This strategy trades long breakouts of a fast and a slow moving average on the price chart. It opens a long position when price crosses above either average, using a percentage of equity as size. It reduces the position by a set share when the high reaches the
Strategy · Pine Script v4 · On the chart
BuyTheDip
BuyTheDip is a strategy script that identifies upward moving average alignments across multiple timeframes using SMA, EMA, HMA, RMA, VWMA or WMA types.
GitHub stars106on the repository
Pine versionv4older, still runs
Lines of code66
Settings9inputs
LicenceGPL-3.0
Last update2 years ago18 Sep 2024
Add It to Your TradingView Chart
- 1Copy the scriptPress Copy script above, or the copy button on the code below.
- 2Open the Pine EditorOpen a TradingView chart and choose Pine Editor at the bottom of the screen.
- 3Paste over the templateCreate a new strategy, select all of the template text and paste. Press Save and give it a name.
- 4Add it to the chartPress Add to chart. The trades and results appear in the Strategy Tester tab; adjust the settings with the gear icon.
Source Code
66 lines of Pine Script v4 from BuyTheDip.pine, published under GPL-3.0. Keep the author's credit and licence lines when you reuse it.
// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © HeWhoMustNotBeNamed
//@version=4
strategy("BuyTheDip", overlay=true, initial_capital = 10000, default_qty_type = strategy.percent_of_equity, default_qty_value = 100, commission_type = strategy.commission.percent, pyramiding = 1, commission_value = 0.01)
MAType = input(title="Moving Average Type", defval="sma", options=["ema", "sma", "hma", "rma", "vwma", "wma"])
exitType = input(title="Exit Strategy", defval="Signal", options=["Signal", "TrailingStop", "Both"])
LookbackPeriod = input(30, minval=10,step=10)
BBStdDev = input(2, minval=1, maxval=10, step=0.5)
BBLength = input(60, minval=5, step=5)
atrLength = input(22)
atrMult = input(6)
tradeDirection = input(title="Trade Direction", defval=strategy.direction.all, options=[strategy.direction.all, strategy.direction.long, strategy.direction.short])
backtestYears = input(10, minval=1, step=1)
includePartiallyAligned = true
f_getMovingAverage(source, MAType, length)=>
ma = sma(source, length)
if(MAType == "ema")
ma := ema(source,length)
if(MAType == "hma")
ma := hma(source,length)
if(MAType == "rma")
ma := rma(source,length)
if(MAType == "vwma")
ma := vwma(source,length)
if(MAType == "wma")
ma := wma(source,length)
ma
f_getTrailingStop(atr, atrMult)=>
stop = close - atrMult*atr
stop := strategy.position_size > 0 ? max(stop, stop[1]) : stop
stop
f_getMaAlignment(MAType, includePartiallyAligned)=>
ma5 = f_getMovingAverage(close,MAType,5)
ma10 = f_getMovingAverage(close,MAType,10)
ma20 = f_getMovingAverage(close,MAType,20)
ma30 = f_getMovingAverage(close,MAType,30)
ma50 = f_getMovingAverage(close,MAType,50)
ma100 = f_getMovingAverage(close,MAType,100)
ma200 = f_getMovingAverage(close,MAType,200)
upwardScore = 0
upwardScore := close > ma5? upwardScore+1:upwardScore
upwardScore := ma5 > ma10? upwardScore+1:upwardScore
upwardScore := ma10 > ma20? upwardScore+1:upwardScore
upwardScore := ma20 > ma30? upwardScore+1:upwardScore
upwardScore := ma30 > ma50? upwardScore+1:upwardScore
upwardScore := ma50 > ma100? upwardScore+1:upwardScore
upwardScore := ma100 > ma200? upwardScore+1:upwardScore
upwards = close > ma5 and ma5 > ma10 and ma10 > ma20 and ma20 > ma30 and ma30 > ma50 and ma50 > ma100 and ma100 > ma200
downwards = close < ma5 and ma5 < ma10 and ma10 < ma20 and ma20 < ma30 and ma30 < ma50 and ma50 < ma100 and ma100 < ma200
upwards?1:downwards?-1:includePartiallyAligned ? (upwardScore > 5? 0.5: upwardScore < 2?-0.5:upwardScore>3?0.25:-0.25) : 0
inDateRange = time >= timestamp(syminfo.timezone, year(timenow) - backtestYears, 01, 01, 0, 0)
exitBySignal = exitType == "Signal" or exitType == "Both"
exitByTrailingStop = exitType == "TrailingStop" or exitType == "Both"
maAlignment = f_getMaAlignment(MAType,includePartiallyAligned)
atr = atr(atrLength)
trailingStop = f_getTrailingStop(atr, atrMult)
maAligned = highest(maAlignment,LookbackPeriod)
[middle, upper, lower] = bb(close, BBLength, BBStdDev)
buyCondition = maAligned == 1 and (crossover(close, lower) or crossover(close, middle))
buyExitCondition = crossunder(close, upper)
strategy.entry("Buy", strategy.long, when=buyCondition and inDateRange, oca_name="oca_buy", oca_type=strategy.oca.none)
strategy.close("Buy", when=buyExitCondition and exitBySignal)
strategy.exit("ExitBuy", "Buy", stop = trailingStop, when=exitByTrailingStop )
Expand (80 lines)
Overview
BuyTheDip plots Bollinger Bands on the price chart and enters long positions when alignment scores reach 1 and price crosses the lower or middle band. Exits trigger on price crossing the upper band, trailing stop based on ATR multiples, or both. Primary settings adjust the moving average type, exit logic, Bollinger parameters, ATR values, lookback period, trade direction and backtest years range. The script overlays signals directly on the price chart for visual entry and exit points.
- Moving Average Alignment Score
- Bollinger Bands Crossover Entry
- ATR Trailing Stop Exit
- Trend Direction Filter
- Multi MA Timeframe Comparison
Details
Published by
hasnocool on GitHub
Code credit
HeWhoMustNotBeNamed, as written in the script's header
Type
Strategy, Pine Script v4
Draws
On the price chart
Category
Trend, Moving averages, Volatility & bands, Breakout
Markets
Crypto
Timeframes
Any timeframe
Risk Notes
No repainting, lookahead or stacked entries were found in its code or README. That says nothing about how well it works: test it first.
File
Topics
analysisbtcusdtcryptocurrencydatapandaspythonsimulationtradingtradingview
Settings
The inputs you can change from the gear icon on the chart. Defaults are the author's.
| Setting | Type | Default | Variable |
|---|---|---|---|
| Moving Average Type | string | sma | MAType |
| Exit Strategy | string | Signal | exitType |
| LookbackPeriod | int | 30 | LookbackPeriod |
| BBStdDev | int | 2 | BBStdDev |
| BBLength | int | 60 | BBLength |
| atrLength | int | 22 | atrLength |
| atrMult | int | 6 | atrMult |
| Trade Direction | input | strategy.direction.all | tradeDirection |
| backtestYears | int | 10 | backtestYears |
Third-party code. ForexR did not write, test or endorse this script, and the summary above was generated automatically from its code and README. Indicators describe the past, and a strategy's backtest can look better than live trading, especially when a script repaints. Check it in the Strategy Tester and on a demo account before you rely on it.
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