TrendGuard Pullback Trader Signals [Quantigenics]

2023年12月8日

The "TrendGuard Pullback Trader Signals" script, integral to the "TrendGuard Pullback Trader" system, offers a sophisticated suite of trading tools for nearly any market or time frame. Designed to be used alongside the "TrendGuard Pullback Trader Indicators" script, this script is pivotal for identifying Buy/Sell Signals, Profit Target Signals, and Stop Loss Levels.

As with all of our scripts, the "TrendGuard Pullback Trader Signals" script, is designed to work on ANY symbol and time frame. The input parameters can be adjusted to fit your specific trading style.

Methodology and Application:

The script's core methodology lies in identifying primary signals at the onset of a trend and secondary signals during pullbacks or dips. It focuses on pinpointing optimal entry points during market pullbacks, enhancing the "TrendGuard Pullback Trader Indicators" script with well-timed signals for profit targets and stop loss levels.

Technical Composition:

The "TrendGuard Pullback Trader Signals" script combines various technical analysis tools to generate comprehensive trading signals. It calculates stop levels by assessing the highest and lowest bars over a chosen period, defining the market range. Primary signals are derived using a triple exponential moving average (EMA) of logarithmic closing prices, identifying trend changes with stop level plots and directional arrows. For secondary signals, the script uses a sequence of EMAs applied to the average price (HLC3) and an oscillator that measures the extremity of recent price movements, pinpointing potential entry points. The script also incorporates a sideways exit mechanism, comparing short-term and long-term EMAs of the average price to detect significant deviations, suggesting exit opportunities. This layered strategy offers a detailed perspective on market trends, momentum, and possible entry and exit points.

1. EMA-Based Trend Analysis Algorithm:
   Utilizes an advanced algorithm that incorporates exponential moving averages (EMA) with specific length parameters. This algorithm analyzes the slope and direction of EMA lines to identify significant shifts in market trends.
   
   
2. Primary Signal Generation: Logarithmic and Triple EMA Function:
   Primary signals are derived from a unique logarithmic function applied to price data, which is then processed through a series of three EMAs with distinct period settings. This combination targets potential trend initiation points by detecting shifts in the logarithmic trend curve.
   
   
3. Dynamic Stop Level Determination:
   Employs a methodology involving the calculation of recent high and low price bars, adjusted by a factor that considers market volatility. This factor dynamically alters the sensitivity of the stop levels, aligning them with current market conditions.
   
   
4. Secondary Signal Identification During Pullbacks:
   Secondary signals are identified through a complex comparison of the market's relative position to its moving averages. This involves calculating the divergence between price and moving averages, adjusted for the rate of change in the market, to flag strategic entry points during pullbacks.
   
   
5. Composite Market Trend Analysis for Signal Mechanism:
   Signal generation integrates a composite of multiple technical indicators, each contributing unique mathematical calculations. This integration enhances the accuracy and reliability of entry and exit signals.
   
   
6. Practical Application in Trading:
   > For trade initiation, primary signals are used to identify the start of potential trends, applying a specific mathematical threshold to confirm the trend change. Secondary signals focus on quantifying the pullback depth relative to recent market movements for additional entry opportunities.
   > The script's dynamic stop loss adjustment incorporates a calculated moving average of recent highs and lows, providing a responsive and protective mechanism for open positions.
   

How to Use the Script:

1. Trade Initiation: Primary signals at trend onset can be used for potential entry points, or to simply establish a trend-bias, to watch for Strategic Entries signals.
   
   
2. Strategic Entries on Pullbacks: Secondary signals provide opportunities for additional entries or scaling into positions during pullbacks within the main trend.
   
   
3. Profit Targets and Exit Strategy: Profit target signals serve as potential exit points. For larger positions, consider partial exits at these targets while adjusting stop loss levels to secure profits, and hold the remaining position for further potential gains.
   
   
4. Dynamic Risk Management: Regularly adjust stop loss levels based on the script's dynamic stop level determination to protect against market reversals and lock in profits.
   

