VIDYA ProTrend Multi-Tier ProfitHello! This time is about a trend-following system.
VIDYA is quite an interesting indicator that adjusts dynamically to market volatility, making it more responsive to price changes compared to traditional moving averages. Balancing adaptability and precision, especially with the more aggressive short trade settings, challenged me to fine-tune the strategy for a variety of market conditions.
█ Introduction and How it is Different
The "VIDYA ProTrend Multi-Tier Profit" strategy is a trend-following system that combines the VIDYA (Variable Index Dynamic Average) indicator with Bollinger Bands and a multi-step take-profit mechanism.
Unlike traditional trend strategies, this system allows for more adaptive profit-taking, adjusting for long and short positions through distinct ATR-based and percentage-based targets. The innovation lies in its dynamic multi-tier approach to profit-taking, especially for short trades, where more aggressive percentages are applied using a multiplier. This flexibility helps adapt to various market conditions by optimizing trade management and profit allocation based on market volatility and trend strength.
BTCUSD 6hr performance
█ Strategy, How it Works: Detailed Explanation
The core of the "VIDYA ProTrend Multi-Tier Profit" strategy lies in the dual VIDYA indicators (fast and slow) that analyze price trends while accounting for market volatility. These indicators work alongside Bollinger Bands to filter trade entries and exits.
🔶 VIDYA Calculation
The VIDYA indicator is calculated using the following formula:
Smoothing factor (𝛼):
alpha = 2 / (Length + 1)
VIDYA formula:
VIDYA(t) = alpha * k * Price(t) + (1 - alpha * k) * VIDYA(t-1)
Where:
k = |Chande Momentum Oscillator (MO)| / 100
🔶 Bollinger Bands as a Volatility Filter
Bollinger Bands are calculated using a rolling mean and standard deviation of price over a specified period:
Upper Band:
BB_upper = MA + (K * stddev)
Lower Band:
BB_lower = MA - (K * stddev)
Where:
MA is the moving average,
K is the multiplier (typically 2), and
stddev is the standard deviation of price over the Bollinger Bands length.
These bands serve as volatility filters to identify potential overbought or oversold conditions, aiding in the entry and exit logic.
🔶 Slope Calculation for VIDYA
The slopes of both fast and slow VIDYAs are computed to assess the momentum and direction of the trend. The slope for a given VIDYA over its length is:
Slope = (VIDYA(t) - VIDYA(t-n)) / n
Where:
n is the length of the lookback period. Positive slope indicates bullish momentum, while negative slope signals bearish momentum.
LOCAL picture
🔶 Entry and Exit Conditions
- Long Entry: Occurs when the price moves above the slow VIDYA and the fast VIDYA is trending upward. Bollinger Bands confirm the signal when the price crosses the upper band, indicating bullish strength.
- Short Entry: Happens when the price drops below the slow VIDYA and the fast VIDYA trends downward. The signal is confirmed when the price crosses the lower Bollinger Band, showing bearish momentum.
- Exit: Based on VIDYA slopes flattening or reversing, or when the price hits specific ATR or percentage-based profit targets.
🔶 Multi-Step Take Profit Mechanism
The strategy incorporates three levels of take profit for both long and short trades:
- ATR-based Take Profit: Each step applies a multiple of the ATR (Average True Range) to the entry price to define the exit point.
The first level of take profit (long):
TP_ATR1_long = Entry Price + (2.618 * ATR)
etc.
█ Trade Direction
The strategy offers flexibility in defining the trading direction:
- Long: Only long trades are considered based on the criteria for upward trends.
- Short: Only short trades are initiated in bearish trends.
- Both: The strategy can take both long and short trades depending on the market conditions.
█ Usage
To use the strategy effectively:
- Adjust the VIDYA lengths (fast and slow) based on your preference for trend sensitivity.
- Use Bollinger Bands as a filter for identifying potential breakout or reversal scenarios.
- Enable the multi-step take profit feature to manage positions dynamically, allowing for partial exits as the price reaches specified ATR or percentage levels.
- Leverage the short trade multiplier for more aggressive take profit levels in bearish markets.
This strategy can be applied to different asset classes, including equities, forex, and cryptocurrencies. Adjust the input parameters to suit the volatility and characteristics of the asset being traded.
