Dazi MTF TinyTraderDream
I had the idea for that indicator when I saw another indicator named TraderDream. However, my version is simplified - thus I named it TinyTraderDream but added Multi-Timeframe-capability (MTF).
TTD is designed to run on lower timeframes (the timeframe of the chart the indicator is attached to) while it is calculating values from a higher (or at least the same) timeframe (the working timeframe).
It is the dream of any trader to have always active trades instead of idle times. This is, what TTD is doing. Either the Signal is BUY or SELL. (That's why such indicators are also called "Binary"). TTD is detecting the trend by calculating the average of a given period in combination with the Average True Range (ATR). To avoid spikes or faulty signals, the calculation is performed only on closed bars. By using the MTF-mode the signals are more reliable than in single timeframe (see attached screenshot with backtests).
There are three advantages in comparison to other (so called) MTF-indicators
- buffer shift corresponds to the working (MTF) timeframe (when using in combination with an Expert Advisor)
- visualize also in backtesting
- any timeframe possible (e.g., H12 or D2)
- Timeframe where the indicator shall work (MTF) - To be selected from the predefined timeframes. Should not be less than the timeframe of the chart the indicator is running, but is forced to be the chart timeframe in case it is.
- Timeframe Factor - Value by which the selected timeframe is multiplied with. Will be forced to a minimum of "1".
- Period - The number of bars to be considered for calculation. Will be forced to a minimum of "1".
- Sound, Display Statistic - Boolean values to enable/disable Sound on new Signal or display of performance information.
- Arrow codes (Wingdings-Font) used to highlight BUY and SELL.
The indicator shall be called with iCustom (NULL,0,"di_MTF-TTD",....,buffer,shift).
Buffer corresponds to the provided and required buffer. This indicator provides 4 buffers: 2 buffers are for signals BUY (buffer=0) and SELL (buffer=1). 2 buffers for the 2 colors of the trend-line (buffer=2 for long and buffer=3 for short). A positive value in the signal buffer indicates an open signal, a negative value corresponds to a close signal.
Shift corresponds to the bar - but of the working timeframe.
Example: active chart is on timeframe M1 while the indicator is working on timeframe M15. Then "shift=0, buffer=0" returns the current BUY-signal of the working timeframe (M15), shift 1 returns the previous value of M15 (value at the last closed bar in M15), shift 2 corresponds to the value at the 2nd closed bar in M15, etc.
Visualize in Backtest
The indicator works fine in visual charts of the strategy tester. Thus it is possible to visualize the values of the indicator and to verify the strategy of the expert advisor while the backtest is ongoing.
The parameter timeframe can only be selected from the predefined timeframes. But it is multiplied by the factor, which makes it possible to work on any timeframe.
When the chart timeframe is M1, while the indicator shall work on M10, then the parameters "timeframe=M1, factor=10" or "timeframe=M5, factor=2" will work.
This may be interesting especially for higher timesframes like H12, D2 or D3.
... of signals
TTD is displaying the signal on the same bar where the trade will be opened. This is one bar later than almost all other similar indicators do. Also the trendline is adjusted accordingly. This representation looks less profitable, but is more realistic. Thus the open price of the bar is equal to the open price of the trade.
... of Performance
TTD does not open any trades. But it is calculating the profit assuming trades as per the calculated signals. If enabled, TTD shows the time of first trade, the amount of total and winning trades, the total and current profit in pips.