Integration with TrendGuard Pullback Trader Indicators:

• The script is designed and intended to be used in conjunction with the "TrendGuard Pullback Trader Indicators [Quantigenics]". This integration ensures a holistic approach to market analysis, combining the strengths of both scripts for a comprehensive understanding of market trends, momentum, and entry points.
  
  
• Note: The lower indicators are from the 'TrendGuard Pullback Trader Indicators' script, complementing the 'TrendGuard Pullback Trader Signals' script seen here, which generates the 'cloud' and signals on the price chart.
• The 'TrendGuard Pullback Traders Indicators” script can be found here:https://www.tradingview.com/script/1g0M7wQL-TrendGuard-Pullback-Trader-Indicators-Quantigenics/

Input Parameter Settings:

1. Important Usage Guidance: For seamless integration with its counterpart, the "TrendGuard Pullback Trader Indicators" script, it's crucial to align the input parameter settings across both scripts. When adjusting values from their defaults, ensure that corresponding parameters in both scripts are identically set. This synchronization is key to achieving a cohesive and accurate representation on your charts.
   
   
2. Intra-Bar Order Generation (IntraBar): Determines whether signals are generated within the current bar or only after it closes, enhancing flexibility in signal timing.
   
   
3. Stop Level Strength (StopLvlStr): Sets the strength for calculating stop levels, impacting the sensitivity of the script to market highs and lows for stop placement.
   
   
4. Primary Signal Display (PrimON_OFF): Toggles the visibility of primary signals on the chart, aiding in identifying trend initiation points.
   
   
5. Secondary Signal Display (SecON_OFF): Controls the display of secondary signals for opportunities during pullbacks, allowing traders to capitalize on additional entry points.
   
   
6. Stop Loss Level Display (StopLossLvls): Enables or disables the visualization of stop loss levels, crucial for risk management strategies.
   
   
7. Trend Length (TrendLen): Adjusts the length parameter for the EMA calculations, influencing how the script interprets trend duration and strength.
   
   
8. These parameters allow traders to customize the script’s functionality according to their trading style and preferences, ensuring a tailored approach to signal generation and risk management.
   

Trade Alerts:

1. The script includes an advanced alert system designed to notify traders of crucial trading signals. This can Especially be useful when using larger time frames where trade setups can take a longer period of time to develop:
   
   
2. Primary Buy/Sell Alerts: Alerts are triggered at primary signals, indicating potential trend initiation points for entering trades.
   
   
3. Secondary Buy/Sell Alerts: These alerts activate during secondary signals, highlighting opportunities within ongoing trends for strategic entries or exits.
   
   
4. Stop Loss Level Alerts: The script can alert traders when the price reaches or crosses the script-determined stop loss levels, aiding in timely decision-making for risk management.
   
   
5. Sideways Exit Alerts: Alerts for potential exits are generated in sideways market conditions, based on the script’s analysis of average price movements.
   
   
6. To set up these alerts, traders can use TradingView’s alert system to specify the conditions under which they receive notifications, such as when a certain shape (e.g., arrow up for buy, arrow down for sell) appears on the chart. This feature helps traders stay informed and react promptly to the dynamic market conditions.
   

The "TrendGuard Pullback Trader Signals [Quantigenics]" script is a meticulously crafted tool, essential for traders aiming to enhance their market analysis and decision-making across diverse trading environments. While the script offers advanced functionalities, it reaches its full potential when used alongside the "TrendGuard Pullback Trader Indicators" script. Traders are advised to familiarize themselves with both scripts for a well-rounded trading strategy.

As always, remember that trading involves risks and past performance is not indicative of future results.

You can see the “Author’s instructions" below to get immediate access to TrendGuard Pullback Trader Signals & the rest of the “Quantigenics Premium Indicator Suite”.

2024年2月13日

版本注释

Updated labels for primary LE/SE and secondary LE/SE to improve readability.

2024年3月29日

版本注释

There is now an INPUT SETTING called "Trend Wave Filter" default setting is [ON].

This filter ensures that the Trend Wave Indicator must be going
UP for a Secondary Long Entry / DOWN for a Secondary Short (sell) Entry.

This additional filter helps eliminate many unfavorable signals, making the system
far more accurate.

