Get started

Indicators and strategies

Swing Breakout Strategy PRO“Swing Strategy Pro” A powerful trading tool designed for price action & swing traders. This indicator automatically detects swing highs and lows and generates precise Buy & Sell signals based on breakout confirmations. ✅ How It Works: • Buy signal: When swing high breaks with confirmation candle • Sell signal: When swing low breaks with confirmation candle • Target = Distance between recent swing high & low • Stop Loss = Opposite swing level 📌 Perfect for Breakout Trading, Swing Entries, and Trend Continuation strategies. 🎯 Fully automated with visual alerts & clean chart design.
Pine Script® strategy
by VISHALSWINGTRADE
BTC Dynamic Trend Core Strategy v45// The Dynamic Trend Core is a sophisticated, multi-layer trading strategy that provides both a quantitative // // backtesting engine and a rich, intuitive visual interface. It is designed to identify high-probability // // trend-following opportunities by requiring a confluence of conditions to be met before a signal is considered // // valid. // // // // The system's philosophy is rooted in confirmation, seeking to filter out market noise by ensuring that trend, // // momentum, market sentiment, and volume are all in alignment. // // // // --- CORE LOGIC COMPONENTS --- // // 1. **Primary Trend Analysis (SAMA):** The foundation is a self-adjusting moving average (SAMA) that // // determines the underlying market trend (Bullish, Bearish, or Consolidation). // // // // 2. **Confirmation & Momentum:** Signals are confirmed with a blend of the Natural Market Slope and a Cyclic // // RSI to ensure momentum aligns with the primary trend. // // // // 3. **Advanced Filtering Layers:** A suite of optional filters allows for robust customization: // // - **Volume & ADX:** Ensure sufficient market participation and trend strength. // // - **Market Regime:** Uses total crypto market cap to gauge broad market health. // // - **Multi-Timeframe (MTF):** Aligns signals with the dominant weekly trend. // // - **BTC Cycle Analysis:** Uses Halving or Mayer Multiple models to position trades within historical // // macro cycles. // // // // --- VISUAL INTERFACE --- // // The strategy's real power comes from its on-chart visual feedback system, which provides full transparency. // // ****Note: for this to be enabled recalculate 'on every tick' needs to be enabled in the properties settings. // // 1. **Power Core Gauge:** Located at the bottom-center, this gauge is the heart of the system. It displays the // // number of active filter conditions that have been met (e.g., 5/6). It "powers up" as more conditions align,// // glowing brightly when a signal is fully confirmed and ready. // // // // 2. **Live Conditions Panel:** In the bottom-right corner, this panel acts as a detailed pre-flight checklist. // // It shows the real-time status of every single filter, helping you understand exactly why a trade is (or // // is not) being triggered. // // // // 3. **Energized Trendline:** The main SAMA trendline changes color and brightness based on the strength and // // direction of the trend, providing immediate visual context. // // // // 4. **Halving cycle visualisation:** Visual guide to halving phases // // // // --- HOW TO USE --- // // 1. **Select Operation Mode:** Use "Backtest Mode" to test settings and "Alerts-Only Mode" for live signals. // // // // 2. **Configure Strategy:** Start with the default filters. If a potential trade setup is missed, check the // // **Live Conditions Panel** to see exactly which filter blocked the signal. Adjust the filters to suit your // // specific asset and timeframe. // // // // 3. **Manage Risk:** Adjust the Risk & Exit settings to match your personal risk tolerance. //
