ianzeng123
Overview
This is an innovative trading strategy that combines liquidity zone analysis with dynamic internal market structure, aiming to identify high-probability entry points. By tracking price interactions with key market levels and utilizing internal market shifts to trigger trades, the strategy provides traders with a flexible and precise market entry approach.
Strategy Principles
The core logic is based on two key components: liquidity zone identification and internal market shifts. Liquidity zones are dynamically determined by analyzing local highs and lows, while internal market shifts are judged by price breakouts of previous bullish or bearish levels.
The strategy features the following core characteristics: 1. Internal Market Shift Logic: Relies on price breakouts of key levels rather than traditional candlestick patterns 2. Liquidity Zone Tracking: Dynamically identifies key liquidity zones to prevent trading in weak market conditions 3. Mode Flexibility: Offers three trading modes - “Both”, “Bullish Only”, and “Bearish Only” 4. Risk Management: Customizable stop-loss and take-profit levels 5. Time Range Control: Precise control of trading time periods
Strategy Advantages
- Dynamic Adaptability: Quickly responds to market structure changes
- Precise Entry: Enhances entry accuracy by combining liquidity zones and internal market shifts
- Controllable Risk: Built-in stop-loss and take-profit mechanisms
- High Flexibility: Can choose trading modes based on different market conditions
- Multi-Dimensional Analysis: Simultaneously considers price behavior, liquidity, and market structure
Strategy Risks
- Extreme market volatility may trigger stop-losses
- Frequent signals in range-bound markets may increase trading costs
- Improper parameter settings may affect strategy performance
- Potential discrepancies between backtesting and live trading results
Strategy Optimization Directions
- Introduce machine learning algorithms for parameter adaptive optimization
- Add more filtering conditions, such as trading volume and volatility indicators
- Develop multi-timeframe verification mechanisms
- Optimize stop-loss and take-profit algorithms with dynamic market volatility adjustments
Summary
This is an innovative trading strategy that integrates liquidity analysis and market structure dynamics. By providing flexible internal market shift logic and precise liquidity zone tracking, it offers traders a powerful trading tool. The strategy’s key strength lies in its adaptability and multi-dimensional analysis capabilities, maintaining high execution efficiency across different market conditions.
Strategy source code
/*backtest
start: 2024-03-28 00:00:00
end: 2025-03-27 00:00:00
period: 1d
basePeriod: 1d
exchanges: [{"eid":"Futures_Binance","currency":"ETH_USDT"}]
*/
//@version=6
strategy("Liquidity + Internal Market Shift Strategy", overlay=true)
// ======== Mode Selection ========
mode = input.string("Both", title="Mode", options=["Both", "Bullish Only", "Bearish Only"])
// ======== Stop-Loss and Take-Profit Input (in pips) ========
enableTakeProfit = input.bool(true, title="Enable Custom Take Profit") // Option to enable/disable take profit
stopLossPips = input.int(10, title="Stop Loss (in pips)", minval=1) // Stop loss in pips
takeProfitPips = input.int(20, title="Take Profit (in pips)", minval=1) // Take profit in pips
// ======== Internal Shift Logic ========
// Fixed number of consecutive candles to track (set to 1)
consecutiveBullishCount = 1
consecutiveBearishCount = 1
// Function to check for bullish and bearish candles
isBullish = close > open
isBearish = close < open
// Variables to track consecutive candles and mark lowest/highest
var int bullishCount = 0
var int bearishCount = 0
var float lowestBullishPrice = na
var float highestBearishPrice = na
var float previousBullishPrice = na // For the previous bullish lowest price
var float previousBearishPrice = na // For the previous bearish highest price
// Variables to track last internal shift type (1 = Bullish, -1 = Bearish, 0 = None)
var int lastInternalShift = 0
// Counting consecutive bullish and bearish candles
if isBullish
bullishCount := bullishCount + 1
bearishCount := 0
if bullishCount == 1 or low < lowestBullishPrice
lowestBullishPrice := low
else if isBearish
bearishCount := bearishCount + 1
bullishCount := 0
if bearishCount == 1 or high > highestBearishPrice
highestBearishPrice := high
else
bullishCount := 0
bearishCount := 0
lowestBullishPrice := na
highestBearishPrice := na
// Internal shift conditions
internalShiftBearish = close < previousBullishPrice and close < lowestBullishPrice
internalShiftBullish = close > previousBearishPrice and close > highestBearishPrice
// Condition to alternate internal shifts
allowInternalShiftBearish = internalShiftBearish and lastInternalShift != -1
allowInternalShiftBullish = internalShiftBullish and lastInternalShift != 1
// Tracking shifts
if bullishCount >= consecutiveBullishCount
previousBullishPrice := lowestBullishPrice
if bearishCount >= consecutiveBearishCount
previousBearishPrice := highestBearishPrice
// ======== Liquidity Seal-Off Points Logic ========
upperLiquidityLookback = input.int(10, title="Lookback Period for Upper Liquidity Line")
