prosum_solutions

Quickfingers Luc's Base Breaking Strategy v2.5

Introduction

The strategy attempts to implement a popular price action strategy by Luc Thomas (a.k.a. Quickfingers Luc ) typically referred to as a QFL base-breaking strategy. The strategy revolves around price action movements that reveal “bases”, which are price levels of support that have a significant, rapid price surges called “bounces”. Once a base is revealed, the base price level is used as reference to implement multiple entries below the base using a layering technique of dollar-cost averaging to place multiple limit orders at various price levels below the base price. As price action breaks below the base price, the limit orders will be filled, and the take profit, breakeven and stop loss prices will be recalculated.

How is it original and useful?

This strategy is unique in that the strategy version fully supports the TradingView backtester, which will enable you to perform experiments with various settings to evaluate performance using the historical chart data. The study version implements numerous custom alerts for you to build TradingView notifications around specific price action events and stay informed with market activity in real-time. Both script versions will provide the same configuration abilities where you can define:

  • Base confirmation settings, including volume analysis.
  • Your preferred layering strategy of either Dollar-cost averaging ( DCA ) or grid-like layers along with precise layer placement.
  • Your trading parameters like take profit and stop loss offsets, exchange commission rates, trading start time, and position size multiplication for each layer.
  • Flexible trade eligibility rules that can use other chart indicators, like RSI or EMA , to exclude the selection of base prices for trading.
  • The visibility of detailed statistics from the chart history pertaining to trading sessions started and closed, session durations, win rate, price action drops and bounces, as well as layer utilization.

How does it compare to other scripts in the Public Library?

The strategy offers a very detailed, comprehensive settings to address all types of markets found on TradingView where you can implement the QFL base-breaking strategy. The strategy version can be considered the first of its kind on TradingView to leverage the backtester to provide informative, detailed performance measurements surrounding this unique trading strategy. The study version will contain numerous custom alerts to aid in your notification preferences and stay informed on the indicator's activities:

  • Base Created
  • Base Cracked
  • Base Respected
  • Any Layer Cracked
  • Layer 1 Cracked
  • Layer 2 Cracked
  • Layer 3 Cracked
  • Layer 4 Cracked
  • Layer 5 Cracked
  • Layer 6 Cracked
  • Layer 7 Cracked
  • Layer 8 Cracked
  • Layer 9 Cracked
  • Layer 1 Respected
  • Layer 2 Respected
  • Layer 3 Respected
  • Layer 4 Respected
  • Layer 5 Respected
  • Layer 6 Respected
  • Layer 7 Respected
  • Layer 8 Respected
  • Take Profit Crossed
  • Stop Loss Crossed

What does it do and how does it do it?

It is recommended that you start with a chart that is on an hourly timeframe with the "Scale Price Chart Only" chart setting enabled. When applied to the chart for the first time, the default settings will work to render base price levels in orange and 8 DCA layers in blue using a Fibonacci-like sequence for the deviation offset relative to the base price. As you scroll through the chart's history you should see price action crossing the DCA layers, denoted with blue triangles, and a green take-profit line will render with green triangle denoting the crossing. Lastly, when a trade session begins upon the crossing of the first layer, the indicator will continue to identify base price levels, but the color of the price lines will be gray. When the trade session concludes upon the crossing of the take profit line, the indicator will switch the most recent base price line from gray to orange to make it active and eligible for trading.

As price action develops, the indicator will use the "Base Confirmation Settings" to look back by counting the number of bars to the left and right of a pivot low point, measure the price drops and bounces, and volume amounts to validate that they are within the specified values. If so, the indicator will draw an orange triangle beneath the candle bar to denote it as the pivot low point and begin rendering the orange line as the base price. The DCA layers will be calculated and offset relative to the base price using thin blue lines.

Optionally, the breakeven price line will be drawn to help visualize the true breakeven price which takes into consideration the exchange fees being applied. Base line, take profit, stop loss and DCA layer crossings will be denoted with colorful shapes to help visually recognize the events on the chart.

The volume is validated only at the pivot low candle. It will measure the volume against the moving average to determine base confirmation. A volume factor of 1 will mean that the volume must be at least the same value as the moving average value. A volume factor of 2 means it must be twice the moving average value.