█ Default Settings
The default settings for this strategy have been designed for moderate to trending markets:
- Fast VIDYA Length (10): A shorter length for quick responsiveness to price changes. Increasing this length will reduce noise but may delay signals.
- Slow VIDYA Length (30): The slow VIDYA is set longer to capture broader market trends. Shortening this value will make the system more reactive to smaller price swings.
- Minimum Slope Threshold (0.05): This threshold helps filter out weak trends. Lowering the threshold will result in more trades, while raising it will restrict trades to stronger trends.
Multi-Step Take Profit Settings
- ATR Multipliers (2.618, 5.0, 10.0): These values define how far the price should move before taking profit. Larger multipliers widen the profit-taking levels, aiming for larger trend moves. In higher volatility markets, these values might be adjusted downwards.
- Percentage Levels (3%, 8%, 17%): These percentage levels define how much the price must move before taking profit. Increasing the percentages will capture larger moves, while smaller percentages offer quicker exits.
- Short TP Multiplier (1.5): This multiplier applies more aggressive take profit levels for short trades. Adjust this value based on the aggressiveness of your short trade management.
Each of these settings directly impacts the performance and risk profile of the strategy. Shorter VIDYA lengths and lower slope thresholds will generate more trades but may result in more whipsaws. Higher ATR multipliers or percentage levels can delay profit-taking, aiming for larger trends but risking partial gains if the trend reverses too early.
Trung bình Động chỉ số Biến (VIDYA)
[blackcat] L1 Variable Index Dynamic Average (VIDYA)Variable Index Dynamic Average (VIDYA) is a technical indicator that adjusts its sensitivity to market volatility. VIDYA is an exponential moving average (EMA) that uses the standard deviation of price as a measure of volatility. When the market is volatile, the indicator places more weight on recent prices, and when the market is stable, it places more weight on older prices. This makes VIDYA more responsive to market conditions than a regular EMA.
This script is a powerful tool that traders can use to gain valuable insights into market trends and make informed trading decisions. The L1 Variable Index Dynamic Average (VIDYA) is a technical indicator that adjusts its sensitivity to market volatility, making it more responsive to market conditions than a regular EMA. By incorporating the standard deviation of price as a measure of volatility, VIDYA can provide a more accurate representation of the market's current state, which can be especially useful in volatile markets.
One of the key features of this script is that it allows the user to customize the period and alpha inputs used in the VIDYA calculation. This means that traders can tailor the indicator to their specific trading strategies and preferences. By adjusting the period and alpha inputs, traders can fine-tune the sensitivity of the indicator to match the volatility of the market they're trading in.
In addition to plotting the VIDYA line on the chart, this script generates alerts and labels for buy and sell signals based on the crossover and crossunder of the VIDYA line. These alerts and labels can be incredibly helpful in identifying potential trading opportunities and avoiding costly mistakes. By being alerted to buy and sell signals in real-time, traders can take advantage of market movements and make trades quickly and confidently.
Another advantage of this script is that it is written in TradingView's Pine programming language, which is specifically designed for technical analysis and trading. Pine is a user-friendly language that allows traders to create custom indicators and strategies without having to learn a complex programming language. This means that even traders with little to no programming experience can use this script to gain valuable insights into the market.
Overall, this script is an excellent tool for traders who are looking for a powerful and customizable technical indicator that can help them make informed trading decisions. With its ability to adjust to market volatility, generate alerts and labels, and be customized to match individual trading strategies, the L1 Variable Index Dynamic Average (VIDYA) is a valuable addition to any trader's toolkit.
Universal MA Trend(Republishing in Open source)
Hello traders,
Many existing moving average indicators have not been satisfactory in terms of the number, types, and length adjustments of moving averages.
Feeling the inconvenience, I created a moving average indicator and collected numerous famous moving averages.
Fortunately, there was a PineCoder "andre_007" who had already compiled various Moving Averages,
so I was able to find a new Moving Average and combine it with the indicator. Here is the link below
Among these, for the JMA, which has not been publicly disclosed, I utilized the source code from TradingView Wizard everget:
For VIDYA, I also used everget's source code:
And also MAMA / FAMA Coded from Pinescript Wizard everget :
Ehlers MESA Adaptive Moving Averages (MAMA & FAMA)
For Frama, I used the code from nemozny's source code :
Thanks to all these Pinecoders.
