AlphaTrend

AlphaTrend is a brand new indicator which I've personally derived from Trend Magic and still developing In Magic Trend we had some problems, Alpha Trend tries to solve those problems such as: 1-To minimize stop…

Pine ScriptTrend following Momentum Volatility RSI SMA ATR CCI Pivots / S&R

Author: ChaoZhang
Complexity: Starter · 47 lines
Parameters: 5
Backtest bar: 1d · swing
Tested on: BTC/USD · spot

Jump to code View in vault Original on FMZ

AlphaTrend is a brand new indicator which I've personally derived from Trend Magic and still developing

In Magic Trend we had some problems, Alpha Trend tries to solve those problems such as:

1-To minimize stop losses and overcome sideways market conditions. 2-To have more accurate BUY/SELL signals during trending market conditions. 3- To have significant support and resistance levels. 4- To bring together indicators from different categories that are compatible with each other and make a meaningful combination regarding momentum, trend, volatility , volume and trailing stop loss.

according to those purposes Alpha Trend: 1- Acts like a dead indicator like its ancestor Magic Trendin sideways market conditions and doesn't give many false signals. 2- With another line with 2 bars offsetted off the original one Alpha Trend have BUY and SELL signals from their crossovers.

BUY / LONG when Alpha Trend line crosses above its 2 bars offsetted line and there would be a green filling between them SELL / SHORT when Alpha Trend line crosses below its 2 bars offsetted line and filling would be red then.

3- Alpha Trend lines -act as support levels when an uptrend occurs trailing 1ATR (default coefficient) distance from bar's low values -conversely act as resistancelevels when a downtrend occurs trailing 1ATR (default coefficient) distance from bar's high values and acting as trailing stop losses the more Alpha Trend lines straighter the more supports and resistances become stronger.

4- Trend Magic has CCI in calculation Alpha Trend has MFI as momentum, but when there's no volume data MFI has 0 values, so there's abutton to change calculation considering RSI after checking the relevant box to overcome this problem when there is no volume data in that chart. Momentum: RSI and MFI Trend: Magic Trend Volatility: ATR, Trailing STOP: ATR TRAILING STOP Volume: MFI Alpha trend is really a combination of different types...

default values: coefficient: 1 which is the factor of trailing ATR value common period: 14 which is the length of ATR MFI and RSI

Wish you all use AlphaTrend in profitable trades. Kıvanç Özbilgiç

Backtest Results

Parameters

Name	Default	What it controls
v_input_float_1	true	Multiplier
v_input_1	8	Common Period
v_input_source_2	0	Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4
v_input_3	true	Show Signals?
v_input_4	false	Change calculation (no volume data)?

Source Pine Script

/*backtest
start: 2017-08-01 00:00:00
end: 2022-05-04 23:59:00
period: 1d
basePeriod: 1d
exchanges: [{"eid":"Bitfinex","currency":"BTC_USD"}]
*/

// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// author © KivancOzbilgic
// developer © KivancOzbilgic
//@version=5
indicator('AlphaTrend', shorttitle='AT', overlay=true, format=format.price, precision=2, timeframe='')
coeff = input.float(1, 'Multiplier', step=0.1)
AP = input(8, 'Common Period')
ATR = ta.sma(ta.tr, AP)
src = input(close,'Source')
showsignalsk = input(title='Show Signals?', defval=true)
novolumedata = input(title='Change calculation (no volume data)?', defval=false)
upT = low - ATR * coeff
downT = high + ATR * coeff
AlphaTrend = 0.0
AlphaTrend := (novolumedata ? ta.rsi(src, AP) >= 50 : ta.mfi(hlc3, AP) >= 50) ? upT < nz(AlphaTrend[1]) ? nz(AlphaTrend[1]) : upT : downT > nz(AlphaTrend[1]) ? nz(AlphaTrend[1]) : downT

color1 = AlphaTrend > AlphaTrend[2] ? #00E60F : AlphaTrend < AlphaTrend[2] ? #80000B : AlphaTrend[1] > AlphaTrend[3] ? #00E60F : #80000B
k1 = plot(AlphaTrend, color=color.new(#0022FC, 0), linewidth=3)
k2 = plot(AlphaTrend[2], color=color.new(#FC0400, 0), linewidth=3)

buySignalk = ta.crossover(AlphaTrend, AlphaTrend[2])
sellSignalk = ta.crossunder(AlphaTrend, AlphaTrend[2])


K1 = ta.barssince(buySignalk)
K2 = ta.barssince(sellSignalk)
O1 = ta.barssince(buySignalk[1])
O2 = ta.barssince(sellSignalk[1])


//plotshape(buySignalk and showsignalsk and O1 > K2 ? AlphaTrend[2] * 0.9999 : na, title='BUY', text='BUY', location=location.absolute, style=shape.labelup, size=size.tiny, color=color.new(#0022FC, 0), textcolor=color.new(color.white, 0))

//plotshape(sellSignalk and showsignalsk and O2 > K1 ? AlphaTrend[2] * 1.0001 : na, title='SELL', text='SELL', location=location.absolute, style=shape.labeldown, size=size.tiny, color=color.new(color.maroon, 0), textcolor=color.new(color.white, 0))

if buySignalk and showsignalsk and O1 > K2
    strategy.entry("entry long", strategy.long)
else if sellSignalk and showsignalsk and O2 > K1
    strategy.entry("entry short", strategy.short)

Published by ChaoZhang on the FMZ strategy square · last modified 2022-05-06. Collected in the Quant Trading Vault. Unvalidated research: re-test with your own data and costs before trusting it.

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