Pine Script® strategy
by Andrew_S_1981
0-5 Box Strategy Tester v4🟩 0-5 Box Strategy Tester v4 — Explained Simply This script is a modular hourly breakout strategy designed to help traders test and trade breakouts (or pullbacks) from the first 5-minute range of any selected hour. It supports both long and short positions and is optimized for scalping or intraday strategies. 🔑 Core Strategy Logic Box Formation: At the start of every hour, the script tracks the high and low of the first 5 minutes (e.g., from 9:00 to 9:04). Trade Trigger: Once price breaks out above or below this 5-minute box (either instantly or after a pullback), it can trigger a long or short entry depending on your settings. Entry Type: Supports two main styles: Breakout entry: Buy/sell as soon as price breaks the box. Pullback re-entry: Wait for price to break the box, pull back, then re-enter on a limit order. 🧪 Smart Entry Filters (Optional but Powerful) You can refine your trades using several filters: ✅ Previous Hour Direction – Only trade in the direction of the last hour’s candle (bullish/bearish). 🔄 Reversal Filter – Only trade against the previous hour’s direction. 💧 Liquidity Sweep – Require the previous hour’s high or low to be swept first (liquidity-based entry). 🔁 Q2 Confirmation (15–30 min logic) – Confirm price action in the second quarter of the hour (like retests or wick-based logic). 🕒 Max Entry Time – Prevent late trades within the hour (e.g., no entries after minute 45). 📦 Max Range % – Avoid trading during overly volatile hours by filtering out wide boxes. 🕘 Flexible Hour Selection You can choose to: Trade all hours Or select specific hours manually (like 4AM, 9AM, etc.) 📉 Risk & Position Sizing Options Supports stop-loss and take-profit by: Points Percentage Risk:Reward Ratio Choose fixed contract size or auto-size based on dollar risk. 📊 Built-In Analytics The strategy tracks and displays: Win rate PnL (total, by hour, by day) Average drawdown Risk metrics (Expectancy, Profit Factor, Payoff Ratio) Hour-by-hour stats (how each hour performs historically) Day-of-week performance Visual tables on chart for easy analysis 🧠 Use Cases This strategy is ideal for: Futures traders (like NQ/ES/GC) who trade specific sessions (e.g., NY open, London) Scalpers looking for tight breakouts or pullbacks Systematic traders backtesting precision setups Traders using confluence like session breaks, liquidity sweeps, and inside-hour confirmations
Pine Script® strategy
by mickey1984
(HHW) Helix Hybrid Wave Strategy Hakim Tung v1.0(HHW) Helix Hybrid Wave Strategy Hakim Tung v1.0 Strategy Concept & Core Logic The (HHW) Helix Hybrid Wave Strategy is a long-only, trend-continuation system designed for BTC/USD on the daily timeframe. It combines multi-timeframe momentum analysis with adaptive trend filtering to capture sustained bullish movements while minimizing false signals. The addition of HMA indicator gives you as additional option to manually exit or re-enter trades should you wish to take some profit off your trade. Indicator Synergy & Trade Logic 1. Gaussian Channel (Trend Filter) 2. Stochastic RSI (Momentum Trigger) 3. Williams %R (Trend Strength) 4. Moving Averages (Confluence) 5. LMA (Logarithmic Momentum Accelerator) Exit Conditions: * Auto-Exit: Price closes below SMA(126). * Manual HMA Exit (Optional): Bearish HMA crossunder below price to secure profits, with re-entry on HMA reversal. Why This Works for BTC * Trend-Centric: Aligns with BTC’s multi-week bullish cycles. * Hybrid Edge: Algorithmic entries + discretionary exits adapt to BTC’s volatility. * Multi-Layer Confirmation: Reduces false signals in choppy markets. Backtest Note: Optimized for BTC daily charts (2018–2024), with parameters tuned for high-momentum phases.
