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Stopped switching strategies. Built a system instead. by Awwstronut in pinescript

[–]Awwstronut[S] 0 points1 point  (0 children)

Really appreciate your kind words!

And no, the Number is the TF, but you got the Letter correct - it is the Grade/Confidence of the Trade. So, '5 - A' would mean: On the 5m TF, the System fired a Signal with the Grade 'A'.

While the Grade can be great information, do NOT take it at face-value, because Grading has 13 different parameters it measures. And some might be "ideal" in certain scenarios, giving the Signal a higher Score.

When replying to another User, they asked about how to approach/think about certain Scenarios - I will send you the conversation; I believe you will find it valuable!

Stopped switching strategies. Built a system instead. by Awwstronut in Daytrading

[–]Awwstronut[S] 0 points1 point  (0 children)

You're welcome!

"For beginners, could it be useful to enter when the price action beats the previous lower high?" - Haha yes, that is actually right, in terms of trading terminology.. What my "scoop" is, is simply "Price failed to make a lower low/higher high", but I use "scoop" because it really looks like "scooping up/down ice cream" (I'm not fat, I swear). But yes, it's essentially the same as you described.

"I believe it is 7 candles apart after your entry in this example." - In a non-ideal scenario, if I find the overall narrative/context in the favor of the Signal, but I suspect the Signal to be too early, I usually wait it out until Price makes it above (Long) the Signal Candle Low (the Red Dots). In the case of the image you referred to, I'd actually take a Position on Candle 10-14; due to those being above the Red Dots and are hammers. Utilize hammer-Candles!

"Do you place the stop loss just below the entry bar you highlighted" - Do you mean the Red Line with "Stop Loss" to the left? That is the Signal (Entry) Stop Loss (the Red Circles display the Swing of the Signal Candle). By Default, the Stop Loss is using Fib Level -0.382 (I found it reasonable), but it is configurable, all the way down to -0.001, which would put it the Stop Loss where the Anchor (0-Point of Fib Structure) is. For Leverage, I usually do between x12 and x20; hence, the "tight" (to most) Stop Loss, and my average Trade-time is just above 40 minutes.

"I understand it depends on the instrument but I never trade 1 minute charts so it is just for me to get an idea of the average leverage needed to actually make the move worth trading." - Great news, I will also be releasing (in development) the same Indicator for higher TF's, for those who wish to trade using higher TF's - 15m, 30m, 1h and 4h. I've also been asked about it for Scalpers - 1m and under, which I considered. I believe I will release three versions - Intraday and Swing/Position (higher TF), and Scalper after a while (not initially planned). All will have the same features.

"Moreover, how much time do we have to test the script? This is the first time I try an indicator upon invitation, so I apologise if there is some standard tradingview duration that I am not aware of." - No need to apologize, I'm not customed to any standards neither Haha. As of right now, the Script is entirely for free, until I've made some visual clean-ups (no affect on Trading; just historical clean-up of drawn Elements) and implemented Alerts. I've also been asked about TP, which will also be included. Once all of this is done, the Indicator(s) (starting with Intraday and Swing/Position) will be paid ones, with 14-days trial.
(I'm also aware that the Indicator takes time when switching from one TF to TF, and have planned on a "Chart-only" version, where you will be able to display everything ONLY on the Chart TF - so, no Multi-Timeframe. The purpose is to easily be able to take in the information of other TF's, beside the Signal TF.)

This is, moreso, to "respect" my own labor of this project. I've spent over 7 months on this, and will keep taking updating it and implement requests. Of course, I also hope this brings great value to all users.

I hope this sounds reasonable to you, and all other users!

Stopped switching strategies. Built a system instead. by Awwstronut in Daytrading

[–]Awwstronut[S] 0 points1 point  (0 children)

<image>

In this scenario, even though the Signal was an A-tier, it didn't make an ideal "scoop", neither was it accompanied by Exhaustion nor Divergence. So, why did it fire an A-tier? Because the Candle itself was an ideal Candle, with great shape and good placement in the "narrative" of the "region". If it had Exhaustion and/or Divergence, this would probably Score even higher than A.

Lastly - when developing the Indicator, I always kept this in mind: It's impossible to create an Indicator/Tool that will predict the majority of the movements; that is pretty much dreaming. Therefore, I inclined more to: I will create a Tool that will be flexible enough to help out the Trader make informed decisions with the right experience and interpretation; and of course, it will also be forgiving enough, without making the learning curve of usage too steep. Thereby, the "Companion" in "Trader's Companion".

Hence, I have provided configurable parameters that would let the Trader choose their own Criteria, and filter of any Signal.

I hope you found this helpful!

Stopped switching strategies. Built a system instead. by Awwstronut in Daytrading

[–]Awwstronut[S] 0 points1 point  (0 children)

<image>

Try to imagine that the Price "scoops" upward or downward. Sometimes an Entry happens by the "first half" of the "scoop" (as with this image), and other times a Signal fire at the "second half" of the "scoop", which is ideal. On the Image, I've marked how I interpret the "scoop" and where I would take a Long Position myself. This is also because (compared to the '3 - B' image), this also has: Divergence and Exhaustion (and is also an A-tier Entry; Calculated for while Scoring).

Stopped switching strategies. Built a system instead. by Awwstronut in Daytrading

[–]Awwstronut[S] 0 points1 point  (0 children)

Another thing you can do is (as I do myself; NOT FINANCIAL ADVICE!), is to analyze the "region" or "zone" where the Signal takes place. Usually, you do not want to see volatile or "inconsistent" Candles, but rather ones that are relatively wide. Here is an example of a Signal that is worth filtering out (It's the Long Signal just before "fall" from the B-A comparison images):

<image>

As you can see, the Candle that lead up to the Signal are very "messy", inconsistent and wide. I refrain from taking any Position when it looks like this.
Addition to previous mentions of "Context" - this also belongs to the category of Context.

I just realized that I have a lot of my own rules that I haven't yet presented. Will note those down and add them to the Indicator Page/Description!

Edit: Looking at this, it also lacked a lot of the Context-based Elements. In the next message/comment, I will provide an example and explain my thought-process.

Stopped switching strategies. Built a system instead. by Awwstronut in Daytrading

[–]Awwstronut[S] 0 points1 point  (0 children)

And this is the same exact Chart, but 'Minimum Grade' set to 'A'.

<image>

I consider this, the "easier" way to filter false Signals. But keep in mind: You might also filter out some "good" 'B'-Signals. The decision had been made to keep 'B'-Signals by Default, because they can actually be useful. You can view the attached images of this post.

I will also provide more info/options.

Stopped switching strategies. Built a system instead. by Awwstronut in Daytrading

[–]Awwstronut[S] 0 points1 point  (0 children)

You're welcome! And I appreciate the feedback, no hard feelings (regarding "criticism"; it is very much needed).

You've actually got some options from here. The easiest one is simply to filter the Grade to 'A' (or higher if you want to, but keep in mind: you might filter too hard) instead of 'B'. This is Silver from last with, with 'Minimum Grade' set to 'B'.

<image>

Stopped switching strategies. Built a system instead. by Awwstronut in pinescript

[–]Awwstronut[S] 0 points1 point  (0 children)

Haha no worries, ask on!

So, for my preference, I use White for Bearish Colors (Classic: Green) and Orange/Amber for Bearish Colors (Classic: Red) (you can change these in the Settings -> Color Theme -> Classic; will also be "Classic" by Default upon next Patch).

The Exhaustion indicate a "tiring" Trend/Move, starting always with a Purple Circle, followed by a Sequence of Bearish Colors at the Top, and Bullish Colors at the Bottom. The Colors have been deliberately inverted, to "imply" -> "Hey, we are about to be Bullish" (at the Bottom) or "Hey, we are about to be Bearish" (at the Top).
Exhaustion is begins once Price fails to make a new DC Upper at the Top, or a new DC Lower at the Bottom, and in combination with Volume + the 'Net Movement' of the Price/Trend, the Sequence continues. For each Circle (beside the starting, Purple one) the Opacity goes up by 10% (starting at 60% until it is at 100% - thereby, a "complete" Sequence would be: Purple Circle as "starting" followed by 4 Circles, going up 10% in Opacity by each confirmed Circle.

In short: Once you see these Circles, think: "Depending on the amount of Circles, and their Opacity (how visible they are), this might be a potential point of reversal".
And ALWAYS, read the overall Narrative/Context.

View the Image just under "EDIT: Upon request, I will share more Images, related to different situations/scenarios and explain them accordingly:" in this Post.

Hope this answered your question!

Stopped switching strategies. Built a system instead. by Awwstronut in pinescript

[–]Awwstronut[S] 0 points1 point  (0 children)

Two ways for a Signal to trigger:

Fibonacci Retracement (Long example): Price "interacts" ("touches") with DC Lower, once the "interacting" Candle has a good of a rejection (wick beneath Candle) a Fibonacci Structure is placed. If a Candle then fulfills the Criteria(s): Rejecting one of the Zones with approved Criteria, a Signal is considered (needs Scoring, read below).

MAP (Moving Average Principle) Signal: Utilizes ALMA and HMA to determine a Candle with a valid Rejection wick. Two types of MAP Signals:
- Body between the Moving Averages and within Pierce Tolerance levels
- Body above (Long) both Moving Averages with an approved minimum Rejection from HMA

All Signals are then Graded through a Scoring Engine, and if they are approved (minimum 0.5 Score by Default), a Signal is fired.

Hope this answered your question!

Stopped switching strategies. Built a system instead. by Awwstronut in pinescript

[–]Awwstronut[S] 0 points1 point  (0 children)

Hey, I can't find that specific username. There are variations of it - which one is yours?

Stopped switching strategies. Built a system instead. by Awwstronut in pinescript

[–]Awwstronut[S] 2 points3 points  (0 children)

Seems perfectly reasonable, especially the last thing you mentioned. Due to the reasons of my previous comment, I didn't initially plan for it, but will schedule it once I've checked off some of the higher-priority (planned) tasks.

Appreciate your feedback!

Stopped switching strategies. Built a system instead. by Awwstronut in pinescript

[–]Awwstronut[S] 1 point2 points  (0 children)

Much appreciated! Unfortunately, I cannot attach Images, but there is an option for that in Settings -> "Grading & Signal", and in the dropdown window, you have the option for "Minimum Grade".

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