BEST Strategy Series - 11th TradingView Script Tutorial

Summary

In this video, Trad Smart introduces a comprehensive trading strategy using the best entry, exit, and trend indicators tested across various market conditions. The script combines top indicators like Super Trend, Donian Trend Ribbon, and H Su for entry signals, and MA Crossover, RSI, and Range Filter for exits. Viewers learn how to optimize the script for Bitcoin and Ethereum, set tolerances for signal delays, and use trend filters for better strategy performance. The video also covers how to access the premium scripts through Patreon and showcases backtest results demonstrating the strategy's profitability and efficiency.

Takeaways

• 😀 The 'Best Strategy Series' by Trad Smart tests various indicators to identify the most accurate and profitable ones for different market conditions.
• 😀 The series has already covered topics like the best entry and exit signal indicators, as well as the best baseline or trend line filters.
• 😀 New updates include a comprehensive TradingView strategy script designed to automate trading using the best indicators found so far, including the Super Trend, Donion Trend Ribbon, and H Su.
• 😀 The script allows users to customize entry signals by choosing one or more indicators (Super Trend, Donion Trend Ribbon, or H Su) to trigger positions.
• 😀 Entry signals can be combined with a tolerance setting, which allows trades to trigger even if there is a slight delay between the signals of multiple indicators.
• 😀 The exit signal section offers three primary options: MA Crossover, RSI, and Range Filter, which can be used to exit trades based on specific conditions.
• 😀 The script includes customizable settings for each indicator, allowing users to fine-tune parameters like risk levels, ATR distance, and risk-reward ratios.
• 😀 The ability to combine multiple exit signal indicators (e.g., RSI + Range Filter) allows the strategy to exit trades based on the first triggered condition.
• 😀 A trend filter section enables users to limit entries to specific market conditions, using indicators like the Widia moving average to control trade direction.
• 😀 The backtest results for the script on Bitcoin (BTC/USDT, 30-minute chart) showed 273 trades, generating significant net profit with a 2.45 profit factor and 18% max drawdown.
• 😀 The strategy performs well even during sideways or bearish market conditions, offering a robust solution for long-only strategies to minimize losses and maximize profits.

Q & A

What is the main goal of the 'Creating the Best Strategy' series?

The main goal of the series is to test and identify the most accurate and profitable trading indicators. The goal is to determine which indicators work best across various market conditions, assets, and time frames to create optimal trading strategies.

How does the Trad Smart script help users in testing indicators?

The Trad Smart script allows users to test various indicators thousands of times across different market conditions and assets. It provides a customizable framework for creating strategies by selecting entry, exit, and trend filters that best suit the user's needs.

Which are the three entry signal indicators featured in the strategy?

The three entry signal indicators featured are the Super Trend, the Donion Trend Ribbon, and the H Su indicator.

What is the purpose of the entry signal tolerance feature in the strategy?

The entry signal tolerance feature allows users to enter a position even if multiple entry signals appear within a few candles of each other. This helps when two or more indicators trigger slightly out of sync, allowing for a more flexible entry condition.

Can users combine multiple entry signals for a more reliable trade entry?

Yes, users can combine multiple entry signals. For example, they can choose to enter a trade only when both the Super Trend and the Donion Trend Ribbon print a signal on the same candle, or with a set tolerance of a few candles between signals.

What are the three exit signal indicators available in the script?

The three exit signal indicators are the MA Crossover, the RSI, and the Range Filter.

How does the MA Crossover exit signal work?

The MA Crossover exit signal works by tracking the movement of two moving averages. When the fast moving average crosses below the slow moving average, a long position is exited. Similarly, for short positions, it exits when the fast moving average crosses above the slow one.

How does the Range Filter exit signal function in the strategy?

The Range Filter exit signal triggers when the Range Filter indicator prints a signal. For long positions, it will trigger a sell signal, and for short positions, it will trigger a buy signal, effectively closing the open position.

What is the advantage of using the WiMA (Wilder’s Moving Average) trend filter in this strategy?

The WiMA trend filter helps refine trade entries by only allowing long positions above the moving average and short positions below it. This adds an additional layer of trend-based filtering to improve the accuracy of trade signals.

What were the backtest results for the Bitcoin strategy, and how did it perform compared to the Buy and Hold strategy?

The backtest for Bitcoin (BTC/USDT) on a 30-minute chart over nearly six years produced a net profit of 795 units, with a profit factor of 2.45 and a maximum drawdown of 18%. Compared to the Buy and Hold strategy, the automated strategy outperformed, particularly during sideways or bearish markets, where it minimized losses.