Pine Script® strategy
by Speedbirdlander
Backtest [OptAlgo]This backtest script is designed to convert ideas or indicators into backtest results. The script creates buy/sell signals by comparing price sources against fixed values or other imported plots using many comparison methods. It has many features including multiple exit systems: TP/SL, custom plot-based stops and more. It supports full trading automation through webhook alerts with live signal processing. 🔢 Signal Creation System     → Values Group : Compare price sources against fixed numerical values     → Plots Group : Compare two different price sources/indicators against each other     → Flexible Comparisons : 15+ comparison methods (equal, crossover, rising...)     → Signal Types : Long, Short, Close All, Block signals, and combination signals     → Merge Rules : Minimum condition requirements for signal activation 🔀 Advanced Signal Logic     → Counter Signals : Choose between reversing positions or closing them     → Signal Inversion : Flip all buy/sell signals with one toggle     → External Signal Import : Import coded signals (1=Long, -1=Short, 0=Close)     → Day Blocker : Enable/disable trading on specific weekdays     → Session Control : Limit trading to specific market sessions ⚙️ Strategy Settings     → Position Sides : All Ways, Long Only, or Short Only modes     → Signal Control : Individual enable/disable for long and short signals     → Counter Signal Mode : Reverse Open Position vs Close Open Position     → Signal Reversal : Global signal inversion capability 🔰 Risk Management (Limiter Settings)     → Leverage Control : Leverage with liquidation warnings     → Drawdown Limit : Auto-halt strategy at specified drawdown percentage     → Tradable Ratio : Use portion of available balance (0.01-1.0)     → Contract Limit : Cap maximum contract size regardless of balance 🎯 TP/SL System     → Fixed TP/SL : Set percentage-based take profit and stop loss     → Custom Plot Stops : Use any indicator/plot as dynamic stop loss     → ATR-Based Exits : Volatility-adjusted TP/SL using Average True Range     → Realistic Protection : Prevents unrealistic TP/SL prices in live trading     → Stop Modes : Instant (Sudden) vs Candle Close execution     → ATR Stop Loss : Override fixed SL with volatility-based calculations     → ATR Take Profit : Dynamic TP based on market volatility     → Trailing Options : Safe, Normal, or Aggressive trailing methods     → Calculation Modes : Normal, Volume-weighted, or Limited (with max %) options     → Volume Integration : ATR levels adjust based on volume influx 🤖 Automation & Alerts     → Webhook Integration : Send JSON alerts for automated execution     → Live Signals : Real-time signal processing (every tick vs bar close)     → Strategy Key : Unique identifier for automated systems     → Early Entry : Send alerts X seconds before candle close     → Fast Execution : Prevent signal lag in automated trading 🐞 Development Tools     → Alert Plotting : Visualize signals directly on chart (disable for live alerts)     → Professional Mode : Remove UI controls for faster calculation     → Debug : Metrics are plotted in data window. 📊 Key Advantages     → Multi-Condition Logic : Combine multiple indicators with flexible rules     → Risk-First Design : Built-in drawdown and leverage protection     → Automation Ready : Full webhook and alert system integration ⚠️ Important Warnings     → High leverage combined with high SL may adjust to liquidation price     → Use consistent leverage across all strategies on same trading isolated margin pair     → Live signals require "Calculate on every tick" enabled in settings     → Disable alert plotting when creating actual alerts to prevent latency
Pine Script® strategy
by OptAlgo
Options Strategy V2.0📈 Options Strategy V2.0 – Intraday Reversal-Resilient Momentum System Overview: This strategy is designed specifically for intraday SPY, TSLA, MSFT, etc. options trading (0DTE or 1DTE), using high-probability signals derived from a confluence of technical indicators: EMA crossovers, RSI thresholds, ATR-based risk control, and volume spikes. The strategy aims to capture strong directional moves while avoiding overtrading, thanks to a built-in cooldown logic and optional time/session filters. ⚙️ Core Concept The strategy executes trades only in the direction of the prevailing trend, determined by short- and long-term Exponential Moving Averages (EMA). Entry signals are generated when the Relative Strength Index (RSI) confirms momentum in the direction of the trend, and volume spikes suggest institutional activity. To increase adaptability and user control, it includes a highly customizable parameter set for both long and short entries independently. 📌 Key Features ✅ Trend-Following Logic Long entries are only allowed when EMA(short) > EMA(long) Short entries are only allowed when EMA(short) < EMA(long) ✅ RSI Confirmation Long: Requires RSI crossover above a configurable threshold Short: Requires RSI crossunder below a configurable threshold Optional rejection filters: Entry blocked above/below specific RSI extremes ✅ Volume Spike Filter Confirms institutional participation by comparing current volume to an average multiplied by a user-defined factor. ✅ ATR-Based Risk Management Both Stop Loss (SL) and Take Profit (TP) are dynamically calculated using ATR × a multiplier. TP/SL ratio is fully configurable. ✅ Cooldown Control After every trade, the system waits for a set number of bars before allowing new entries. This prevents overtrading and increases signal quality. Optionally, cooldown is ignored for reversal trades, ensuring the system can react immediately to a confirmed trend change. ✅ Candle Body Filter (Noise Control) Avoids trades on candles with too small bodies relative to wicks (often noise or indecision candles). ✅ VWAP Confirmation (Optional) Ensures price is trading above VWAP for long entries, or below for short entries. ✅ Time & Session Filters Trades only during regular market hours (09:30–16:00 EST). No-trade zone (e.g., 14:15–15:45 EST) to avoid low-liquidity traps or late-day whipsaws. ✅ End-of-Day Auto Close All open positions are force-closed at 15:55 EST, protecting against overnight risk (especially relevant for 0DTE options). 