Blockunity Drawdown Visualizer (BDV)

2024年1月17日

Monitor the drawdown (value of the drop between the highest and lowest points) of assets and act accordingly to reduce your risk.

Introducing BDV, the incredibly intuitive metric that visualizes asset drawdowns in the most visually appealing manner. With its color gradient display, BDV allows you to instantly grasp the state of retracement from the asset’s highest price level. But that’s not all – you have the option to display the oscillator’s colorization directly on your chart, enhancing your analysis even further.

The Idea
The goal is to provide the community with the best and most complete tool for visualizing the Drawdown of any asset.

How to Use
Very simple to use, the indicator takes the form of an oscillator, with colors ranging from red to green depending on the Drawdown level. A table summarizes several key data points.

Elements
On the oscillator, you'll find a line with a color gradient showing the asset's Drawdown. The flatter line represents the Max Drawdown (the lowest value reached).

In addition, the table summarizes several data:

• The asset's All Time High (ATH).
  
• Current Drawdown.
  
• The Max Drawdown that has been reached.
  

Settings
First of all, you can activate a "Bar Color" in the settings (You must also uncheck "Borders" and "Wick" in your Chart Settings):


You can display Fibonacci levels on the oscillator. You'll see that levels can be relevant to drawdown. The color of the levels is also configurable.


In the calculation parameters, you can first choose between taking the High of the candles or the Close. By default this is Close, but if you change the parameter to High, the indication next to ATH in the table will change, and you'll see that the values in the table will be affected.


The second calculation parameter (Start Date) lets you modify the effective start date of the ATH, which will affect the drawdown level. Here's an example:


How it Works
First, we calculate the ATH:

var bdv_top     =   bdv_source
bdv_top         :=  na(bdv_top[1]) ? bdv_source : math.max(bdv_source, bdv_top[1])

Then the drawdown is calculated as follows:

bdv             =   ((bdv_source / bdv_top) * 100) - 100

Then the max drawdown :

bdv_max         =   bdv
bdv_max         :=  na(bdv_max[1]) ? bdv : math.min(bdv, bdv_max[1])

2024年2月21日

版本注释

Addition of an alerting system. This alert can be activated by setting the condition "Blockunity Drawdown Visualizer (BDV)" and selecting "Any alert() function call". The alerts sent are as follows:

• New Max Drawdown.
  
• Drawdown falls below -25% / Drawdown recovers -25%.
  
• Drawdown falls below -50% / Drawdown recovers -50%.
  
• Drawdown falls below -75% / Drawdown recovers -75%.