Moving Average Ribbon Master Strategy

Oct 22, 2020

The following features available in this strategy are listed below. To access, please visit the website in the signature area of this posting.

INTRODUCTION

• Robust, fast, trading system
  
• Multiple time frame (MTF) aspects built in everywhere into the strategy
  
• Combines swing, scalp, greedy, volatile trading mechanisms
  
• Works on intraday day time frames as well as Daily and Weekly
  
• Trade sizing, targets, and stops are shown as new trades form and existing trades develop
  
• Alerts warn the trader on all aspects of the trade evolution
  
• Alerts are ready to be used for complete lifecycle automated trading
  

EMA TRADING

• Combining EMAs on a higher time frame than the chart time frame is key
  
• Trade conditions are met on a lower time frame that agree with the EMA ribbon direction
  

WHY DOES IT WORK?

• With the right EMA settings, it is "hard" to generate trades.
  
• The trade direction can easily shift
  
• Successful trade entry triggers require a strong trend
  
• While the EMA trend is positive, longs are taken on pullbacks, opposite for shorts
  
• A basic learning algorithm is used to create a stop behind the trades
  
• Learns over time the best stop offset from the price based on volatility
  

SWINGS AND SCALPS

• Swings and scalps are treated differently.
  
• Swings are the very first trade taken upon a directional shift. This is similar to the DIVINE series trading strategies
  
• Swings are held until stopped out, Scalps always have a target based on the current volatility of the ticker and multiplier
  
• Both swings and scalps start out in the "building" or "forming" phase.
  
• A building phase is triggered when all criteria are met to form a long or short
  
• Both trade types are executed as a market long or short when the ATR execution sensitivity reverses
  
• The current ATR direction can be seen by the colored bars.
  

TRADING STYLES

• Conservative
  
• Aggressive
  
• Greedy
  
• Volatile
  

TRADE SIZING

• Contract/Unit
  
• VIX Multiplier
  
• Percent of Equity
  
• Percent Risk
  

TRADE INFORMATION

• Historical trades show the price target of a scalp and the number of ticks of profit in parenthesis
  
• New trades show all of the extra information surrounding the trade. This can be turned on to show the same information for past trades, but is left off to reduce clutter
  
• Go over trade information categories one-by-one
  
• Recent historical trades have a tooltip loaded to hover over and see the hidden information
  
• Scalp trade is filled the numbered scalp icon shows as a (N)
  

SESSION WINDOW

• Longs and shorts can only receive an execution signal when the ticker is within one of three session options provided
  

ADJUSTMENT

• Last 3 sizing types show the quantity required to enter the trade to meet the parameters
  
• Percent risk automatically adjusts the quantity to meet the risk criteria given the account equity, per trade
  
• The account currency can be changed with will update the quantities automatically
  
• Tick Unit and Value can also be changed if they are not accurate
  

ALERTS

• Alerts for entire trade lifecycle
  
• Full automated trading ready
  

Nov 30, 2020

Release Notes

• Added "Trend MA" that is a higher EMA length. This trend MA is defaulted as a green/red MA. Its color changes when the slow MA crosses the trend MA.
  
• Fixed session algorithms.
  
• Updated projected ribbons.
  
• Updated value formatting for labels.
  
• Improved long/short algorithm.
  

Feb 3, 2021

Release Notes

• Fixed issue with new update producing errors when loading scripts to charts.
  
• MTF 'isNil' errors resolved.
  
• Fixed "VIX Multiplier" style type not working.
  
• Added trend MA stop logic.
  

Aug 5, 2021

Release Notes

• Added "Reversion" Trading Style. More information in instruction manual. This is a major update.
  
• Added trend MA values when the slow/fast flip is in the direction of the trend.
  
• Updated alert conditions for automation trading.
  
• Added 15 second timeframe trading, which corresponds to a 5 minute ribbon.
  
• Minor bugs and formatting issues addressed.
  

Dec 20, 2021

Release Notes

• Major updates to "Reversion" trading style.
  
• Major updates to dynamic stop.
  
• Added remainder of alerts for fully automation.
  

Dec 21, 2021

Release Notes

• Minor bug fixes.
  
• Separated out "greedy" mode, all trading styles now support greedy mode. See the toggle button in the Strategy Parameters section of the settings.
  
• Greedy quantity added to long and short alerts for automated trading.
  

Jan 4, 2022

Release Notes

• Improved mechanics for reversion only type trades.
  [*} Minor bug fixes.
  
• Added input function tooltips.
  

Jan 6, 2022

Release Notes

• Minor bug fixes updating reversion trades only.
  

Jan 28, 2022

Release Notes

• Improved reversion trade entries and trailing stop.
  
• Added minimum reward:risk filter for trades. This filter is designed to prevent trades from executing that do not meet the minimum reward:risk threshold.
  

Apr 8, 2022

Release Notes

• Improved target algorithm, better targets for reversion trades.
  
• Improved timing mechanism to deal with futures contract rollovers.
  