📊 Visual Aids EMA plots show trend direction VWAP line provides real-time mean-reversion context Stop Loss and Take Profit lines appear dynamically with each trade Alerts notify of entry signals and exit triggers 🔧 Customization Panel Nearly every element of the strategy can be tailored: EMA lengths (short and long, for both sides) RSI thresholds and length ATR length, SL multiplier, and TP/SL ratio Volume spike sensitivity Minimum EMA distance filter Candle body ratio filter Session restrictions Cooldown logic (duration + reversal exception) This makes the strategy extremely versatile, allowing both conservative and aggressive configurations depending on the trader’s profile and the market context. 📌 Example Use Case: SPY Options (0DTE or 1DTE) This system was designed and tested specifically for SPY and other intraday options trading, where: Delta is around 0.50 or higher Trades are short-lived (often 1–5 candles) You aim to trade 1–3 signals per day, filtering out weak entries 🚫 Important Notes It is not a scalping strategy; it relies on confirmed breakouts with trend support No pyramiding or re-entries without cooldown to preserve risk integrity Should be used with real-time alerts and manual broker execution 📈 Alerts Included 📈 Long Entry Signal 📉 Short Entry Signal ⚠️ Auto-closed all positions at 15:55 EST ✅ Proven Settings – Real Trades + Backtest Results The current version of the strategy includes the optimal settings I’ve arrived at through extensive backtesting, as well as 3 months of real trading with consistent profitability. These results reflect real-world execution under live market conditions using 0DTE SPY options, with disciplined trade management and risk control. 🧠 Final Thoughts Options Strategy V2.0 is a robust, highly tunable intraday strategy that blends momentum, trend-following, and volume confirmation. It is ideal for disciplined traders focused on SPY or other 0DTE/1DTE options, and it includes guardrails to reduce false signals and improve execution timing. Perfect for those who seek precision, flexibility, and risk-defined setups—not blind automation.
Pine Script® strategy
by olaszvandor
PulseWave Strategy Markking77PulseWave Strategy (Markking77) — Description & Indicator Roadmap PulseWave Strategy (Markking77) is a sleek, straightforward trading system that fuses three powerful market indicators — VWAP, MACD, and RSI — into one harmonious tool. Designed for traders who want clear, actionable signals, this strategy captures trend direction, momentum shifts, and market strength to help you spot optimal entry and exit points. Step 1: VWAP — The Market Trend Compass (Color: Blue) What it does: The Volume Weighted Average Price (VWAP) is the average price a security has traded at throughout the day, weighted by volume. It acts as a dynamic benchmark that many institutional traders rely on. Why it matters: Price above the VWAP (blue line) signals bullish momentum — buyers dominate. Price below the VWAP signals bearish momentum — sellers in control. PulseWave use: VWAP sets the trend foundation — we trade in the direction the price sits relative to VWAP. Step 2: MACD — Momentum Confirmation (Colors: Orange & Blue) What it does: MACD tracks momentum by comparing short-term and long-term moving averages, using the MACD line and a signal line to indicate shifts. Why it matters: When the MACD line (orange) crosses above the Signal line (blue), it signals rising momentum — a bullish cue. When the MACD line crosses below the signal line, it signals weakening momentum — bearish cue. PulseWave use: MACD confirms momentum that aligns with the VWAP trend before entering trades. Step 3: RSI — The Strength Filter (Color: Purple) What it does: The Relative Strength Index (RSI) measures how fast prices are changing to indicate overbought or oversold conditions. Why it matters: RSI above 70 = overbought (possible reversal or pause). RSI below 30 = oversold (potential bounce). PulseWave use: RSI filters out trades taken at extreme price levels, avoiding entries that are too stretched. Color-Coded Roadmap Summary: Step Indicator Role Buy Signal Sell Signal Color 1 VWAP Trend Direction Price > VWAP (bullish) Price < VWAP (bearish) Blue 2 MACD Momentum Confirmation MACD line crosses above Signal line MACD line crosses below Signal line Orange & Blue 3 RSI Entry Filter RSI < 70 (not overbought) RSI > 30 (not oversold) Purple How PulseWave Strategy Works: Buy when price sits above VWAP, MACD line crosses above the Signal line, and RSI is below 70. Sell (exit) when price drops below VWAP, MACD line crosses below the Signal line, and RSI is above 30. This layered approach ensures you only trade when trend, momentum, and strength align — reducing false signals and improving your edge. Why Use PulseWave Strategy? Clear & Simple: No guesswork — clear color-coded signals guide your decisions. Robust: Combines trend, momentum, and strength in one system. Versatile: Fits day trading and swing trading styles alike. Visual: Easily interpreted signals with minimal clutter.
