Hey now. I'm back with another exclusive trading system developed by a Trader's
Landing community partner that created an insane profit over a series of 195 trades.
This system which can be traded manually has been released as the fifth Trader's
Landing automated trading strategy for our community members. And if you want to see more
content like this then hit that subscribe button before the market spits you out.
I call this system the Simple Pivot Super Trend Strategy.
And like most trading systems it can be adapted to Forex, crypto, options,
stocks, indices, or any instrument that is significant volume and market participants.
This trading strategy utilizes three free TradingView indicators. As always links
and settings to all indicators are listed in the description. The first indicator is
the Exponential Moving Average or EMA I am going to set the length to 200 and color it in white.
The 200 EMA will be used for trend confirmation.
The second free TradingView indicator is another Exponential Moving Average. This EMA will be set
to the length of 50 and colored in orange. The 50 EMA will be used for a dynamic stop level.
The third study is the Pivot Super Trend indicator by one of my favorite Pine script contributors
LonesomeTheBlue. Inputs and style will be kept at default. The Pivot Super Trend calculates previous
pivot points in the market and applies an ATR value in order for the algorithm to give weight
to those key market levels. In this strategy the Pivot Super Trend will be used for entry triggers.
Let's go over entry criteria and review some examples. As always system rules and details
are listed in the description below. This chart is Ethereum versus Bitcoin 30-minute
candles. The rules to enter along on the Simple Pivot Super Trend Strategy are first,
price must be over the 200 EMA in white and the 50 EMA in orange.
Second, there is a Pivot Super Trend Buy signal. Our rules are met when this candle closes, that
is our trigger candle. We place our stop at the 50 EMA in orange and the target is
dynamic. Close the trade when price touches the 50 EMA and this example is booked with a 1.73
risk versus reward. If you enjoy this content make sure to click that like button.
I have one more long example. First, we can see price is above both the 200 and the 50
Exponential Moving Averages. Then we can see a buy signal on the Pivot SuperTrend
indicator. Everything converges on this candle and it serves as our trigger.
The stop is placed at the 50 EMA in orange and we leave the position open.
The trade is closed when price touches the EMA for a profit of 0.81. Now we flip the shorts.
This is what I will test for shorts. First, price must be under both the 200 EMA in white and the
50 EMA in orange. Second, we are looking for a Pivot SuperTrend sell signal. Sll of
that happens on this candle here, that is our trigger candle. The stop is placed at the 50
EMA in orange and the target is dynamic. Exit the position when price touches the 50 EMA in orange,
and the first short example is booked with a very nice one to 3.34 risk versus reward.
I'm going to show you one more quick short example.
Price is under both EMAs. There is a Pivot SuperTrend sell signal. This is our trigger
candle. The stop is placed at the 50 EMA and the trade is entered. And this example is closed with
another great risk to reward of 3.74. I'm gonna give you some insightful ideas on how
we can improve this system along with a Trader's Landing score. And now it's time to do, what I do.
If you enjoy this content hit the like button. This script was designed for Traders Landing by
Kris Waters. Kris is one of the premier Pine Script coders and has agreed to work with our
community in developing strategies presented on this channel. In addition he is available
for hire should you have any strategy that you want coded or further developed.
Supporting Kris is also supporting the channel because it enables him to dedicate
more time to our community. His contact information is in the description below.
These are the actual results from the script. And this is it condensed down. This test was done on
Ethereum versus Bitcoin 30-minute candles. It took just over 15 and a half months to find the
195 trades. This data set produced a very poor win rate of 36 percent matched with a seven and
a half percent maximum drawdown. But the profit factor was a very healthy two, with a total gain
on account being 183 percent. The disconnect between the win rate and gain on account is due
to the stop loss and take profit method being dynamic. But I am going to give you six ideas
on how to up that win rate significantly, which could make this system more profitable in the end.
The equity curve here is very impulsive with the end kind of flattening out. If we look at the
same period but zoom out to the 12-hour chart it kind of mimics the equity curve. So like I
always say you need to match the right system to the right market condition. More on that soon.
I give this system a Trader's Landing score of seven. Because it gets you into strong trends.
Has simple and easy to follow rules. But is much less effective in choppy markets indicating that
some type of higher time frame confirmation would be critical to your deployment strategy.
Remember the enemy of great is good I have six ideas on how we can improve this system.
First, you can use the pivot levels from the Pivot Point SuperTrend as places where
you can take profits or move your stop to break even. These levels can be used as
areas of interest to get into, out of, and protect a position.
Next, this is an idea i got from a community member. But in lieu of the 200 EMA
you can use the Central Pivot Point to confirm your entries. Specifically only looking for
longs when one series of pivot points appear over the previous set, and do the reverse for shorts.
Third, the script as it is currently constructed allows you to use three other stop loss methods
including fixed based on the SuperTrend line,
a trailing stop loss at the SuperTrend line which would follow the super trend line with the market.
In addition to a trailing ATR at any multiple you want, I would suggest starting at two.
The next tip is to carefully select your market conditions.
Trend following systems should not be used when the higher time frames are in consolidation.
A simple system like this will work best when the charts are most clearly trending.
Fifth, the creator of the Pivot SuperTrend indicator LonesomeTheBlue
also has another indicator called Divergence for Many Indicators.
You can enable the hidden divergence option which can give you really good confirmation signals.
Another suggestion that I can offer
when the market is really trending is to use a very reactive oscillator like the
Stochastic RSI. You can see each pullback in a small trend causes the indicator
to move into the extreme area and confirm the continuation when it comes back above the 20 line.
If you want to comment on any video you can create a free Trader's Landing Circle Community account
link in the description. And if you want access to this script and the four others
that have been released in addition to a more enriching community experience you can upgrade
your account to the Preferred or Elite where you will get access to these community spaces.
Thanks for watching and have a great day, because you deserve it!