Hold Time With Percentage Drop Catastrophic ExitThis is a trading strategy developed for volatile markets. The system will look for breakouts in any market conditions with solid risk management in place. It incorporates a number of time-tested indicators that help it effectively balance capturing profit potential and controlling downside risk.
Key Features:
Breakout Detection Using Bands and Momentum Indicators:
Bollinger Bands: Finds possible breakout conditions where the price closes above the upper band amid periods of increased volatility.
MACD: This is for confirmation of momentum and trend alignment to increase the chances of successful breakouts. VWAP: This acts as an important level that ensures the price action is in the right intraday sentiment. Volatility and Volume Filters:
This strategy incorporates ATR for measuring market volatility and filtering out the strength of breakouts.
A relative volume filter ensures entry signals are well participated in by the market and filters low liquidity setups. Risk Management:
Minimum Holding Period: This prevents the strategy from prematurely exiting trades on minor pullbacks, allowing trends to form. The holding period is user-adjustable.
ATR-Based Emergency Exit: If the price falls by a certain percentage-a user input, such as 5%-from the entry price, calculated as a function of ATR, the position is immediately exited. This override prevents disastrous losses during turmoil.
Customizability:
Users can modify all the key parameters: Bollinger Band settings, holding periods, MACD configurations, ATR multipliers, and the percentage drop threshold. It also makes the strategy very versatile for different trading styles, instruments, and timeframes.
How It Works:
Entry Signals:
The strategy identifies a buy opportunity when the price breaks above the upper Bollinger Band with increasing ATR and volume, and MACD confirms bullish momentum. VWAP ensures that the price is above the average market sentiment level.
Minimum Holding Period:
Once a position is entered, the strategy enforces a minimum number of bars to hold before evaluating normal sell conditions. This rule prevents the strategy from prematurely exiting and ensures that trades have enough time to develop.
Emergency Exit:
If the price drops sharply-defined as a user-set percentage of the entry price, scaled by ATR-the strategy immediately exits, bypassing the minimum hold rule. This is protection against sudden and extreme losses under volatile conditions.
Exit Signals:
It further has a minimum holding period, after which it exits on its conditions under two indicators: MACD and VWAP, checking for loss of momentum or bearish conditions.
Use Case:
This will be a good approach for traders operating in volatile markets, focusing on breakout opportunities with strong risk management incorporated. It works well on intraday time frames but can be adapted to swing trading or longer-term strategies simply by adjusting the parameters.
Backtesting and Results:
Default settings are meant to return very realistic results in backtesting. Users should always test with the appropriate slippage, commission, and position sizing in relation to their actual trading environment.
Note:
This is an open-source script; for educational use only. Past performance is not indicative of future results. Traders should backtest/forward-test this idea before using it in live markets.
Bollinger-bands
E9 Bollinger RangeThe E9 Bollinger Range is a technical trading tool that leverages Bollinger Bands to track volatility and price deviations, along with additional trend filtering via EMAs.
The script visually enhances price action with a combination of trend-filtering EMAs, bar colouring for trend direction, signals to indicate potential buy and sell points based on price extension and engulfing patterns.
Here’s a breakdown of its key components:
Bollinger Bands: The strategy plots multiple Bollinger Band deviations to create different price levels. The furthest deviation bands act as warning signs for traders when price extends significantly, signaling potential overbought or oversold conditions.
Bar Colouring: Visual bar colouring is applied to clearly indicate trend direction: green bars for an uptrend and red bars for a downtrend.
EMA Filtering: Two EMAs (50 and 200) are used to help filter out false signals, giving traders a better sense of the underlying trend.
This combination of signals, visual elements, and trend filtering provides traders with a systematic approach to identifying price deviations and taking advantage of market corrections.
Brief History of Bollinger Bands
Bollinger Bands were developed by John Bollinger in the early 1980s as a tool to measure price volatility in financial markets. The bands consist of a moving average (typically 20 periods) with upper and lower bands placed two standard deviations away. These bands expand and contract based on market volatility, offering traders a visual representation of price extremes and potential reversal zones.
