blackcat1402

L1 Moving Average Fingerprint for Long Entry

Level: 1

Background
This script combines moving average processing with highest high and lowest low to disclose the "fingerprint" of a specific trading pair to describe its unique behavior.

Function

Moving Average Fingerprint for Long Entry is a Level 1 pine script. It utilize several moving average of inherent highest high and lowest low and combine them with customized fingerprint coefficients to depict the unique behavior of a specific trading pair across multiple markets for long entry point identification.

Key Signal

  • FingerPrint1~6 are basic-level fingerprints with moving average of highest high and lowest low.

  • FingerPrint7~8 are composite fingerprint definitions with coefficients/weights,where coefficients/weights need to be tuned to discover the inherent "fingerprint" of a specific trading pair.

  • FingerPrint10~12 are composite fingerprint calculation for long entry alerts

  • ReadytoLong is a long entry filter where long entry point may happen within it. By using crossover() function to a customized threshold value, you can define accurate long entries.


Pros and Cons

Pros:

1. Combine moving average and extreme points to disclose a trading pair behavior.
2. Smart to tune specific set of parameters to obtain unique fingerprints of trading pairs.
3. Smart position sizing scheme by adjusting the threshold values.

Cons:

1. Require tune input parameters for each trading pair in a specific period and time frame.
2. Only long entry was studied, no short entry and re-entry are available yet to form as a trading system.
3. "ReadytoLong" is an inaccurate range where multiple long entries may happen at improper points in chop market.
4. Complex input parameters to obtain a unique fingerprint set.


Remarks

Although I wrote pine script for more than two years, this is the first script published in the community. I will publish more with my works in this platform.

Hope the community can improve this concept and make it as a trading system.


Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
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Comments

Hi, this is far from being level 1 for my understanding, I would love to see an example of 3. Smart position sizing scheme by adjusting the threshold values. as you mentioned, I don`t manage to get a proper clean working code to get this right, hope will consider my suggestion and add this get into your scripts, Level 1 or Level 2, will be greatly appreciated! Thanks
+1 Reply
@CUBYC, thank you for your attention! I will consider your suggestion. The level is based on my personal subjective opinion, but different people may have different understandings. I hope everyone can get value far beyond L1:D
+1 Reply
CUBYC blackcat1402
@blackcat1402, I`m starting to get some very useful info from you, is late on me and need to sleep but played few hours now with your code and added several MA and functions and getting results that needs to be tested :( more lost time, hopping that will get somewhere eventually.
Check my indicator please,again it contains your code no values changed apart from colors but hope i can improve it, maybe make a strategy and testing it but loads a bit slow as it has now dozens ma`s functions and highest/lowest of Ricardo.... either way I will remove ma`s and make a strategy with each ma separated not over 20 MAs :) and I will start to test, i hope will find some good values, I already getting something interesting on XBTUSD on 4H with another of my moving average selected, is an error as green background is everywhere but trend looks so nice:

https://www.tradingview.com/chart/8Ys3aOpu/
+1 Reply
@CUBYC, thanks for your efforts on it and sharing. I understand that this indicator is still more picky about trading pair. To make it work better, you need to consider the appropriate market, time period, and adjustment of fingerprint parameters. The workload is relatively large. I currently don't think this indicator is universal. This is why I define it as L1. Because its adaptability still needs improvement. If you choose the L1 indicator as the starting point, it is equivalent to playing the game and choose the extremely difficult mode. Why don't you consider starting from L2? It will be relatively simple and has a higher winning rate.
+1 Reply
CUBYC blackcat1402
@blackcat1402, I see now your point of view and makes total sense that is not for every market, that`s why tried to see difference on other MAs rather than using sma, maybe one will work better than other, desperately tiring to find a trick/code for my order sizing, currently using ATR but not so good and found this code and trying to adapt my ideas... already having a symbol selector , now working and this position sizing and found the comments in your description and I decided to give it a try, why not I like to play with codes, learning something every day. I followed you and looking forward to see next code you clearly have a huge contribution in other coders as I learned few thing already ! Kudos
+1 Reply
@CUBYC, I appreciate your persistence. If you plan to make it public or need private coding support, and if I can see the code, I may contribute some ideas. For Free:D
+1 Reply
CUBYC blackcat1402
@blackcat1402, Really appreciated and definitely will share it with you is not ready for public and may never be but will get back to you over the weekend when I will have more free time, and nothing is for free! in exchange for this I could spare some of my time and I could test something that you need time for it or maybe look over a code and try to get some logic in it, not writing the code as you are level on another level, can already tell that by reading your codes and description.
+1 Reply
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