2024年5月2日

版本注释

Trend Guard Pullback Trader Signals UPDATE

With this update, we've continued to enhance our TrendGuard Pullback Trader Signals and TrendGuard Pullback Trader Indicators Scripts. We've introduced the Trade Signal Calibrator, described below. Additionally, we've made improvements to the signals, the input settings, and a few other aspects. Be sure to read through the entirety of both updates to see all the improvements.

UPDATE: Added New Feature - Trade Signal Calibrator

Introduction of the Trade Signal Calibrator across all systems, allowing for refined input parameter adjustments tailored to various market conditions. This feature enhances the effectiveness of trade signals by providing a real-time visualization of potential performance improvements.

Input Parameters for Trade Signal Calibrator:

1. Show Trade Stats: This toggle ON/OFF the stats-display at the top-right of the chart.
   
   
2. Calibrator Bar Count: This is the number of bars taken into consideration when calculating stats. The default is 500 bars, but this can be changed if you wish to lengthen or shorten the amount if historical market data taken into consideration when displaying historical hypothetical trades on the chart and calculating the trade stats.
   
   
3. Test All Signals: When toggled ON this setting generates stats for every signal on the chart. When toggled OFF it only considers being in one trade at a time. In other words, if it’s in a hypothetical trade and a subsequent signal occurs it will not consider that subsequent trade. It will only “enter” a new trade once the previous one is closed, based on the exit criteria as defined by the input parameters.
   
   
4. Display Trades: Toggles ON/OFF the hypothetical backtest trades that are plotted on the chart. This feature can be an extremely useful aid in calibrating the input parameters. You may wish to turn it off to reduce chart Clutter once you've fine-tuned the settings to your liking.
   
   
5. Display Exit Labels: Turns ON/OFF the names of the exits on the hypothetical backtest trades when plotted on the chart.
   
   
6. Allow Open Positions to Reverse: Keeping this setting off will make it such that a trade has to fully exit before a new one and the opposite direction can be taken, when calculating stats. If set to on it will calculate the hypothetical trades in a way that allows the position to reverse in the opposite direction when a new signal appears.
   
   
7. “X” Exit Signals: Toggling this setting ON/OFF determines if the “yellow X” exit signals are taken into account when calculating stats.
   
   
8. Use Stop Loss Levels: Toggling this setting ON/OFF determines if the stop loss levels that are plotted on the chart are taken into account when calculating stats.
   
   
9. Exit Bars From Entry: This setting specifies the number of bars after entering a trade at which the position will automatically close, regardless of profit or loss or any other conditions. For example, if it’s set to 10, the trade will close after 10 bars. You can enable or disable this feature by checking or unchecking the corresponding box.
   
   
10. Quantity Per Trade: This adjusts the trade size of contracts, lots, shares, in relationship to the market being traded, as dictated by the chart.
    
    
11. Profit Target (Per Trade): If toggled ON this sets the amount of profit in a trade (entire quantity taken into consideration, not just per contract or share) that must be achieved for the trade to exit and take profit.
    
    
12. Stop Loss (Per Trade): If toggled ON this sets the amount of loss in a trade (entire quantity taken into consideration, not just per contract or share) that must occur for the trade to exit and stop out at a loss. This setting calculates independently of the “Use Stop Loss Levels” setting.
    
    
13. How Quantity affects Profit Target/Stop Loss values: The Profit Target/Stop Loss values are calculated on a per trade, not per share/contract basis.
    
    For example, if generating stats for the Emini S&P 500 (ES) on a chart using mini lots the value is $50 per point, per 1 contract. If the Quantity is set to 1 and the Profit Target or Stop Loss is set to $500 this would mean that the market needed to move 10 points for a target or stop. If the Quantity is set to 2 this would mean the market only had to move 5 points to achieve the same $500 target or stop as the entire position size is taken into account for the Profit Target and Stop Loss calculation.

UPDATE: Other Improvements

• Improved Input Parameters for Signals Script
  
• Improved primary and secondary signal accuracy by adding filters based on Trend Wave and Trend Strength.
  
• Reduced signal frequency to show fewer signals during choppy/ranging market
  
• Changed input parameters order to improve flow and readability
  
• Improved stop loss functionality