Price change scalping short and long strategy

2022년 9월 7일

Price change scalping Short and Long strategy uses a rate of change momentum oscillator to calculate the percent change in price between a period of time. Rate of change calculation takes the current price and compares it to a price of "n" periods while the period of time can be defined by a user. The calculated rate of change value is then compared to the upper threshold and the lower threshold values to determine if a position should be opened. If the threshold is crossed and filtering conditions are met a strategy position will be triggered. Entry, take profit, and stop loss prices are calculated and displayed on the chart as well as positions directions. Once the entry price is crossed, a long or short position is created and once the take profit price is crossed, the stop loss price will begin to trail behind the price action using the close of the previous bar. Once the trailing stop price is crossed, the position is closed. If the entry price is not crossed and the price action crosses the stop level, the trade setup is cancelled. The strategy is enhanced by DCA algorithm which allows to average entry price with safety orders. The script also allows to use Martingale coefficient to increase averaging power

Advantages of this script:

• Strategy has high net profit of 293% at backtests
  
• Backtests show high accuracy around 71%
  
• High frequency and low duration of trades
  
• Can be used with short-term timeframes ranging from 5 to 60 minutes
  
• Strategy is sustainable to market slumps due to DCA implementation
  
• Can be used for short and long positions (can be adjusted to long only, short only or both)
  
• Can be applied to any market and quote currency
  
• Easy to configure user interface settings
  
• Built in detailed statistic menu
  

How to use?
1. Apply the strategy to a trading pair your are interested in using 5 to 60 minutes timeframe chart
2. Configure the strategy: change layer values, order size multiple and take profit/stop loss values according to current market cycle stage
3. Set up a TradingView alert to trigger when strategy conditions are met
4. Strategy will send alerts when to enter and when to exit positions which can be applied to your portfolio using external trading platforms
5. Update settings once market conditions are changed using backtests on a monthly period