This strategy is an adaptive multi-level trading system based on Fibonacci retracement theory. It utilizes Fibonacci retracement levels to identify key support and resistance levels in the market and generates trading signals based on price interactions with these levels. The core of this strategy lies in its flexibility, allowing traders to adjust key parameters such as lookback period, Fibonacci direction, and entry levels according to market conditions and personal preferences.
The core logic of the strategy includes the following steps:
The uniqueness of the strategy lies in allowing users to choose the direction of Fibonacci calculation (top to bottom or bottom to top), as well as selecting different Fibonacci levels for buy and sell signals. This flexibility enables the strategy to adapt to different market environments and trading styles.
To mitigate these risks, consider:
These optimizations can significantly enhance the strategy’s adaptability and robustness, enabling it to maintain effectiveness across a wider range of market conditions.
The adaptive multi-level trading strategy based on Fibonacci retracement provides a flexible, customizable framework for identifying potential trading opportunities in financial markets. By combining classical technical analysis principles with modern risk management techniques, this strategy offers traders a powerful tool for seeking high-probability trading opportunities in various market environments. However, like all trading strategies, it is not infallible. Successful application of this strategy requires a deep understanding of its principles, careful parameter tuning, and integration with other analytical tools. Through continuous optimization and risk management, this strategy can become a potent weapon in a trader’s toolkit.
/*backtest start: 2024-08-26 00:00:00 end: 2024-09-24 08:00:00 period: 4h basePeriod: 4h exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=5 strategy("Simple Fibonacci Retracement Strategy", overlay=true, default_qty_type=strategy.percent_of_equity, default_qty_value=10) // Input period for high and low points identification lookback = input.int(100, title="Lookback Period", minval=10) // Input to choose Fibonacci calculation direction fib_direction = input.string(title="Fibonacci Direction", defval="Top to Bottom", options=["Top to Bottom", "Bottom to Top"]) // Input for Fibonacci levels fib_level_236 = input.float(0.236, title="Fib 23.6% Level") fib_level_382 = input.float(0.382, title="Fib 38.2% Level") fib_level_50 = input.float(0.5, title="Fib 50% Level") fib_level_618 = input.float(0.618, title="Fib 61.8% Level") // Input to choose the level for entry signals buy_entry_level = input.string(title="Buy Entry Level", defval="Fib 61.8%", options=["Fib 23.6%", "Fib 38.2%", "Fib 50%", "Fib 61.8%"]) sell_entry_level = input.string(title="Sell Entry Level", defval="Fib 38.2%", options=["Fib 23.6%", "Fib 38.2%", "Fib 50%", "Fib 61.8%"]) // Input for take profit and stop loss in pips take_profit_pips = input.int(50, title="Take Profit (pips)") stop_loss_pips = input.int(20, title="Stop Loss (pips)") // Identify high and low points within the lookback period highestHigh = ta.highest(high, lookback) lowestLow = ta.lowest(low, lookback) // Calculate Fibonacci levels based on the selected direction var float fib_0 = na var float fib_100 = na var float fib_236 = na var float fib_382 = na var float fib_50 = na var float fib_618 = na if fib_direction == "Top to Bottom" fib_0 := highestHigh fib_100 := lowestLow fib_236 := highestHigh - (highestHigh - lowestLow) * fib_level_236 fib_382 := highestHigh - (highestHigh - lowestLow) * fib_level_382 fib_50 := highestHigh - (highestHigh - lowestLow) * fib_level_50 fib_618 := highestHigh - (highestHigh - lowestLow) * fib_level_618 else fib_0 := lowestLow fib_100 := highestHigh fib_236 := lowestLow + (highestHigh - lowestLow) * fib_level_236 fib_382 := lowestLow + (highestHigh - lowestLow) * fib_level_382 fib_50 := lowestLow + (highestHigh - lowestLow) * fib_level_50 fib_618 := lowestLow + (highestHigh - lowestLow) * fib_level_618 // Determine which level to