This strategy uses custom Noro Bands indicator to determine trend direction and generates trading signals based on specific rules. Signals are generated when price breaks the bands. CryptoBottom indicator is also used to improve signal quality.
Calculate Noro Bands. Determine recent high, low based on user period, and calculate midline and upper/lower bands.
Determine trend direction. Price above upper band is uptrend. Price below lower band is downtrend.
Generate signals. Buy signal when price breaks below lower band in uptrend. Sell signal when price breaks above upper band in downtrend.
Integrate CryptoBottom. Add buying opportunities when CryptoBottom signal occurs.
Opening position rules. Users can choose to trade only long or short. Without selection, trade both sides.
Plot Noro Bands. Can show or hide band plotting.
Noro Bands effectively determine trend direction.
Combining band breakout avoids false breakout signals.
CryptoBottom improves quality of buy signals.
Customizable for only long or short trades.
Adjustable parameters suit different timeframes.
Improper parameters may cause failure in band calculation.
Breakout signals have lag.
CryptoBottom is not completely reliable.
Trading only one side may miss opportunities.
Risk 1 can be addressed through parameter optimization.
Risk 2 can be improved by combining other indicators.
Risk 3 requires validating CryptoBottom performance.
Risk 4 needs assessing profitability of one side trading.
Test parameter impact on Noro Bands.
Evaluate other breakout indicators instead of Noro Bands.
Assess stop loss strategies.
Test effectiveness of only long or short trades.
Optimize parameters for CryptoBottom.
This strategy uses Noro Bands to determine trend and breakout signals to time entries. CryptoBottom improves buying. Parameter optimization and stops can further refine the strategy.
/*backtest
start: 2023-09-10 00:00:00
end: 2023-09-17 00:00:00
period: 15m
basePeriod: 5m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/
//@version=2
strategy("Noro's Bands Strategy v1.2", shorttitle = "NoroBands str 1.2", overlay=true, default_qty_type = strategy.percent_of_equity, default_qty_value=100.0, pyramiding=0)
//Settings
needlong = input(true, defval = true, title = "Long")
needshort = input(true, defval = true, title = "Short")
len = input(20, defval = 20, minval = 2, maxval = 200, title = "Period")
color = input(true, "Use Color or bar")
usecb = input(true, "Use CryptoBottom")
needbb = input(true, defval = false, title = "Show Bands")
needbg = input(true, defval = false, title = "Show Background")
src = close
//Fast RSI
fastup = rma(max(change(src), 0), 2)
fastdown = rma(-min(change(src), 0), 2)
fastrsi = fastdown == 0 ? 100 : fastup == 0 ? 0 : 100 - (100 / (1 + fastup / fastdown))
//CryptoBottom
mac = sma(close, 10)
lencb = abs(close - mac)
sma = sma(lencb, 100)
max = max(open, close)
min = min(open, close)
//dn = close > open and len > sma * 3 and max > max[1] and fastrsi > 90 ? 1 : 0
//PriceChannel
lasthigh = highest(src, len)
lastlow = lowest(src, len)
center = (lasthigh + lastlow) / 2
//dist
dist = abs(src - center)
distsma = sma(dist, len)
hd = center + distsma
ld = center - distsma
//Trend
trend = close < ld and high < hd ? -1 : close > hd and low > ld ? 1 : trend[1]
//Lines
colo = needbb == false ? na : black
plot(hd, color = colo, linewidth = 1, transp = 0, title = "High band")
plot(center, color = colo, linewidth = 1, transp = 0, title = "center")
plot(ld, color = colo, linewidth = 1, transp = 0, title = "Low band")
//Background
col = needbg == false ? na : trend == 1 ? lime : red
bgcolor(col, transp = 90)
//Signals
up = trend == 1 and ((close < open or color == false) or close < hd) ? 1 : 0
dn = trend == -1 and ((close > open or color == false) or close > ld) ? 1 : 0
up2 = close < open and lencb > sma * 3 and min < min[1] and fastrsi < 10 ? 1 : 0 //CryptoBottom
longCondition = up == 1 or (up2 == 1 and usecb == true)
if (longCondition)
strategy.entry("Long", strategy.long, needlong == false ? 0 : na)
shortCondition = dn == 1
if (shortCondition)
strategy.entry("Short", strategy.short, needshort == false ? 0 : na)