TheHorsyAlgoPROThe Horsy algo is an automated strategy that uses any minute Higher timeframe range as reference and search for a purge of liquidity on the HTF high or low where buyside or sell side liquidity is, the algo only search this at specific desired times that can be configured according to the time you usually trade, the strategy is known as Turtle soup purge and reverse or lately as CRT.
Why is useful?
The purpose of this Algorithm is to help turtle soup traders to quickly identify when the market is likely to reverse the algo evaluates if the opportunity is worth it, base on risk reward and other desired filters. Also this strategy can help to quickly backtest the trader strategy it can be configured in different timeframes and adapt to the trader personality, they can easily see the results and statistics and notice if its profitable or not.
This algo is useful for intraday traders looking for a purge and reverse at a key times and at key HTF price levels this only looks the previous HTF highs and lows but is important to also monitor Order blocks, FVGs, gaps, or wicks to have the best results.
How it works and how it does it?
The Horsy algo simply Jumps from one type of liquidity to another one buyside to sell side or vice versa. In order for the algo to trigger an entry it has to meet these conditions
1. Take HTF liquidity, trade above a HTF high or below a HTF low in the selected time window
2. Make a change in the state of delivery with a close below the previous candle low for shorts and close above previous candle high for longs.
3. Allow for a reasonable risk reward, it will use the highest high for shorts and the lowest low for longs. The default take profit is the opposite side of the range.
4. Validate others user filters this include enter only trades aligned with the HTF bias, or trades aligned with the LTF bias or booth. The algo have the option to enter only premium and discount entries. And finally, an option to allow for different contract sizes depending of the maximum percent of the account we want to risk default is 1%. For this last option is important to check the initial balance and leverage are configured correctly, is disable by default because it requires more capital to perform well.
We can see the algo performing in the picture below with a short trade, notice there are some white lines, they are the high or the low of HTF candle that start generating inside candles in the HTF meaning a possible consolidation. The algo plots the HTF ranges in a shaded boxes as you can see below
The HTF bias as you can see in the picture is calculated based on the last close of the HTF meaning close above previous HTF high is bullish close below previous HTF low is bearish. This HTF bias level is also the last HTF mid-price or 50%. By default, this line is enabled.
The LTF bias is calculated based on the range created from the expansion outside the previous HTF range is also the mid-price. If the LTF close above previous HTF high is bullish and if the LTF close below previous HTF low is bearish. By default this LTF bias line is disable.
This strategy includes an original and personal developed code that uses dealing ranges to recognize if the market is expanding, retracing, reversing or consolidating. This allow the algo to exit the position when it detects a retracement or at the end of the expansion. This is the default exit type.
You can monitor the previous dealing ranges created in history with an option than can be enable, by default is disable, this ranges are created after price takes buyside and then sell side or vice versa. So this dealing ranges can be useful also to identify minor pools of liquidity and premium and discount in the lower timeframe.
The picture below is a long example, the exit in this case is just at the high of the range. The normal take profit is in a blue line for longs.
How to use it?
First select the desired HTF timeframe recommended is from 30min to 240min then you setup the chart on the lower timeframe you want to trade recommended is from 1min to 15min to enter. By default This strategy is designed to work for intraday during key times when price take stops and then moves quickly away from them. You can select as much as 6 different times or just one. After you select the desired time window where the algo will look for the purge and reverse, They are highlighted in the candles that change colors excluding the gray ones that indicates consolidation.
Then the Algo allow to performs several additional filters in the entries you can select if you want to trade only longs or shorts trades, you can select when to move the stop loss to Break even. In deviations of the risk or you can just select to remove risk when price hits the 50% of previous HTF range.
You can select the minimum desired risk reward of the trade before is allow to be taken. Once is configured correctly the algo should trigger signals with a triangle up or down plus the strategy entry.
At the beginning of the picture there are some blue lines in the HTF high low and close, this is to easily identify that the market is in the Asia session, the time can be configured by the user, these lines are normally gray.
On the right top of the screen you can see some statistics about the strategy how many trades it took, ARR is an approximated value of the accumulated total risk reward of all the trades when they get closed in the simulation.
Profit factor and percent profitable are also shown should be green it means that the strategy makes money over time. But apart from that is important to notice how it makes money it is stable over time? it is a roller coaster? that why I Include this other measurements MxcsTps is the maximum consecutives take profits and Mxcsls is the maximum consecutive stop losses it takes, the slash number after it is the consecutive Break evens. So this way you know what to expect and what is normal in the strategy.
The algo shows all the times the stop loss, take profit and break even level if enable in the colored red lines for short and blue lines for longs. You can also select how price will manage the profit or stoploss point meaning that you can choose to wait for the candle to close to invalidate your idea or to take profit. This is good to avoid liquidity sweeps but can also lead to mayor loses if the idea is wrong. The default setting is to close the trade when price takes the high or low where the stoploss is, the take profit is taken after a retracement to allow to profit on expansions. You can select also to exit on a reversal if you want to ride all the move. This last option has to be used with caution because sometimes price just retrace or reverse very fast decreasing the trade profit and overall strategy performance.
The algo have the option to use standard deviation from the normal risk if you prefer to prevent liquidity sweeps near the stop level this make wider stops but can lead to increased loses so it has to be used carefully.
Below is a picture that show the entry stop and take profit levels with an exit on a retracement activated.
Strategy Results
The backtesting results are obtained simulating a 2000usd account in the Micro Nasdaq using 1 contract per trade. Commission are set to 2usd per contract, slippage to 1tick. You can see in list of trades we are not risking more than 1 % percent of the account. The backtested range is from august to November 2024. This strategy doesn’t generate too much trades because of the time filters and conditions that has to be meet to take an entry but you can see the results of the last 4months with the available data that are around 32 trades.
The default settings for this strategy is HTF as 240min designed to work on a LTF 5min chart, the default purge times are 245-300, 745-800, 845-900, 1045-1100 and 1245-1300 UTC-4, the algo will look for shorts or longs, with a minimum risk reward of 2.0. With an additional filter of the HTFBias. The take profit is by default taken on the first retracement after hitting the target. The default settings are optimized to work on the Nasdaq or Spy, but can also perform well in other assets with the correct adjustments.
Remember entries constitute only a small component of a complete winning strategy. Other factors like risk management, position-sizing, trading frequency, trading fees, and many others must also be properly managed to achieve profitability. Past performance doesn’t guarantee future results. To really take advantage of this strategy you have to study turtle soup and the HTF key levels use this only as a confirmation that your overall idea will play out and use it to backtest your model.
Summary of features
·Adaptable strategy to different HTF timeframes from 1-1440min
· Select up to 6 different purge time windows UTC-4, UTC-5
· Choose desired Risk Reward per trade
· Easily see the HTF high low close and 50% key levels in the LTF
· Identify HTF consolidations that generate key major liquidity pools
· HTF/LTF bias filters to trade in favor of the big trend or in sync
· Shaded boxes that indicate if the market is bullish, bearish or consolidating
· See the current midpoint of the last expansion move
· Optimal trade entry filter to trade only in a discount or premium
· Customizable trade management take profit, stop, breakeven level
· Option to exit on a close, retracement or reversal after hitting the take profit level
· Option to exit on a close or reversal after hitting stop loss
· Configurable breakeven point with standard deviations or at 50% of the HTF
· Calculate different contract sizes depending of a percentage of the initial balance
· Standard deviations from normal risk can be used to prevent liquidity sweeps
· See dealing ranges history to check minor pools of liquidity and premium or discount
· Dashboard with instant statistics about the strategy current settings
CRT
Candle Range Theory [Advanced] - AlgoVisionUnderstanding Candle Range Theory (CRT) in the AlgoVision Indicator
Candle Range Theory (CRT) is a structured approach to analyzing market movements within the price ranges of candlesticks. CRT is founded on the idea that each candlestick on a chart, regardless of timeframe, represents a distinct range of price action, marked by the candle's open, high, low, and close. This range gives insights into market dynamics, and when analyzed in lower timeframes, reveals patterns that indicate underlying market sentiment and institutional behaviors.
Key Concepts of Candle Range Theory
Candlestick Range: The range of a candlestick is simply the distance between its high and low. Across timeframes, this range highlights significant price behavior, with each candlestick representing a snapshot of price movement. The body (distance between open and close) shows the primary price action, while wicks (shadows) reflect price fluctuations or "noise" around this movement.
Multi-Timeframe Analysis: A higher-timeframe (HTF) candlestick can be dissected into smaller, structured price movements in lower timeframes (LTFs). By analyzing these smaller movements, traders gain a detailed view of the market’s progression within the HTF candlestick’s range. Each HTF candlestick’s high and low provide support and resistance levels on the LTF, where the price can "sweep," break out, or retest these levels.
Market Behavior within the Range: Price action within a range doesn’t move randomly; it follows structured behavior, often revealing patterns. By analyzing these patterns, CRT provides insights into the market’s intention to accumulate, manipulate, or distribute assets within these ranges. This behavior can indicate future market direction and increase the probability of accurate trading signals.
CRT and ICT Power of 3: Accumulation, Manipulation, and Distribution (AMD)
A foundational element of our CRT indicator is its combination with ICT’s Power of 3 (Accumulation, Manipulation, and Distribution or AMD). This approach identifies three stages of market movement:
Accumulation: During this phase, institutions accumulate positions within a tight price range, often leading to sideways movement. Here, price consolidates as institutions carefully enter or exit positions, erasing traces of their intent from public view.