Lastly, the very last bar will render a table of statistics that summarize all the events that have taken place since the indicator began simulating trading sessions from the chart's history.

Strategy Results

The default settings are designed to define a "weak" QFL base to ensure that the indicator will render chart elements when first loaded as well as to allow the backtester to gather order executions and display performance summary. The strategy version is using $10,000 initial capital, a commission rate of 0.1% for both entries and exits, and a 1 tick slippage setting. It is also using 3.4887% of the equity with a Position Size Multiplier of 1.35, using 8 total DCA layers, and a take profit of 5% with no stop loss. All other settings are defaults.

It is recommended that the indicator be "tuned" for your specific market in order to best implement the QFL trading strategy and obtain better desirable results. You do so by using the statistics table and observe the Mean Price Drop and Bounce values to learn what the indicator is detecting when it measures from the pivot low points. Using this information, you can adjust the Base Confirmation Settings accordingly, along with any volume specifications you require, to configure the indicator for the chart.

Always keep in mind that past performance may not be indicative of future results. Settings that seem favorable for one market may be found to be disastrous in another. Therefore, do take the time needed to understand how the settings will behave with the given chart symbol.

Enjoy! 😊👍

How to obtain access to the script?

You have two choices:

  • Use the "Website" link below to obtain access to this indicator, or
  • Send us a private message (PM) in TradingView itself.
Notes de version: v2.5.12 - Patch Release

New fix in this release:

Both Indicator & Strategy:

  • Fixing a defect where the strategy would prematurely switch to the next base when it wasn't eligible to be switched on rare circumstances.

Indicator Only:

  • Added support for the new "Any alert() function call" alerts feature. This will allow for custom messages using custom placeholders.
    Custom placeholders are: {{exchange}}, {{ticker}}, {{base_currency}}, {{quote_currency}}, {{event_name}}, {{base_price}}, {{next_base_price}}, {{break_even_price}}, {{take_profit_price}}, {{stop_loss_price}},
    {{layer_1_price}}, {{layer_2_price}}, {{layer_3_price}}, {{layer_4_price}}, {{layer_5_price}}, {{layer_6_price}}, {{layer_7_price}}, {{layer_8_price}}, {{layer_9_price}}
Notes de version: v2.5.13 - Patch Release

New feature in this release for the Strategy Only:

  • Adding a "Compounding" check-box to toggle compounding the entry order size by including accumulated Net Profits after each deal.
Notes de version: v2.5.14 - Patch Release

New features in this release for both Indicator & Strategy:

  • Adding a "Trade Stop Date/Time" inputs-box to enable defining an active timeframe period.
  • Adding a "billionth" and "ten billionth" options to the "Override Minimum Tick Precision" inputs-box to support exchanges (i.e. KuCoin) that support these precision levels.
  • Adding the "Chart/Indicator Data Point" data point to the Data Window to display the actual value that was used for the "Trade Eligibility Condition" rule evaluation.
  • Updating the default colors of the QFL STATISTICS label to make it improve readability.
Notes de version: v2.5.15 - Patch Release

New features in this release for both Indicator & Strategy:

  • Updated the default value of the "Trade Stop Date/Time" input to 2030-01-01.

Script sur invitation seulement

L'accès à ce script est limité aux utilisateurs autorisés par l'auteur et nécessite généralement un paiement. Vous pouvez l'ajouter à vos favoris, mais vous ne pourrez l'utiliser qu'après avoir demandé et obtenu l'autorisation de son auteur. Contactez prosum_solutions pour plus d'informations, ou suivez les instructions de l'auteur ci-dessous.

TradingView ne suggère pas de payer pour un script et de l'utiliser avant d'avoir 100% confiance en son auteur et de comprendre son fonctionnement. Dans de nombreux cas, vous pouvez trouver gratuitement une bonne alternative open-source dans nos Scripts communautaires.

Instructions de l'auteur

To request access to this script, either use the "Website" link below or send us a private message (PM) in TradingView. We will respond as soon as possible.

Vous voulez utiliser ce script sur un graphique ?

Avertissement : Veuillez lire avant de demander l'accès.