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By using these excellent moving averages together, I found that the simultaneous Up/Down changes of various moving averages with different characteristics tend to be maintained for quite a long time.
Therefore, this indicator not only collects various moving averages but also displays areas with simultaneous trends as background.
An example can be found here:
Furthermore, to prevent the up/down changes of the moving averages due to factors like whipsaws, a smoothing filter has been introduced.
And Also, Alert is able when trend changes.
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(오픈소스화 후 재발행)
안녕하세요 트레이더여러분.
기존의 이동평균선 지표들은, 이동평균선의 갯수, 종류, 길이조절 등에서 만족스럽지 못한 점들이 많았습니다.
불편함을 느끼고 직접 이동평균선 지표를 만들면서, 유명한 수 많은 이동평균선들을 모았습니다.
그리고 이미 이러한 수많은 이동평균선을 손수 모아서 정리해주신 고마우신 파인코더(andere_007 님)가 있어서, 그 분의 코드를 많이 이용했습니다. 링크는 아래와 같습니다.
이 중 소스가 공개되지 않은 이동평균선 중 JMA는 트레이딩뷰 위자드이신 everget의 소스코드를 이용했습니다.
VIDYA 역시 everget의 소스코드를 이용했습니다.
MAMA와 FAMA의 코드 역시 everget님의 코드를 가져왔습니다.
Ehlers MESA Adaptive Moving Averages (MAMA & FAMA)
Frama는 nemozny님의 코드를 이용했습니다.
의 코드를 이용했습니다.
이 자리를 빌어 위의 파인코더님들께 감사의 말씀을 전합니다.
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이러한 좋은 이동평균선을 모아서 사용해보니, 다양한 특성을 갖고 있는 이동평균선의 동시적인 Up/Down 변화는 꽤 오랫동안 유지된다는 점을 발견했습니다.
그래서 이 지표는, 위의 여러가지 이동평균선을 모아놓은 것 뿐만 아니라,
그것에서 동시적인 트랜드가 나오는 곳을 배경화면으로 표시해두었습니다.
예시는 다음과 같습니다.
나아가 휩쏘 등으로 이동평균선의 up/down이 바뀌는 것을 막고자, Smoothing 필터도 도입했습니다.
또한 트랜드가 바뀔 때 얼러트가 울리도록, 얼러트 기능을 설정해놓을 수 있게 해놓았으며, 현재 이동평균선과 상태를 보기 쉽도록 테이블을 만들어놓았습니다.
VIDYA DMI Oscillator w/ DSL Levels [Loxx]VIDYA DMI Oscillator w/ DSL Levels is a VIDYA smoothed Direction Movement Index with Discontinued Signals. These two add on features allow for more accurate signals by reducing noise.
What is the Direction Movement Index?
Within the suite of indicators that make up Wilder’s directional movement index (DMI) are the plus directional movement indicator (+DI) and the minus directional movement indicator (-DI). They provide the foundation for the more widely recognized average directional index (ADX). Whereas the ADX offers information about the strength of price movement but not its direction, the +DI and -DI furnish information about the positive or negative direction of price movement over a period of time.
Wilder provides complete information about the function and construction of all the components that make up the directional movement index in his 1978 book, New Concepts In Technical Trading Systems. In general, the plus and minus components of the DMI focus on that portion of the current bar’s trading range that is outside the range of the previous price bar. If it is higher, it is considered to be positive (+) and if it is lower, it is labeled negative (-). These values are divided by the true range and averaged over time, usually 14 periods. A move by the +DI above the -DI indicates that positive or upward price direction has overtaken negative or downward price direction. Conversely, when +DI falls below -DI, declining price either from selling pressure or lack of upward price momentum is taking control. Potential changes in direction or trend occur when the lines intersect.
What is VIDYA?
VIDYA (Chande's Variable Index Dynamic Average) is an adaptive weighted moving average indicator. It was developed by Tushar Chande as an attempt to improve the performance of the EMA (Exponential Weighted Moving Average) indicator.