Pine Script® strategy
by Markking77
1
Dynamic DCA Envelope – Beta V1.1Dynamic DCA Envelope-Beta V1.1 is a preview version of a Dollar-Cost Averaging (DCA) strategy designed for trending or volatile markets. -Long Positions Only -Intended for Cryptocurrency, but can be used in any market -1 and 4 hour timeframe -Average Commissions 0.1%-0.3% per trade (Cryptocurrency) What it does: This strategy identifies buying opportunities when price closes below a dynamic envelope (based on EMA). After 3 consecutive closes below the lower envelope, the system arms a buy condition. A DCA buy-in is triggered when price bounces by a configurable percentage from the trailing low. The strategy supports up to 3 buy-ins, each equally sized, and closes the entire position at a fixed take profit or stop loss. How it works: -Entry logic is based on price deviation from an EMA envelope -Waits for 3 closes below the envelope to detect weakness -Uses bounce percentage from the lowest point to trigger each buy -Includes cooldown logic between buys to avoid clustering -All positions are closed when TP or SL is hit How to use it: -Use on trending assets with volatility (e.g., crypto, tech stocks) -Adjust inputs to match asset behavior: -EMA Length -Envelope Offset % -Bounce % (Trailing DCA) -Take Profit / Stop Loss -View strategy performance in the Strategy Tester tab What’s unique: Unlike most DCA scripts that immediately average down, this version includes: -Trigger logic requiring multiple closes below trend -Bounce-based entry to avoid catching a falling knife -Cooldown resets to prevent overtrading -A true entry–wait–buy–reset loop mimicking disciplined execution *This is a beta version intended as a preview. A full Pro version is in development, which includes: -SmartScaling logic -Trailing take profit -Multi-symbol scanning -Backtest range limits -Risk-adjusted filtering
Pine Script® strategy
by Simple_Investment_Strategies
1
SuperTrend Strategy with Trend-Based Exits🟩 SuperTrend Strategy with Trend-Based Exits This is a fully automated trend-following strategy based on the popular SuperTrend indicator, enhanced with a position sizing algorithm tied to stop-loss distance and dynamic entry/exit rules. The strategy is designed for futures trading with an emphasis on sustainable risk, realistic backtesting, and transparent logic. 🧠 Concept and Methodology The strategy uses the SuperTrend indicator, which is derived from ATR (Average True Range) and is widely used to capture medium- to long-term market trends. Key features: ✅ Entries are triggered only when the SuperTrend direction changes (trend reversal). ✅ Exits are performed using a dynamic stop-loss placed at the SuperTrend line. ✅ Position size is automatically calculated based on the trader’s fixed dollar risk per trade and the current distance to the stop-loss. ✅ Rounding logic is included to ensure quantity is valid for the exchange’s lot size. This strategy does not use any take-profit or classic trailing stop — the position is only closed when the trend reverses or the stop is hit by touching the SuperTrend line. ⚙️ Default Parameters ATR Length: 300 Factor: 7.5 Risk per trade: $90 (3% of the default $3,000 capital) Lot step: 10 Commission: 0.05% These default parameters are not universal. They were optimized specifically for STXUSDT swap at 15M timeframe at Bybit and may not produce viable results on other pairs and timeframes. Users are encouraged to customize the settings according to specific asset’s volatility, timeframe and other characteristics. ❗ These default settings yield meaningful backtesting results on STXUSDT with a reasonable number of trades (105+) over 7-month period. If applied to other assets, results may vary significantly. 