lowerLiquidityLookback = input.int(10, title="Lookback Period for Lower Liquidity Line")
isLocalHigh = high == ta.highest(high, upperLiquidityLookback)
isLocalLow = low == ta.lowest(low, lowerLiquidityLookback)
var bool touchedLowerLiquidityLine = false
var bool touchedUpperLiquidityLine = false
if (low <= ta.lowest(low, lowerLiquidityLookback))
touchedLowerLiquidityLine := true
if (high >= ta.highest(high, upperLiquidityLookback))
touchedUpperLiquidityLine := true
var bool lockedBullish = false
var bool lockedBearish = false
var int barSinceLiquidityTouch = na
// ======== Combined Signals ========
bullishSignal = allowInternalShiftBullish and touchedLowerLiquidityLine and not lockedBullish
bearishSignal = allowInternalShiftBearish and touchedUpperLiquidityLine and not lockedBearish
if bullishSignal
lockedBullish := true
touchedLowerLiquidityLine := false
barSinceLiquidityTouch := 0
if bearishSignal
lockedBearish := true
touchedUpperLiquidityLine := false
barSinceLiquidityTouch := 0
if not na(barSinceLiquidityTouch)
barSinceLiquidityTouch := barSinceLiquidityTouch + 1
if barSinceLiquidityTouch >= 3
lockedBullish := false
lockedBearish := false
if touchedLowerLiquidityLine
lockedBullish := false
if touchedUpperLiquidityLine
lockedBearish := false
// ======== Plot Combined Signals ========
plotshape(bullishSignal, style=shape.triangleup, location=location.belowbar, color=color.green, size=size.tiny, title="Bullish Signal")
plotshape(bearishSignal, style=shape.triangledown, location=location.abovebar, color=color.red, size=size.tiny, title="Bearish Signal")
plot(isLocalHigh ? high : na, color=color.red, linewidth=2, style=plot.style_stepline, title="Local High Line")
plot(isLocalLow ? low : na, color=color.green, linewidth=2, style=plot.style_stepline, title="Local Low Line")
// ======== Track Entry and Opposing Signals ========
var float entryPrice = na
var int entryTime = na
var string positionSide = ""
// ======== Strategy Execution (Mode Logic) ========
if (mode == "Both")
// Short Entry Logic (Bearish Signal)
if (bearishSignal and na(entryPrice))
strategy.entry("Short", strategy.short)
entryPrice := close
entryTime := time
positionSide := "short"
// Long Entry Logic (Bullish Signal)
if (bullishSignal and na(entryPrice))
strategy.entry("Long", strategy.long)
entryPrice := close
entryTime := time
positionSide := "long"
// Exit Logic: Close on Opposing Signal (after the current signal is triggered)
if (positionSide == "short" and bullishSignal )
strategy.close("Short")
entryPrice := na
positionSide := ""
if (positionSide == "long" and bearishSignal)
strategy.close("Long")
entryPrice := na
positionSide := ""
// Stop-Loss and Take-Profit Logic (in pips)
stopLossPriceLong = entryPrice - stopLossPips * syminfo.mintick
takeProfitPriceLong = entryPrice + takeProfitPips * syminfo.mintick
stopLossPriceShort = entryPrice + stopLossPips * syminfo.mintick
takeProfitPriceShort = entryPrice - takeProfitPips * syminfo.mintick
// Long Stop-Loss and Take-Profit Conditions
if (positionSide == "long" and close <= stopLossPriceLong)
strategy.close("Long", comment="Stop Loss Triggered")
entryPrice := na
positionSide := ""
if (positionSide == "long" and enableTakeProfit and close >= takeProfitPriceLong)
strategy.close("Long", comment="Take Profit Triggered")
entryPrice := na
positionSide := ""
// Short Stop-Loss and Take-Profit Conditions
if (positionSide == "short" and close >= stopLossPriceShort)
strategy.close("Short", comment="Stop Loss Triggered")
entryPrice := na
positionSide := ""
if (positionSide == "short" and enableTakeProfit and close <= takeProfitPriceShort)
strategy.close("Short", comment="Take Profit Triggered")
entryPrice := na
positionSide := ""
if (mode == "Bullish Only")
if (bullishSignal and na(entryPrice))
strategy.entry("Long", strategy.long)
entryPrice := close
entryTime := time
positionSide := "long"
if (positionSide == "long" and bearishSignal)
strategy.close("Long")
entryPrice := na
positionSide := ""
// Stop-Loss and Take-Profit Logic (in pips)
stopLossPriceLong = entryPrice - stopLossPips * syminfo.mintick
takeProfitPriceLong = entryPrice + takeProfitPips * syminfo.mintick
if (positionSide == "long" and close <= stopLossPriceLong)
strategy.close("Long", comment="Stop Loss Triggered")
entryPrice := na
positionSide := ""
if (positionSide == "long" and enableTakeProfit and close >= takeProfitPriceLong)
strategy.close("Long", comment="Take Profit Triggered")
entryPrice := na
positionSide := ""
if (mode == "Bearish Only")
if (bearishSignal and na(entryPrice))
strategy.entry("Short", strategy.short)
entryPrice := close
entryTime := time
positionSide := "short"
if (positionSide == "short" and bullishSignal)
strategy.close("Short")
entryPrice := na
positionSide := ""
// Stop-Loss and Take-Profit Logic (in pips)
stopLossPriceShort = entryPrice + stopLossPips * syminfo.mintick
takeProfitPriceShort = entryPrice - takeProfitPips * syminfo.mintick
if (positionSide == "short" and close >= stopLossPriceShort)
strategy.close("Short", comment="Stop Loss Triggered")
entryPrice := na
positionSide := ""
if (positionSide == "short" and enableTakeProfit and close <= takeProfitPriceShort)
strategy.close("Short", comment="Take Profit Triggered")
entryPrice := na
positionSide := ""