MAGIC Buy Sell indicator TradingView : Heikin-Ashi RSI trading strategy SCALPING trading Bitcoin

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Today we're going to be testing. They buy sell Magic indicator for tradingview. So let's get straight to it. Hi Traders, I hope you're gone extremely. Well, my name is David and welcome to my channel where I go through trading strategies, that I find on YouTube and on our web. And then I use code to back, test them to debunk, the bad ones and find the good ones. Today.
We're going to be looking at a trading strategy off of the quantum trading strategy YouTube channel. This is the first time I visited this Channel and do coded one of their strategies. It involves a couple of indicators that are free on tradingview including Chandelier exit.

And then we have our RSI as standard, but we are on two different lengths will discuss that in a minute and to top it all off. We're going to be using the heiken-ashi candles. Just as a side note. I do know that this is not at the trading strategy that I was meant to be trading today, but I am trying to do the order blocks ones in the background. It's taken a bit longer. So I thought I'd do this one just so that we have something to talk about today. So anyway, let's go and have a look at this screen. Let's go. I never look at the trading strategy, see how it works. See if it actually really works by testing it and back testing it. Let's go over to my screen. If I may I'll start just before I go to my screen.

If you do enjoy the video, if you don't mind just give it a good old thumbs up. It does help me to grow as a community and you can come and join us. All of the patreon link sat down in the description below. You can also add this and all of my indicators at, to your tradingview. Let's go to my computer and have a look at this strategy.

Right here. I am on my screen on my computer, giving credit where credit is due. As always this a trading strategy comes from Quantum trading strategies one of their most recent videos. So I thought I'd give it a go over suggested also by a couple of users off of my Discord, right? Okay. Let's have a look at the Rose. What I'll be doing is I'll be gone through the rules, how this trading strategy works, and then I'll give my optimizations if things don't work out as expected. Did and hopefully you'll be able to find better results with those optimizations right? Here.
We are on my screen on BTC. U.s.

DT. As always, I'm currently on the one hour chart, this one that they reckon, it will work on the five-minute the 15-minute and the one hour currently. I have no indicators on the screen. So let's start adding these indicators. As you can see, Bitcoin is going through a bit of a pump at the moment, which is absolutely wonderful to see. So,
let's go and add the first indicators that we're going to be looking for.

The John that exit by ever get us by ever get. So it's going to be the third one here. So you have to click that to add it to the screen. That's going to give you something that looks very much. Like a super Trend have a buy and sell signals here and they were going to start adding a couple of other indicators as well. We're going to be adding the RSI. We're going to be adding RSI twice. So I have need to scroll right away down here after all of this and go to relative strength. Index. I'm going to click that twice to add to and you'll see why in a minute.

And the last and final thing. We're going to be changing on these. It's not really an indicator, but more the candles. We're going to change him over to hiking. El Sheikh,
handles up here. Now,
as a coder, I won't be able to add to use these high Kenosha candles because they won't be able to, we won't the algorithms on tradingview won't allow us to do that. But a good thing is, is that I will be able to code in an overlay, so we could be getting the same. Entries as if we had a real hiker, she candles. Okay.
This settings for this is going to be a bit strange but we're going to give it a go. Anyway, we're going to click the Cog up here and we're going to change our ATR, period, 21, and our multiplier 21.85.
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00:03:58,000 –> 00:03:57,999
Now, this is the first time I've seen these kind of settings used, but we won't criticize it until we're back to the I guess.

Okay, as you can see, it does seem to give a bit better results. Let's have a look. We have a couple of decent entries by the looks of it here. Okay, and then we're going to go over to the RSI. Now the first RSI we're going to put on 2025 and then we're going to remove the actual M. A Band Here. Anyone who would change the color to Yellow over this one here. We get a thicker line. Just like that. So it's easier to see and then the second RSI level is going to be 100. We're going to click. 100 just there. 100 is and we're going to do the same. We're going to remove the mo band, going to make this one white, and we're going to make it nice and thick too, and that's great. So,
that's the two indicators that we add. Now,
what we do is we click these buttons, these three dots at the top here, and we're going to move this one down to the below.

