusion and complexity that often surrounds trading. The system was developed by a Forex trader who goes by the pseudonym "VP" and has gained a significant following in the Forex community.
The NNFX trading system is based on a set of rules and guidelines that help traders make objective and informed decisions. These rules cover all aspects of trading, including market analysis, trade entry, stop loss placement, and trade management.
Here are the main components of the NNFX trading system:
1. Trading Philosophy: The NNFX trading system is based on the idea that successful trading requires a comprehensive understanding of the market, objective analysis, and strict risk management. The system aims to remove subjective elements from trading and focuses on objective rules and guidelines.
2. Technical Analysis: The NNFX trading system relies heavily on technical analysis and uses a range of indicators to identify high-probability trading opportunities. The system uses a combination of trend-following and mean-reverting strategies to identify trades.
3. Market Structure: The NNFX trading system emphasizes the importance of understanding the market structure, including price action, support and resistance levels, and market cycles. The system uses a range of tools to identify the market structure, including trend lines, channels, and moving averages.
4. Trade Entry: The NNFX trading system has strict rules for trade entry. The system uses a combination of technical indicators to identify high-probability trades, and traders must meet specific criteria to enter a trade.
5. Stop Loss Placement: The NNFX trading system places a significant emphasis on risk management and requires traders to place a stop loss order on every trade. The system uses a combination of technical analysis and market structure to determine the appropriate stop loss level.
6. Trade Management: The NNFX trading system has specific rules for managing open trades. The system aims to minimize risk and maximize profit by using a combination of trailing stops, take profit levels, and position sizing.
Overall, the NNFX trading system is designed to be a straightforward and easy-to-follow approach to Forex trading that can be applied by traders of all skill levels.
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Super 6x: RSI, MACD, Stochastic, Loxxer, CCI, & Velocity as shown on the chart above
Confirmation 2: Williams Percent Range
Continuation: Fisher Transform
Exit: Rex Oscillator
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain.
Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm)
Standard Entry
1. GKD-C Confirmation 1 Signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
6. GKD-C Confirmation 1 signal was less than 7 candles prior
Continuation Entry
1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously
2. GKD-B Baseline hasn't crossed since entry signal trigger
3. GKD-C Confirmation Continuation Indicator signals
4. GKD-C Confirmation 1 agrees
5. GKD-B Baseline agrees
6. GKD-C Confirmation 2 agrees
1-Candle Rule Standard Entry
1. GKD-C Confirmation 1 signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
1-Candle Rule Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 1 signal was less than 7 candles prior
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
PullBack Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is beyond 1.0x Volatility of Baseline
Next Candle:
1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
█ GKD-C Super 6x: RSI, MACD, Stochastic, Loxxer, CCI, & Velocity
What is MACD?
MACD stands for Moving Average Convergence Divergence. It is a technical indicator used in financial analysis to track the trend and momentum of a security or market index. The MACD indicator consists of two lines, a faster-moving average called the MACD line, and a slower-moving average called the signal line.
The MACD line is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The signal line is a 9-period EMA of the MACD line. The MACD line oscillates above and below the zero line, which represents the equilibrium point between the bullish and bearish forces.
Traders use the MACD indicator to identify changes in trend and momentum. When the MACD line crosses above the signal line, it is considered a bullish signal, indicating that the momentum is shifting towards the upside. Conversely, when the MACD line crosses below the signal line, it is considered a bearish signal, indicating that the momentum is shifting towards the downside.
The MACD indicator can also be used to identify divergences between the MACD line and the price action. A bullish divergence occurs when the price is making lower lows, but the MACD line is making higher lows. This could indicate that the downward momentum is weakening, and a potential trend reversal could be imminent. A bearish divergence occurs when the price is making higher highs, but the MACD line is making lower highs, indicating that the upward momentum is weakening, and a potential trend reversal could be imminent.
Overall, the MACD indicator is a versatile tool that can be used in conjunction with other technical indicators and chart patterns to make informed trading decisions.
What is CCI?
The Commodity Channel Index ( CCI ) is a technical analysis indicator that was developed by Donald Lambert in 1980. It's primarily used to identify overbought and oversold conditions in the market, as well as trend direction and potential price reversals.
The CCI is calculated by taking the difference between the typical price (the average of the high, low, and close prices) and a moving average of the typical price over a certain period of time. This difference is then divided by a factor based on the average deviation of the typical price from the moving average.
The formula for the CCI is:
CCI = (Typical Price - 20-period SMA of Typical Price) / (0.015 x Mean Deviation)
Where:
Typical Price = (High + Low + Close) / 3
SMA = Simple Moving Average
Mean Deviation = Average of the absolute value of the difference between the Typical Price and the SMA over the last 20 periods.
The CCI is usually displayed as a line chart that oscillates around a centerline of zero. Readings above zero indicate that the typical price is above the moving average, while readings below zero indicate that the typical price is below the moving average.
Traders typically use the CCI to identify overbought and oversold conditions in the market. When the CCI rises above a certain level (e.g., +100), it's considered overbought, indicating that the price may be due for a correction or reversal. When the CCI falls below a certain level (e.g., -100), it's considered oversold, indicating that the price may be due for a bounce or reversal.
The CCI can also be used to identify potential trend reversals. When the CCI crosses above or below the zero line, it can signal a potential change in trend. For example, if the CCI crosses above the zero line, it could indicate that a bullish trend is emerging, while a cross below the zero line could indicate that a bearish trend is emerging.
Overall, the Commodity Channel Index is a useful technical analysis tool for identifying overbought and oversold conditions, as well as potential trend reversals in the market. However, like all technical indicators, it should be used in conjunction with other forms of analysis and risk management techniques to make informed trading decisions.
What is RSI?
The RSI, or Relative Strength Index, is a popular technical analysis tool used to measure the strength of a security's price action and identify potential trend reversals. It was developed by J. Welles Wilder and is based on the concept that price action tends to follow a momentum pattern.
The RSI is calculated based on the average gain and loss of a security's price over a specified period, usually 14 periods. It oscillates between 0 and 100 and is represented as a single line on a chart.
The RSI is calculated as follows:
RS = Average Gain / Average Loss
RSI = 100 - (100 / (1 + RS))
Where the Average Gain is the sum of all gains divided by the number of periods, and the Average Loss is the sum of all losses divided by the number of periods.
The RSI is used to identify overbought and oversold conditions in a security or market index. When the RSI rises above 70, it is considered overbought, indicating that the security may be overvalued and due for a price correction. Conversely, when the RSI falls below 30, it is considered oversold, indicating that the security may be undervalued and due for a price rebound.
Traders can also use the RSI to identify potential trend reversals. When the RSI forms a divergent pattern with the price action, it could indicate that the security is losing momentum and may be reversing to the upside or downside.
Overall, the RSI is a useful tool for traders to identify potential buy and sell signals, as well as to confirm trends and reversals. However, it should not be used in isolation, and traders should consider using other technical indicators and fundamental analysis to make informed trading decisions.
What is Stochastic?
The stochastic oscillator is a momentum indicator used in technical analysis to measure the current closing price of a security or market index relative to its price range over a specified period. The indicator consists of two lines, the %K line and the %D line, which oscillate between 0 and 100.
The %K line is calculated as follows:
%K = 100 x (Closing Price - Lowest Low) / (Highest High - Lowest Low)
Where:
Closing Price is the most recent closing price of the security.
Lowest Low is the lowest low of the security over a specified period (usually 14 periods).
Highest High is the highest high of the security over the same specified period.
The %D line is a 3-period simple moving average of the %K line. The %D line is slower than the %K line and is used to smooth out the volatility of the %K line.
The stochastic oscillator is used to identify overbought and oversold conditions in a security or market index. When the %K line rises above 80, it is considered overbought, indicating that the security may be overvalued and due for a price correction. Conversely, when the %K line falls below 20, it is considered oversold, indicating that the security may be undervalued and due for a price rebound.
Traders can also use the stochastic oscillator to identify bullish and bearish divergences between the %K line and the price action. A bullish divergence occurs when the %K line is making higher lows while the price action is making lower lows, indicating that the momentum is shifting towards the upside. A bearish divergence occurs when the %K line is making lower highs while the price action is making higher highs, indicating that the momentum is shifting towards the downside.
Overall, the stochastic oscillator is a useful tool for traders to identify potential buy and sell signals, as well as to confirm trends and reversals. However, it should not be used in isolation, and traders should consider using other technical indicators and fundamental analysis to make informed trading decisions.
