This strategy is adapted from Kevin Davey’s free crude oil futures trading strategy. It utilizes the ADX indicator to determine the trend in the crude oil market and, combined with the price breakout principle, implements a simple and practical automated trading strategy for crude oil.
The strategy mainly relies on the ADX indicator to determine the trend, and generates trading signals based on fixed-cycle price breakouts under trend conditions. The overall strategy logic is very simple and clear.
Overall this is a very practical crude oil trading strategy. It uses the ADX indicator to determine the trend very reasonably. The price breakout principle is simple and effective with good backtest results. At the same time, as Kevin Davey’s public free strategy, it has very strong reliability in actual combat. Although there is still room for improvement in the strategy, it is a very suitable choice for beginners and small capital traders to get started and practice.
/*backtest start: 2023-12-01 00:00:00 end: 2023-12-31 23:59:59 period: 1h basePeriod: 15m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ // Strategy idea coded from EasyLanguage to Pinescript //@version=5 strategy("Kevin Davey Crude free crude oil strategy", shorttitle="CO Fut", format=format.price, precision=2, overlay = true, calc_on_every_tick = true) adxlen = input(14, title="ADX Smoothing") dilen = input(14, title="DI Length") dirmov(len) => up = ta.change(high) down = -ta.change(low) plusDM = na(up) ? na : (up > down and up > 0 ? up : 0) minusDM = na(down) ? na : (down > up and down > 0 ? down : 0) truerange = ta.rma(ta.tr, len) plus = fixnan(100 * ta.rma(plusDM, len) / truerange) minus = fixnan(100 * ta.rma(minusDM, len) / truerange) [plus, minus] adx(dilen, adxlen) => [plus, minus] = dirmov(dilen) sum = plus + minus adx = 100 * ta.rma(math.abs(plus - minus) / (sum == 0 ? 1 : sum), adxlen) sig = adx(dilen, adxlen) plot(sig, color=color.red, title="ADX") buy = sig > 10 and (close - close[65]) > 0 and (close - close[65])[1] < 0 sell = sig > 10 and (close - close[65]) < 0 and (close - close[65])[1] > 0 plotshape(buy, style = shape.arrowup, location = location.belowbar,size = size.huge) plotshape(sell, style = shape.arrowdown, location = location.abovebar,size = size.huge) if buy strategy.entry("long", strategy.long) if sell strategy.entry("short", strategy.short) if strategy.position_size != 0 strategy.exit("long", profit = 450, loss = 300) strategy.exit("short", profit = 450, loss = 300) // GetTickValue() returns the currency value of the instrument's // smallest possible price movement. GetTickValue() => syminfo.mintick * syminfo.pointvalue // On the last historical bar, make a label to display the // instrument's tick value if barstate.islastconfirmedhistory label.new(x=bar_index + 1, y=close, style=label.style_label_left, color=color.black, textcolor=color.white, size=size.large, text=syminfo.ticker + " has a tick value of:\n" + syminfo.currency + " " + str.tostring(GetTickValue()))template: strategy.tpl:40:21: executing "strategy.tpl" at <.api.GetStrategyListByName>: wrong number of args for GetStrategyListByName: want 7 got 6