So we have them both on. Exactly the same panels here, and then we have to go up to the top here. Click on those buttons again. We're going to pin 2 scales. It. And then we're gonna do the same here pin to scale Z, which would already be there. Anyway, that means that they are all pinned to the same scale so that we can find best in trees. Okay.
So when we're looking for long positions, with waiting, for the yellow RSI, to be above the white and we're looking for shorts, were looking for the white to be above the yellow, just like these here. Okay,
I guess. Let's have a look at some of these entries, right?
As I said, this one was on the 5 minute. 5 minute to one hour time frame. I'm currently on the one hour.

We're going to stick with that for the moment for the couple of entries and then I will test it using Code. Like I said, and then we'll be able to have a look at also on the five minutes. So the first entries are going to be taken when we have our yellow line, over our white line at just here. When we're looking for buyers where there's a Buy Signal just hear from this gender layer, exit indicator. And we're going to be have to have a green candle in the hike and a SHINee. This is our first X entry here. Would have got in at just about, yeah. Now our exit would have been either on the swing low so very very closer to the entry just here at 1% And we would have been looking at AA to risk to reward. As you can see, that was a win.

Unfortunately inside the actual trading strategy on the their YouTube channel. They haven't got really met too many examples of the actual trades. So the actual stop losses and things like that. I've had to come up with as I've been going along but I'm guessing this seems quite good. Go through those when we've got the script together. It makes it a bit easier. So here we go. A second one here. We're going to add a short that is short is looking for a sell signal.

pexels photo 6801648

We got a red candle and we've got to have the white over the yellow just here. So that would have been a entry. Okay. We're going to be looking for our stop loss to be at the swing high up here. And we go look for a to risk to reward as well. Now,
that one was only just only just A actual winner as well. So that's perfect. So we do seem to be getting a couple of decent entries on those. We have a win of two percent here and a win of 3%. Just here. As you can see. There's a couple here as well. That seems to be quite good as well. Oh,
yeah. It doesn't look too bad on paper. Let's I guess the best thing we can do is code this and then we can back test it on a longer period to see if it actually really does work. Well,
it's get to code in it but whilst the music is beIN.

If you do have any suggestions for training strategies, that you, Michiko. Please don't hesitate to put them down in the comments below and I'll give it a go, right? Let's go over to the computer guess. Strategy. Come on, David. Show us what you got. Come on. David. Patience is running out. Come on, David, show us. Show us what you got? Okay, here we are back at my computer. I have finished coding, the trading strategy, and it first. I it doesn't seem too too bad. There's a lot of noise all over the place. But yeah, it doesn't seem Too bad at all. There's a lot of entries. A heck of a lot of entries which is good. I'm still on the one hour time frame here. I have had a look very quickly at the results and they don't look too bad at all.

As you can see there's a couple of good buyers couple of wins, couple of losses. It seems a bit between the two but I have been looking at trying to run it through the optimizer to find better results as well. Right?
Okay. Let's have a look at the trading strategy itself. Now,
this is on default results with exactly. The same settings as suggested by the YouTube channel. And as I said, they certainly aren't too bad at all. Now.
The max drawdown is absolutely awful at almost 70% but you would have made a net profit of almost 1,000 percent average. Trade was 1% and Nick Whip and win rate was 40% just here. Now,
this has, as I said got exactly the same strategy settings as was set by the new tube. But it is kind of multi time frame because you can click on the 5 minute and you still would be profitable as well. Very much a large down a draw as we draw down as well, which isn't very good, but now it is tested on 257 trades and if I go back to the one hour we have over almost 600 trades tested as well.

So it's a great pool of Trades to be testing on and manage to be still profitable after 600. Trades is very good. Good. Now,
let's have a look at some of the stats, and then I'll go through some of the ways that I have found of actually improving that and getting better win rate. So,
first of all, let's have a look at the win rate. We have a win rate of fair, 40%.

As you can see here. There is 243 wins against 353. Losses. Giving us a where Max wins in a row of 9 and makes losses in a row of 11 profit Factor was one Quite a good number of trade stankin. If we go over to the 5 minute, as I said earlier, we have the same sort of win rate. We have a 37% winrate. We have a, where wins in a row of four losses in a row, eight wins at 96 and losses 161. So yeah, so it certainly is good fruit for fault. We can have a look at how we can make this better using better settings. Okay, so I actually did find a couple of better settings.

