This strategy uses EMA to determine trend direction and adaptive Fibonacci retracement to automatically identify reversal points, aiming to sell high and buy low by catching down trends. It involves frequent trading suitable for short-term trading.
Use 9-day EMA and 21-day EMA golden cross and death cross to determine trend direction. 21-day EMA crossing below 55-day EMA signals a down trend start.
Implement adaptive Fibonacci retracement with 100 periods to automatically determine key retracement levels based on recent price swings.
Price breaking 0.236 Fibonacci retracement indicates a reversal and closes existing position.
When 9-day EMA crosses below 21-day EMA, and price is lower than adaptive Fibonacci high, go short.
Long profit target is a crossover above 200-day EMA. Short stop loss is breaking 0.236 Fibonacci retracement.
EMA gives clear trend signals, easy to implement
Adaptive Fibonacci avoids manual parameter tuning
Frequent trading catches short-term moves for high frequency strategies
Key retracement levels for timely stop loss
Configurable parameters for optimization across cycles
EMA lagging requires confirmation from other indicators
Adaptive Fibonacci risks overfitting with unstable levels
High frequency trading increases costs from commissions and slippage
Ineffective filtering of range-bound trends leads to false signals
Needs improvement in drawdown management and risk-reward control
Add volume indicators to avoid false signals from price-volume divergence
Optimize EMA periods to better fit current market conditions
Implement dynamic stop loss for better risk control
Incorporate trend strength index to avoid whipsaws
Consider trading costs impact and set minimum profit target
This strategy identifies trend direction with EMA and determines reversal levels dynamically using adaptive Fibonacci retracement, which automatically adapts to different market conditions. But it relies more on indicator cues without trend segmentation and Elliott Wave logic, leaving room for optimization. Overall, as a high frequency short-term trading strategy, it can capture fast price changes but involves risks of frequent stop loss and overtrading that traders need to manage.
/*backtest start: 2023-08-21 00:00:00 end: 2023-09-20 00:00:00 period: 1h basePeriod: 15m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ // This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/ // © CheatCode1 //@version=5 strategy("CC-Trend strategy 2", overlay=true, initial_capital = 10000, commission_type = strategy.commission.percent, commission_value = 0.01, default_qty_type = strategy.percent_of_equity, default_qty_value = 100 ) ema9 = ta.ema(close, 9) ema21 = ta.ema(close, 21) ema55 = ta.ema(close, 55) ema200 = ta.ema(close, 200) plot(ema200, '22', color.blue, 2) FibL = input.int(100, 'Fibonacci Length', 1, 500, group = 'Automatic Fibonacci Retracement') len1 = input.int(1, 'Show Last', 0, 1000, group = 'Automatic Fibonacci Retracement') len2 = input.int(5, 'Offset Length', 0, 1000, group = 'Automatic Fibonacci Retracement') highF = ta.highest(ema55 >= ema9 ? ema55:ema9, FibL) lowF = ta.lowest(ema55 >= ema9 ? ema9:ema55, FibL) AvgFib = highF - lowF //Fibonacci Executions LL2 = highF + .618 * AvgFib LL1 = highF + .272 * AvgFib L1 = highF L236 = highF - 0.236 * AvgFib L382 = highF - 0.382 * AvgFib Mid = highF - 0.50 * AvgFib S382 = lowF + 0.382 * AvgFib S236 = lowF + 0.236 * AvgFib S1 = lowF SS1 = lowF - .272 * AvgFib SS2 = lowF - .618 * AvgFib //Fibonacci Plot's high2FP = plot(LL2, 'Highe2', color.red,offset = len2, show_last = len1, trackprice = true) high1FP = plot(LL1, 'Highe1', color.red,offset = len2, show_last = len1, trackprice = true) highFP = plot(highF, 'High', color.red,offset = len2, show_last = len1, trackprice = true) L236P = plot(L236, "0.764", #ED381C, offset = len2, show_last = len1, trackprice = true ) L382P = plot(L382, "0.618", color.white,offset = len2, show_last = len1, trackprice = true ) MidP = plot(Mid, "0.5", color.orange,offset = len2, show_last = len1, trackprice = true ) S382P = plot(S382, "0.382", color.yellow ,offset = len2, show_last = len1, trackprice = true) S236P = plot(S236, "0.236", color.lime ,offset = len2, show_last = len1, trackprice = true) lowFP = plot(lowF, 'Low', color.green,offset = len2, show_last = len1, trackprice = true) low1FP = plot(SS1, 'Lowe1', color.green,offset = len2, show_last = len1, trackprice = true) low2FP = plot(SS2, 'Lowe2', color.green,offset = len2, show_last = len1, trackprice = true) plot(ema9, '22', color.yellow, 2) plot(ema55, '55', color.aqua, 2) plot(ema200, '200', color.maroon, 2) shortCondition = close[1] < highF and ema21 < ema55 if (shortCondition) strategy.entry("Short", strategy.short) shorttp = ta.crossover(close, ema200) and strategy.openprofit >= 0 if (shorttp) strategy.close('Short', 'Short TP', qty_percent = 100) shortclose2 = close[1] > L236 and not (shortCondition) if(shortclose2) strategy.close('Short', 'Short RM', qty_percent = 100)template: strategy.tpl:40:21: executing "strategy.tpl" at <.api.GetStrategyListByName>: wrong number of args for GetStrategyListByName: want 7 got 6