To make our community more profitable we decided to start a series in which we will review open-source TradingView strategies. The aim of the review is to select a strategy (or a number of strategies) from TradingView and run a reality check on it, optimise them and convert into alerts, so you can set it up as a bot on the Wunderbit Trading platform.
What we will provide:
Open-strategy source
Strategy adjustment for particular exchange, pair and timeframe
Backtest
This week we would like to provide our own strategy that you can apply to BitMEX exchange.
This is a trend based strategy that uses EMA and SMA intersection for determining the direction of the trend and MACD for the entry signal. At the same time, the strategy uses ATR, which is working as a trailing stop.
The strategy entry will work when the Trend ribbon will turn green and MACD line will crossover the signal line. This strategy also takes into account the pyramiding and allows it to enter the second time if the signal will repeat itself.
There are 3 exit points. The first 10% of the position will be closed when the price will increase by 2%. The second portion of 50% will be closed when the price reaches 5% Take profit target. The remaining 40 % of the position will wait for the exit signal which will occur when the price closes below the ATR line.
The strategy is using a fixed amount in dollars, each time the entry occurs the strategy will enter with 100$ in the order.
The strategy can be applied to other crypto assets. However, they will require input changes.
IMPORTANT
This is a trend strategy and works better in the trending market
This is Long Only strategy
We added the trend identifier using the EMA and SMA interaction
We Added Take profit and stop-loss levels
We added inputs for the period selection, so you could see how the strategy is performing on a monthly basis.
Settings
Applicable to Bitmex: ETH-USD 30 min
Input
Value
Period
39
Fast Length
7
Slow Length
14
Source
close
Signal Smoothing
3
Simple MA(Oscillator)
False (NA)
Simple MA(Signal Line)
True (tick)
Long Take Profit 1 %
2
Long Take Profit 1 Qty
10
Long Take Profit 2 %
5
Long Take Profit 2 Qty
50
SL Multiplier
3.5
ATR Period
6
Strategy script code
You can copy this code and paste it into your TradingView