John Bollinger’s work revolutionized technical analysis by incorporating volatility into trend detection. His bands remain widely used across markets, including stocks, commodities, and cryptocurrencies. With the ability to highlight overbought and oversold conditions, Bollinger Bands have become a staple in many trading strategies.
3 Fib EMAs To Scalp Them AllThe "3 Fib EMAs To Scalp Them All" was made in order to clear up when we should look for shorts, longs, or walk away. Also it can alert you when a trend starts, or when there is a possible reversal. I use it for scalping/day trading in 5m-1h timeframes.
1. EMAs: By default, the indicator uses Fibonacci numbers (21, 55, 233), but you can change them.
2. Color Changes: The color of the Micro EMA line changes depending on its relation to the Mid and Macro EMAs.
When Micro EMA < Mid < Macro EMA, it turns red, indicating a potential bearish trend - that's when you should look for shorts
When Micro EMA > Mid > Macro EMA, it turns green, indicating a potential bullish trend - that's when you should look for longs
A white Micro EMA is when you need to take some rest, enjoy your coffee, and avoid overtrading.
3. Signals: The indicator provides visual signals in the form of diamonds and crosses and corresponding alert signals.
A red diamond above the bar signals a potential beginning of a downtrend
A red cross above the bar signals the end of the downtrend and can be used as a signal for a possible reversal up/breakout.
A green diamond below the bar signals a potential beginning of a downtrend,
A green cross below the bar signals the end of the uptrend and can be used as a signal for a possible reversal down/breakout.
4. Alerts: For algo traders and people who prefer to stay away from the monitor... there are alerts for every signal.
Friendly note: Don't blindly follow the signals for your long and short entries. The signals only pop up when the EMA cross value gets a confirmation. A smart move would be to wait for a retracement to the EMA line and use momentum indicators like market cipher B to pinpoint those ideal entry points.
Bollinger Bands - Breakout StrategyThe Bollinger Bands - Breakout Strategy is a trend-following optimized for short-term trading in the crypto market. This strategy employs the Bollinger Bands, a widely recognized technical indicator, as its primary instrument for pinpointing potential trades. It is capable of executing both long and short positions, depending on whether the market is in a spot or futures, and is particularly effective in trending markets.
The strategy boasts a high degree of configurability, allowing users to set the Bollinger Bands period and deviation, trend filter, volatility filter, trade direction filter, rate of change filter, and date filter. Furthermore, it offers options for Take Profit, Stop Loss, and Trailing Stop for both long and short positions, ensuring a comprehensive risk management approach. The inclusion of a maximum intraday loss feature adds another layer of protection, making this strategy a valuable tool for traders seeking a professional and adaptable trading system.
Name : Bollinger Bands - Breakout Strategy
Category : Trend Follower based on Bollinger Bands
Operating mode : Long and Short on Futures or Long on Spot
Trade duration : Intraday
Timeframe : 2H, 3H, 4H, 5H
Market : Crypto
Suggested usage : Trending Markets
Entry : When the price crosses above or below the Bollinger Bands
Exit : Opposite Cross or Profit target, Trailing stop or Stop loss
Configuration :
- Bollinger Bands period and deviation
- Trend Filter
- Volatility Filter
- Trade direction filter
- Rate of Change filter
- Date Filter (for backtesting purposes)
- Take Profit, Stop Loss and Trailing Stop for long and short positions
- Risk Management: Max Intraday Loss
Backtesting :
⁃ Exchange: BINANCE
⁃ Pair: BTCUSDT.P
⁃ Timeframe: 4H
⁃ Fee: 0.025%
⁃ Slippage: 1
- Initial Capital: 10000 USDT
- Position sizing: 10% of Equity
- Start : 2019-09-19 (Out Of Sample from 2022-12-23)
- Bar magnifier: on
Credits :
- LucF of Pine Coders for f_security function to avoid repainting using security.
- QuantNomad for Monthly Table.
Disclaimer : Risk Management is crucial, so adjust stop loss to your comfort level. A tight stop loss can help minimise potential losses. Use at your own risk.
How you or we can improve? Source code is open so share your ideas!
Leave a comment and smash the boost button!
Thanks for your attention, happy to support the TradingView community.