What is Loxxer?
The Loxxer Index is a technical indicator used in financial analysis to identify potential trend reversals and overbought/oversold conditions in a security or market index. It was developed by Loxx and is also known as the Loxx Indicator.
The Loxxer Index is calculated based on the high, low, and closing prices of a security over a specified period. It measures the demand for the security by comparing the current high and low prices with the previous high and low prices. The indicator oscillates between 0 and 1 and is represented as a single line on a chart.
The Loxxer Index is calculated as follows:
LoxxMax = Current High - Previous High
LoxxMin = Previous Low - Current Low
If LoxxMax is greater than LoxxMin, then the Loxxer Index is calculated as follows:
Loxxer = LoxxMax / (LoxxMax + Current Close - Previous Close)
If LoxxMax is less than or equal to LoxxMin, then the Loxxer Index is calculated as follows:
Loxxer = 0
The Loxxer Index is used to identify overbought and oversold conditions in a security or market index. When the Loxxer Index rises above 0.7, it is considered overbought, indicating that the security may be overvalued and due for a price correction. Conversely, when the Loxxer Index falls below 0.3, it is considered oversold, indicating that the security may be undervalued and due for a price rebound.
Traders can also use the Loxxer Index to identify potential trend reversals. When the Loxxer Index forms a higher low while the price action forms a lower low, it could indicate that the security is losing momentum and may be reversing to the upside. Conversely, when the Loxxer Index forms a lower high while the price action forms a higher high, it could indicate that the security is losing momentum and may be reversing to the downside.
Overall, the Loxxer Index is a useful tool for traders to identify potential buy and sell signals, as well as to confirm trends and reversals. However, it should not be used in isolation, and traders should consider using other technical indicators and fundamental analysis to make informed trading decisions.
What is Velocity?
The Velocity Indicator is a technical analysis tool used to measure the speed and momentum of price movements in a security or market index. It is a type of oscillator that is used to identify potential trend reversals and overbought/oversold conditions.
The Velocity Indicator is calculated based on the difference between the current price and the price from a specified number of periods ago. It measures the rate of change of the price movement over time and is represented as a single line on a chart.
The Velocity Indicator is calculated as follows:
Velocity = (Current Price - Price from N periods ago) / Price from N periods ago x 100
Where N is the number of periods used in the calculation.
The Velocity Indicator is used to identify overbought and oversold conditions in a security or market index. When the Velocity Indicator rises above 1, it is considered overbought, indicating that the security may be overvalued and due for a price correction. Conversely, when the Velocity Indicator falls below -1, it is considered oversold, indicating that the security may be undervalued and due for a price rebound.
Traders can also use the Velocity Indicator to identify potential trend reversals. When the Velocity Indicator crosses above its moving average, it could indicate that the security is gaining momentum and may be reversing to the upside. Conversely, when the Velocity Indicator crosses below its moving average, it could indicate that the security is losing momentum and may be reversing to the downside.
Overall, the Velocity Indicator is a useful tool for traders to identify potential buy and sell signals, as well as to confirm trends and reversals. However, it should not be used in isolation, and traders should consider using other technical indicators and fundamental analysis to make informed trading decisions.
What is Super 6x: RSI, MACD, Stochastic, Loxxer, CCI, & Velocity?
Super 6x combines all 6 indicators into one signal, long or short
Requirements
Inputs
Confirmation 1 and Solo Confirmation: GKD-V Volatility / Volume indicator
Confirmation 2: GKD-C Confirmation indicator
Outputs
Confirmation 2 and Solo Confirmation Complex: GKD-E Exit indicator
Confirmation 1: GKD-C Confirmation indicator
Continuation: GKD-E Exit indicator
Solo Confirmation Simple: GKD-BT Backtest strategy
Additional features will be added in future releases.
GKD-C Softmax Normalized Jurik Filter Histogram [Loxx]Giga Kaleidoscope GKD-C Softmax Normalized Jurik Filter Histogram is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ Giga Kaleidoscope Modularized Trading System
What is Loxx's "Giga Kaleidoscope Modularized Trading System"?
The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading.
What is the NNFX algorithmic trading strategy?
The NNFX (No-Nonsense Forex) trading system is a comprehensive approach to Forex trading that is designed to simplify the process and remove the confusion and complexity that often surrounds trading. The system was developed by a Forex trader who goes by the pseudonym "VP" and has gained a significant following in the Forex community.
The NNFX trading system is based on a set of rules and guidelines that help traders make objective and informed decisions. These rules cover all aspects of trading, including market analysis, trade entry, stop loss placement, and trade management.
Here are the main components of the NNFX trading system:
1. Trading Philosophy: The NNFX trading system is based on the idea that successful trading requires a comprehensive understanding of the market, objective analysis, and strict risk management. The system aims to remove subjective elements from trading and focuses on objective rules and guidelines.
2. Technical Analysis: The NNFX trading system relies heavily on technical analysis and uses a range of indicators to identify high-probability trading opportunities. The system uses a combination of trend-following and mean-reverting strategies to identify trades.
3. Market Structure: The NNFX trading system emphasizes the importance of understanding the market structure, including price action, support and resistance levels, and market cycles. The system uses a range of tools to identify the market structure, including trend lines, channels, and moving averages.
4. Trade Entry: The NNFX trading system has strict rules for trade entry. The system uses a combination of technical indicators to identify high-probability trades, and traders must meet specific criteria to enter a trade.
5. Stop Loss Placement: The NNFX trading system places a significant emphasis on risk management and requires traders to place a stop loss order on every trade. The system uses a combination of technical analysis and market structure to determine the appropriate stop loss level.
6. Trade Management: The NNFX trading system has specific rules for managing open trades. The system aims to minimize risk and maximize profit by using a combination of trailing stops, take profit levels, and position sizing.
Overall, the NNFX trading system is designed to be a straightforward and easy-to-follow approach to Forex trading that can be applied by traders of all skill levels.
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the Stochastic Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Softmax Normalized Jurik Filter Histogram as shown on the chart above
Confirmation 2: Williams Percent Range
Continuation: Fisher Transform
Exit: Rex Oscillator
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain.
Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm)
Standard Entry
1. GKD-C Confirmation 1 Signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
6. GKD-C Confirmation 1 signal was less than 7 candles prior
Continuation Entry
1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously
2. GKD-B Baseline hasn't crossed since entry signal trigger
3. GKD-C Confirmation Continuation Indicator signals
4. GKD-C Confirmation 1 agrees
5. GKD-B Baseline agrees
6. GKD-C Confirmation 2 agrees
1-Candle Rule Standard Entry
1. GKD-C Confirmation 1 signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
1-Candle Rule Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 1 signal was less than 7 candles prior
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
PullBack Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is beyond 1.0x Volatility of Baseline
Next Candle:
1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
█ GKD-C Softmax Normalized Jurik Filter Histogram
What is the Softmax Normalization?
Softmax normalization is a mathematical technique used to transform a set of numerical values into a probability distribution. It is commonly used in machine learning and deep learning applications, where the output of a model is required to be a probability distribution over a set of classes or categories.
The softmax function is used to normalize the input values such that they sum up to 1, which is a requirement for a probability distribution. The output of the softmax function for each input value is a value between 0 and 1, which represents the probability of that value belonging to a particular class.
The softmax normalization process involves applying the softmax function to a set of input values. The softmax function is defined as follows:
softmax(x_i) = e^(x_i) / sum(e^(x_j))
where x_i is the i-th input value, e is the base of the natural logarithm, and the sum is taken over all input values. The output of the softmax function is a vector of the same length as the input vector, where each element is between 0 and 1 and the sum of all elements is equal to 1.
Softmax normalization can be used to generate a probability distribution over a set of classes or categories. For example, in a classification problem, where the goal is to assign a category to an input data point, softmax normalization can be used to generate a probability distribution over the categories. The category with the highest probability can then be selected as the output of the model.
One of the benefits of softmax normalization is that it ensures that the output of the model is a valid probability distribution. This can be useful in applications such as image classification, where the output of the model needs to represent a probability distribution over a set of classes.
In summary, softmax normalization is a mathematical technique used to transform a set of numerical values into a probability distribution. It involves applying the softmax function to the input values, which normalizes the values such that they sum up to 1 and represent the probability of each value belonging to a particular class.
What is the Jurik Filter?
The Jurik Filter is a technical analysis tool that is used to filter out market noise and identify trends in financial markets. It was developed by Mark Jurik in the 1990s and is based on a non-linear smoothing algorithm that provides a more accurate representation of price movements.