📈 Position Sizing Logic The strategy uses a dynamic position sizing formula: Pine Script® position_size = floor((risk_per_trade / stop_loss_distance) / lot_step) * lot_step This ensures the trader always risks a fixed dollar amount per trade and never exceeds a sustainable equity exposure (recommended 2% or less). ✅ Realism in Backtesting To ensure realistic and non-misleading backtest results, this strategy includes: — Slippage and commission settings matching average exchange conditions (commission = 0.05%, slippage 5 ticks). — Position sizing based on stop-loss distance (not fixed contract quantity).* — A fixed risk-per-trade model that adheres to responsible capital management principles. — This is in compliance with TradingView's Script publishing rules and House Rules. 📌 How to Use Apply the strategy to a clean chart (preferably 15M for STXUSDT by default). If using another asset, adjust: - ATR Length - Factor - Risk per trade - Qty step (lot precision for the symbol) Avoid using with other indicators unless you understand their purpose. Use the Strategy Tester to evaluate performance and optimize parameters. ⚠️ Disclaimer This is not financial advice. Always perform forward testing and assess risk before deploying any strategy on live capital. The strategy is designed for educational and experimental use.
Pine Script® strategy
by nefyodov.artyom
Game Theory Trading StrategyGame Theory Trading Strategy: Explanation and Working Logic This Pine Script (version 5) code implements a trading strategy named "Game Theory Trading Strategy" in TradingView. Unlike the previous indicator, this is a full-fledged strategy with automated entry/exit rules, risk management, and backtesting capabilities. It uses Game Theory principles to analyze market behavior, focusing on herd behavior, institutional flows, liquidity traps, and Nash equilibrium to generate buy (long) and sell (short) signals. Below, I'll explain the strategy's purpose, working logic, key components, and usage tips in detail. 1. General Description Purpose: The strategy identifies high-probability trading opportunities by combining Game Theory concepts (herd behavior, contrarian signals, Nash equilibrium) with technical analysis (RSI, volume, momentum). It aims to exploit market inefficiencies caused by retail herd behavior, institutional flows, and liquidity traps. The strategy is designed for automated trading with defined risk management (stop-loss/take-profit) and position sizing based on market conditions. Key Features: Herd Behavior Detection: Identifies retail panic buying/selling using RSI and volume spikes. Liquidity Traps: Detects stop-loss hunting zones where price breaks recent highs/lows but reverses. Institutional Flow Analysis: Tracks high-volume institutional activity via Accumulation/Distribution and volume spikes. Nash Equilibrium: Uses statistical price bands to assess whether the market is in equilibrium or deviated (overbought/oversold). Risk Management: Configurable stop-loss (SL) and take-profit (TP) percentages, dynamic position sizing based on Game Theory (minimax principle). Visualization: Displays Nash bands, signals, background colors, and two tables (Game Theory status and backtest results). Backtesting: Tracks performance metrics like win rate, profit factor, max drawdown, and Sharpe ratio. Strategy Settings: Initial capital: $10,000. Pyramiding: Up to 3 positions. Position size: 10% of equity (default_qty_value=10). Configurable inputs for RSI, volume, liquidity, institutional flow, Nash equilibrium, and risk management. Warning: This is a strategy, not just an indicator. It executes trades automatically in TradingView's Strategy Tester. Always backtest thoroughly and use proper risk management before live trading. 