use for buy and sell signals based on user input var float buy_fib_level = na var float sell_fib_level = na if buy_entry_level == "Fib 23.6%" buy_fib_level := fib_236 if buy_entry_level == "Fib 38.2%" buy_fib_level := fib_382 if buy_entry_level == "Fib 50%" buy_fib_level := fib_50 if buy_entry_level == "Fib 61.8%" buy_fib_level := fib_618 if sell_entry_level == "Fib 23.6%" sell_fib_level := fib_236 if sell_entry_level == "Fib 38.2%" sell_fib_level := fib_382 if sell_entry_level == "Fib 50%" sell_fib_level := fib_50 if sell_entry_level == "Fib 61.8%" sell_fib_level := fib_618 // Convert pips to price units (assuming 1 pip = 0.0001 for currency pairs like EURUSD) pip_value = syminfo.mintick * 10 take_profit = take_profit_pips * pip_value stop_loss = stop_loss_pips * pip_value // Trading signals var bool longSignal = na var bool shortSignal = na if fib_direction == "Top to Bottom" longSignal := ta.crossover(close, buy_fib_level) and close > buy_fib_level shortSignal := ta.crossunder(close, sell_fib_level) and close < sell_fib_level else longSignal := ta.crossover(close, buy_fib_level) and close > buy_fib_level shortSignal := ta.crossunder(close, sell_fib_level) and close < sell_fib_level // Execute trades based on signals with take profit and stop loss if (longSignal) strategy.entry("Long", strategy.long, comment="BUY") strategy.exit("Take Profit/Stop Loss", "Long", limit=close + take_profit, stop=close - stop_loss) if (shortSignal) strategy.entry("Short", strategy.short, comment="SELL") strategy.exit("Take Profit/Stop Loss", "Short", limit=close - take_profit, stop=close + stop_loss) // Plot Fibonacci levels plot(fib_0, title="Fib 0%", color=color.blue, linewidth=1, style=plot.style_line) plot(fib_236, title="Fib 23.6%", color=color.green, linewidth=1, style=plot.style_line) plot(fib_382, title="Fib 38.2%", color=color.green, linewidth=1, style=plot.style_line) plot(fib_50, title="Fib 50%", color=color.red, linewidth=1, style=plot.style_line) plot(fib_618, title="Fib 61.8%", color=color.green, linewidth=1, style=plot.style_line) plot(fib_100, title="Fib 100%", color=color.blue, linewidth=1, style=plot.style_line) // Create labels for Fibonacci levels with white text var label fibLabel0 = na var label fibLabel236 = na var label fibLabel382 = na var label fibLabel50 = na var label fibLabel618 = na var label fibLabel100 = na if (na(fibLabel0)) fibLabel0 := label.new(bar_index, fib_0, text="Fib 0%", color=na, textcolor=color.white, style=label.style_label_right, yloc=yloc.price) fibLabel236 := label.new(bar_index, fib_236, text="Fib 23.6%", color=na, textcolor=color.white, style=label.style_label_right, yloc=yloc.price) fibLabel382 := label.new(bar_index, fib_382, text="Fib 38.2%", color=na, textcolor=color.white, style=label.style_label_right, yloc=yloc.price) fibLabel50 := label.new(bar_index, fib_50, text="Fib 50%", color=na, textcolor=color.white, style=label.style_label_right, yloc=yloc.price) fibLabel618 := label.new(bar_index, fib_618, text="Fib 61.8%", color=na, textcolor=color.white, style=label.style_label_right, yloc=yloc.price) fibLabel100 := label.new(bar_index, fib_100, text="Fib 100%", color=na, textcolor=color.white, style=label.style_label_right, yloc=yloc.price) else label.set_xy(fibLabel0, bar_index, fib_0) label.set_xy(fibLabel236, bar_index, fib_236) label.set_xy(fibLabel382, bar_index, fib_382) label.set_xy(fibLabel50, bar_index, fib_50) label.set_xy(fibLabel618, bar_index, fib_618) label.set_xy(fibLabel100, bar_index, fib_100) // Plot signals plotshape(series=longSignal, location=location.belowbar, color=color.green, style=shape.labelup, title="Buy Signal", text="BUY") plotshape(series=shortSignal, location=location.abovebar, color=color.red, style=shape.labeldown, title="Sell Signal", text="SELL") // Plot highest and lowest points plot(highestHigh, title="Highest High", color=color.purple, linewidth=2, offset=-lookback) plot(lowestLow, title="Lowest Low", color=color.purple, linewidth=2, offset=-lookback)template: strategy.tpl:40:21: executing "strategy.tpl" at <.api.GetStrategyListByName>: wrong number of args for GetStrategyListByName: want 7 got 6