Now,
if you change the ATR period and the 80 army air multiplier of the chandelier exit periods, inside this indicator here that I've built actually doubles the net profit and reduces the max drawdown quite a lot. Now,
have gone through a multiple optimization of this trading strategy and worked out the best settings that I can possibly find for it. And here they are now, right? So as you can see this, One's a lot lot, better hugely better, and the trading strategy has actually changed quite a lot instead of using a swing High swing low. I'm actually going to take profit using the ATR.
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00:11:40,700 –> 00:11:40,699
Now, the ATR is an indicator, which I use not particularly often, but should use more often is the average true range here. Now,
this will show you this line here, but you can actually find an ATR band type in ER band that will put a band on to your indicator just here and the ATR band dependent on the settings, will help you set a stop loss and then we can use those ATR bands to create an of to are a risk to reward.

So take profit as well there. For instance. If you were looking to enter just here, you'd put your entry just here. You would put your stop loss on that ATR band depending on the settings. And then you could have a risk to reward of two. It's like that. So you would have your perfect entry and your have your stop loss using the ATR. Now a lot of professional Traders use the ATR bands for a setting stop loss and take profit. I personally don't use it enough because it actually worries me but I do. Now have a new setting inside of my indicators which allows us to have a maximum has stop loss of in percentage. So I've set this one to four because I don't want the stop-loss to be over 4% and if it is, it just Not take that entry.

The next Improvement I have added is a to take profit in two parts. As you can see here. We can taking profit here and just here. So if so 50% of our take profit here, we will be taking videos in of the table. And so we're taking profit in two steps and the last and final parts that we'll be adding is I'm adding a 200 EMA. Just hear the 200 EMA gives us a trend direction to Help us improve on that Trend Direction, created by the chandelier exit. So if we're above the 200 EMA, you under the EMA a little bit hard to see on this panel here. Let's have a look and see if I can see it. That blue cloud. If we're above at that blue cloud, that there, we're actually taking Long's. And if the crowd is red in the background, we're taking short. And the last and final part is the a DX Dy have set to 20 now. The adx is absolutely my favorite indicator. To help us find.

Absolutely brilliant. In trees. It's the average directional index every Jinder. A directional index is a indicator that just literally tells us what kind of pumping or not pumping or dumping makes no difference. Yeah, we've got a line that is a virtual line that we put here at 20. If the red line is above the 20, we take trades either in the short or long, if it's below, means that it's probably consolidating. So,
it's filtering out those Oceans. Now,
that has been my improvements at to this trading strategy, and on the one-hour. As you can see, we have eight thousand percent net profit, which is absolutely humongous. We have a 76%, Nicolette 76% winrate, 49%, drawdown, which is not good at all, this.
So I need to continue improving on that itself. It has been taken 1,800 1,800 for trades, which is a Huge pool of Trades, which is great for us to get best to have confirmation on it. As you can see. We have one 826 trades that lost them 258. We have 17 wins in a row and 7 losses makes winds in the row. Aisle profit factor is 1.2. And as I was saying, we're taking profit using the ATR now, so the ATR is set to 2, so it's the ATR stop loss on.

Art of art of to. So,
absolutely after optimization. It does seem that this indicator seems to be quite good. You always have to be very, very careful of overfitting, but you can test all of that using the forward testing platforms, Etc. That I have built inside the patreon. I hope you enjoyed it. This guy's that, you can also add this, a tradingview indicator to your trading viewer, connect it to bots, using things like alert to return and things like that. All of those links are also down in the description that We'll be back very soon during the order blocks that strategy that I promised on Friday last week. Just the code was become more complicated than I expected. So I had to put it off for a couple of days. I am working on that one, in the background with lots of other great improvements as well. And if you're interested in another indicator or watching another strategy, that I'm suggesting this video here and without further Ado. Have a great day and I'll see you soon.

Keep safe. Keep coding and I'll see you on Friday. Take care. Good. Hi. Come on, David. And once again, he's gone too cold new strategy. He'll be back in just five minutes. Chris. I am a CD. If it doesn't run into any box. There will be..

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