Traditional moving averages, such as the Simple Moving Average ( SMA ) or Exponential Moving Average ( EMA ), are linear filters that produce a lag between price and the moving average line. This can cause false signals during periods of market volatility , which can result in losses for traders and investors.
The Jurik Filter is designed to address this issue by incorporating a damping factor into the smoothing algorithm. This damping factor adjusts the filter's responsiveness to the changes in price, allowing it to filter out market noise without overshooting price peaks and valleys.
The Jurik Filter is calculated using a mathematical formula that takes into account the current and past prices of an asset, as well as the volatility of the market. This formula incorporates the damping factor and produces a smoother price curve than traditional moving average filters.
One of the advantages of the Jurik Filter is its ability to adjust to changing market conditions. The damping factor can be adjusted to suit different securities and time frames, making it a versatile tool for traders and investors.
Traders and investors often use the Jurik Filter in conjunction with other technical analysis tools, such as the MACD or RSI , to confirm or complement their trading strategies. By filtering out market noise and identifying trends in the financial markets, the Jurik Filter can help improve the accuracy of trading signals and reduce the risks of false signals during periods of market volatility .
Overall, the Jurik Filter is a powerful technical analysis tool that can help traders and investors make more informed decisions about buying and selling securities. By providing a smoother price curve and reducing false signals, it can help improve trading performance and reduce risk in volatile markets.
What is the Softmax Normalized Jurik Filter Histogram?
Simply put, this indicator takes a Jurik Filter of price and applies softmax normalization to create an oscillator around zero with extremes of -1 and 1. This allows normalization process reduces noise, improves signal quality, and better defines reversal zones.
Requirements
Inputs
Confirmation 1 and Solo Confirmation: GKD-V Volatility / Volume indicator
Confirmation 2: GKD-C Confirmation indicator
Outputs
Confirmation 2 and Solo Confirmation Complex: GKD-E Exit indicator
Confirmation 1: GKD-C Confirmation indicator
Continuation: GKD-E Exit indicator
Solo Confirmation Simple: GKD-BT Backtest strategy
Additional features will be added in future releases.
GKD-C Jurik-Smoothed Range Oscillator w/ Bands [Loxx]Giga Kaleidoscope GKD-C Jurik-Smoothed Range Oscillator w/ Bands is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ Giga Kaleidoscope Modularized Trading System
What is Loxx's "Giga Kaleidoscope Modularized Trading System"?
The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading.
What is the NNFX algorithmic trading strategy?
The NNFX (No-Nonsense Forex) trading system is a comprehensive approach to Forex trading that is designed to simplify the process and remove the confusion and complexity that often surrounds trading. The system was developed by a Forex trader who goes by the pseudonym "VP" and has gained a significant following in the Forex community.
The NNFX trading system is based on a set of rules and guidelines that help traders make objective and informed decisions. These rules cover all aspects of trading, including market analysis, trade entry, stop loss placement, and trade management.
Here are the main components of the NNFX trading system:
1. Trading Philosophy: The NNFX trading system is based on the idea that successful trading requires a comprehensive understanding of the market, objective analysis, and strict risk management. The system aims to remove subjective elements from trading and focuses on objective rules and guidelines.
2. Technical Analysis: The NNFX trading system relies heavily on technical analysis and uses a range of indicators to identify high-probability trading opportunities. The system uses a combination of trend-following and mean-reverting strategies to identify trades.
3. Market Structure: The NNFX trading system emphasizes the importance of understanding the market structure, including price action, support and resistance levels, and market cycles. The system uses a range of tools to identify the market structure, including trend lines, channels, and moving averages.
4. Trade Entry: The NNFX trading system has strict rules for trade entry. The system uses a combination of technical indicators to identify high-probability trades, and traders must meet specific criteria to enter a trade.
5. Stop Loss Placement: The NNFX trading system places a significant emphasis on risk management and requires traders to place a stop loss order on every trade. The system uses a combination of technical analysis and market structure to determine the appropriate stop loss level.
6. Trade Management: The NNFX trading system has specific rules for managing open trades. The system aims to minimize risk and maximize profit by using a combination of trailing stops, take profit levels, and position sizing.
Overall, the NNFX trading system is designed to be a straightforward and easy-to-follow approach to Forex trading that can be applied by traders of all skill levels.
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the Stochastic Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Jurik-Smoothed Range Oscillator w/ Bands as shown on the chart above
Confirmation 2: Williams Percent Range
Continuation: Fisher Transform
Exit: Rex Oscillator
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain.
Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm)
Standard Entry
1. GKD-C Confirmation 1 Signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
6. GKD-C Confirmation 1 signal was less than 7 candles prior
Continuation Entry
1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously
2. GKD-B Baseline hasn't crossed since entry signal trigger
3. GKD-C Confirmation Continuation Indicator signals
4. GKD-C Confirmation 1 agrees
5. GKD-B Baseline agrees
6. GKD-C Confirmation 2 agrees
1-Candle Rule Standard Entry
1. GKD-C Confirmation 1 signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
1-Candle Rule Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 1 signal was less than 7 candles prior
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
PullBack Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is beyond 1.0x Volatility of Baseline
Next Candle:
1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
█ GKD-C Jurik-Smoothed Range Oscillator w/ Bands
What is Jurik Filter?
The Jurik Filter is a technical analysis tool that is used to filter out market noise and identify trends in financial markets. It was developed by Mark Jurik in the 1990s and is based on a non-linear smoothing algorithm that provides a more accurate representation of price movements.
Traditional moving averages, such as the Simple Moving Average ( SMA ) or Exponential Moving Average ( EMA ), are linear filters that produce a lag between price and the moving average line. This can cause false signals during periods of market volatility , which can result in losses for traders and investors.
The Jurik Filter is designed to address this issue by incorporating a damping factor into the smoothing algorithm. This damping factor adjusts the filter's responsiveness to the changes in price, allowing it to filter out market noise without overshooting price peaks and valleys.
The Jurik Filter is calculated using a mathematical formula that takes into account the current and past prices of an asset, as well as the volatility of the market. This formula incorporates the damping factor and produces a smoother price curve than traditional moving average filters.
One of the advantages of the Jurik Filter is its ability to adjust to changing market conditions. The damping factor can be adjusted to suit different securities and time frames, making it a versatile tool for traders and investors.
Traders and investors often use the Jurik Filter in conjunction with other technical analysis tools, such as the MACD or RSI , to confirm or complement their trading strategies. By filtering out market noise and identifying trends in the financial markets, the Jurik Filter can help improve the accuracy of trading signals and reduce the risks of false signals during periods of market volatility .
Overall, the Jurik Filter is a powerful technical analysis tool that can help traders and investors make more informed decisions about buying and selling securities. By providing a smoother price curve and reducing false signals, it can help improve trading performance and reduce risk in volatile markets.
What is Jurik-Smoothed Range Oscillator w/ Bands
Range Oscillator indicator shows the relative position of median price in the highest high to lowest low range for desired period.
This version includes smoothing to clean up false signals and, since the smoothing method is JMA (which has very small lag), the added lag is as small as it can be making it much easier to use for all timeframes.
Requirements
Inputs
Confirmation 1 and Solo Confirmation: GKD-V Volatility / Volume indicator
Confirmation 2: GKD-C Confirmation indicator
Outputs
Confirmation 2 and Solo Confirmation Complex: GKD-E Exit indicator
Confirmation 1: GKD-C Confirmation indicator
Continuation: GKD-E Exit indicator
Solo Confirmation Simple: GKD-BT Backtest strategy
Additional features will be added in future releases.
GKD-C RSI on Jurik-Filtered Price [Loxx]Giga Kaleidoscope GKD-C RSI on Jurik-Filtered Price is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ Giga Kaleidoscope Modularized Trading System
What is Loxx's "Giga Kaleidoscope Modularized Trading System"?
The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading.
What is the NNFX algorithmic trading strategy?
The NNFX (No-Nonsense Forex) trading system is a comprehensive approach to Forex trading that is designed to simplify the process and remove the confusion and complexity that often surrounds trading. The system was developed by a Forex trader who goes by the pseudonym "VP" and has gained a significant following in the Forex community.
The NNFX trading system is based on a set of rules and guidelines that help traders make objective and informed decisions. These rules cover all aspects of trading, including market analysis, trade entry, stop loss placement, and trade management.
