Volatility Traders Minds Strategy ( VTM Strategy)

 Traders Minds Strategy ( Strategy)

    Conditions for entry:
1 - Candles must to be above or bellow the 48 MA (Yellow line)
2 - Candles must to break the middle of  bollinger bands
3 -  Macd must to be above or bellow zero level;

4 -  ADX must to be above 25 level

For Buys:
1. Price must be above 48 Ema
2. Candle must close above middle bollinger band
3. Macd must be above 0 at the time candle closed above middle band OR can wait until 2nd candle to close above 0 if it’s below 0 at the time candle closed above middle band. (Otherwise don’t take trade)
4. ADX must be above 25 level

-Close trade when candle closes above upper band (TP)
-Close trade when candle closes below middle band (SL)

For Sells:
1. Price must be below 48 Ema
2. Candle must close below middle bollinger band
3. Macd must be below 0 at the time candle closed Below middle band OR can wait until 2nd candle to close below 0 if it’s above 0 at the time candle closed below middle band. (Otherwise don’t take trade)
4. ADX must be above 25 level
-Close trade when candle closes below lower band (TP)
-Close trade when candle closes above middle band (SL)

// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/

// © 03.freeman

//Volatility Traders Minds Strategy (VTM Strategy)

//I found this startegy on internet, with a video explaingin how it works.

//Conditions for entry:

//1 - Candles must to be above or bellow the 48 MA (Yellow line)

//2 - Candles must to break the middle of bollinger bands

//3 - Macd must to be above or bellow zero level;

//4 - ADX must to be above 25 level

//@version=4

strategy("Volatility Traders Minds Strategy (VTM Strategy)", shorttitle="VTM",overlay=true)

source = input(close)

//MA

ma48 = sma(source,48)

//MACD

fastLength = input(7)

slowlength = input(9)

MACDLength = input(7)

MACD = ema(source, fastLength) - ema(source, slowlength)

aMACD = ema(MACD, MACDLength)

delta = MACD - aMACD

//BB

length = input(20, minval=1)

mult = input(2.0, minval=0.001, maxval=50)

basis = sma(source, length)

dev = mult * stdev(source, length)

upper = basis + dev

lower = basis - dev

//ADX

adxThreshold = input(title="ADX Threshold", type=input.integer, defval=25, minval=1)

adxlen = input(14, title="ADX Smoothing")

dilen = input(14, title="DI Length")

dirmov(len) =>

up = change(high)

down = -change(low)

plusDM = na(up) ? na : (up > down and up > 0 ? up : 0)

    minusDM = na(down) ? na : (down > up and down > 0 ? down : 0)

truerange = rma(tr, len)

plus = fixnan(100 * rma(plusDM, len) / truerange)

minus = fixnan(100 * rma(minusDM, len) / truerange)

[plus, minus]

adx(dilen, adxlen) =>

[plus, minus] = dirmov(dilen)

sum = plus + minus

adx = 100 * rma(abs(plus - minus) / (sum == 0 ? 1 : sum), adxlen)

sig = adx(dilen, adxlen)

//  Strategy: (Thanks to JayRogers)

// === STRATEGY RELATED INPUTS ===

//tradeInvert     = input(defval = false, title = "Invert Trade Direction?")

// the risk management inputs

inpTakeProfit   = input(defval = 0, title = "Take Profit Points", minval = 0)

inpStopLoss     = input(defval = 0, title = "Stop Loss Points", minval = 0)

inpTrailStop    = input(defval = 0, title = "Trailing Stop Loss Points", minval = 0)

inpTrailOffset  = input(defval = 0, title = "Trailing Stop Loss Offset Points", minval = 0)

// === RISK MANAGEMENT VALUE PREP ===

// if an input is less than 1, assuming not wanted so we assign 'na' value to disable it.

useTakeProfit   = inpTakeProfit  >= 1 ? inpTakeProfit  : na

useStopLoss     = inpStopLoss    >= 1 ? inpStopLoss    : na

useTrailStop    = inpTrailStop   >= 1 ? inpTrailStop   : na

useTrailOffset  = inpTrailOffset >= 1 ? inpTrailOffset : na

// === STRATEGY - LONG POSITION EXECUTION ===

enterLong() => close>ma48 and close>basis and delta>0 and sig>adxThreshold  // functions can be used to wrap up and work out complex conditions

//exitLong() => jaw>teeth or jaw>lips or teeth>lips

strategy.entry(id = "Buy", long = true, when = enterLong() )    // use function or simple condition to decide when to get in

//strategy.close(id = "Buy", when = exitLong() )                  // ...and when to get out

// === STRATEGY - SHORT POSITION EXECUTION ===

enterShort() => close<ma48 and close<basis and delta<0 and sig>adxThreshold

//exitShort() => jaw<teeth or jaw<lips or teeth<lips

strategy.entry(id = "Sell", long = false, when = enterShort())

//strategy.close(id = "Sell", when = exitShort() )

// === STRATEGY RISK MANAGEMENT EXECUTION ===

// finally, make use of all the earlier values we got prepped

strategy.exit("Exit Buy", from_entry = "Buy", profit = useTakeProfit, loss = useStopLoss, trail_points = useTrailStop, trail_offset = useTrailOffset)

strategy.exit("Exit Sell", from_entry = "Sell", profit = useTakeProfit, loss = useStopLoss, trail_points = useTrailStop, trail_offset = useTrailOffset)

// === Backtesting Dates === thanks to Trost

testPeriodSwitch = input(false, "Custom Backtesting Dates")

testStartYear = input(2020, "Backtest Start Year")

testStartMonth = input(1, "Backtest Start Month")

testStartDay = input(1, "Backtest Start Day")

testStartHour = input(0, "Backtest Start Hour")

testPeriodStart = timestamp(testStartYear,testStartMonth,testStartDay,testStartHour,0)

testStopYear = input(2020, "Backtest Stop Year")

testStopMonth = input(12, "Backtest Stop Month")

testStopDay = input(31, "Backtest Stop Day")

testStopHour = input(23, "Backtest Stop Hour")

testPeriodStop = timestamp(testStopYear,testStopMonth,testStopDay,testStopHour,0)

testPeriod() =>

    time >= testPeriodStart and time <= testPeriodStop ? true : false

isPeriod = testPeriodSwitch == true ? testPeriod() : true

// === /END

if not isPeriod

    strategy.cancel_all()

    strategy.close_all()