Volume-Weighted Average Price (VWAP) is a trading benchmark used by traders that indicates the average price that a security has traded for throughout the day based on volume and price. This is important as it gives traders insight into the trend and value of a security.
The Commodity Channel Index (CCI) indicator was created to identify bullish and bearish market cycles, as well as to define market turning points and the strongest and weakest market periods. CCI was developed for commodities and quickly found application in other markets, including forex.
Function
blackcat L2 VWAP CCI Trading System is an innovative indicator that combines vwap and cci indicator together. Not only long and short entries can be disclosed, but also the overbought and oversold zones are clearly observed.
Key Signal
cci ---> vwap cci indicator output long --> long entry condition short --> short entry condition backtest --> indicator backtest scheme "NLX-L3 Backtest" required input source for strategy backtest longentry --> visual long entry shortentry --> visual short entry
Pros and Cons
Pros:
1. exact long and short entries are produced by overbought and oversold conditions 2. support "NLX-L3 Backtest" framework
Cons:
1. noise may be produced under extreme market condition 2. due to this is un-optimized version, time frame and trading pairs need to be selected
Remarks
Courtesy of @nilux "NLX-L3 Backtest" easy backtest framework for dummies. Step by step backtest guide with "NLX-L3 Backtest" framework: STEP1: Add this indicator into your chart STEP2: Add "NLX-L3 Backtest" into your chart STEP3: Click "Settings" gear icon of "NLX-L3 Backtest" to select "Select L2 Indicator" in the 1st line as "blackcat L2 VWAP CCI Trading System: backtest" STEP4: Configure your backtest other settings under "NLX-L3 Backtest" framework STEP5: Click "OK" and view the results in "Strategy Tester" tab
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
Looks very good! Thanks for your amazing effort!
One question. When I add the indicator on the chart there is nothing in the strategy tester.
What could be the problem? The indicator is plotted well on the screen but no signals.
CUBYC
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Hi, as always great work, don`t even know how you manage to get time to write post and explain all these codes day by day.... I`m amazed!
As a recommendation would be nice to post something similar as @nilux "NLX-L3 Backtest" , so that we can test all these beauty codes that you share here.
Keep the good work mate, thaks.
MeTu2018
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Thx for new learning NLX and your trading system is superb. Can u make alerts
blackcat1402
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@MeTu2018,I am very cautious about making alerts, because a good trading system requires professional script processing. I believe that professional people can do professional things. You may consider @nilux " NLX-L3 Alerts" framework, which is friendly and easy to use, just as @nilux " NLX-L3 Backtest" framework.