Crypto Punk [Bot] (Zeiierman)█ Overview
The Crypto Punk (Zeiierman) is a trading strategy designed for the dynamic and volatile cryptocurrency market. It utilizes algorithms that incorporate price action analysis and principles inspired by Geometric Brownian Motion (GBM). The bot's core functionality revolves around analyzing differences in high and low prices over various timeframes, estimating drift (trend) and volatility, and applying this information to generate trading signals.
█ How to use the Crypto Punk Bot
Utilize the Crypto Punk Bot as a technical analysis tool to enhance your trading strategy. The signals generated by the bot can serve as a confirmation of your existing approach to entering and exiting the market. Additionally, the backtest report provided by the bot is a valuable resource for identifying the optimal settings for the specific market and timeframe you are trading in.
One method is to use the bot's signals to confirm entry points around key support and resistance levels.
█ Key Features
Let's explain how the core features work in the strategy.
⚪ Strategy Filter
The strategy filter plays a vital role in the entries and exits. By setting this filter, the bot can identify higher or lower price points at which to execute trades. Opting for higher values will make the bot target more long-term extreme points, resulting in fewer but potentially more significant signals. Conversely, lower values focus on short-term extreme points, offering more frequent signals focusing on immediate market movements.
How is it calculated?
This filter identifies significant price points within a specified dynamic range by applying linear regression to the absolute deviation of the range, smoothing out fluctuations, and determining the trend direction. The algorithm then normalizes the data and searches for extreme points.
⚪ External AI filter
The external AI filter allows traders to incorporate two external sources as signal filters. This feature is particularly useful for refining their signal accuracy with additional data inputs.
External sources can include any indicator applied to your TradingView chart that produces a plot as an output, such as a moving average, RSI, supertrend, MACD, etc. Traders can use these indicators of their choice to set filters for screening signals within the strategy.
This approach offers traders increased flexibility to select filters that align with their trading style. For instance, one trader might prefer to take trades when the price is above a moving average, while another might opt for trades when the MACD is below the MACD signal line. These external filters enable traders to choose options that best fit their trading strategies. See the example below. Note that the input sources for the External AI filter can be any indicator applied to the chart, and the input source per se does not make this strategy unique. The AI filter takes the selected input source and applies our function to it. So, if a trader selects RSI as an input filter, RSI is not unique, but how the source is computed within the AI functions is.
How is it calculated?
Once the external filters are selected and enabled within the settings panel, our AI function is applied to enhance the filter's ability to execute trades, even when the set conditions of the filter are not met. For instance, if a trader wants to take trades only when the price is above a moving average, the AI filter can actually execute trades even if the price is below the moving average.
The filter works by combining k-nearest Neighbors (KNN) with Geometric Brownian Motion (GBM) involves first using GBM to model the historical price trends of an asset, identifying patterns of drift and volatility. KNN is then applied to compare the current market conditions with historical instances, identifying the closest matches based on similar market behaviors. By examining the drift values of these nearest historical neighbors, KNN predicts the current trend's direction.
The AI adaptability value is a setting that determines how flexible the AI algorithm is when applying the external AI filter. Setting the adaptability to 10 indicates minimal adaptability, suggesting that the bot will strictly adhere to the set filter criteria. On the other hand, a higher adaptability value grants the algorithm more leeway to "think outside the box," allowing it to consider signals that may not strictly meet the filter criteria but are deemed viable trading opportunities by the AI.
█ Examples
In this example, the RSI is used to filter out signals when the RSI is below the smoothing line, indicating that prices are declining.
Note that the external filter is specifically designed to work with either 'LONG ONLY' or 'SHORT ONLY' modes; it does not apply when the bot is set to trade on 'BOTH' modes. For 'LONG ONLY' positions, the filter criteria are met when source 1 is greater than source 2 (source 1 >= source 2). Conversely, for 'SHORT ONLY' positions, the filter criteria require source 1 to be less than source 2 (source 1 <= source 2).
Examples of Filter Usage:
Long Signals: To receive long signals when the closing price is higher than a moving average, set Source 1 to the 'close' price and Source 2 to a moving average value. This setup ensures that signals are generated only when the closing price exceeds the moving average, indicating a potential upward trend.
█ Settings
⚪ Set Timeframe
Choosing the correct entry and exit timeframes is crucial for the bot's performance. The general guideline is to select a timeframe that is higher than the one currently displayed on the trading chart but still relatively close in duration. For instance, if trading on a 1-minute chart, setting the bot's Timeframe to 5 minutes is advisable.
⚪ Entry
Traders have the flexibility to configure the bot according to their trading strategy, allowing them to choose whether the bot should engage in long positions only, short positions only or both. This customization ensures that the bot aligns with the trader's market outlook and risk tolerance.
⚪ Pyramiding
Pyramiding functionality is available to enhance the bot's trading strategy. If the current position experiences a drawdown by a specified number of points, the bot is programmed to add new positions to the existing one, potentially capitalizing on lower prices to average down the entry cost. To utilize this feature, access the settings panel, navigate to 'Properties,' and look for 'Pyramiding' to specify the number of times the bot can re-enter the market (e.g., setting it to 2 allows for two additional entries).
