This is a useful indicator as it shows potential long and short regions by coloring the AI wavecloud green or red. There is an option to show a faint white background in regions where the green/red cloud parts are failing as a trade from the start position of each region. Its a combination of 3 algos I developed, and there is an option to switch to see these individually, although this has lots of info and is a bit confusing. It does have alerts and there are text boxes in the indicator settings where a comment can be input - this is useful for webhooks bots auto trading. Most useful in this indicator is that at the end of each green/long or red/short region there is a label that shows the % gain or loss for a trade. The label at the end of the chart shows the % of winning longs/shorts and the average % gain or loss for all the longs/shorts within the set test period (set in settings)
So, I generally set the chart initially on a 15min timeframe with the indicator timeframe (in settings) set to run on say 30min or 1hour. I then select a long test period (several plus months) and then optimize the wavelcloud length (in settings) to give the best %profit per trade. (Longs always seem to give better results than shorts) I then, change the chart timeframe to much faster, say 1min or 5min, but leave the indicator timeframe at 1 hour. In this manner - the label only shows a few trades however, the algo is run at every bar close and when this is set to 1min, this means that losses will be minimised at the bot exits quickly. In comparison - if the chart is on a 15min timeframe - it can take this amount before the bot will exit a trade and by then there could be catastrophic losses.
It is quite hard to get a positive result - although with a bit of playing around - just as a background indicator - I find this useful. I generally set-up on say 4charts all with different timeframes and then look for consistency between the long/short signal positions. (Although when I run as a bot I use a fast timeframe)
Please do leave some comments and get in touch. MoonFlag (Josef Tainsh PhD)
Notes de version
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The new version simplifies the working of the indicator and also provides a slightly improved response.
A cumulative % is available for longs and shorts and longs/shorts combined. In this manner previous gains are followed forwards with each consecutive trade. The previous version simply added the % profit/loss over all longs or shorts
An option to show the % gain/loss for each trade is provided.
The red/green shaded regions of the chart are more easily interpreted.
The functionality to add alerts for webhooks trading bots or similar has been updated.
Hi ,Can be used for scalping?Thank you very much!!!
MoonFlag
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@covalencogabriel, Scalping is generally for a sideways market or a narrowing wedge that is essentially going sidewards. Here the timeframes are typically faster (15min - 1hour) than with a 'daily indicator'. I found with MoonFlag Daily that on fast timeframes (5min-15min) the algo only works with some coins, and on others shorts typically always gave a negative average trade. However, I tried establishing a function to reverse the trade directions in this situation however a general improvement was not widely recognized. Basically faster timeframes are unpredictable and a slower timeframe reduces risk and improves the MoonFlag daily % of positive trades and average return per trade - although this was generally only applicable to longs. Shorts still pose an issue - however, I do find on faster timeframes that shorts can sometimes give a profit in trade general indication but in these situations the longs are overall negative. For scaping its selecting a backtest start time/date which is not to far back - possibly from the last big move. I'd also recommend just stick with longs as are generally a better option than trying to catch shorts. I sometimes set up the MoonFlag Daily on the 1week, 1day and then 4hour and if all these provide a Long signal - I scalp small (0.7%) long trades. Using a trailing stop with 0.7% activation and 0.07% trailing can be a good scalp tool for crypto. Let me know how it goes - sincerely MoonFlag
ACryptoMore
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Thanks, it's great!
MoonFlag
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@ACryptoMore, please note I have been working on the script a lot since this available version was published. Not quite ready to publish the new script but getting close. Its useful to hear comments as an outside perspective is always much appreciated as it's easy to overlook something which others make note of. Sincerely, MoonFlag PhD
MoonFlag
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@MoonFlag, please note I posted the updated script MoonFlag Daily V2