Included:
Bar coloring
3 signal variations w/ alerts
4 intermediate smoothing types
Loxx's Expanded Source Types
STD-Stepped VIDYA w/ Quantile Bands [Loxx]STD-Stepped VIDYA w/ Quantile Bands is a VIDYA moving average with Standard Deviation step filtering on either/neither/both price and VIDYA. Also included are quantile bands to identify breakouts/breakdowns/reversals.
What is VIDYA?
Variable Index Dynamic Average Technical Indicator ( VIDYA ) was developed by Tushar Chande. It is an original method of calculating the Exponential Moving Average ( EMA ) with the dynamically changing period of averaging.
What is Quantile Bands?
In statistics and the theory of probability, quantiles are cutpoints dividing the range of a probability distribution into contiguous intervals with equal probabilities, or dividing the observations in a sample in the same way. There is one less quantile than the number of groups created. Thus quartiles are the three cut points that will divide a dataset into four equal-size groups ( cf . depicted example). Common quantiles have special names: for instance quartile, decile (creating 10 groups: see below for more). The groups created are termed halves, thirds, quarters, etc., though sometimes the terms for the quantile are used for the groups created, rather than for the cut points.
q-Quantiles are values that partition a finite set of values into q subsets of (nearly) equal sizes. There are q − 1 of the q-quantiles, one for each integer k satisfying 0 < k < q. In some cases the value of a quantile may not be uniquely determined, as can be the case for the median (2-quantile) of a uniform probability distribution on a set of even size. Quantiles can also be applied to continuous distributions, providing a way to generalize rank statistics to continuous variables. When the cumulative distribution function of a random variable is known, the q-quantiles are the application of the quantile function (the inverse function of the cumulative distribution function) to the values {1/q, 2/q, …, (q − 1)/q}.
Included:
3 types of signal options
Alerts
Bar coloring
Loxx's Expanded Source Types
RSI Wave SignalsQuick Description: Smoothed RSI with optimized trailing moving average. Look for cross above or cross under signals for buy and sell orders respectively.
VIDYA moving average of RSI incorporated with "optimized trend tracker" system. Thanks to kivancozbilgic and anilozeksi for implementing this great idea on Tradingview. The indicator adds "1,000" to the RSI MA values for more natural and accurate percentage trailing.
Settings:
- Period MA is the moving average length of the blue line
- Trailing Percentage of MA adjusts the percentage (sort of) trailing level of the moving average.
- RSI Length adjusts the rsi length in calculation.
Trading Tips:
- System might be enhanced by taking signals only on "oversold" or "overbought" territories (i.e <~1020 or >~1080)
- Adjust position size of by 4 times of atr(length=14)
- Take 50% of position as profit when position reaches the 4*atr TP Level (breakeven)
- Let the rest ride.
- Best performing on short frequencies such as 1, 3, 5 mins.
Ehlers Variable Index Dynamic Average [CC]The Variable Index Dynamic Average was created by Tushar Chande and this is a variation of that original formula created by John Ehlers. As you can see I have included the default Vidya from a script by @everget and as you can see the Ehlers version is able to follow the price much closer. I have included strong buy and sell signals in addition to normal ones and so darker colors are strong signals and lighter colors are normal ones. Buy when the line turns green and sell when it turns red.
Let me know if there are any other scripts you would like to see me publish!
RK's 15 ∴ Timeframed Multiple MA Types RibbonI developed this indicator focusing on the KISS (Keep It Simple, Stupid) to help me in a more direct and visual way when enteringand exiting my market position.
The idea is to configure the indicator with your favorite Moving Averages and Lengths and Enter Long when the price is above and Short when the price is below.
I put the setup that I am testing now in the tooltips to give an example.
High Low Differential MeterYet another trend follower that is based on a very simple principle: Take the highest high and lowest low from a user defined bars back period, do an average between them and smooth them up with 3 possible moving averages, VIDYA, EMA and SMA, while VIDYA is the default.
What is VIDYA ?
Variable Index Dynamic Average (VIDYA) is similar to the Exponential Moving Average (EMA), but automatically adjusts the smoothing weight based on price volatility.
How to use:
GREEN : Up trending
LIGHT GREEN : Up trend reversal might occur.
