ELLIPSE: Bidirectional Swing Trading Strategy (Alert Version)

7. Okt. 2020

This is the alert version of our original script ELLIPSE: Ultimate Bidirectional Swing Trading Strategy.
This release has the same internal algorithm as the ELLIPSE Strategy script. But instead of showing back test results, this script provides the functionality to add alerts that can notify the user via email / pop-up / sms / app once a signal is given! You must manually add these alerts via TradingView. If you need help setting up these alerts, feel free to ask in the comment box or send us a dm.

***The script is invite-only, message us to get script access***

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User Guidelines:

• The trading strategy was designed and optimized for trading cryptocurrencies only; furthermore it works best on established cryptocurrencies that have a clear historical trend such as:
  BTCUSD
  ETHUSD
  LTCUSD
  XRPUSD
  ADAUSD
  
  
• The trading strategy is based on swing trading methodology. The script must therefore be used on 4h candles only.
  
  
• Use USD trading pairs only (e.g. use ETHUSD instead of the ETHBTC) since the individual trend is captured more effectively and therefore gives better results.
  
  
• The trading strategy is bidirectional, both long and short entries are generated.
  

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Indicators used in this strategy:

• Ichimoku Cloud; acts as the leading indicator.
  
  
• Volume; without strong volume , a market move is not valid.
  
  
• MACD and Vortex; both being used as confirmation indicators.
  
  
• Choppiness index; avoids trading in choppy markets.
  
  
• Simple and Exponential Moving Averages; prevents trading against the trend.
  

The trading strategy is easy to use, bidirectional, trend based and without repainting, meaning once a signal has been made it is permanent and that no future data is used in the decision making. It detects the trend and filters out market noise based on more than 10 technical indicators. ONLY when all indicators align with each other the algorithm prints a LONG or SHORT signal. The trading strategy provides high probability trading signals and minimizes risk! This script aims to capture the profit from short to medium trending moves and by doing so filters out non-substantial trends and avoids the associated risks with these trades.

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Features:

• NO Repaint once candle is closed.
  
  
• Stop loss feature; set your own stop loss to manage your risks.
  
  
• Customizable Display for the Ichimoku cloud indicator display.
  
  
• Bidirectional; both long and short trading positions can be enabled.
  
  
• Full backtest feature; Easily generate your own backtest results for each asset (Strategy Version Script).
  
  
• Alerts; Get notified via email / pop-up / sms / app once a signal is given! (Alert Version Script).
  

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Backtest results

Below are the back test results. Only well established cryptocurrencies are displayed with a clear historical trend.
Back test results: (long and short trades, signal to signal, order size: 100% of equity, commision fee 0.1%, period: start of chart)

Exchange-----Asset---------Timeframe---Percent Profitable----Profit Factor-----Total Trades----Max Drawdown---Average bars in trade-----Net Profit
Bínance------BTCUSDT---------4H-----------------54.4---------------3.37-------------------57----------------14.9---------------------38------------------1978
Bínance------ETHUSD----------4H-----------------50.9---------------3.48------------------- 57---------------26.8----------------------37------------------3953
Bínance------LTCUSD-----------4H-----------------61.0---------------3.15-------------------59----------------20.9---------------------33------------------3098
Bínance------XRPUSD----------4H-----------------43.1---------------2.44--------------------51---------------22.4----------------------26------------------1226
Bínance------ADAUSD----------4H-----------------57.5---------------3.47--------------------47---------------34.7----------------------35------------------1233

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Reminder: Use this trading strategy at your own risk and trade responsibly. We are not responsible for any financial loss using this strategy.

***The script is invite-only, message us to get script access***

9. Okt. 2020

Versionshinweise

**Update:

We received some good feedback regarding the presentation of our backtest results. In our last backtest results we used a '100% of equity per trade' position size.
However, since this scenario is not very realistic in a swing trading strategy we adjusted it accordingly and decreased our order size to 10% of equity per trade.

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*Backtest results

Below are the back test results. Only well established cryptocurrencies are displayed with a clear historical trend:

Long and short trading positions,
Signal to signal trading (no multiple orders),
Initial Capital: 10 000 USD,
Order size: 10% of equity per trade,
commission fee 0.1%, period: start of chart,

Exchange-----Asset------Timeframe---Percent Profitable----Profit Factor---Total Trades----Max Drawdown----------Net Profit------
Bínance------BTCUSDT------4H-----------------54.4---------------5.32-----------------57----------------1.58%------------40.34%-(4034 USD)
Bínance------ETHUSD-------4H-----------------50.9---------------5.01---------------- 57----------------2.96%------------54.93%-(5493 USD)
Bínance------LTCUSD--------4H-----------------61.0---------------5.08-----------------59----------------2.09%------------57.06%-(5706 USD)
Bínance------XRPUSD-------4H-----------------43.13--------------3.52-----------------51----------------2.42%------------43.13%-(4313 USD)
Bínance------ADAUSD-------4H-----------------57.5---------------3.36-----------------47----------------3.46%------------40.82%-(4082 USD)

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22. Dez. 2020

Versionshinweise

We are always looking to optimize our trading strategies in terms of profit factor, net profit and maximum drawdown until we find the ultimate strategy.
We have chosen to integrate THE MATRIX positioning strategy (Daily) into ELLIPSE (4H). This is to prevent noise (whip saws / fake outs), among other things. After all, the trend is your friend!

New indicators added in this strategy:

• Integration of THE MATRIX, used to determine the overall trend of the market over different time frames (LONG only)
  Pivot points, support and resistance levels to determine entry and exit points (LONG as well as SHORT)
  

New features added:

*Conditionally colored background on MATRIX trigger, the background turns green when the MATRIX is activated on the day.

22. Dez. 2020

Versionshinweise

Minor fix regarding the labels.

22. Dez. 2020

Versionshinweise

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9. März 2021

Versionshinweise

-The script will now exit a long position more effectively if a weekly negative divergence on the RSI occurs.
-Added the option to display a coloured background if such divergence occurs.

26. Mai 2021

Versionshinweise

-Updated 26th May 2021

26. Mai 2021

Versionshinweise

-Finetuned the bearish divergence exit on the weekly RSI to only take place in an extreme overbought reversal situation, to reduce an early exit during market noise.
-Added an additional long entry based on cloud breakout with EMA alignment.
-Adjusted the short entry to never take place during conflicting bullish momentum on the daily timeframe.

28. Juli 2022

Versionshinweise

This script is being discontinued because the alert version is now built into the ELLIPSE strategy version.