78% Win Rate Proven Trading Strategy Revealed — ADX + BB %B + AO + EMA
Trading Strategy
As my new mission in life is to code strategies I find on YouTube.
I found a strategy by Trade Pro 78% Win Rate Proven Trading Strategy Revealed — ADX + BB %B + AO + EMA.
Quick links :
Finished Strategy : https://www.tradingview.com/script/mjDjjZt3-ADX-BB-B-AO-EMA-by-DaviddTech/
Join me on discord : https://www.patreon.com/daviddtech
Watch me test strategies with code : https://www.youtube.com/channel/UC7NJLsf6IonOy8QI8gt5BeA
This is a Trading Strategy that combines the following different kinds of Indicators:
- ADX , Average Directional Movement to make sure we are in a trend.
- BB %B Bollinger Band %B: to spots relative price position to Bollinger Bands
- AO Awesome Oscillator for momentum — you will need to configure this to fit the pair.
- EMA 5, EMA 21, EMA 50, EMA 200: crossovers to get our entry short or long & trend direction.
It will be tested 100 times in a row just to get full results and we will see how it is performed. So let’s dive into it.
So we are going to start this strategy with Four Exponential Moving Averages first we have:
- EMA(5) > EMA(21)
- EMA(50) > EMA(200)
All we have are 5 Period Exponential Moving Average, then a 21 Period Exponential Moving Average, a 50 and 200EMA. All these positions are used for Trend Directions for a Long Position. According to these, period 5 needs to be over period 21 and period 50 needs to be over 200.
- BB % > 0.75
Bollinger Band per cent B is our next indicator, by just changing Over Bought and Over Sold level we had made difference of .75 and .25.If you are simply searching these indicators and haven’t seen it before you can find it by typing bb Bollinger Band pop up will appear. By using this you can filter for longs and shorts. You can only take a long when Bollinger Band b Per cent goes into the overbought and you can only take a Short when Bollinger Band b Per cent goes into the oversold.
- Awesome Oscillator > 2
This is just a default setting but some amendments have been made by just adding two horizontal lines by selection horizontal lines tool and placed it on. Then we can change the coordinates of these to 1 to +2 and then 1 to -2 we are going to do this for our trading purpose.
- ADX > 15
At the end we have ADX this has also default setting but a horizontal line is added by just selecting line and placing it to the ADX area. Change the coordinates to the 15. According to the Trading strategy we can take long or short when ADX is over the 15 line but this one works in different manners for example you can take the short when it is over the 15 and tale long when it is over the 15 because it doesn’t do direction like other indicators do. So this is our main strategy.
Position Exit rules with “Stop-Loss” and “Take Profit”
Stop Loss
- As a Stop-Loss goal, set 3%.
- If a long position is open and the price moves down by 3% from the entering price, the long position will be closed with a loss.
- If a long position is open and the price moves down by 3% from the entering price, the long position will be closed with a loss.
Take Profit
- As a take profit objective, set it at 8%.
- If a long position is open and the price moves up by 8% from the entering price, the long position will be terminated with a profit.
- If a short position is open and the price falls by 8% from the entering price, the short position is closed with a profit.
Results
After coding this strategy we got pretty good results. You can download the strategy for free on tradingview just search DaviddTech