2. Working Logic (Step by Step) The strategy processes each bar (candle) to generate signals, manage positions, and update performance metrics. Here's how it works: a. Input Parameters The inputs are grouped for clarity: Herd Behavior (🐑): RSI Period (14): For overbought/oversold detection. Volume MA Period (20): To calculate average volume for spike detection. Herd Threshold (2.0): Volume multiplier for detecting herd activity. Liquidity Analysis (💧): Liquidity Lookback (50): Bars to check for recent highs/lows. Liquidity Sensitivity (1.5): Volume multiplier for trap detection. Institutional Flow (🏦): Institutional Volume Multiplier (2.5): For detecting large volume spikes. Institutional MA Period (21): For Accumulation/Distribution smoothing. Nash Equilibrium (⚖️): Nash Period (100): For calculating price mean and standard deviation. Nash Deviation (0.02): Multiplier for equilibrium bands. Risk Management (🛡️): Use Stop-Loss (true): Enables SL at 2% below/above entry price. Use Take-Profit (true): Enables TP at 5% above/below entry price. b. Herd Behavior Detection RSI (14): Checks for extreme conditions: Overbought: RSI > 70 (potential herd buying). Oversold: RSI < 30 (potential herd selling). Volume Spike: Volume > SMA(20) x 2.0 (herd_threshold). Momentum: Price change over 10 bars (close - close ) compared to its SMA(20). Herd Signals: Herd Buying: RSI > 70 + volume spike + positive momentum = Retail buying frenzy (red background). Herd Selling: RSI < 30 + volume spike + negative momentum = Retail selling panic (green background). c. Liquidity Trap Detection Recent Highs/Lows: Calculated over 50 bars (liquidity_lookback). Psychological Levels: Nearest round numbers (e.g., $100, $110) as potential stop-loss zones. Trap Conditions: Up Trap: Price breaks recent high, closes below it, with a volume spike (volume > SMA x 1.5). Down Trap: Price breaks recent low, closes above it, with a volume spike. Visualization: Traps are marked with small red/green crosses above/below bars. d. Institutional Flow Analysis Volume Check: Volume > SMA(20) x 2.5 (inst_volume_mult) = Institutional activity. Accumulation/Distribution (AD): Formula: ((close - low) - (high - close)) / (high - low) * volume, cumulated over time. Smoothed with SMA(21) (inst_ma_length). Accumulation: AD > MA + high volume = Institutions buying. Distribution: AD < MA + high volume = Institutions selling. Smart Money Index: (close - open) / (high - low) * volume, smoothed with SMA(20). Positive = Smart money buying. e. Nash Equilibrium Calculation: Price mean: SMA(100) (nash_period). Standard deviation: stdev(100). Upper Nash: Mean + StdDev x 0.02 (nash_deviation). Lower Nash: Mean - StdDev x 0.02. Conditions: Near Equilibrium: Price between upper and lower Nash bands (stable market). Above Nash: Price > upper band (overbought, sell potential). Below Nash: Price < lower band (oversold, buy potential). Visualization: Orange line (mean), red/green lines (upper/lower bands). f. Game Theory Signals The strategy generates three types of signals, combined into long/short triggers: Contrarian Signals: Buy: Herd selling + (accumulation or down trap) = Go against retail panic. Sell: Herd buying + (distribution or up trap). Momentum Signals: Buy: Below Nash + positive smart money + no herd buying. Sell: Above Nash + negative smart money + no herd selling. Nash Reversion Signals: Buy: Below Nash + rising close (close > close ) + volume > MA. Sell: Above Nash + falling close + volume > MA. Final Signals: Long Signal: Contrarian buy OR momentum buy OR Nash reversion buy. Short Signal: Contrarian sell OR momentum sell OR Nash reversion sell. g. Position Management Position Sizing (Minimax Principle): Default: 1.0 (10% of equity). In Nash equilibrium: Reduced to 0.5 (conservative). During institutional volume: Increased to 1.5 (aggressive). Entries: Long: If long_signal is true and no existing long position (strategy.position_size <= 0). Short: If short_signal is true and no existing short position (strategy.position_size >= 0). Exits: Stop-Loss: If use_sl=true, set at 2% below/above entry price. Take-Profit: If use_tp=true, set at 5% above/below entry price. Pyramiding: Up to 3 concurrent positions allowed. h. Visualization Nash Bands: Orange (mean), red (upper), green (lower). Background Colors: Herd buying: Red (90% transparency). Herd selling: Green. Institutional volume: Blue. Signals: Contrarian buy/sell: Green/red triangles below/above bars. Liquidity traps: Red/green crosses above/below bars. Tables: Game Theory Table (Top-Right): Herd Behavior: Buying frenzy, selling