Well, I often had arguments in online forum with a guy who claimed to time the market perfectly without any technical analysis or prior experience. He often claimed that technical analysis does not work and it only works when you trade on other's emotions. He also argued that algorithmic trading isn't profitable - if so, everyone would do that. Hence, I thought I will convert his idea to algorithm.
In his own words, the strategy is as below:
Chose an instrument which is in full uptrend.
Wait for the panic sell and buy the dip
Once market recovers back exit immediately
It seems to do just fine with indexes. But, not so good when it comes to stocks.
Release Notes
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Reduce initial capital to 10k to avoid getting moderated. Cannot reduce further as buy operation will not work on index otherwise.
Have kept 100% equity without compounding so that it will be easier to compare with buy and hold.
Works crazily good even in crypto thanks man. Do u know how to convert this strategy into an indicator? I tried but i cant. Id love to have it as an indicator. Thanks!!
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@monotoab, yeah, it’s more effective on things which we are sure is going to bounce back. Overall risky on stocks as there are no stops involved. Success rate is pretty high. Though keeps you out of trade for most of the time.
Can be converted to indicator. But, what’s your expectation? Just show buy/sell signals?
Idea of identifying uptrend before fall is based on these indicators:
i always follow you , added the script but i found it is not showing anything in the screen ... although i am using free trading view ... can you help me to find the solution of it so that i can try in my chart ..
regards
Abhijit
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@am67, Can you tell me what instrument you are using?
am67
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indian market .......bank Nifty and nifty 50 index option trading , but i am also using free version of tradingview
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@am67, Hey, goto settings->properties and increase initial capital. Add few 0s. I have set initial capital to 10k, which seems to be not enough for banknifty.
am67
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@HeWhoMustNotBeNamed,
sir added several zeros but it doesnt working on Nifty 50 or bank nifty ,may be some other problem
regards
Trendoscope
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@am67, Do you see any error? See if you can reduce percentage investment to 80 from 100.