Hey now,
I'm back with another exclusive trading system that has been proven extremely
profitable over a series of 100 consecutive trades.
And because you respond to them so well,
I am going to give you my six optimization tips to make this strategy,
really take off. But if you are not subscribed,
then your indicators could perform like this.
I call this system Into the Lonesome Trend,
and like most trading systems, it can be applied to Forex, crypto options,
stocks, indices,
or any instrument that has significant volume and market participants.
His trading strategy uses two free TradingView indicators.
As always links and settings to all indicators are listed in the
description below.
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 is generally used as a trend direction tool.
And in this trading system,
it will identify overall trend direction.
We will only be taking longs above the white line, and shorts below it.
The second free TradingView indicator is the Pivot Supertrend by one of
my favorite Pine programmers Lonesome Theblue,.I am going to
alter the default settings as follows:
the pivot point period will be set to one.
The ATR factor is set as two,
and finally the ATR period will be configured to 10.
I am going to keep the style at default.
The pivot Supertrend can be more powerful than a standard SuperTrend because it
accounts for previous pivot points in the market.
This script calculates pivot and ATR data to create,
buy and sell signals. In this system.
The Pivot Supertrend will be used for entry triggers.
Let's go over enter criteria and review some examples.
As always system rules and details are listed in the description below.
This chart is Bitcoin versus the US dollar five-minute
Japanese Candlesticks.
The rules to enter along on Into the Lonesome Blue are. First,
price must be above the 200 EMA in white. Second,
we are looking for a Pivot Supertrend buy signal.
All of that happens when this candle closes. That is our trigger candle.
We place our stop at the pivot super trend ATR line
and target one to two. And this set up hits the target.
If you enjoy this content, please make sure to click that like button.
I have one more long example.
Price is above the 200 EMA in white.
Then we can see a Pivot Supertrend buy signal.
Everything converges on this candle and it serves as our trigger.
The stop is placed at the Pivot Supertrend ATR line in green,
and one to two is our target.
And this one rapidly hits one to two. Now we flip to shorts.
This is what I would test for shorts. First,
price must close below the 200 Exponential Moving Average in
white. Second,
we are looking for a Pivot Supertrend sell signal.
The rules are met when this candle closes.
That is our trigger candle place.
The stop at the Pivot Supertrend sell ATR line.
And our target is one to two.
And this example hits the one to two target.
I am going to give you one more quick, short example.
Price is below the 200 EMA. There is a sell signal in red.
This is our trigger candle.
The stop is placed at the Pivot Supertrend and the target is one to two.
And this example hits the target.
I am going to give you some phenomenal ideas on how we can make this system
better along with a Trader's Landing Score.
And now it's time to do what I do.
If you enjoy this content, please click that like button. Remember,
this is just 100 tests on one instrument.
If you are thinking of using this system,
please do all the required testing and be sure to let our community know what
you discover.
This test was done on Bitcoin versus the U S Dollar five-minute Japanese
Candlesticks. It took 24 short days to find the 100 setups.
Most wins in a row turned out to be eight,
and most consecutive losses equaled seven.
But that is to be expected for the five-minute chart.
The profit factor here was a nice 2.26,
with a 53% win rate.
And please take note that a 50% win rate and a one to two
target is phenomenal, that I can tell you.
Risking 2% per position,
the total gain on account taking all setups was
118% not accounting for fees and spreads.
And I am going to share with you my ideas on how to enhance the system even
further. So the equity curve here is like Christmas morning.
We actually start out with our eight wins in a row,
then an extended draw down. And this is followed by a rocket to the Moon.
If we take all the trades from the five minute chart and place them on the two
hour chart, there is something disconcerting.
If all of the trades were taken on this section to create that impulsive equity
curve, I would understand it. However,
the bulk of the test was during a consolidation,
which makes me wonder if this data set was just favorable and not
typical. I suspect if I was to take this test for another 100,
or maybe the previous 1000 setups, the results may be drastically different.
And that is why I always say to go out there and
test. What score would you give the strategy? Let me know in the comments below.
I give this system a Trader's Landing score of seven.
Because this is a simple and effective rules based system that
utilizes the ATR along with pivot points,
to not only provide entries,
but also determine targets and stop levels.
Remember the enemy of great is good.
I have six ideas on how we can improve this system. First,
if you're one that likes to squeeze all the profits out of each setup than
adding a dynamic take profit system could be for you. On this chart,
we can see that exiting on the next indicator sell signal yielded an
awesome 9.57 risk to reward. When trading,
you always want to look for strategies to compliment your personality and
trading style. Second, like I went over in this video,
you can use multiple SuperTrend indicators to confirm your entries.
On this example, I use the Pivot Supertrend for overall trend direction,
but get two winning entries when I deploy the standard SuperTrend indicator
as previously tested for my trigger.
The next suggestion is based on strategies that I personally use.
On this location in the market we get signals on the Pivot Supertrend
and the standard SuperTrend,
but more astute viewers will notice an increase in volume matched by a
proportionally large bullish candle.
This is a great way to add leading and lagging indicators to create an
extremely strong signal. And what happens after that?
We get this expected huge motive move.
The next tip is a must for everyone who is putting in the work and actually
backtesting. And when you run through a data set,
you want to test alternate ways of taking profits and taking off risk.
Here is an example of where using a one to 1.5 risk to reward would have
turned this losing setup into a winning trade.
When you test multiple methods at once,
you are increasing your production by factors. Furthermore,
if you have been a regular viewer, you know how much I value market structure.
These three losing setups would have been invalidated if you are simply not
taking setups going against the simplest structure of the market.
In addition, I noticed during testing,
there were signals like this one where the Supertrend ATR line was quite a
distance away from the entry-level.
A couple of ways to filter out these late entries is to disqualify these setups
based on ATR values or even the location of an oscillator,
like the stochastic. When you are designing a trading system,
you want to make sure you account for late entries that can
cause losses. Check out this playlist more profitable systems.
And have a great day, because you deserve it.