Gem Forest One Minute Scalping Strategy

The Gem Forest One Minute Scalping Strategy is a quantitative trading strategy for short-term trading. It combines multiple indicators to identify market oscillation characteristics within a 1-minute timeframe and…

Pine ScriptScalping Trend following RSI EMA SMA ATR Stochastic

Author: ChaoZhang
Complexity: Intermediate · 70 lines
Parameters: 7
Backtest bar: 1h · intraday
Tested on: BTC/USDT · futures

Jump to code View in vault Original on FMZ

Overview

Strategy Logic

ATR indicator builds upper and lower bands to determine price oscillation range
Fast and slow EMA crossovers generate trading signals
Dual RSI indicators confirm crossover signals
Entry and exit points are determined by combining indicator signals and price levels

When price is below the lower band, fast and slow EMA golden cross happens, fast RSI crosses above slow RSI, a buy signal is generated; When price is above upper band, fast and slow EMA dead cross happens, fast RSI crosses below slow RSI, a sell signal is generated. After entry, stop loss and take profit are used for exit.

Advantage Analysis

Multiple indicators combined improves reliability
High operation frequency provides greater profit potential
Smaller drawdowns, better stability
Capable of ultra-short scalping within 1-min or shorter timeframe

Risk Analysis

Higher requirements for network and hardware due to high frequency
Over-trading and capital scattering risks
False signals from poor indicator configuration
Vulnerable to stop loss in volatile market conditions

These risks can be managed by optimizing parameters, adjusting stops, limiting max daily trades, choosing proper products etc.

Optimization Directions

Test impact of different ATR periods
Try different EMA types or replace one EMA
Adjust RSI periods or test other oscillators like KDJ, Stochastics etc
Improve entry logic with more factors like trends
Optimize stops for better risk-reward ratio

Conclusion

This strategy fully considers the characteristics of ultra-short quantitative trading. Reasonable indicator settings, multiple confirmations and combinations ensure high reliability. With strict risk control, it has considerable profit potential and suits investors with sufficient computing power and psychological quality.

Parameters

Name	Default	What it controls
v_input_int_1	14	ATR Period
v_input_float_1	true	ATR Multi
v_input_string_1	0	ATR Smoothing: WMA \| SMA \| EMA \| RMA
v_input_int_2	21	Fast EMA
v_input_int_3	65	Slow EMA
v_input_int_4	25	Fast RSI Length
v_input_int_5	100	Slow RSI Length

Source Pine Script

/*backtest
start: 2024-01-01 00:00:00
end: 2024-01-31 23:59:59
period: 1h
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

//@version=5
strategy("Gem Forest 1 Dakika Scalp", overlay=true)

source = close
atrlen = input.int(14, "ATR Period")
mult = input.float(1, "ATR Multi", step=0.1)
smoothing = input.string(title="ATR Smoothing", defval="WMA", options=["RMA", "SMA", "EMA", "WMA"])

ma_function(source, atrlen) => 
    if smoothing == "RMA"
        ta.rma(source, atrlen)
    else
        if smoothing == "SMA"
            ta.sma(source, atrlen)
        else
            if smoothing == "EMA"
                ta.ema(source, atrlen)
            else
                ta.wma(source, atrlen)

atr_slen = ma_function(ta.tr(true), atrlen)
upper_band = atr_slen * mult + close
lower_band = close - atr_slen * mult

ShortEMAlen = input.int(21, "Fast EMA")
LongEMAlen = input.int(65, "Slow EMA")
shortSMA = ta.ema(close, ShortEMAlen)
longSMA = ta.ema(close, LongEMAlen)
RSILen1 = input.int(25, "Fast RSI Length")
RSILen2 = input.int(100, "Slow RSI Length")
rsi1 = ta.rsi(close, RSILen1)
rsi2 = ta.rsi(close, RSILen2)
atr = ta.atr(atrlen)

RSILong = rsi1 > rsi2
RSIShort = rsi1 < rsi2

longCondition = open < lower_band
shortCondition = open > upper_band
GoldenLong = ta.crossover(shortSMA,longSMA)
Goldenshort = ta.crossover(longSMA,shortSMA)

plotshape(shortCondition, title="Sell Label", text="Sell", location=location.abovebar, style=shape.labeldown, size=size.tiny, color=color.red, textcolor=color.white, transp=0)
plotshape(longCondition, title="Buy Label", text="Buy", location=location.belowbar, style=shape.labelup, size=size.tiny, color=color.green, textcolor=color.white, transp=0)
plotshape(Goldenshort, title="Golden Sell Label", text="Golden Crossover Short", location=location.abovebar, style=shape.labeldown, size=size.tiny, color=color.blue, textcolor=color.white, transp=0)
plotshape(GoldenLong, title="Golden Buy Label", text="Golden Crossover Long", location=location.belowbar, style=shape.labelup, size=size.tiny, color=color.yellow, textcolor=color.white, transp=0)

if (longCondition)
    stopLoss = low - atr * 2
    takeProfit = high + atr * 5
    strategy.entry("long", strategy.long, when = RSILong)

if (shortCondition)
    stopLoss = high + atr * 2
    takeProfit = low - atr * 5
    strategy.entry("short", strategy.short, when = RSIShort)

plot(upper_band)
plot(lower_band)
plot(shortSMA, color = color.red)
plot(longSMA, color = color.yellow)

Published by ChaoZhang on the FMZ strategy square · last modified 2024-02-19. Collected in the Quant Trading Vault. Unvalidated research: re-test with your own data and costs before trusting it.

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