Adaptive FVG Detection and MA Trend Trading Strategy with Dynamic Resistance

Pine ScriptTrend following Mean reversion Volatility SMA

Author: ChaoZhang
Complexity: Starter · 78 lines
Parameters: 0
Backtest bar: 1d · swing
Tested on: BTC/USDT · futures

Jump to code View in vault Original on FMZ

Overview

This strategy is a comprehensive trading system that combines Fair Value Gap (FVG) detection, moving average trend determination, and dynamic resistance levels. The strategy identifies FVG formation across different timeframes, integrates moving average trend direction, and executes trades upon reversal signals. The system also includes dynamic stop-loss and profit targets based on historical highs.

Strategy Principles

The core logic includes the following key components:

FVG Detection: Identifies bullish and bearish fair value gaps within specified timeframes (default 1 hour)
Trend Determination: Uses 20-period moving average to assess market trend direction
Reversal Confirmation: Evaluates market reversal signals through candlestick patterns
Dynamic Resistance: Utilizes recent highs as resistance levels and profit targets
Risk Management: Implements percentage-based stop-loss protection

Strategy Advantages

Multi-dimensional Analysis: Combines price patterns, trends, and market structure
High Adaptability: Can adjust parameters in different market environments
Controlled Risk: Features clear stop-loss and profit targets
Visual Support: Provides graphical display of FVG zones and key price levels
Complete Logic: Includes a comprehensive system for entry, exit, and risk management

Strategy Risks

Timeframe Dependency: Different timeframes may generate conflicting signals
Market Volatility: Severe fluctuations may trigger frequent stop-losses
Parameter Sensitivity: Strategy performance heavily depends on parameter settings
Trend Dependency: May underperform in ranging markets
Signal Lag: Moving averages have inherent lag

Strategy Optimization Directions

Introduce Volatility Adaptation: Adjust stop-loss and profit targets based on market volatility
Add Filtering Conditions: Include volume or other technical indicators for confirmation
Optimize Timeframes: Test different timeframe combinations for effectiveness
Improve Trend Determination: Use multiple moving averages or other trend indicators
Enhance Reversal Confirmation: Incorporate additional pattern recognition methods

Summary

This is a comprehensive strategy that integrates multiple trading concepts, seeking high-probability trading opportunities through the combination of FVG, trends, and price patterns. The strategy's strengths lie in its systematic approach and risk control, but attention must be paid to parameter optimization and market environment adaptability. Through the suggested optimization directions, there is room for further strategy improvement.

Source Pine Script

/*backtest
start: 2019-12-23 08:00:00
end: 2024-11-27 08:00:00
period: 1d
basePeriod: 1d
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

//@version=5
strategy("SMC FVG Entry Strategy with Retest", overlay=true)

// Parametreler
stopLossPercent = input(2, title="Stop Loss (%)") / 100
lookbackPeriod = input(50, title="Güçlü Direnç İçin Geriye Dönük Süre")
fvgLength = input.timeframe("60", title="FVG Zaman Dilimi")  // 1 saatlik zaman dilimi
maPeriod = input(20, title="MA Dönemi")  // Trend yönü için MA dönemi

// FVG'leri Hesapla
var float fvgLow = na
var float fvgHigh = na
var bool fvgFilled = false

// Seçilen zaman diliminde FVG'leri kontrol et
if (ta.change(time(fvgLength)))
    bull_fvg = low > high[2] and close[1] > high[2]
    bear_fvg = high < low[2] and close[1] < low[2]
    
    if (bull_fvg)
        fvgLow := low[2]
        fvgHigh := high
        fvgFilled := true
    else if (bear_fvg)
        fvgLow := low
        fvgHigh := high[2]
        fvgFilled := true

// Trend Yönü Kontrolü (MA kullanarak)
ma = ta.sma(close, maPeriod)
trendUp = close > ma
trendDown = close < ma

// Dönüş Mumu Kontrolü
bullishReversal = close > open and close[1] < open[1] and fvgFilled and close > fvgHigh
bearishReversal = close < open and close[1] > open[1] and fvgFilled and close < fvgLow

// İlk güçlü direnç noktası
resistanceLevel = ta.highest(high, lookbackPeriod)

// Giriş Koşulları
if (bullishReversal and trendUp)
    entryPrice = close
    stopLoss = entryPrice * (1 - stopLossPercent)
    takeProfit = resistanceLevel
    strategy.entry("Long", strategy.long)
    strategy.exit("TP", "Long", limit=takeProfit, stop=stopLoss)

if (bearishReversal and trendDown)
    entryPrice = close
    stopLoss = entryPrice * (1 + stopLossPercent)
    takeProfit = resistanceLevel
    strategy.entry("Short", strategy.short)
    strategy.exit("TP", "Short", limit=takeProfit, stop=stopLoss)

// FVG'leri Grafik Üzerinde Göster
// if (fvgFilled)
//     var box fvgBox = na
//     if (na(fvgBox))
//         fvgBox := box.new(left=bar_index[1], top=fvgHigh, bottom=fvgLow, right=bar_index, bgcolor=color.new(color.green, 90), border_color=color.green)
//     else
//         box.set_top(fvgBox, fvgHigh)
//         box.set_bottom(fvgBox, fvgLow)
//         box.set_left(fvgBox, bar_index[1])
//         box.set_right(fvgBox, bar_index)

// Direnç Noktasını Göster
plot(resistanceLevel, color=color.blue, title="Direnç Noktası", linewidth=2)
plot(ma, color=color.red, title="Hareketli Ortalama", linewidth=2)

Published by ChaoZhang on the FMZ strategy square · last modified 2024-11-29. Collected in the Quant Trading Vault. Unvalidated research: re-test with your own data and costs before trusting it.

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