RED : Down trending
LIGHT RED : Down trend reversal might occur.
NOTE: BAR COLORS are set to TRUE by default!
Follow for more indicators: www.tradingview.com
RK's 10 ∴ MA Types Ribbons (Fibonacci, Guppy and others)After some tips in my indicator
RK's 04 - Lots of MA Types Ribbon I Put some time and effort to make it better.
So, I'm sharing with you the results.
This is an up to 10 lines Moving Average Ribbon with an Auto Evaluate Length and a lots of options!!!
Type of Moving Average you can use:
SMA - Simple Moving Average
SMMA - Smoothed Moving Average
EMA - Exponential Moving Average
DEMA - Double Exponential Moving Average
TEMA - Triple Exponential Moving Average
WMA - Weighted Moving Average
HMA - Hull Moving Average
EHMA - Exponential Hull Moving Average
RMA - RSI Moving average
2PSS - Ehlers 2 Pole Super Smoother
3PSS - Ehlers 3 Pole Super Smoother
VWMA - Volume-Weighted Moving Average
ALMA - Arnaud Legoux Moving Average
STMA - Simple Triangular Moving Average
ETMA - Exponential Triangular Moving Average
LSMA - Least Squares Moving Average
ZSMA - Zero-Lag Simple Moving Average
ZEMA - Zero-Lag Exponential Moving Average
COVWMA - Coefficient of Variation Weighted Moving Average
COVWEMA - Coefficient of Variation Weighted Exponential Moving Average
FRAMA - Fractal Adaptive Moving Average
KAMA - Kaufman's Adaptive Moving Average
VIDYA - Variable Index Dynamic Average
If you want to change faster the MA type, in "Moving Average Setup:", Select "🤖 Use numbers to change MA Type", click inside the box in "🤖 Moving Average Type per Number:" and just scroll your mouse wheel. You can check what MA type you are using looking in the info panel label.
There is 4 automatic evaluate length:
Fibonacci Sequence
Arithmetic Progression
Geometric Progression
Guppy Multiple Moving Average (GMMA) without Lengths 03 and 05
And I already put a Manual Length, but I keep it inside the code, so if you want to use different lengths, just change the code, or ask me and I will put as an input.
And attending a request, this indicator can creates alerts when all the colors of the ribbons changes.
Hope you like it!
Any other good idea, just send me.
Triumph ChannelsChannel uses @KivancOzbilgic's VIDYA script as a basis and the maximum distance between Least Square Moving Average (14) over a specified number of periods (80) as size.
This combination is good as it uses one very slow MA and one highly overlapping one. Can be combined with ATR channels where Triumph will represent extreme in relevance to the previous days and ATR channels will work with current volatility.
I like to offset channel sizing by 3, so when the price gets outside the channel, it doesn't get engulfed by the blue just yet.
If you zoom out, this is good to spotting sideways price action too. When there is a trend, it will be big. Then, it will remain low in the contraction phase and it will make it easier to find the areas of contraction and trend in retrospective and study them before placing a new trade.
Variable Index Dynamic Average (VIDYA)Variable Index Dynamic Average indicator script based on the original version by Tushar Chande.
[REPOST] Indicators: 3 Different Adaptive Moving Averages*** NOTE: This is a repost with updated scripts to workaround the recent script engine changes ****
As the volatility rises, all Adaptive Moving Averages (AMA) become more sensitive and adapt faster to the price changes. As the volatility decreases, they slow down significantly compared to normal EMA. This makes it an excellent choice for detecting ranging markets (look for horizontal lines).
I have included 3 AMAs here:
- Kaufman's AMA. This makes use of Kaufman's Efficiency Ratio as the smoothing constant.
- Adaptive RSI. This adapts standard RSI to a smoothing constant.
- Tushar Chande's Variable Index Dynamic Average (VIDYA). This uses a pivotal smoothing constant, which is fixed, and varies the speed by using a factor based on the relative volatility to increase or decrease the value of SC.
For reference, I have plotted an EMA(10). This uses a fixed smoothing constant.
This is my 25th indicators post (Yayy!), so decided to include a bunch of AMAs. Enjoy :)
Feel free to "Make mine" and use these in your charts. Appreciate any comments / feedback.
