Cryptocurrency trend following EMA Ribbon LONG only study
This strategy is based on EMA Ribbon and uses multiple indicators to find optimal time to enter/exit the trade and filter out false signals. The script with default setting is developed mainly for trading altcoins/stable coin pair such as ADA(USDT etc on 4h timeframe but it can be applied to any pair/any timeframe with some settings adjustments.
For plot on chart features make sure that you have both study and strategy scripts on chart with same settings.
Strategy settings description:
1. Signal EMA Length - Value for exponencial moving average (slowest from EMA Ribbon)
1a. Buy price toleration (%) - Price deviation for filtering bounces of EMA - price must close defined percents above EMA to open long trade
1b. Sell price toleration (%) - Price deviation for filtering bounces of EMA - price must close defined percents bellow EMA to close long trade
1c. EMA deelay - EMA id delayed by defined bars for smoothening
2. Filter by Fast EMA - Strategy filters signals to prevent buy while coin is dropping
2a. Fast EMA Length - Value for fast exponencial moving average
3. Filter by SMA - Strategy filters signals to confirm trend change
3a. SMA Length - Value for simple moving average
4. Filter by RSI - Strategy filters signals to prevent buing/selling overbought/oversold coins
4a. RSI Length - Length of RSI identificator
4b. RSI Source candle - What price of candle is used for RSI calculation (open, close, high, low)
4c. RSI Long condition - When buy, RSI indicator must be below this value to prevent of buying already overbought coin
4d. RSI Short condition - When sell, RSI indicator must be above this value to prevent of selling already oversold coin
5. RSI Close Trade Condition - Strategy sell coin once RSI reach defined value
5a. RSI close trade condition - Sell once RSI indicator acquires defined value
6. Close trade by Take Profit or Stop Loss Condition (STRATEGY ONLY) - Strategy sell coin once defined take profit / stoploss level is reached
6a. Take Profit (%) - Take profit value in percent
6b. Stop Loss (%) - Stop loss value in percent
6c. Plot targets on chart - defined targets will be plotted as lines on chart
7. Date range from
7a From Year - To run strategy in interval
7b From Month - To run strategy in interval
7c From Day - To run strategy in interval
8. Date range to
8a To Year - To run strategy in interval
8b To Month - To run strategy in interval
8c To Day - To run strategy in interval
9. Wait to confirm the signal
9a Wait candless to buy - strategy will wait defined candless to confirm the signal before buy
9b Wait candless to sell - strategy will wait defined candless to confirm the signal before sell
10. Plotting on chart (STUDY ONLY)
10a Plot signal line channel with bows on chart
10b Plot simple moving average on chart
10c Plot EMA Ribbon on chart
10d Plot recent support and resistance levels on chart
11. Show Every signal (STUDY ONLY) - Unchecked shows only first signal based on strategy. But if you use take profit/stoploss settings within your bot, you might want to rebuy on next signal. Checked shows signal on each candle.
Throw on chart also buld-in RSI indicator and set the same as strategy
Notice that there might be false signals, especially when the coin is not trending or is strongly manipulated. Overall strategy is profitable though. You just take some minor loses and wont miss the big move.
You may also consider to compare buy&hold return vs profit from trading this strategy. In downtrend as we have seen recently, profit may not be as high as you expect but it is still much better than just hold and hope.
You can use the strategy script for fine tunning settings and find best settings for yourself.
Study script helps you to automate trading with use of alerts perharps with 3commas bot or even trade manually based on email/sms notification setted by tradingview
Notice that study script does not handle takeprofit/stoploss order. That is why sell arrows could be plotted by study script later than strategy script. To rebuy after takeprofit/stop-loss use "11. Show Every signal (STUDY ONLY)" setting
Make sure that you keep same settings for strategy and study scripts.
If you need any help with settings do not hesitate to ask. I would also appriciate any feedback and ideas how to improve this script.
Here is backtest result from 1. Nov 2018 using constant 100USD Buy ammount:
For plot on chart features make sure that you have both study and strategy scripts on chart with same settings.
Strategy settings description:
1. Signal EMA Length - Value for exponencial moving average (slowest from EMA Ribbon)
1a. Buy price toleration (%) - Price deviation for filtering bounces of EMA - price must close defined percents above EMA to open long trade
1b. Sell price toleration (%) - Price deviation for filtering bounces of EMA - price must close defined percents bellow EMA to close long trade
1c. EMA deelay - EMA id delayed by defined bars for smoothening
2. Filter by Fast EMA - Strategy filters signals to prevent buy while coin is dropping
2a. Fast EMA Length - Value for fast exponencial moving average
3. Filter by SMA - Strategy filters signals to confirm trend change
3a. SMA Length - Value for simple moving average
4. Filter by RSI - Strategy filters signals to prevent buing/selling overbought/oversold coins
4a. RSI Length - Length of RSI identificator
4b. RSI Source candle - What price of candle is used for RSI calculation (open, close, high, low)
4c. RSI Long condition - When buy, RSI indicator must be below this value to prevent of buying already overbought coin
4d. RSI Short condition - When sell, RSI indicator must be above this value to prevent of selling already oversold coin
5. RSI Close Trade Condition - Strategy sell coin once RSI reach defined value
5a. RSI close trade condition - Sell once RSI indicator acquires defined value
6. Close trade by Take Profit or Stop Loss Condition (STRATEGY ONLY) - Strategy sell coin once defined take profit / stoploss level is reached
6a. Take Profit (%) - Take profit value in percent
6b. Stop Loss (%) - Stop loss value in percent
6c. Plot targets on chart - defined targets will be plotted as lines on chart
7. Date range from
7a From Year - To run strategy in interval
7b From Month - To run strategy in interval
7c From Day - To run strategy in interval
8. Date range to
8a To Year - To run strategy in interval
8b To Month - To run strategy in interval
8c To Day - To run strategy in interval
9. Wait to confirm the signal
9a Wait candless to buy - strategy will wait defined candless to confirm the signal before buy
9b Wait candless to sell - strategy will wait defined candless to confirm the signal before sell
10. Plotting on chart (STUDY ONLY)
10a Plot signal line channel with bows on chart
10b Plot simple moving average on chart
10c Plot EMA Ribbon on chart
10d Plot recent support and resistance levels on chart
11. Show Every signal (STUDY ONLY) - Unchecked shows only first signal based on strategy. But if you use take profit/stoploss settings within your bot, you might want to rebuy on next signal. Checked shows signal on each candle.
Throw on chart also buld-in RSI indicator and set the same as strategy
Notice that there might be false signals, especially when the coin is not trending or is strongly manipulated. Overall strategy is profitable though. You just take some minor loses and wont miss the big move.
You may also consider to compare buy&hold return vs profit from trading this strategy. In downtrend as we have seen recently, profit may not be as high as you expect but it is still much better than just hold and hope.
You can use the strategy script for fine tunning settings and find best settings for yourself.
Study script helps you to automate trading with use of alerts perharps with 3commas bot or even trade manually based on email/sms notification setted by tradingview
Notice that study script does not handle takeprofit/stoploss order. That is why sell arrows could be plotted by study script later than strategy script. To rebuy after takeprofit/stop-loss use "11. Show Every signal (STUDY ONLY)" setting
Make sure that you keep same settings for strategy and study scripts.
If you need any help with settings do not hesitate to ask. I would also appriciate any feedback and ideas how to improve this script.
Here is backtest result from 1. Nov 2018 using constant 100USD Buy ammount: