- - Condition for entry is very simple :
- -> If the correlation of 8 timeframes expressed by 4 curves reaches 1 or -1
- -> and the curve and the Slope (on 3 periodes back) are rising => then entry.
- (You can also visually look at : orange/yellow dot on the slope wave and green flag).
- - There's the possibility to trail stop loss and multiple take profit levels.
- - Back testing period setting.
- - I've added the possibility to extend the lookback period of the correlation for the curves.
- - Results could be interesting with a well managed trailing stop loss / take profit and trading on higher time frames.
- Market spot - ADA/USDT
- Timeframe = 3min
2. Back testing: Start and end dates
3. Risk management: the strategy uses a multilevel take profit and the possibility to enable a trailing stop loss: if you enable it that means: TP3 is the amount and TP2 is the offset level: for this part of the strategy I’m using the code of adolgov from TV.
4. The strategy is set by default as a long strategy, now you can adapt the settings for the strategy such as:
- a. Only short strategy
- b. Use the long signals as short entry
- c. Us the short signals as long entry
6. The condition to entry for long and short trades:
- a. Long trades = the curve and the slope of the curve are rising since 1 period and the mean of the 4 curve (8 timeframes correlation) is >= 1 as default
- i. Now you can set the reference rising period of the curve and the slope lookback (number of bars)
- ii. Now you can add the entry when the correlation is at <= -1 or use only >= 0.75 correlation
- b. Short entry = the curve and the slope of the curve are falling since 1 period and the mean of the 4 curve (8 timeframes correlation) is >= 1 by default
- i. Now you can set the reference falling period of the curve and the slope lookback (number of bars)
- ii. Now you can add the entry when the correlation is at <= -1 or use only >= 1 correlation
7. You can set the high correlation areas: by default, it’s set as -1: 1. Setting are as absolute value: meaning if you set to 1 it’s automatically set to -1 on the other side.
8. You can adjust the slope length (cf. point 5.)
9. There’re green flags for the long entries and red ones for the short entries. While in long strategy adding short entries as long: flags become yellow. Same for short: while in short strategy adding long entries as short: flags become yellow.
10. You can adjust label colors with conditions: by default, the background is black and the text color green when at least 3 curves are in a high correlation area: you can set it to -1 or 1.
11. You can enable/disable plotting dots on the slope: reference is the high correlation value that you can adjust (cf. point 7.) : when it’s high area > 0 : orange dot, when it’s high area < 0 : yellow dot.
12. You can enable plotting dots on the mean when she reaches the values -1 or 1.
13. You can enable/disable the 4 curves correlations plotting.
14. The Curve on the top colors shows : if the slope (1st) is rising since 1 period = green, if falling since 1 period = red.
// in case you want to use this strategy with comments (replacing alerts)
15. You can enable and customize comments in the settings when there’s trade signals:
- a. It’s based on simple conditions: if entry = entry (add your comment for short or long)
- b. If one of the take profit level or stoploss level is reached = exit (meaning the comment is same for the exit – but – different for short and long): this is why I recommend you to use the same levels for the take profit.
- If you have any suggestions/ideas for modifying it, improving, or adding settings to this strategy, feel free to give me a feedback!
- Fixed the Repainting Issue, calc_on_every_tick is disabled, all entries are based on a confirmed closed bar, all calls to security function use a closed bar.
- Added the possibility to use Heikinashi bars as source for the correlation calculation.