echepata

Crypto momentum strategy

This strategy is based on LazyBear's Squeeze Momentum indicator . It analyzes when the trend in the momentum is shifting, locating the peaks and the valleys, and takes those as sell and buy signals respectively. This is a long strategy, so it also takes into consideration the 50 period Exponential Moving Average to identify upward trends. If the closing price of the candle is above the 50EMA, and the slope of the 50EMA is trending upwards, then the buy signal is executed. If these conditions are not met, the buy signal is ignored.

This strategy works well with crypto trading on the day/week charts.

It has a profit ratio of 4:1 on average, and roughly half of the trades are profitable.
Versionshinweise: Change the strategy parameters to be standard (100000 initial balance, with 100% of equity invested in each trade)
Versionshinweise: Added setting to consider the behavior of the crypto market to enter trades. This improves the performance on lesser known coins that are very affected by the market, but has an adverse effect on big cap coins like Bitcoin and Ethereum (that have a great influence on the market). I recommend turning it off for these big coins, and leaving it on for all the others.

It works by polling the value of CRUPTOCAP:TOTAL, and checking if it's above its 50 ema, and if the ema is trending upwards. If these conditions are not met, the entry signal is ignored.
Versionshinweise: Use the closing value of the market instead of the low
Versionshinweise: Update documentation and credits
Versionshinweise: Cleanup chart
Open-source Skript

Ganz im Sinne von TradingView hat der Autor dieses Skripts es als Open-Source veröffentlicht, damit Trader es verstehen und überprüfen können. Ein Hoch auf den Autor! Sie können es kostenlos verwenden, aber die Wiederverwendung dieses Codes in einer Publikation unterliegt den Hausregeln. Sie können das Skript den Favoriten hinzufügen, um es auf dem Chart zu verwenden.

Möchten Sie dieses Skript auf einem Chart verwenden?

Kommentare

Good long strategy,but it's a bear market now
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Hey @echepata - this is a really interesting script, thanks for sharing. Learning you can poll the value of another ticker has just levelled up my knowledge.

I have a (dumb) question related to strategy parameters... I've been writing a few of my own scripts which seem profitable in backtesting and I've set the initial balance / order size to match my account. Is the reason you set your parameters at 100,000 / 100 done as an example with the expectation people will amend to their own sizing? I ask because the results can swing wildly depending on the parameters used. Thanks!
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echepata ADHDCRYPT0
Hey @ADHDCRYPT0, I'm glad you found my script useful! :) :) I set them to those values because that is what I saw in some other strategies, and I assumed (probably wrongly) that that's what everyone did! I like those values because they are nice, round values, but of course, my account is nowhere near that :p.

I think the value that affects the strategy the most is the percentage of equity for each trade. That will change the overall percentage of growth for the strategy. Changing the initial amount of 100k doesn't change the percentage performance, which is, IMO, what makes or breaks a strategy.

Happy to hear if you've noticed other scripts using different "standard" parameters, and that way I can adjust mine to those values as well. Or maybe I should just remove those parameters and let TradingView to set the default? What I've found with TV's defaults is that they are quite underwhelming... I think it only stakes 1 "unit" per trade... which could be a lot (for BTC for example) or close to nothing (like for DOGE)

Cheers!
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ADHDCRYPT0 echepata
@echepata, ah yeah that makes total sense. I think people use a range of default values. I've just published a strategy and used 1000 /100% and it looks pretty good. I'd love your feedback on it if you're up for taking a v quick look? I'm always keen to see how I can improve my strategies!

It's here >

Thanks!
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echepata ADHDCRYPT0
Hey @ADHDCRYPT0, that's very interesting. I've struggled doing strategies that work on the shorter timeframes, so kudos! I noticed that you have tuned this particular strategy for ETH. I would be wary of massaging the parameters too much to obtain the results you want. Doing this has a name, but I could not find it!

Also, I would recommend including commissions in your strategy, specially on the shorter timeframes where the gains are very small percentages. I've found that even a 0.1% commission per movement can break a scalping strategy. Of course, that is only if you are paying commissions on your trades, if not, then you must tell me how you are doing it! :D

Cheers!
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ADHDCRYPT0 echepata
@echepata, thanks for the feedback! I'll have to research the name of messing with parameters to suit different pairs. It's working well so far, but good to have all the info on pros/cons.

Thanks for suggesting the inclusion of commission - annoyed I missed that in the first place. Especially as I'm bot trading futures! I've added it based on my personal Binance fee structure and the strat is still 80%+ net profit on the 5M chart which is good.

Thanks again!
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lth_elm ADHDCRYPT0
@ADHDCRYPT0, @echepata I think the name you're looking for is "overfitting" ;) And yeah definitely a hard habit to avoid when the results looks so attractive haha
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echepata lth_elm
@lth_elm, Yes! Thank you! Sometimes I find myself overfitting too... it's very easy to fall into
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Looks great! You should add an option for shorts as well! Just to see how it affects the performance. Switch from long to short at a close signal instead of selling. I think it would be nice just to have the option.
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echepata wingchangwow
Hey @wingchangwow, thanks for the suggestion! I actually tried incorporating shorts but the performance wasn't great. I guess I can include it as an option that people can turn on, and they can choose to use or not. Look out for an update ;)
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