Here are the main components of the NNFX trading system:
1. Trading Philosophy: The NNFX trading system is based on the idea that successful trading requires a comprehensive understanding of the market, objective analysis, and strict risk management. The system aims to remove subjective elements from trading and focuses on objective rules and guidelines.
2. Technical Analysis: The NNFX trading system relies heavily on technical analysis and uses a range of indicators to identify high-probability trading opportunities. The system uses a combination of trend-following and mean-reverting strategies to identify trades.
3. Market Structure: The NNFX trading system emphasizes the importance of understanding the market structure, including price action, support and resistance levels, and market cycles. The system uses a range of tools to identify the market structure, including trend lines, channels, and moving averages.
4. Trade Entry: The NNFX trading system has strict rules for trade entry. The system uses a combination of technical indicators to identify high-probability trades, and traders must meet specific criteria to enter a trade.
5. Stop Loss Placement: The NNFX trading system places a significant emphasis on risk management and requires traders to place a stop loss order on every trade. The system uses a combination of technical analysis and market structure to determine the appropriate stop loss level.
6. Trade Management: The NNFX trading system has specific rules for managing open trades. The system aims to minimize risk and maximize profit by using a combination of trailing stops, take profit levels, and position sizing.
Overall, the NNFX trading system is designed to be a straightforward and easy-to-follow approach to Forex trading that can be applied by traders of all skill levels.
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the Stochastic Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: RSI on Jurik-Filtered Price as shown on the chart above
Confirmation 2: Williams Percent Range
Continuation: Fisher Transform
Exit: Rex Oscillator
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain.
Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm)
Standard Entry
1. GKD-C Confirmation 1 Signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
6. GKD-C Confirmation 1 signal was less than 7 candles prior
Continuation Entry
1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously
2. GKD-B Baseline hasn't crossed since entry signal trigger
3. GKD-C Confirmation Continuation Indicator signals
4. GKD-C Confirmation 1 agrees
5. GKD-B Baseline agrees
6. GKD-C Confirmation 2 agrees
1-Candle Rule Standard Entry
1. GKD-C Confirmation 1 signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
1-Candle Rule Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 1 signal was less than 7 candles prior
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
PullBack Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is beyond 1.0x Volatility of Baseline
Next Candle:
1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
█ GKD-C RSI on Jurik-Filtered Price
What is RSI?
The Relative Strength Index (RSI) is a technical analysis indicator that is used to measure the strength of a security's price action. It was developed by J. Welles Wilder in 1978 and has since become a popular tool for traders and analysts.
The RSI is calculated by comparing the average gain of a security's price on up days to the average loss on down days over a given period of time. The RSI is displayed as a line graph that oscillates between zero and 100. Readings above 70 are considered overbought, while readings below 30 are considered oversold.
The formula for the RSI is as follows:
RSI = 100 - (100 / (1 + RS))
Where:
RS = Average Gain / Average Loss
The calculation for Average Gain is:
((Current Price - Previous Price) if Current Price > Previous Price, otherwise 0) / n
The calculation for Average Loss is:
((Previous Price - Current Price) if Current Price < Previous Price, otherwise 0) / n
Where:
n = the number of periods used for the RSI calculation (usually 14)
The RSI can be used in a variety of ways, including identifying overbought and oversold conditions, as well as potential trend reversals. When the RSI rises above 70, it is considered overbought and indicates that the security may be due for a correction or reversal. Conversely, when the RSI falls below 30, it is considered oversold and indicates that the security may be due for a bounce or reversal.
In addition to overbought and oversold levels, traders can also look for divergences between the RSI and price action. For example, if the RSI is making higher highs while prices are making lower lows, it could indicate a potential trend reversal.
Overall, the RSI is a useful technical analysis tool for identifying potential price reversals and overbought/oversold conditions. However, like all technical indicators, it should be used in conjunction with other forms of analysis and risk management techniques to make informed trading decisions.
What is Jurik Filter?
The Jurik Filter is a technical analysis tool that is used to filter out market noise and identify trends in financial markets. It was developed by Mark Jurik in the 1990s and is based on a non-linear smoothing algorithm that provides a more accurate representation of price movements.
Traditional moving averages, such as the Simple Moving Average ( SMA ) or Exponential Moving Average ( EMA ), are linear filters that produce a lag between price and the moving average line. This can cause false signals during periods of market volatility , which can result in losses for traders and investors.
The Jurik Filter is designed to address this issue by incorporating a damping factor into the smoothing algorithm. This damping factor adjusts the filter's responsiveness to the changes in price, allowing it to filter out market noise without overshooting price peaks and valleys.
The Jurik Filter is calculated using a mathematical formula that takes into account the current and past prices of an asset, as well as the volatility of the market. This formula incorporates the damping factor and produces a smoother price curve than traditional moving average filters.
One of the advantages of the Jurik Filter is its ability to adjust to changing market conditions. The damping factor can be adjusted to suit different securities and time frames, making it a versatile tool for traders and investors.
Traders and investors often use the Jurik Filter in conjunction with other technical analysis tools, such as the MACD or RSI , to confirm or complement their trading strategies. By filtering out market noise and identifying trends in the financial markets, the Jurik Filter can help improve the accuracy of trading signals and reduce the risks of false signals during periods of market volatility .
Overall, the Jurik Filter is a powerful technical analysis tool that can help traders and investors make more informed decisions about buying and selling securities. By providing a smoother price curve and reducing false signals, it can help improve trading performance and reduce risk in volatile markets.
What is the RSI on Jurik-Filtered Price?
RSI on Jurik-Filtered Price calculates RSI on the Jurik-filtered source price.
Requirements
Inputs
Confirmation 1 and Solo Confirmation: GKD-V Volatility / Volume indicator
Confirmation 2: GKD-C Confirmation indicator
Outputs
Confirmation 2 and Solo Confirmation Complex: GKD-E Exit indicator
Confirmation 1: GKD-C Confirmation indicator
Continuation: GKD-E Exit indicator
Solo Confirmation Simple: GKD-BT Backtest strategy
Additional features will be added in future releases.
GKD-C Jurik-Filtered RSI(var) [Loxx]Giga Kaleidoscope GKD-C Jurik-Filtered RSI(var) is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ Giga Kaleidoscope Modularized Trading System
What is Loxx's "Giga Kaleidoscope Modularized Trading System"?
The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading.
What is the NNFX algorithmic trading strategy?
The NNFX (No-Nonsense Forex) trading system is a comprehensive approach to Forex trading that is designed to simplify the process and remove the confusion and complexity that often surrounds trading. The system was developed by a Forex trader who goes by the pseudonym "VP" and has gained a significant following in the Forex community.
The NNFX trading system is based on a set of rules and guidelines that help traders make objective and informed decisions. These rules cover all aspects of trading, including market analysis, trade entry, stop loss placement, and trade management.
Here are the main components of the NNFX trading system:
1. Trading Philosophy: The NNFX trading system is based on the idea that successful trading requires a comprehensive understanding of the market, objective analysis, and strict risk management. The system aims to remove subjective elements from trading and focuses on objective rules and guidelines.
2. Technical Analysis: The NNFX trading system relies heavily on technical analysis and uses a range of indicators to identify high-probability trading opportunities. The system uses a combination of trend-following and mean-reverting strategies to identify trades.
3. Market Structure: The NNFX trading system emphasizes the importance of understanding the market structure, including price action, support and resistance levels, and market cycles. The system uses a range of tools to identify the market structure, including trend lines, channels, and moving averages.
4. Trade Entry: The NNFX trading system has strict rules for trade entry. The system uses a combination of technical indicators to identify high-probability trades, and traders must meet specific criteria to enter a trade.
5. Stop Loss Placement: The NNFX trading system places a significant emphasis on risk management and requires traders to place a stop loss order on every trade. The system uses a combination of technical analysis and market structure to determine the appropriate stop loss level.
6. Trade Management: The NNFX trading system has specific rules for managing open trades. The system aims to minimize risk and maximize profit by using a combination of trailing stops, take profit levels, and position sizing.
Overall, the NNFX trading system is designed to be a straightforward and easy-to-follow approach to Forex trading that can be applied by traders of all skill levels.
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the Stochastic Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Jurik-Filtered RSI(var) as shown on the chart above
Confirmation 2: Williams Percent Range
Continuation: Fisher Transform
Exit: Rex Oscillator
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain.
Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm)
Standard Entry
1. GKD-C Confirmation 1 Signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
6. GKD-C Confirmation 1 signal was less than 7 candles prior
Continuation Entry
1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously
2. GKD-B Baseline hasn't crossed since entry signal trigger
3. GKD-C Confirmation Continuation Indicator signals
4. GKD-C Confirmation 1 agrees
5. GKD-B Baseline agrees
6. GKD-C Confirmation 2 agrees
1-Candle Rule Standard Entry
1. GKD-C Confirmation 1 signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
1-Candle Rule Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 1 signal was less than 7 candles prior
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
PullBack Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is beyond 1.0x Volatility of Baseline
Next Candle:
1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
█ GKD-C Jurik-Filtered RSI(var)
What is RSI?
The Relative Strength Index (RSI) is a technical analysis indicator that is used to measure the strength of a security's price action. It was developed by J. Welles Wilder in 1978 and has since become a popular tool for traders and analysts.
The RSI is calculated by comparing the average gain of a security's price on up days to the average loss on down days over a given period of time. The RSI is displayed as a line graph that oscillates between zero and 100. Readings above 70 are considered overbought, while readings below 30 are considered oversold.
The formula for the RSI is as follows:
RSI = 100 - (100 / (1 + RS))
Where:
RS = Average Gain / Average Loss
The calculation for Average Gain is:
((Current Price - Previous Price) if Current Price > Previous Price, otherwise 0) / n
The calculation for Average Loss is:
((Previous Price - Current Price) if Current Price < Previous Price, otherwise 0) / n
Where:
n = the number of periods used for the RSI calculation (usually 14)
The RSI can be used in a variety of ways, including identifying overbought and oversold conditions, as well as potential trend reversals. When the RSI rises above 70, it is considered overbought and indicates that the security may be due for a correction or reversal. Conversely, when the RSI falls below 30, it is considered oversold and indicates that the security may be due for a bounce or reversal.
In addition to overbought and oversold levels, traders can also look for divergences between the RSI and price action. For example, if the RSI is making higher highs while prices are making lower lows, it could indicate a potential trend reversal.
Overall, the RSI is a useful technical analysis tool for identifying potential price reversals and overbought/oversold conditions. However, like all technical indicators, it should be used in conjunction with other forms of analysis and risk management techniques to make informed trading decisions.
What is Jurik Filter?
The Jurik Filter is a technical analysis tool that is used to filter out market noise and identify trends in financial markets. It was developed by Mark Jurik in the 1990s and is based on a non-linear smoothing algorithm that provides a more accurate representation of price movements.
Traditional moving averages, such as the Simple Moving Average ( SMA ) or Exponential Moving Average ( EMA ), are linear filters that produce a lag between price and the moving average line. This can cause false signals during periods of market volatility , which can result in losses for traders and investors.
The Jurik Filter is designed to address this issue by incorporating a damping factor into the smoothing algorithm. This damping factor adjusts the filter's responsiveness to the changes in price, allowing it to filter out market noise without overshooting price peaks and valleys.
The Jurik Filter is calculated using a mathematical formula that takes into account the current and past prices of an asset, as well as the volatility of the market. This formula incorporates the damping factor and produces a smoother price curve than traditional moving average filters.
One of the advantages of the Jurik Filter is its ability to adjust to changing market conditions. The damping factor can be adjusted to suit different securities and time frames, making it a versatile tool for traders and investors.
Traders and investors often use the Jurik Filter in conjunction with other technical analysis tools, such as the MACD or RSI , to confirm or complement their trading strategies. By filtering out market noise and identifying trends in the financial markets, the Jurik Filter can help improve the accuracy of trading signals and reduce the risks of false signals during periods of market volatility .
Overall, the Jurik Filter is a powerful technical analysis tool that can help traders and investors make more informed decisions about buying and selling securities. By providing a smoother price curve and reducing false signals, it can help improve trading performance and reduce risk in volatile markets.
What is the Jurik-Filtered RSI(var)?
Jurik-Filtered RSI(var) calculates RSI as the absolute difference between current price and 1-bar lagged price. This variation makes the RSI more dynamic to momentum changes in price. The output from this calculation is smoothed using a Jurik Filter after which it's reformatted into a RSI 1-100 value.
Requirements
Inputs
Confirmation 1 and Solo Confirmation: GKD-V Volatility / Volume indicator
Confirmation 2: GKD-C Confirmation indicator
Outputs
Confirmation 2 and Solo Confirmation Complex: GKD-E Exit indicator
Confirmation 1: GKD-C Confirmation indicator
Continuation: GKD-E Exit indicator
Solo Confirmation Simple: GKD-BT Backtest strategy
Additional features will be added in future releases.
Original Strategy - Backtest & Alerts [AlgoRider]█ OVERVIEW
This indicator simulates an efficient trading strategy developed by our team in a simple and effective way, the primary objective when designing it was to make its reading and use as simple as possible for TradingView users. The Backtesting feature has been designed to keep only the most essential information to obtain clear and precise results directly on the graph. The settings interface has also been designed for ergonomic and simplified use. The user is free to customize the parameters as he wishes and according to his trading profile by having the choice, for example, of using options to reduce the risk of loss, to increase the win rate, to optimize profits. Automation is made possible and facilitated thanks to preconfigured alert conditions.
█ CONCEPTS
How the strategy works :
When the price is close to its equilibrium (represented by an exponential moving average - EMA) and it starts to take an upward or downward direction the script will issue Long or Short entry orders. If the price turns and goes to the opposite direction, the script quickly cuts the position by issuing a Stop Loss order. When the price takes a real clear direction, this is where the script will be able to accumulate profits.
What makes this script unique is :
• That it is entirely developed by us, inspired by a strategy that is little known and little used in the trading world, in particular because it often involves a greater number of losing trades than winning trades.
• Its ease of reading and use. The backtesting feature was designed to clearly display the most important information in a data table directly on the chart. The user is not lost with dozens of superfluous data and can directly access the most essential information to see how the strategy has performed in the past.
• Its ease of configuration and customization. Once in the configuration window, again the user is not lost, because there is only one main parameter to modify, it is the length of the EMA, which will influence the timing of entries and exits trades. Then there are a few other non-mandatory parameters to fine-tune risk management and maximize profits. (Detailed description of the settings further down the page)
• Strategy automation made easy and fast thanks to several types of alerts which are differentiated for entries, for auto-exits and for Custom TP and SL. These alerts can be configured to send the messages by email or via Webhooks.
• The indicator has several custom options allowing its user to go further than the basic strategy. Several confirmations for entries are available as well as the possibility of adding or not a personalized TP and/or SL.
• There is no repaint, once an entry/exit symbol or drawing is displayed it doesn't change anymore. The Short, Long and auto-Exit signals appear only at the open of the candles, just after the signal was confirmed at the close of the previous candle. The custom TP and custom SL signals can appear when a candle is not yet finished, but once displayed they don't change.
█ HOW TO PROCEED
1 — Once the script is applied to your chart, it already works with its default settings. You can already see the performance of the strategy in the data table directly on the chart (in the top right corner by default).
2 — You can customize the strategy and influence the results/performance by modifying its parameters. 3 types of parameters are present and can be modified.
3 — This strategy is designed for the cryptocurrency market in priority, but you can also try it on other types of assets. It works on Futures but you can also try it on Spot market mainly for LONG trades.
4 — You can apply the script in every timeframe. We do not recommend using it below m30 because in most cases the statistics are unfavorable largely because of the fees. (This is not a financial advice but only for the use of the indicator)
█ FEATURES
Screenshot on BYBIT:EGLDUSDT Bybit Futures, H1, with default parameters, from 2022-01-01 to 2022-09-27, to show the settings window
• Settings For Backtesting
- Strategy : Choose from a drop-down list if the strategy should execute only Long trades or only Short trades or both. Default Both.
- Invest. : Choose the amount you want to invest in the simulation. Default 10000.
- Position : Choose the amount of the position (Size order) that will be used during the simulation. This will be the $ amount staked/involved for each trade entry.
Ex: If you put 20000 in position and 10000 in Invest. We consider that you use at least a leverage x2. Default 10000.
- Slipp. TP : Choose the amount in percentage of average slippage for Take Profits. This parameter makes it possible to predict a potential gap between the theoretical exit price for each TP (On the graph) and the real exit price on an exchange when implementing the strategy for real (slippage may be due to a time lag of a few seconds from execution time of the order on the exchange and/or due to the execution of a market order).