panic, or normal. Institutional Flow: Accumulation, distribution, or neutral. Nash Equilibrium: In equilibrium, above, or below. Liquidity Status: Trap detected or safe. Position Suggestion: Long (green), Short (red), or Wait (gray). Backtest Table (Bottom-Right): Total Trades: Number of closed trades. Win Rate: Percentage of winning trades. Net Profit/Loss: In USD, colored green/red. Profit Factor: Gross profit / gross loss. Max Drawdown: Peak-to-trough equity drop (%). Win/Loss Trades: Number of winning/losing trades. Risk/Reward Ratio: Simplified Sharpe ratio (returns / drawdown). Avg Win/Loss Ratio: Average win per trade / average loss per trade. Last Update: Current time. i. Backtesting Metrics Tracks: Total trades, winning/losing trades. Win rate (%). Net profit ($). Profit factor (gross profit / gross loss). Max drawdown (%). Simplified Sharpe ratio (returns / drawdown). Average win/loss ratio. Updates metrics on each closed trade. Displays a label on the last bar with backtest period, total trades, win rate, and net profit. j. Alerts No explicit alertconditions defined, but you can add them for long_signal and short_signal (e.g., alertcondition(long_signal, "GT Long Entry", "Long Signal Detected!")). Use TradingView's alert system with Strategy Tester outputs. 3. Usage Tips Timeframe: Best for H1-D1 timeframes. Shorter frames (M1-M15) may produce noisy signals. Settings: Risk Management: Adjust sl_percent (e.g., 1% for volatile markets) and tp_percent (e.g., 3% for scalping). Herd Threshold: Increase to 2.5 for stricter herd detection in choppy markets. Liquidity Lookback: Reduce to 20 for faster markets (e.g., crypto). Nash Period: Increase to 200 for longer-term analysis. Backtesting: Use TradingView's Strategy Tester to evaluate performance. Check win rate (>50%), profit factor (>1.5), and max drawdown (<20%) for viability. Test on different assets/timeframes to ensure robustness. Live Trading: Start with a demo account. Combine with other indicators (e.g., EMAs, support/resistance) for confirmation. Monitor liquidity traps and institutional flow for context. Risk Management: Always use SL/TP to limit losses. Adjust position_size for risk tolerance (e.g., 5% of equity for conservative trading). Avoid over-leveraging (pyramiding=3 can amplify risk). Troubleshooting: If no trades are executed, check signal conditions (e.g., lower herd_threshold or liquidity_sensitivity). Ensure sufficient historical data for Nash and liquidity calculations. If tables overlap, adjust position.top_right/bottom_right coordinates. 4. Key Differences from the Previous Indicator Indicator vs. Strategy: The previous code was an indicator (VP + Game Theory Integrated Strategy) focused on visualization and alerts. This is a strategy with automated entries/exits and backtesting. Volume Profile: Absent in this strategy, making it lighter but less focused on high-volume zones. Wick Analysis: Not included here, unlike the previous indicator's heavy reliance on wick patterns. Backtesting: This strategy includes detailed performance metrics and a backtest table, absent in the indicator. Simpler Signals: Focuses on Game Theory signals (contrarian, momentum, Nash reversion) without the "Power/Ultra Power" hierarchy. Risk Management: Explicit SL/TP and dynamic position sizing, not present in the indicator. 5. Conclusion The "Game Theory Trading Strategy" is a sophisticated system leveraging herd behavior, institutional flows, liquidity traps, and Nash equilibrium to trade market inefficiencies. It’s designed for traders who understand Game Theory principles and want automated execution with robust risk management. However, it requires thorough backtesting and parameter optimization for specific markets (e.g., forex, crypto, stocks). The backtest table and visual aids make it easy to monitor performance, but always combine with other analysis tools and proper capital management. If you need help with backtesting, adding alerts, or optimizing parameters, let me know!
Pine Script® strategy
by EfeErdost