millerrh

Breakout Trend Follower

This is a Study mirroring the Breakout Trend Follower Strategy I made. I use this one during live trading and the other for backtesting. It will also give alerts when buy and sell signals are hit.
הסר מסקריפטים מועדפים הוסף לסקריפטים מועדפים

תגובות

HI Apologies but do the signals appear dynamically?
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millerrh jayman.b.patel
@jayman.b.patel, I am not 100% sure what you mean by dynamically, but they do appear the instant price crosses an established support/resistance line. It does not wait for the candle to close. The purpose of those lines is to act as stop levels for orders which will trigger as soon as price hits them. Does that answer your question?
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Hi, thanks for the script, I love it! :)

Can I ask you a question? Certainly for trends your script is ideal. I do however notice that when the trend is in a range, I get some "false" buy signals because the price reaches beyond the last lower high but backs down again. I see that the buy signal is linked to the pivot high. I was wondering if it would be suitable to link the buy signal to the closing price to get rid of these buy signals. I think it would be nice on a "lower" timeframe (say 30 mins) where you can still pick up the daily trend on the next candle. What are your thoughts on it?

I know I can adjust the percentage of the stop loss buffer in the settings but that would also remove other buy signals.
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millerrh stefanvh
@stefanvh, Yes this is a problem with this sort of strategy. In good conditions, you only get 40-50% win rate. It's the "letting your winners run and cut your losers short" part of the strategy is what makes it work. It wasn't in this strategy, but in some of my others, you'll see an option to select "wick" or "close" to determine if you wait for a close or buy/sell when the wick touches the level. In my experiments, it seems like the instant buy/sell before the close produced the best results. I think it's because these trend following strategies can buy or sell on a huge market spike or dump. If you wait for the close, you miss that entire move on both the long and short side. Likely those huge moves are what accounts for a lot of what success this strategy has.

Also, on a personal level, I use this strategy by having stops in place, so that I don't have to be at my computer when something happens. It just happens automatically. Can't do that with a close alert necessarily. You could miss things. So I personally don't like how I'd have to trade that as much from a workflow perspective.
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stefanvh millerrh
@millerrh, indeed, it's a risk when waiting for the candle to close, certainly in highly volatile markets like the crypto market. I certainly agree with your points.

Thanks for your reply, have nice day!
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Hi, Thanks for the strategy! I know you recommended using this on the 30M time frame. Are you using that more for swing trading or day trading? I am assuming for a swing based on the back tests and time frame, but wanted to double check. Thanks!
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millerrh egshih
@egshih, My intent is to hold it as long as the 30-min trend is up. So I love swing trading this..it means it's working in my favor. You have risk of gap downs, but you also get gap ups by swinging. Sometimes I'm in and out in day, but those are usually the losers that turn south quick. The winners I can ride for days.
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egshih millerrh
@millerrh, Thanks! I am going to try combining this with some fundamental analysis and see what happens. I have been day trading and stuck in a rut so I am trying out some new strategies. Have you tried out any of the settings on the lower time frames in a day trading setting?
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millerrh egshih
@egshih, Sometimes I'll close out a position at the end of the day just to avoid overnight risk. but I've found a lot more upside with the way the stock market tends to gap up vs. gap down. The beauty of a strategy in TradingView is you can try it out for yourself and see if it works or not. I'd say experiment with lower time frames, higher time frames, and see what works for you. Trading is as much a personality match as anything. If you're not comfortable with the strategy you won't follow it. I personally only get comfortable with a trading strategy if I can backtest it and see that over the long run it is profitable. I'm sure there are better ones out there, but so far, this is the one I keep going back to. From a personality standpoint, I like it as well because I can place stop orders for both buys and sells and let the market come to me without me taking action. It's more like having an automated strategy because I don't have to be at the computer to place the order. Allows me to work full time and also trade, even on lower time frames, because I can just periodically reset my stop levels. So that's a huge reason for me why I like it.
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egshih millerrh
@millerrh, Thanks for the perspective! I work a full time job so I will probably follow what you are doing. I noticed that the backtest results are pretty impressive with QQQ as well as the other FAANG stocks, so I may run this through my watchlist with large cap names on both the 5M and 30M time frames.
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