TradingGroundhog - Strategy & Wavetrend V2

2021년 10월 27일

#-- Public Strategy - No Repaint - Fractals - Wavetrend --

Here I come with another script, a nice and simple strategy based on fractals and Wavetrends.

#-- Synopsis --

A simple idea, on a small time frame (15 min) we buy when the opening price goes below a Bottom fractals and sell when it goes over a Top fractals, but in order to avoid bad and evil downtrends, we use Wavetrends based on a Daily time frame. From it, Tops and Bottoms are extracted. If the opening price goes above Wavetrend Tops, no trades will be conducted during the day. If the price goes below Wavetrend bottoms, no trades will be executed from 1 to N days, until a new Wavetrend bottom is generated.

I developed the strategy using BTC /EUR 15 MIN BINANCE but it can be applied to many other cryptos, I don't know for forex or others. You can use it for long term and automated trading, I implemented the Wavetrend indicator to do so, or for short term if you have spot a long coming uptrend. Test it, look at its profit and long or short period on your crypto of choice.

#-- Graph reading --

And now, how to read it ?

Wavetrends:

• Red Backgrounds are associated to No Trade periods. These periods occur when the price goes below a Wavetrend bottom or above a Wavetrend Top. They are here to limit the loss.
  
• Blue Gradient lines represent the past Tops. For each bar, only the increasing values of the Wavetrend tops are acquired. Going from light to dark blue based on the age of the Tops. Thus, if on line goes from dark to light, this means the price is approaching a previous Wavetrend top. In the opposite, if it darken, thus the price say 'buy buy' and go dropping.
  
• Yellow Gradient lines represent the past Bottoms. They are based on the same principe that the blue lines.
  

Fractals:

• Yellow Flags occur when the opening price goes below a Bottom fractal , it means Buy.
  
• White Flags appear when the opening price goes over a Top fractal , it means Sell.
  

#-- Parameters --

*** Parameters have been intensively optimized using 10 cryptocurrency markets in order to have potent efficiency for each of them. I would recommend to only change the Can Be touch parameter. For the others, I don't recommend any modifications. The idea behind the script is to be able to switch between markets without having to optimize parameters, less work, easy to target active crypto and therefor limit the risks. ***

Can be touch :

• 'Combined Smoothness' : The number of open individuals used by the Wavetrend. (6 or 9, often 9 is better but with less volatile crypto it will be 6)
  
• 'Filter fractals' : Activate or Disable the filtering fractal operation. If Enable, buy during less risky periods. (Disable is often better)
  

Can be touch but not necessary :

• 'VolumeMA' : The Volume corrector used by the fractals
  
• 'Extreme window' : The number of price individuals to look for if we want to remove extreme fractals.
  

Not to touch :

• 'Limit_candle to look on' : Number of candles to use to compute the Wavetrend Tops and Bottoms.
  
• 'Length top bottom drawn' : Size of the lines
  
• 'Long Sop Loss (%)' : The minimal difference of price between a Fractal bottom and the opening price to buy.
  

#-- Time frame --

Should be used with the following time frames depending on the necessity:

• 1 MIN
  
• 3 MIN (Interesting for short term profit, may need some parameter ajustements)
  
• 5 MIN
  
• 15 MIN (Preferred for long term profit, the script was developed on it)
  

#-- Last words --

The script can be set up to send Tradingview signals to 3comma just by adding comment = " " in strategy.close_all() and strategy.entry().
Good trades !

Disclaimer (As it should always be one to any script)
***
This script is intended for and only to be used for personal purposes only. No such information provided by it constitutes advice or a recommendation for any investment or trading strategy for any specific person. There is no guarantee presented or implied as to the accuracy of specific forecasts, projections, or predictive statements offered by the script. Users of the script agree that its original developer does not take responsibility for any of your investment decisions. Please seek professional advice before trading.
***

# Here are the results from the 1rst of July 2021 with 100% of equity on the BTC /EUR 15 Min and with a capital of 1 000 EUR.
# As I saw, it goes from +20% to more than +100% depending on the selected crypto. Sometimes it's negative but it's quite rare on crypto using the EUR.