Manipulation: Institutions often use manipulation to create false breakouts, targeting retail traders who enter the market on perceived breakouts or reversals. Manipulation is characterized by liquidity grabs, false breakouts, or stop hunts, as price momentarily moves outside the established range before quickly returning.
Distribution: Following accumulation and manipulation, the distribution phase aligns with the true market direction. Institutions now allow the market to move with the trend, initiating a stronger and more sustained price movement that aligns with their intended position.
This AMD cycle is often observed across multiple timeframes, allowing traders to refine entries and exits by identifying accumulation, manipulation, and distribution phases on smaller timeframes within the range of a higher-timeframe candle. CRT views this cycle as the "heartbeat" of the market—a continuous loop of price movements. With our indicator, you can identify this cycle on your current timeframe, with the signal candle acting as the "manipulation" candle.
How to Use the Premium AlgoVision CRT Indicator
1. Indicator Display Options
Bullish/Bearish Plot Indication: Toggles the display of bullish or bearish CRT signals. Turn this on to display signals on your chart or off to reduce screen clutter.
Order Block Indication: Highlights the order block entry price, which is the preferred entry point for CRT trades.
Purge Time Indication: Shows when the low or high of Candle 1 is purged by Candle 2, helping to identify potential manipulation points.
2. Filter Options
Match Indicator Candle with Signal: Ensures that only bullish Candle 2s (for longs) or bearish Candle 2s (for shorts) are signaled. This filter helps eliminate signals where the candlestick’s direction does not align with the CRT model.
Take Profit Already Reached: When enabled, this filter removes CRT signals if take profit levels are reached within Candle 2. This helps focus on setups where there’s still room for price movement.
Midnight Price Filter: Filters signals based on midnight price levels:
Longs: Only signals if the order block entry price is below the midnight price.
Shorts: Only signals if the order block entry price is above the midnight price.
3. Entry and Exit Settings
Wick out prevention: Allows positions to stay open and prevent getting wicked out. Positions will still be able to close if determined by the algorithm.
Buy/Sell: This allows you to set you daily bias. You can select to only see buys or sells.
Custom Stop Loss: Sets a custom stop loss distance from the entry price (e.g., $100 or $200 away) if the predefined stop loss based on Candle 2’s low/high doesn’t suit your preference.
Take Profit Levels: Choose from three take profit levels:
Optimized Take Profit: Uses an optimized take profit level based on CRT’s recommended exit point.
Take Profit 1: Sets an initial take profit level.
Take Profit 2: Sets a secondary take profit level for a more extended exit target.
Timeframe of Order Block: Select the timeframe of the order block entry, which can be tailored based on the timeframe of the CRT signal.
Risk-to-Reward Filter: Filters trades based on a specified risk-to-reward ratio, using the indicator’s stop loss as the base. This helps to ensure trades meet minimum reward criteria.
4. Risk Management
Fixed Entry QTY: This will allow you to open all positions with a fixed QTY
Risk to Reward Ratio: This allows you to set a minimum risk to reward ratio, the strategy will only take trades if this risk to reward is met.
Risk Type:
Fixed Amount: Allows you to risk a fixed $ amount.
% of account: Allows you to risk % of account equity.
5. Day and Time Filters
Filter by Days: Specify the days of the week for CRT signals to appear. For instance, you could enable signals only on Thursdays. This setting can be adjusted to any day or combination of days.
Purge Time Filter: Filters CRT signals based on specific purge times when Candle 1’s low/high is breached by Candle 2, as CRT setups are observed to work best during certain times.
Hour Filters for CRT Signals:
1-Hour CRT Times: Allows filtering CRT signals based on specific 1-hour time intervals.
4-Hour CRT Times: Filter 4-hour CRT signals based on specified times.
Forex and Futures Conversion: Adjusts times based on standard sessions for Forex (e.g., 9:00 AM 4-hour candle) and Futures (e.g., 10 PM candle for Futures or 8 AM for Crypto).
6. Currency and Asset-Specific Filters
Crypto vs. Forex Mode: This setting adjusts the indicator’s timing to match market sessions specific to either crypto or Forex/Futures, ensuring the CRT model aligns with the asset type.
Additional Notes
Backtesting Options: Adjust these to test risk management, such as risking a fixed amount or a percentage of the account, for historical performance insights.
Optimized Settings: This version includes all features and optimized settings, with the most refined data analysis.
Conclusion By combining CRT with ICT Power of 3, the AlgoVision Indicator allows traders to leverage the CRT candlestick as a versatile tool for identifying potential market moves. This method provides beginners and seasoned traders alike with a robust framework to understand market dynamics and refine trade strategies across timeframes. Setting alerts on the higher timeframe to catch bullish or bearish CRT signals allows you to plan and execute trades on the lower timeframe, aligning your strategy with the broader market flow.
