I11L

Uptrend and Oversold Index Swing Trading System 8H

--- Foreword ---
The Overbought and Oversold Index Swing Trading System or short: I11L Hypertrend primarily uses money management Strategies, EMA and SMA and my momentum Ideas for trying to produce satisfactory Alpha over a timespan of multiple years.


--- How does it Work? ---
It uses 20 different EMA's and SMA's to produce a score for each Bar.
It will credit one Point If the EMA is above the SMA .

A high score means that there is a strong Uptrend.
Spotting the strong Uptrend early is important.
The I11L Hypertrend System trys to spot the "UPTREND" by checking for a crossover of the Score( EMA ) / Score( SMA ).

A low score means that there is a strong Downtrend.
Its quite common to see a reversal to the mean after a Downtrend and spotting the bottom is important.
The System trys to spot the reversal, or "OVERSOLD" state by a crossunder of the Score( EMA ) / Score( SMA ).


--- What can i customize? ---

-> Trading Mode: You can choose between two different trading modes, Oversold and Overbought(trend) and Random Buys to check if your systems Profitfactor is actually better then market.

-> Work with the total equity: The system uses the initial capital per default for Backtesting purposes but seeing the maximum drawdown in a compounding mode might help!

-> Use a trailing SL: A TSL trys to not lose too much if the trade goes against your TP

-> Lookbackdistance for the Score: A higher Lookbackdistance results in a more lagging indicator. You have to find the balance between the confirmation of the Signal and the frontrunning.

-> Leverage: To see how your strategie and your maximum Drawdown with the total equity mode enabled would have performed.

-> Risk Capital per Trade unleveraged: How much the underlying asset can go against your position before the TSL hits, or the SL if no TSL is set.

-> TPFactor: Your risk/reward Ratio. If you risk 3% and you set the ratio to 1.2, you will have a TP at 3 * 1.2 = 3.6%

-> Select Date: Works best in the 8H Timeframe for CFD's. Good for getting a sense of what overfitting actually means and how easy one can fool themself, find the highest Profitfactor setting in the first Sector (Start - 2012) and then see if the second Sector (2012 - Now) produces Alpha over the Random Buy mode.


--- I have some questions about the System ---
Dear reader, please ask the question in the comment Section and i will do my best to assist you.

Versionshinweise: Corrected the Leverage input to actualy account for the Risk Capital unleveraged.

Open-source Skript

Ganz im Spirit von TradingView hat der Autor dieses Skripts es als Open-Source veröffentlicht, damit Trader es besser verstehen und überprüfen können. Herzlichen Glückwunsch an den Autor! Sie können es kostenlos verwenden, aber die Wiederverwendung dieses Codes in einer Veröffentlichung unterliegt den Hausregeln. Sie können es als Favoriten auswählen, um es in einem Chart zu verwenden.

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