Profit Guard Short Strategy with Time Delay & Stop Loss"Profit Guard Short Strategy" Explanation
This script, named "Profit Guard Short Strategy," is designed to identify and execute short-selling opportunities in financial markets, aiming to profit from price declines. It incorporates adaptive filtering, a time-based exit mechanism, and a stop-loss to manage risk.
Profit-Making Mechanisms:
Trend Following (Short Direction):
The core profit strategy is to identify and capitalize on downtrends.
It uses two Simple Moving Averages (SMAs): a faster one (FMA) and a slower one (SMA).
When the FMA crosses below the SMA, it signals a potential shift from an uptrend to a downtrend.
The script further confirms this with a price crossover below the FMA, indicating a strong likelihood of a continuing downtrend.
Adaptive Filtering:
Volatility Filter (ATR): The script uses the Average True Range (ATR) to ensure sufficient market volatility. It only enters short positions when the ATR is above a certain threshold, avoiding trades in stagnant or low-volatility conditions.
Range Filter: The script calculates the price range over a specified lookback period and avoids entering trades when the range is too narrow, indicating a range-bound market. This helps to focus on trending markets.
Time-Based Exit:
The script implements a time delay before considering the crossover exit signal. This allows the trade to run for a predetermined period, giving it a chance to reach its profit potential.
After the time delay, the script closes the short position when the price or the FMA crosses back above the SMA, indicating a potential trend reversal.
Stop-Loss Mechanism:
Risk Management: The stop-loss is a crucial risk management tool.
Percentage-Based: The script uses a percentage-based stop-loss, calculated from the entry price.
Protection: If the price moves against the short position and reaches the stop-loss level, the position is automatically closed, limiting potential losses.
Lookback (Range Filter):
Range Calculation: The "lookback" period (rangeLookback) determines the number of past bars the script uses to calculate the highest high and lowest low prices.
Purpose: This calculation is used to determine the price range and filter out range-bound markets.
Impact: A larger lookback period considers a wider historical range, while a smaller lookback period focuses on recent price action.
Default Settings and Market Considerations:
Default Settings: The default settings of this script are optimized for the BTCUSDT market.
Market Sensitivity: Different markets have varying volatility, price ranges, and trading characteristics.
Resetting Settings: It is crucial to reset the script's settings when trading other markets. This includes:
Moving Average Lengths: Adjusting fastMA_length and slowMA_length based on the market's volatility and trend characteristics.
ATR Sensitivity: Modifying atrSensitivity to match the market's typical volatility.
Range Percent: Adjusting rangePercent to reflect the market's typical price ranges.
Time Delay: Modifying delayMinutes based on the market's typical trend duration.
Stop Loss Percent: Adjusting stopLossPercent based on the market's volatility and your risk tolerance.
Shorttrade
CC Trend strategy 2- Downtrend ShortTrend Strategy #2
Indicators:
1. EMA(s)
2. Fibonacci retracement with a mutable lookback period
Strategy:
1. Short Only
2. No preset Stop Loss/Take Profit
3. 0.01% commission
4. When in a profit and a closure above the 200ema, the position takes a profit.
5. The position is stopped When a closure over the (0.764) Fibonacci ratio occurs.
* NO IMMEDIATE RE-ENTRIES EVER!*
How to use it and what makes it unique:
This strategy will enter often and stop quickly. The goal with this strategy is to take losses often but catch the big move to the downside when it occurs through the Silvercross/Fibonacci combination. This is a unique strategy because it uses a programmed Fibonacci ratio that can be used within the strategy and on any program. You can manipulate the stats by changing the lookback period of the Fibonacci retracement and looking at different assets/timeframes.
This description tells the indicators combined to create a new strategy, with commissions and take profit/stop loss conditions included, and the process of strategy execution with a description of how to use it. If you have any questions feel free to PM me and boost if you found it helpful. Thank you, pineUSERS!
CHEATCODE1
Ema Short Long Indicator[CHE]█ CONCEPTS
This Pine Script is an EMA Short Long indicator that displays the crossing EMA lines on the chart. The indicator uses three exponential moving averages (EMAs) to generate the buy and sell signals. The EMA lines are plotted as green (uptrend) and red (downtrend) lines. When the green line is above the white signal line, the indicator generates a buy signal, when the green line is below the white signal line, the indicator generates a sell signal. Arrows are also displayed marking the buy and sell signals. There is also an option to allow indicator repainting or not. Finally, users can also set alerts to be alerted to potential trading opportunities.
Note: please do not disable "time frame gaps". Allows to calculate the indicator on a Timeframe (TF) different from that of the chart Time window. The TF should ideally be higher than the charts to provide a broader perspective than
the TF of the chart. Using TFs lower than the chart's will deliver fragmentary results, since only the last value of intrabar is displayed (multiple values cannot be displayed for a single chart bar). The Gaps setting determines the behavior when the TF is higher than the TF of the chart. If 'gaps' is checked, higher TF values only come in and are interconnected on the diagram when the higher TF completed. This has the advantage of avoidance Real-time epainting. If Gaps is not enabled, Gaps are filled with the last higher TF value calculated, which will not produce a repaint Values on historical bars but repaint values realtime.
█ HOW TO USE IT
Load the indicator on an active chart (see the Help Center if you don't know how).
Time period
By default, the script uses an auto-stepping mechanism to adjust the time period of its moving window to the chart's timeframe. The following table shows chart timeframes and the corresponding time period used by the script. When the chart's timeframe is less than or equal to the timeframe in the first column, the second column's time period is used to calculate the Ema Short Long Indicator :
Chart Time
timeframe period
1min 🠆 1H
5min 🠆 4H
1H 🠆 1D
4H 🠆 3D
12H 🠆 1W
1D 🠆 1M
1W 🠆 3M
█ DESCRIPTION
The script begins by setting up the chart indicator with a short title, "ESLI", and enabling it as an overlay. It then initializes several variables for time conversions, to be used later in the script.
The timeStep_translate() function converts the timeframe of the chart into a string representing a larger time interval, based on the number of seconds in the timeframe. The resulting string is used to label the horizontal axis of the chart.
Next, the script defines several input variables that can be modified by the user. These include the colors of the EMA lines and the signals, whether or not the indicator is allowed to repaint (i.e. update past values based on future data), and the number of periods used to calculate the EMA and signal lines.
The f_security() function calls the request.security() function to fetch data from the specified security and timeframe, and is used to calculate the EMA and signal lines using the ta.ema() function. The clo variable is assigned the closing price data, adjusted for repainting and timeframe.
The EMA line is calculated using a weighted average of the EMA over the specified period and two times that period, as well as three times that period, divided by six. The signal line is calculated as the EMA of the EMA line over the specified period.
The col_css variable sets the color of the EMA line based on whether it is currently above or below the signal line. The script then plots the EMA and signal lines, and uses the plotshape() function to indicate long and short signals based on the crossovers and crossunders of the EMA and signal lines.
Finally, the script sets up alert conditions using the alertcondition() function to notify the user when a long or short signal is generated, including information about the symbol and closing price.
█ SPECIAL THANKS
Special thanks to LOXX, I wanted to take a moment to express my gratitude for his valuable input in the EMA calculation. His insights and expertise have greatly helped me in improving my Pine Script coding skills. Thanks to his suggestion, I was able to better understand the EMA formula and implement it effectively in my script.
Your generosity in sharing your knowledge and experience is truly appreciated. It is through collaboration and exchanging ideas that we can all grow and become better in our craft.
This script provides exact signals that, with suitable additional indicators, provide very good results.
Best regards
Chervolino