⚪ Risk Management
The bot incorporates several risk management methods, including a regular stop loss, trailing stop, and risk-reward-based stop loss and exit strategies. These features assist traders in managing their risk.
Stop Loss
Trailing Stop
⚪ Trading on specific days
This feature allows trading on specific days by setting which days of the week the bot can execute trades on. It enables traders to tailor their strategies according to market behavior on particular days.
⚪ Alerts
Alerts can be set for entry, exit, and risk management. This feature allows traders to automate their trading strategy, ensuring timely actions are taken according to predefined criteria.
█ How is Crypto Punk calculated?
The Crypto Punk Bot is a trading bot that utilizes a combination of price action analysis and elements inspired by Geometric Brownian Motion (GBM) to generate buy and sell signals for cryptocurrencies. The bot focuses on analyzing the difference between high and low prices over various timeframes, alongside estimates of drift (trend) and volatility derived from GBM principles.
Timeframe Analysis for Price Action
The bot examines multiple timeframes (e.g., daily, weekly) to identify the range between the highest and lowest prices within each period. This range analysis helps in understanding market volatility and the potential for significant price movements. The algorithm calculates the trading range by applying maximum and minimum functions to the set of prices over your selected timeframe. It then subtracts these values to determine the range's width. This method offers a quantitative measure of the asset's price volatility for the specified period.
Estimating Drift (Trend)
The bot estimates the drift component, which reflects the underlying trend or expected return of the cryptocurrency. The algorithm does this by estimating the drift (trend) using Geometric Brownian Motion (GBM), which involves determining an asset's average rate of return over time, reflecting the asset's expected direction of movement.
Estimating Volatility
Volatility is estimated by calculating the standard deviation of the logarithmic returns of the cryptocurrency's price over the same timeframe used for the drift calculation. Geometric Brownian Motion (GBM) involves measuring the extent of variation or dispersion in the returns of an asset over time. In the context of GBM, volatility quantifies the degree to which the price of an asset is expected to fluctuate around its drift.
Combining Drift and Volatility for Signal Generation
The bot uses the calculated drift and volatility to understand the current market conditions. A higher drift coupled with manageable volatility may indicate a strong upward trend, suggesting a potential buy signal. Conversely, a low or negative drift with increasing volatility might suggest a weakening market, triggering a sell signal.
█ Strategy Properties
This script backtest is done on the 1 hour chart Bitcoin, using the following backtesting properties:
Balance (default): 10 000 (default base currency)
Order Size: 10% of the equity
Commission: 0.05 %
Slippage: 500 ticks
Stop Loss: Risk Reward set to 1
These parameters are set to provide an accurate representation of the backtesting environment. It's important to recognize that default settings may vary for several reasons outlined below:
Order Size: The standard is set at one contract to facilitate compatibility with a wide range of instruments, including futures.
Commission: This fee is subject to fluctuation based on the specific market and financial instrument, and as such, there isn't a standard rate that will consistently yield accurate outcomes.
We advise users to customize the Script Properties in the strategy settings to match their personal trading accounts and preferred platforms. This adjustment is crucial for obtaining practical insights from the deployed strategies.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Cryptoindicator
Market Maker Indicator V2 [tecnocrypto]This indicator is based on the idea that prices are generated by the interaction between a Market Maker on one side (sometimes also called the "Composite Man") and Retail Traders on the other side (Retail Traders include simple retail, professional traders, whales, institutions...as a single entity). These two opposite entities "play" the trading game on trading platforms/exchanges (crypto), which are neutral to the game.
Market makers are liquidity providers, and make profits either by charging a spread between buy and sell prices, and (also) by trapping retail traders into specific positions.
Trading is a "zero sum" game in the sense that it generates a transfer of resources between these two specific players, which are indeed the Market Maker and Retail Traders. If Retail Traders are in profit, Market Maker is (temporarily) in loss, and viceversa. Market Maker goal is to squeeze profits out of Retail Traders, by inducing them to take wrong positions.
The Market Maker Method Indicator executes the following:
1) Identifies and plots candles that are generated by the Market Maker's moves (called "Shift Candles"); shift candles are "artificial" price/volumes moves, generated to induce retail traders into specific zones which are, essentially, traps. They are called Shift Candles as they generate abnormal (and mostly unexpected) price movements in either direction. They move the price from one zone to the next to execute the Market Maker strategy. Observe how often sudden (apparent) prices increases are followed by price crashes (stop hunt rise, drop); and observe how often sudden (apparent) price collapses are followed by price uptrends (stop hunt low, rise); sometimes these movements are made in progressive steps (generally, 3).
2) Plots open long/open short alerts based on the assumption that when Market Maker plots upwards shift candles, vivid green color, they are preparing for an upcoming price reversal (down); same, but opposite sign, for downwards shift candles. This is a counterintuitive logic for Retail Traders, that generally open long when price is rising, and open shorts when price is falling - jumping into Market Makers traps.