Ex: If a TP exit order of a Long trade, with entry $19000 (on BTCUSDT), is carried out in theory on the chart at $20000, in practice on the exchange the script have indeed sent an exit order at 20000 , but if the true exit price is 20050, the TP slippage is then +0.25%. Default 0.
- Slipp. SL : Choose the amount in percentage of average slippage for Stop Losses. This parameter makes it possible to predict a potential gap between the theoretical exit price for each SL (On the graph) and the real exit price on an exchange when implementing the strategy for real.
Ex: If an SL exit order of a Long trade, entry $19000 (on BTCUSDT), is carried out in theory on the chart at $18000, in practice on the exchange the script have indeed sent an exit order at 18000 $, but if the true exit price is 17950, the slippage SL is then +0.278% . Default 0.
- Fees % : Choose the percentage amount of fees applied to each trade to simulate the application of the strategy on the exchange of your choice. Applies to the entry and exit of each trade. Ex: For Binance Futures: 0.04; For Bybit futures: 0.06; For Ftx Futures: 0.075. Default 0.
- Cumulate Trades : If you check this, the Backtest will use 100% of the balance as Order Size (Position) for All or in the next X consecutive trades. Default not checked.
⚠️ Be Careful please, this option is available to show the full extent and possibilities of the algorithm when pushed to its limits thanks to the accumulation of profits (cumulative earnings), but it is a strategy that involves great risk. If a bad trade suffers a -50% loss, 50% of the account balance is lost, if the position is liquidated, the entire account balance is lost.
- All : If you check this All trades will be accumulated. Default not checked.
- Consecutive Trades : Choose the number of trades to accumulate. After X consecutive trades, the algorithm reassigns the initial order size to the current one and starts again for X consecutive trades. Minimum Value 2, Default 2.
• Settings To Optimize Performances and Risk Management
- (Main Parameter) EMA Length : Choose the length of the EMA. This value will determine the exponential moving average plot (blue line) that represents the equilibrium in this strategy. Depending on the positioning of the price around this equilibrium, the algorithm will decide to trigger Long or Short entry alerts, and exit alerts. Default 200.
- 1 - Confirm (After X Bar(s)) : If you check this, when the algorithm will detect an entry, it will wait for the number of bars you have entered to actually trigger the entry alert. Default not checked.
- Nb Bar : Enter here the number of bar you want, will be taken into account only if you check (1) Confirm (After X Bar(s)). Default 2.
- 2 - Confirm (Trend) : If you check this, when the algorithm will detect an entry, it will check that the trend is similar to the direction of the trade, if not, it will wait that the trade goes in the same direction as the trend to actually trigger the entry alert. Default not checked.
- OR/AND : This choice is taken into account only if you tick both confirmations. If you choose OR: The first of the 2 confirmations to be validated will trigger the entry alert. If you choose AND : once confirmation (1) is validated, the algorithm waits for confirmation (2) to be validated to actually trigger the entry alert. Default OR.
- Use TP / Use SL : If you check these, the algorithm will trigger personalized trade exit alerts when the price evolution has reached the amounts indicated since the trade entry. Default not Checked.
- % TP - SL : Indicate here the personalized amount in percentage that you want for your Take Profit and Stop Loss of each trade. Default 15-5.
• Settings For Appearances
- Small-size Data Table : If you check this, the data table will become smaller to free up more space on the chart to make it visually more pleasing. Default not checked.
Hide Table /
- Hide Labels / : You can check these to get a cleaner chart and focus only on what interests you in the indicator. Default not checked.
Hide Risk-Reward Areas
█ MAIN PARAMETERS TO USE
• In the default settings none of the box settings are checked. Basic strategy is made to be applied this way.
• The main parameter (the length of the EMA) is by default 200 because it is a known value that many traders rely on in many trading strategies. Moreover in this strategy it works in many cases and on different timeframes.
• To go further the user of the indicator is free to modify the parameters of the category "Leading Parameters - Risk Management" to reduce risks and to optimize profits.
• You can find below our recommendations for the EMA length value corresponding to the main timeframes.
m30 — EMA Length = 400 | 800
H1 — EMA Length = 200 | 400
H2 — EMA Length = 200 | 250
H4 — EMA Length = 100 | 200
D — EMA Length = 20 | 40
⚠️ We have chosen to recommend these settings because they will work in most cases, on most cryptoassets, but of course they will not work 100% of the time on all assets and will not always give positive results in the backtest, and they are not the most optimized parameters either. The user of the indicator is free to optimize the asset on which he wants to trade in his own way. Just as we do not give financial advice, we do not encourage to trade any asset in particular.
█ STATISTICS
The statistics presented below are an example of the results that the strategy can provide. (Reminder: These statistics are made over a past period and there is no guarantee that the same performance will reproduce in the future) .
For the demonstration we chose to apply the strategy on the Top 5 marketcap cryptos in September 2022. They are not the most favorable coins for this strategy but at least this way we don't take the most suitable assets to show wonderful and biased results. Likewise for the parameters used which are the default ones and which are not the most optimized parameters, much better results are possible. We chose Binance because it has the highest volumes and liquidity and the most historical data. We chose H1 because it is one of the most used timeframes.
BTC
Screenshot on BINANCE:BTCUSDTPERP Binance Futures, H1, with default parameters (EMA : 400), from 2022-01-01 to 2022-09-27
ETH
Screenshot on BINANCE:ETHUSDTPERP Binance Futures, H1, with default parameters (EMA : 400), from 2022-01-01 to 2022-09-27
BNB
Screenshot on BINANCE:BNBUSDTPERP Binance Futures, H1, with default parameters (EMA : 400), from 2022-01-01 to 2022-09-27
XRP
Screenshot on BINANCE:XRPUSDTPERP Binance Futures, H1, with default parameters (EMA : 200), from 2022-01-01 to 2022-09-27
ADA
Screenshot on BINANCE:ADAUSDTPERP Binance Futures, H1, with default parameters (EMA : 400), from 2022-01-01 to 2022-09-27
To show the potential of the indicator and push it to its limits, here is an example of the strategy applied for about 2 years (Up to the maximum of historical data available).
⚠️ It must be taken into account that during the period of this backtest the last Bullrun took place and it was a very favorable period for the strategy and for this altcoin (FTM), nothing ensures that it will happen again. ⚠️
FTM
Screenshot on BINANCE:FTMUSDTPERP Binance Futures, H4, with default parameters ( without cumulative earnings) and EMA : 400, start on 2020/12/03 to 2022/09/27
✅ All of the above statistics are verifiable by anyone using the indicator's backtesting system.
█ LIMITATIONS
• Despite the fact that we can see good performances when we backtest the strategy, we must take into account the fact that these are results performed in the past and that in no case does this guarantee that these same performances will be repeated again in the future.
• The automation of this strategy is made possible and is facilitated by alerts, but you must be aware of the fact that if you decide to put this strategy into practice in real life, you are solely responsible for the results that you will be able to obtain and you must be aware of the possibility at all times of partial or even total losses of your invested capital.
• Keep in mind that generating profits in trading is difficult. A strategy can perform very well at one time in the past during a period that is favorable to it, then from one day to the next it can give really bad results for several months or years.
• When backtesting a strategy, there are many factors to consider, not just trade entries to which you add a Take Profit and sometimes a Stop Loss. You must at least take into account the size of the position in relation to the capital you want to invest, the trading fees, the slippages (which can be really important depending on the exchange on which you are trading and depending on the asset you are trading), trading frequency, risk management, momentum, volumes and even more.
• This indicator has been optimized for crypto, you can try to use it on other type of assets but again, at your own risk.
The information published here on TradingView is not prohibited, doesn't constitute investment advice, and isn't created solely for qualified investors.
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Important to note : our indicators with the same backtesting system are published in separate publications, because putting them together in a single script would considerably slow down the execution of the script. In addition each indicator, even when it is based on a simple technical indicator, has several options, parameters and entry/exit conditions specific to the underlying technical indicator. Finally, we want to keep the simplicity of use, configuration and understanding of our indicator by not mixing strategies that have nothing to do with each other.
RSI Strategy - Backtest [AlgoRider]█ OVERVIEW
Hello dear Tradingviewers !
We share with you this new indicator which simulates a trading strategy based solely on the well-known technical indicator RSI . We designed it for the sole educational and analytical purposes of showing novice traders and new investors that basing a trading strategy only on one such technical indicator is not necessarily a good thing to do. We do not recommend to apply this strategy for real.
Thanks to this indicator redesigned in our own way by incorporating our simple and easy-to-use Backtest functionality, you will be able to see and report on the performance and results that such a strategy has produced in the past.
