When asked what the key to successful investing was, Warren Buffet famously said “buy low, sell high.” Was he onto something? Today I am sharing with the community a simple “buy low, sell high” strategy with an optional trend filter and take-profit target. I’ve found that this strategy works well in a variety of markets but has a higher tendency to out-perform buy & hold in markets that are ranging sideways.
How it works: The strategy tracks the highest and lowest price over the last X number of bars (you select the look-back period). The highest price line is plotted in green and the lowest price line is potted in red. If the price crosses over the lowest price in the last X number of bars, then a buy signal is generated. Exit options include a take-profit % or selling when the price crosses over the highest price in the last X amount of bars. I.e. “Buy low, sell high.” An EMA is also plotted as a blue trend line, and there is an option to only trade if the price is above the EMA trend line.
Disclaimer: Open source scripts I publish in the community are largely meant to spark ideas that can be used as building blocks for part of a more robust trade management strategy. Even though this example script beats buy and hold over the back-test time-frame, I wouldn't advise using it as a stand-alone strategy without significant additions/modifications to the strategy and risk management functions. In this example the script is being used as a medium-term strategy with just 10% leverage over account equity, a 25K start balance, and back-testing 10+ years. Modifiable slippage and commissions are included in the model.
Green line = Highest price in the look-back period Red line = Lowest price in the look-back period Blue line = EMA Trend
Informacje o Wersji
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Update - Increased the model initial capital and the changed the default trade size to 100% of equity so that the script will run on more assets.
@skijchenko, I released the code for a PineScript v5 ATR stop-loss in another publication here. You can combine and customize the code/strategy as you like. I also do custom coding as a service that you can book at TradeAutomation.net tradingview.com/script/77F1NKh1-ATR-Trailing-Stop-v5/
pakeha
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Hi, is there a specific reason the uneven default look back is 20/10 versus say 10/10 or 20/20? Thanks
ZOoRoO81
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Hello, such an amazing strategy from an even more amazing person!
i'd like to ask on how to get the buy and close orders. i've tried to use the 110% to 100%, but to no avail. Moreover, the chart im using is on default settings and shows buy/sell and close orders on other strats.
TradeAutomation
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@ZOoRoO81, This is probably happening because the initial capital in the model isn't set high enough to trade your instruments. This is an adjustable setting. Just go to the strategy settings -> Properties and adjust initial capital up to an arbitrarily high number, like 100,000,000. Also make sure the % per trade is set to 100% or lower if your instrument can't be leveraged.
I followed the instructions and sadly, the positions are still not showing.
TradeAutomation
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@ZOoRoO81, I am unable to replicate your issue. Please message me with the chart/timeframe/ticker and I'll check it out
robbiesmith79
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lol, this code will HODL until it sells at the target profit. Yes it appears 100% but that's only because it hit the default 8% profit but as you'll notice it jumps in a trade immediately after forever more.
ashok1961
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@robbiesmith79, Does it mean that entry signals vanish later on after the Close? Does it re-paint?
TradeAutomation
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@ashok1961, Good morning! This script doesn't repaint. It is set to only calculate on the close of a bar. Cheers