3) Plots the areas where price is expected to return (upwards or downwards) based on previous shift candles (called "Recovery Zones")
You can use this indicator on any timeframe and for any asset.
The Market Maker indicator V2 provides long / short entry signals based upon the market maker manipulative moves described above.
Long alerts are triggered by manipulative price push-downs by the marker maker, which will be followed by price increases (while price was decreasing, market maker was purchasing from retail). Additional factors are taken into consideration to plot long entry signals, , mainly volume build up and mean reversion, around this basic concept.
Short alerts are triggered by manipulative price push-ups by the marker maker, which will be followed by price drops (while price was increasing, market maker was selling to retail). Additional factors are taken into consideration to plot short entry signals, mainly volume build up and mean reversion, around this basic concept.
The indicator is based on the Traders Reality indicator, but improved with alerts, that can be used with trading bots, and additional possibilities to customize the behavior of the indicator.
A strategy associated with this indicator is also available.
Best results on the 1H timeframe.
Contact me for further info.
Zeta CryptoAre you excited about Crypto Trading?
Crypto Trading is gaining immense popularity due to the excitement and returns it gives.
However, traditional indicators based upon lagging factors which generate Buy/Sell signals very late can not be used with crypto-trading.
The need of the hour is to create an indicator from ground up which reacts instantly when the price action starts and gives you much earlier entry or exit as compared to traditional lagging indicators.
Zeta Crypto is one such indicator which is based upon price cum volume action. It is said that "volume precedes price" or 'volume must validate the price move" and it is true in most of the situations.
Zeta Crypto tracks price and volume for you and keeps comparing it with historical data and as soon as it detects spikes, it gets into action and generates Buy/Sell signals right on your chart.
How to take Entry and When to Exit?
As soon as you see a Buy/Sell Signal on a candle, mark its closing price and if next or any subsequent candle opens and starts going in the same direction and clears the closing price of signal candle (where Buy/Sell signal is printed), Enter the trade and trail it till either (1) Opposite signal does not come or (2) Your Trailing Stop Loss is hit or (3) Till price again comes back to your Entry Level and starts hurting your position.
What Time Frame to use?
Do not use less than 5 min. Time Frame for this indicator. The best results are seen at 5 min., 10 min. 15 min. & 30 min. time frames. Higher time frames will give you delayed entry and lower than 5 min. will be too volatile.
What is the purpose of Support/Resistance Lines appearing on your chart?
These lines might offer you early entry or exit when the price approaches a Resistance or Support line.
Megalodon Pro Automated Shorter Term Trader BacktesterSTRATEGY
When to buy: Green bar - Orange bar Closes
When to sell: Purple bar closes
Stop to trailing: No
Stop loss: No
Commission Rate: 1%
Willing to risk per trade: 10%
Maximum possible trades in one direction: 10
RESULTS
Net Profit without 1% commission: 112.64%
Net Profit with 1% commission: 103.92%
Starting Balance: $100,000
Profits Made: $103,918.38
New Balance with 1% commission: $203,918.38
Dates traded: 3/17/2019 and 8/3/2019
Total Close Trades: 80
Percent Profitable: 98.75%
Profit Factor: 152.158
Max Drawdown: 0.35% - $745.14
Buy & Hold Return: 174.66%
Commission Paid: $9621.46
Total Open Trades: 10
Number of Winning Trades: 79
Number of Losing Trades: 1
Avg Win Trade: 1.33%
Avg. Lose Trade: 0.92%
Largest Win Trade: 2.77%
Let me know what you guys think about the results?
Due to the tradingview's limitations on providing the shorter time frame price data, we had to provide a 60 minute time frame backtesting results.
The shorter time frames including 1 minute and 15 minutes backtesting results are way more accurate and precise than 60 minutes time frame results.
Megalodon Trading
Enlightening the Modern Investors
Megalodon Pro Utility PanelHow to use?
Simply, add the indicator and follow the timing and kill zone signals on the screen.
This indicator is designed for Daily time frame for longer term analysis and 1 minute time frame for shorter term analysis.
Turn on the kill zone feature for overlaying different kill zones.
Turn on Day Trading checklist feature for becoming a better Day Trader using Megalodon indicators.
Megalodon Pro Automated Shorter Term TraderHow to use?
Green cloud shows the total buy signals. Red cloud shows the total sell signals.
Yellow line shows the difference between buy and sell signals. If yellow line is above 0, we have more SELL signals than BUY signals. If yellow line is below 0, we have more BUY signals than SELL signals.
You should basically compare the red cloud with the green cloud to enter or exit in a trade.
It should be used on shorter time frames. I recommend using 1 minute or 15 minute for better analysis.
It prints Green for Buy - Orange for Strong Buy- Red for Sell - Purple for Strong Sell signals.
This indicator basically looks for many different indicators' setups and shows you exactly what you need to know.
You may also set alarms for 4 different signals including Buy - Strong Buy - Strong Sell - Sell