The configuration window has also been designed to be easily readable and simple to use. Our goal is to make parameter customization as easy as possible.
█ HOW THE STRATEGY WORKS
• The script will trigger Long entries when the price crosses upwards the Oversold zone (Default 38.2) and Short entries when the price crosses downward the Overbought zone (Default 61.8).
• A Short signal ends a Long trade, a Long signal ends a Short trade.
• The script also allows setting up custom TP and SL.
• Several options allow you to reverse entry and exit conditions of trades. You can choose to reverse entries or/and exits (Ex: when the script detects a Long Entry, it will actually trigger a Short trade).
• You can also change the entry conditions of the strategy. Instead of entering oversold/overbought zone conditions, it will trigger entries when the Rsi changes direction and reverses (Ex: when the rsi has been going down for 5 candles, and the rsi starts going up) , regardless of the area in which the RSI is located.
• There is no repaint, once an entry/exit symbol or drawing is displayed it doesn't change anymore. The Short and Long signals appear at the open of the candles, just after the signal was confirmed at the close of the previous candle. The custom TP and custom SL signals can appear when a candle is not yet finished, but once displayed they don't change.
█ HOW TO PROCEED
1 — Once the script is applied to your chart, it already works with its default settings. You can already see the performance of the strategy in the data table directly on the chart (in the top right corner by default).
2 — You can customize the strategy and influence the results/performance by modifying its parameters. 4 types of parameters are present and can be modified.
3 — You can use this indicator in all types of markets.
4 — You can apply the script in every timeframe.
█ PARAMETERS
• Settings For Backtesting
- Strategy : Choose from a drop-down list if the strategy should execute only Long trades or only Short trades or both. Default Both.
- Invest. : Choose the amount you want to invest in the simulation. Default 10000.
- Position : Choose the amount of the position (Size order) that will be used during the simulation. This will be the $ amount staked/involved for each trade entry.
Ex: If you put 20000 in position and 10000 in Invest. We consider that you use at least a leverage x2. Default 10000.
- Slipp. TP : Choose the amount in percentage of average slippage for Take Profits. This parameter makes it possible to predict a potential gap between the theoretical exit price for each TP (On the graph) and the real exit price on an exchange when implementing the strategy for real (slippage may be due to a time lag of a few seconds from execution time of the order on the exchange and/or due to the execution of a market order).
Ex: If a TP exit order of a Long trade, with entry $19000 (on BTCUSDT ), is carried out in theory on the chart at $20000, in practice on the exchange the script have indeed sent an exit order at 20000 , but if the true exit price is 20050, the TP slippage is then +0.25%. Default 0.
- Slipp. SL : Choose the amount in percentage of average slippage for Stop Losses. This parameter makes it possible to predict a potential gap between the theoretical exit price for each SL (On the graph) and the real exit price on an exchange when implementing the strategy for real.
Ex: If an SL exit order of a Long trade, entry $19000 (on BTCUSDT ), is carried out in theory on the chart at $18000, in practice on the exchange the script have indeed sent an exit order at 18000 $, but if the true exit price is 17950, the slippage SL is then +0.278%. Default 0.
- Fees % : Choose the percentage amount of fees applied to each trade to simulate the application of the strategy on the exchange of your choice. Applies to the entry and exit of each trade. Ex: For Binance Futures: 0.04; For Bybit futures: 0.06; For Ftx Futures: 0.075. Default 0.
- Cumulate Trades : If you check this, the Backtest will use 100% of the balance as Order Size (Position) for All or in the next X consecutive trades. Default not checked.
⚠️ Be Careful please, this option is available to show the full extent and possibilities of the algorithm when pushed to its limits thanks to the accumulation of profits (cumulative earnings ), but it is a strategy that involves great risk. If a bad trade suffers a -50% loss, 50% of the account balance is lost, if the position is liquidated, the entire account balance is lost.
- All : If you check this All trades will be accumulated. Default not checked.
- Consecutive Trades : Choose the number of trades to accumulate. After X consecutive trades, the algorithm reassigns the initial order size to the current one and starts again for X consecutive trades. Minimum Value 2, Default 2.
• Change Entry & Exit conditions
- Rsi Turns Up/Down : Enable this option to change conditions for trade entries. For Long entries : It will start a Long trade when RSI turns up and the RSI was falling on the last X bar(s). For Short entries : It will start a Short trade when RSI turns down and the RSI was rising on the last X bar(s). Default not checked.
- After Falling/Rising Bars(s) : Choose the number of bars/candles since which the price was falling/rising. Default 5.
- Reverse Entries : Enable this option to reverse conditions for trade entries. When a Short signal appears, it will actually start a Long trade. When a Long signal appears, it will actually start a Short trade. Default not checked.
- Reverse Exits : Enable this option to reverse conditions for trade exits. Default not checked.
- Safety Stop Loss : Enable this option to quickly cut the trade when the price turns quickly. For a Long trade : if the price returns to the oversold zone, it ends the trade. For a Short trade : if the price returns to the overbought zone, it ends the trade. Mainly useful for basic strategy (overbought/oversold conditions). Default not checked.
• Settings To Optimize Performances and Risk Management
- Len RSI : The length of RSI . Default 14.
- Overbuy : You can change the limit value of the overbought zone of the RSI . Default 61.8.
- Oversell : You can change the limit value of the oversell zone of the RSI . Default 38.2.
- Use TP / Use SL : If you check these, the algorithm will trigger personalized trade exit signals when the price evolution has reached the amounts indicated since the trade entry. Default not Checked.
- % TP - SL : Indicate here the personalized amount in percentage that you want for your Take Profit and Stop Loss of each trade. Default 15-5.
• Settings For Appearances
- Small-size Data Table : If you check this, the data table will become smaller to free up more space on the chart to make it visually more pleasing. Default not checked.
Hide Table /
- Hide Labels / : You can check these to get a cleaner chart and focus only on what interests you in the indicator. Default not checked.
Hide Risk-Reward Areas
█ LIMITATIONS
• ⚠️ We repeat it once again, this strategy is not intended to be reproduced in real conditions, we have designed it for educational and analytical purposes only.
• Even if you see good performances when you backtest the strategy, you must take into account that these results are performed in the past and that in no case does this guarantee that these same performances will be repeated again in the future.
• When you run for real a trading strategy you must be aware of the fact that you are solely responsible for the results that you will be able to obtain and you must be aware of the possibility at all times of partial or even total losses of your invested capital.
• Keep in mind that generating profits in trading is difficult. A strategy can perform very well at one time in the past during a period that is favorable to it, then from one day to the next it can give really bad results for several months or years.
• When backtesting a trading strategy, there are many factors to consider, not just trade entries to which you add a Take Profit and sometimes a Stop Loss. You must at least take into account the size of the position in relation to the capital you want to invest, the trading fees, the slippages (which can be really important depending on the exchange on which you are trading and depending on the asset you are trading), trading frequency, risk management, momentum, volumes and even more.
The information published here on TradingView is not prohibited, doesn't constitute investment advice, and isn't created solely for qualified investors.
═════════════════════════════════════════════════════════════════════════
Important to note : our indicators with the same backtesting system are published in separate publications, because putting them together in a single script would considerably slow down the execution of the script. In addition each indicator, even when it is based on a simple technical indicator, has several options, parameters and entry/exit conditions specific to the underlying technical indicator. Finally, we want to keep the simplicity of use, configuration and understanding of our indicator by not mixing strategies that have nothing to do with each other.
Supertrend, MA 44|6, EMA FIBS 13|21|34I have this indicator based on my strategy. This indicator is based on existing functions available in the system. I haven't added anything new. This indicator uses Supertrend, MA44|6, EMA fibs 13|21|34 combining to find a profitable trade.
- Supertrend : Indicator uses supertrend strategy with default ATR period of 10 and Factor value 3. These values can be customized based on your preferences. Uptrend is denoted by green color and downtrend by red color. You can change the colors based on your preferences.
- MA 44|6: Indicator plots moving averages of 44 and 6. These values can be customized based on your preferences. Although it is highly recommended to keep 44 as is. Value 6 can be adjusted based on your preference. Default color for uptrend is green and for downtrend is red. You can change the colors based on your preferences.
- FIBS EMA 13|21|34: Indicator plots EMA of fibbonacci numbers 13, 21,34 to identify consolidation and breakout. The periods can be adjusted but it is highly recommended not to do so. Default colors for 13,21 and 34 is Aqua, Blue and Navy respectively. You can change the colors based on your preferences.
