ZEN HONEY BADGER // UMA + KST + RSI with Exit Signals V1

8 godzin temu

Kicks ass with high volatility, high market cap crypto such as ETH and BTC. 1m trading window is recommended. The lower the volatility and cap the larger the window needs to be in order to trade profitably.

Back trading showed insane returns on BTC / ETH, it works well on other assets that are a bit more dramatic, like DOGE.

It’s called zen honey badger bc honey badgers don’t give a shit, duh.

Technical explanation.

The code represents a refined trading strategy that combines a Predictive Moving Average (MA) and a Predictive KST + RSI System to generate trading signals. Here’s a quick breakdown.

1. Purpose and Strategy Overview:

This script aims to:

• Identify bullish and bearish trends using ‘Ultimate’ Moving Average (UMA).
• Generate entry and exit signals based on combined trend-following and momentum-based indicators.
• Focus on swing trades or short-term trades, depending on the timeframe.

2. Key Components:

Ultimate Moving Average (UMA):

• A flexible moving average system that can switch between different types (SMA, EMA, WMA, HullMA, etc.).
• Objective: Identify overall market trend direction.
• Bullish (UMA turns green): Enter Long.
• Bearish (UMA turns red): Enter Short.

Predictive KST (Know Sure Thing) + RSI:

• KST: A momentum oscillator that measures rate-of-change (ROC) across multiple periods.
• RSI (Relative Strength Index): Tracks overbought/oversold conditions to assess momentum.
• Exit Long Signals (S): Triggered when:
• KST Signal Line is bearish.
• RSI Moving Average is at or above 69 (overbought).

Signal Logic:

• Enter Long: When UMA turns bullish (green).
• Exit Long (Sell Signal): When KST and RSI conditions align.
• Enter Short: When UMA turns bearish (red).
• Exit Short: Occurs when UMA flips bullish.

3. Visualization:

• The script plots key indicators:
• UMA with dynamic color changes (green for bullish, red for bearish).
• Sell Signals (S): Orange labels plotted above bars when exit conditions are met.
• Entry Lines: Red and green vertical dashed lines on the chart for short/long entries.

4. Intended Use:

• Backtesting over historical data to identify profitable trading opportunities.
• Integration with trading platforms for automated execution.
• Designed for high-cap, high-volatility assets like BTC, ETH, DOGE, etc.

In essence, the script provides a hybrid strategy that combines trend-following and momentum signals for more precise trade execution. It’s tailored for highly liquid crypto markets to maximize profitability in short-term trades.

Further refinement is require to really quick this honey badger into full blown enlightenment. Updates to come, then I will work on adjusting for lower cap and lower volatility conditions.