I am attempting to form a trading strategy which can be automated.
This is not a finished product, and I do not recommend trading on this basis blindly.
Thanks for looking!
I've been looking through btc using bollinger bands, and it seems when ever a 4h candle closes above/below the MA20 it displays a change in trend, after RSI and stochRSI where at the top/bottom. But there are some fake brake outs. What setting are you using on RSI? Using length of 10, it looks like it more often goes to oversold/overbought according to the dips/tops.
I backtested this with DMI (14,14), only buying when the DMI was near crossover to help w fals triggers. Interesting result. It seemed to have prevented fake outs some.
I'm glad you're backtesting it! I'd be interested to see your results, so please do share!
The price had jumped to the .236 line, and it was oversold on the 4 HR Stoch RSI using your settings. Also your Fib doesn't go from tip to tip. Is that on purpose, and if so, how are you calculating where to place the top and bottom of the Fib? Thanks!
The oversold/overbought conditions are what trigger a new "cycle" a buy is created after oversold, and a sell is created after overbought. the principle is to move a stop-limit order @ the 23% retrace of the current price, to the last cycle's extreme (high or low depending on if its a buy or sell cycle)