When to take trade?
To take a trade all conditions needs to be fulfilled.
Supertrend : Always take a trade in the direction of Supertrend. It is always advisable to take trade if the trend is changing or price is taking support of resistance.
MA 44|6: Moving average 44 indicates average price of 44 last candles and 6 for last 6 candles. Price crossing MA 44 indicates change in trend. It is advisable to take trade at crossing the line above or below. If many candles closing near MA 44 then it indicates consolidation. The more far the candle closes from MA44 the better. MA 6 is used to identify when to enter or exit the trade. If candle closes away from MA 6 then you can wait for candle to start near the MA 6 line. If candle closes above/below MA 6 you can exit your trade.
Fibonacci 13|21|34: When all lines are closed it indicates consolidation. When price breakouts to either direction you can take a trade in that direction with following conditions.
Bullish Trade:
When to enter?
If candle closed above MA 44, Supertrend is uptrend and EMA Fibs are moving away and are above MA 44. The price is near to MA 6 line then you can enter into bullish trade. If price is away from MA 6 then you should wait until the price/line comes near to avoid loss.
When to exit?
Price moving in opposite direction:
You should set a stop loss when you enter the trade. The stop loss can be set below the low of the previous candle or any other strategy you have. But it is really important to set the stop loss. If price moves in opposite direction then your stop loss will hit and you will be out of the trade.
Price moving in same direction:
Once you enter the trade you can exit based on two conditions whichever suits you.
1. Exit the trade if candle closes below MA6. The drawback is you may exit too early. You can also adjust the period based on your preferences.
2. Exit the trade if candle closed below low of previous candle. The drawback is you may book less profit but you can capture the movement very well.
Bearish Trade:
When to enter?
If candle closed below MA 44, Supertrend is downtrend and EMA Fibs are moving away and are below MA 44. The price is near to MA 6 line then you can enter into bearish trade. If price is away from MA 6 then you should wait until the price/line comes near to avoid loss.
When to exit?
Price moving in opposite direction:
You should set a stop loss when you enter the trade. The stop loss can be set below the low of the previous candle or any other strategy you have. But it is really important to set the stop loss. If price moves in opposite direction then your stop loss will hit and you will be out of the trade.
Price moving in same direction:
Once you enter the trade you can exit based on two conditions whichever suits you.
1. Exit the trade if candle closes below MA6. The drawback is you may exit too early. You can also adjust the period based on your preferences.
2. Exit the trade if candle closed below low of previous candle. The drawback is you may book less profit but you can capture the movement very well.
When not to take trade?
1. If MA 44 is completely horizontal and EMA Fibs are very close to each other. This indicates that the market is consolidated and if you enter the trade you may hit stop loss very often.
Note: Please note that I am not expert and I don't take any responsibility of your profits or losses. I have created this indicator based on my knowledge and it is for study purpose. Use of this indicator is totally your responsibility. Use all your knowledge and expertise and don't totally depend on the indicator. Don't forget to use stop loss and do money management.
Happy Trading!
Camarilla Pivots - Signals, Alerts, TP and SL by Tech Store OnThis is a Camarilla Pivots indicator script, which will show signals, take profit and stop-loss on the chart with alerts based on Camarilla Pivot strategies:
LONG signals: S5 > S4, TP1: S4, TP2: S3, TP3: R3 SL: Manual | S3 > R3, TP1: R3, TP2: R4, TP3: R5, SL: S4 | R4 > R5, TP1: R5, SL: R3
SHORT signals R5 > R4, TP1: R4, TP2: R3, TP3: S3, SL: Manual | R3 > S3, TP1: S3, TP2: S4, TP3: S5, S4 > S5, TP1: S5, SL: S3
Mainly, the script is based on the pivot levels and price action. The script will trigger a signal if a supporting direction candle breaks or bounces at certain pivot, triggering a direction of the potential trade with the next pivot serving as a Price Target area, each signal will potentially wait for 3 Price Target areas and if they happen will show each on chart. An opposite direction pivots are used as a Stop Loss, which the indicator will show on the chart. If stop-loss will be hit, the script will not show take profit areas considering the trade is closed with a loss. Same way if take profit area 1 is reach, it is considered that SL is moved to Entry and therefore the script will no longer show stop-loss for that trade. This indicator was mainly tested via 15min timeframe, but feel free to try different timeframes as the concept is the same.
This strategy was extensively manually tested, trade by trade, with S&P 500 ETF 15min timeframe, for back-testing results for the whole 2021 year (this is simply if you would LONG/SHORT stocks, don’t forget that if you trade Options, there is also Theta present (options price decay over time), the win rate is: 86.12%
*** If a trade was uncertain > it was marked immediately as stop-loss
*** A position was always closed at the end of the day no matter what (profit/loss)
Config: Alerts need to be set for each signal, take profit and stop-loss, it is pretty much self-explanatory, just right click the chart, select “Add alert” > next to Conditions select “Camarilla Pivot…”, for each trade signal and stop-loss, make sure it is “Once per Bar Close” and for each take-profit make sure it is “Once Per Bar”. Stop-losses are confirmed price breaks, while take-profits – we just need to touch those pivots.
Config: By Default, indicator signals are given during regular BEST (after 3PM ET – it’s power hour, which often is unpredictable + market will be closing soon) US standard market hours: 9:30AM-3PM ET, take profit and stop-losses by default are set to 9:30AM-4PM ET (US standard market hours. Both can be adjusted via Inputs. If you wish for the signals/take profit and stop-losses to be tracked 24/7 > choose the “EMPTY” space for both.
Config: Number of candles/bars to track back for opened positions is the number of Candles/Bars tracked back for each position. You can change this setting as it relates to timeframe versus trading style (day trading/swing), play around to find your best settings, by default it’s 13, which is best for day trading/15M timeframe. Please note: if position takes “too long” to reach TP or SL, it may not show TP or SL, so you need to keep an eye on this. It is best to use slightly lower number for day trading, because otherwise if you receive the same signal more than twice during the day > it will not show TP or SL for the second/third/etc. position. This is custom for you to change though, so if you want longer position tracking for the day, choose: 26 candles (this is the amount of 15M candles during the day), but keep in mind that for second/third position > it may not show you the TP1/SL.
Config: The table showing positions will show current open position on the bottom cell if position is opened per indicator, you can move or even hide this table in the indicator settings. (Please note: this is decorative thing and sometimes may show a position open, which is not actually open, especially when the market is not currently open).
Tip: Note: if pivots are too far away from each other and there is either big profit already or another support/resistance indicator (VWAP, SMA, support & resistance levels, etc.) – it is wise to take some profit off and move SL to Entry to secure profits in case market decides to turn around. This is especially wise if you trade Options as they include Theta (options price decay over time). Please note: back-test results displayed above were done without VWAP.
Tip: R5 > R4 and S5 > S4 are riskier signals as there are no pivots above/below for the SL, the script does not have a built-in stop-loss level/indicator for these, so you will need to manually set your stop-losses for these signals. Last day pivots often can help with this or simply use most recent support & resistance levels.
Tip: If trading S&P: be careful opening positions near 3PM ET, as during the “power hour” – 3-4PM ET > volatility increases and direction of the price becomes much more unpredictable. Similar: if you are in profit, it is wise to close the majority of your position at 3PM ET, before the “power hour” starts.
Tip: Very conservative trading approach: after signal happens, wait for a bounce back (price going back touching the pivot) and open position right there, that way > SL will be smaller and better risk/reward ration.
Tip: There is no limit on how many signals the script will show if it meets the conditions (in case you miss one of the signals and conditions repeat > you can still get into decent trade at next signal if it matches the condition).
Note1: if candle closes crossing/breaking several pivots at the same time and that same candle will touch take profit pivot – the script is configured to minimize showing/alerting signals/TP/SL for such conditions, so that you don’t get a very dirty chart / spammed with alerts, however sometimes it may or may not show signals and/or take profits/losses incorrectly. Overall, when you see such huge candles, it means that market volatility is bigger than usual, so a caution should be practiced.
Note2: If the signal candle almost nearly touches the first take profit area > it’s best not to open a position (you literally opening it at the first take profit pivot, and it may bounce the other way from that same pivot).
Note3: You may sometimes see take profit/stop-loss indicators in the beginning of the day or simply when pivot levels change, this is due to script registering the position open per old pivot levels and then show you take profit/stop-loss per new pivot levels.
