Grid Strategy with MA

5 Jul 2023

0. Preface

Hello traders,

This is a strategy script that allows you to utilize a Grid Strategy using moving averages.

It is very simple, but I decided to post it because it was hard to find such shared open-source codes in Pine Script.

1. Main

This is a very simple trading method.
Based on the moving average line you set, if the price drops by a certain ATR (or percent) below it, you buy, and when it goes back up, you sell.

In basic settings, you choose the moving average line and its length, and decide how much to set the distance between each grid through the 'Band Multiplier/Percent' item.

I believe that it is advantageous to widen the bandwidth for stocks with strong upward momentum.

2. Conclusion

I have confirmed that this works better in the stock market than in the crypto market,

and that it is suitable for use on index stocks like NASDAQ because it follows trends.

In addition, through backtesting, I have confirmed that this grid strategy is more suitable for buying strategies than selling strategies, so I uploaded it as a strategy focused on buying strategies.

Personally, I have developed my own strategy by adjusting buying and selling strategies according to trends and managing risks.

I hope you can use this to create a script that suits you.

Thank you.