Came across a cool idea for a strategy that couldn't find in the indicator database, so decided to code it up myself for your pleasure.
Indicators consists of 3 indicators: EMA(200) to determine the overall trend, and the MACD & Parabolic SAR to determine entries (and exits).
Long entry contains 4 conditions and is generated when price is above the 200EMA (1), the MACD crosses above the signal line (2), while they are both below 0 line (3) and when the parabolic SAR is below the closing price of the bar (4).
Short entry is build up the same but in reverse: price is below the 200EMA(1), signal line crosses below the MACD line (2), while they are both above the 0 line (3) and when the parabolic SAR is above the closing price of the bar (4).
Place the stoploss on the parabolic SAR dot below/above the candle that created the signal. Profit target 1:1 risk:reward ratio, but can ofcourse be changed according to your risk apetite. Might add automatically drawn SL/TPs in a later update.
Concept behind the strategy should work on all timeframes, but will require proper backtesting. I think with additional filters the strategy can also be way more finetuned and profitable, personally haven't had the time yet to dive into that.
Great Script man ! can you add tp and sl in indicator for auto ?
iLuminado3m7d
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Thanks for the script!
In case you want to know, I manually backtested this on BTCUSDTPERP 30M timeframe and also backtested the same strat without PSAR and got a slightly better result by removing the PSAR, with a 1, 1.5, 2 and 3 RR.
Can you lead me into what other filters I can add apart from the PSAR to make this strat more reliable? I'd be happy to backtest it and share the results. Thanks in advance.
Sidders
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@iLuminado3m7d, honestly havent given much thought to further filters, but if I can name a few that might increase winrate/profitability through proper backtesting. You could take a look at RSI, MFI, candlestick patterns, volume confirmation and basic support/resistance or fib levels to give more confluence to the signals given. Good luck, let me know if you want anything good :)