Range Filter + MA Strategy
First, start by choosing a Risk/Reward Ratio and Stop PIP Size
– Risk/Reward Ratio = If you have a .5 risk/reward, it means you are risking $100 to make $50.
– Stop PIP Size = How many PIPs will be representative of the max risk. i.e. – if you are risking $100 and you set the PIP stop to 10, that means 10 PIPs = $100.
Next, we set the Session Filter
Set the Timezone and Trade Session you desire. If no specific session is desired, simply leave the box unchecked.
Next, we set the Moving Average Cloud
Enter the Moving Average Type:
Enter the fast and slow Moving Average Period.
These inputs will determine whether the strategy looks for Long or Short positions.
Next, we set the Range Filters
In combination with the Moving Average Cloud, the Range Filter will help us determine when to take a trade and in what direction.
The strategy is essentially looking for small reversals going against the overall trend and placing a trade once that reversal ends and the price moves back in the direction of the overall trend.
The Range filter utilizes confirmation between two entirely separate Range Filter calculations (or set them both equal to use one).
Each Range Filter is completely customizable by:
Source Calculation (open, high, low, close, hl2 , hlc3, ohlc4, hlcc4)
Sampling Period
Range Multiplier
Finally, we backtest our ideas
After using the ‘Strategy Tester’ tab on TradingView to thoroughly backtest your predictions you are ready to take it to the next level – Automated Trading!
This was my whole reason for creating the script. If you work a full-time job, live in a time zone that is hard to trade, or just don’t have the patience, this will be a game-changer for you as it was for me.
Auto-Trading
When it comes to auto-trading this strategy I have included two options in the script that utilize the alert messages generated by TradingView.
*Note: Please trade on a demo account until you feel comfortable enough to use real money, and then please stick to 1%-2% of your total account value in risk per trade.*
AutoView
PineConnector
What should I trade?
Check out our Indicator Settings page!
Also, please don’t hesitate to message us or send us an email!
Good luck with your trading!
"Growth and comfort will never coexist."
Ginni Rometty - IBM