• Added "First Long" and "First Short" alerts. These trades are also denoted by bright green/red, respectively, when the trades are in the "building" phase.
  

Apr 13, 2022

Release Notes

• Updated first long/short entry conditions.
  

Apr 25, 2022

Release Notes

• Added momentum cloud. This is another visual aid to help the end user gauge the strength of buying or selling.
  
• Updated initial stop criteria using momentum cloud as another guide.
  
• Updated total number of displayed trend MAs to 2 instead of 3.
  

Momentum cloud in picture below as the shaded region below price (bullish) and above price (bearish). The thickness of the cloud can change depending on the strength of the momentum and conviction. The cloud itself can be used as support and resistance. Striking the bottom of the cloud when in a bullish scenario generally flips the cloud to bearish (it moves above the price). Striking the top of the cloud when in a bearish scenario generally flips the cloud to bullish (it moves below the price).

The momentum cloud has been tested for multiple months and works well as another visualization guide. It can be styled in the STYLE tab in the indicator settings.

Apr 26, 2022

Release Notes

• Updated momentum cloud function to use a random gaussian distribution search function based on recent volatility. This is better suited than a simple random walk.
  

Apr 27, 2022

Release Notes

• Updated momentum cloud to use consistent search patterns instead of randomized each time. This prevents a "different look" of the cloud upon each reload due to minor variations.
  

Apr 27, 2022

Release Notes

• Minor improvements.
  

Apr 27, 2022

Release Notes

• Minor bug fixes.
  

Apr 29, 2022

Release Notes

• Filter improvements on first long/short building. Minor bug fixes.
  

May 4, 2022

Release Notes

• Minor updates and improvements.
  

May 23, 2022

Release Notes

• Added label that shows a quantity warning during the building phase of any trade. This label is a rough prediction of how many contracts/units/shares will be used at the next trade execution.
  
• Fixed ribbon for H4 and Daily time frames.
  
• Improved trade recognition.
  

May 23, 2022

Release Notes

• Updated base color scheme for the momentum cloud.
  

May 25, 2022

Release Notes

• Updated momentum cloud, minor bug fix.
  

Jun 1, 2022

Release Notes

• Minor bug fixes dealing with trade execution timing.
  

Jun 2, 2022

Release Notes

• Minor updates to initial stop conditions.
  

Jun 3, 2022

Release Notes

• Updated initial stop strategy for special edge cases.
  

Jun 6, 2022

Release Notes

• Minor improvements to stop algorithm.
  

Sep 26, 2022

Release Notes

• Massive update.
  
• Target 2 and target 3 prices introduced. These show up on the "First Trades" long and short
  
• Outer "master stop" introduced that shows up when a "First Long" or "First Short" fires. Use this stop to hold a first trade as long as possible. While this stop is not broken, it is possible for the target 2 or target 3 prices to get filled.
  
• Removed all trading modes except Reversion. Trading modes hidden.
  
• Tooltips added to the target 2 and target 3 icons, as well as the fill icons. Hover over them to see more information on how they are intended to be used. These tooltips guide the trader on the the theoretical profit when taking fractional profit along the way during a "first trade", long or short.
  
• Updated trade tracking logic for pyramiding trading, up to 8 trades can be held simultaneously.
  

Nov 25, 2022

Release Notes

• Added 1/100, 1/1000, 1/1000000, 1/1000000000 rounding options for crypto users.
  

Nov 25, 2022

Release Notes

• Updated QTY format text for the new rounding types.
  

Nov 25, 2022

Release Notes

• Updated title.
  

Nov 29, 2022

Release Notes

• Updated to Pine V5.
  
• Added filter option to execute "First" longs and shorts only.
  
• Added automation alerts. This script is now fully capable of automation. See the tooltip notes in the Automation section of the inputs for more information.
  

Nov 29, 2022

Release Notes

• Added master stop automation alerts.
  

Nov 30, 2022

Release Notes

• Added {{OPPOSITE_SIDE}} keyword for automation alerts.
  
• Updated target 2 algorithm
  

Nov 30, 2022

Release Notes

• Added {{ID}} keyword to order execution text alert. This id value is a unique ID integer for every trade.
  

Nov 30, 2022

Release Notes

• Fixed quantity string formatting error.
  

Dec 1, 2022

Release Notes

• Resolved target gain % rounding issues for small quantities.
  

Dec 2, 2022

Release Notes

• Fixed issue with NaN reporting of targets and stops during low volatile moments on 1 second charts.
  

Dec 2, 2022

Release Notes

• Changed alert message filled values of "Sell" to "sell" and "Buy" to "buy"
  

Dec 7, 2022

Release Notes

• Updated issues where target 2 or target 3 alerts produce "N/A" results
  
• If a first long or first short produce an N/A target 2, the alert will show target 1 instead
  
• If a first long or first short produce an N/A target 3, the alert will show target 2 instead only if the target 2 is not N/A. If the target 2 is also N/A then target 1 will be used instead for the alert.