Trend Vanguard Strategy

26 Feb

How to Use:

Trend Vanguard Strategy is a multi-feature Pine Script strategy designed to identify market pivots, draw dynamic support/resistance, and generate trade signals via ZigZag breakouts. Here’s how it works and how to use it:

ZigZag Detection & Pivot Points

The script locates significant swing highs and lows using configurable Depth, Deviation, and Backstep values.
It then connects these pivots with lines (ZigZag) to highlight directional changes and prints labels (“Buy,” “Sell,” etc.) at key turning points.
Support & Resistance Trendlines

Pivot highs and lows are used to draw dashed S/R lines in real-time.
When price crosses these lines, the script triggers a breakout signal (long or short).
EMA Overlays

Up to four EMAs (with customizable lengths and colors) can be overlaid on the chart for added trend confirmation.
Enable/disable each EMA independently via the settings.

Repaint Option

Turning on “Smooth Indicator Lines” (repaint) uses future data to refine past pivots.
This can make historical signals look cleaner but does not reflect true historical conditions.
Turning it off ensures signals remain fixed once they appear.
Strategy Entries & Exits

On each new ZigZag “Buy” or “Sell” signal, the script closes any open position and flips to the opposite side (if desired).
Works with the built-in TradingView Strategy engine for backtesting.
Additional Inputs (Placeholders)

Volume Filter and RSI Filter settings exist but are not fully implemented in the current code. Future versions may incorporate these filters more directly.

How to Use
Add to Chart: Click “Indicators” → “Invite-Only Scripts” (or “My Scripts”) and select “Trend Vanguard Strategy.”

Configure Settings:
Adjust ZigZag Depth, Deviation, and Backstep to fine-tune pivot sensitivity.
Enable or disable each EMA to see how it aligns with market trends.
Toggle “Smooth Indicator Lines” on or off depending on whether you want repainting.

Backtest and Forward Test:
Use TradingView’s “Strategy Tester” tab to review hypothetical performance.
Remember that repainting can alter past signals if enabled.

Monitor Live:
Watch for breakout triangles or ZigZag labels to identify potential reversal or breakout trades in real time.


Disclaimer: This script is purely educational and not financial advice. Always combine it with sound risk management and thorough analysis. Enjoy exploring the script, and feel free to experiment with the different settings to match your trading style!

7 Mac

Nota Keluaran

What the Updated Script Does
The Trend Vanguard Strategy is an advanced trading tool that combines the k-Nearest Neighbors (kNN) machine learning algorithm with the ZigZag indicator to identify potential trend reversals and continuations in the market. It generates actionable buy and sell signals by analyzing significant price movements (via ZigZag) and filtering them through historical pattern recognition (via kNN). The result is a strategy that aims to provide high-probability trade setups tailored to current market conditions, while incorporating robust risk management and performance tracking.

How Signals Are Generated and Filtered
The strategy uses a two-step process involving the ZigZag indicator and the kNN algorithm, followed by additional filters to refine the signals.
1. ZigZag Indicator
Purpose: The ZigZag indicator filters out minor price fluctuations to highlight significant price movements, plotting pivot points where the price direction changes.

Parameters: Controlled by Depth, Deviation, and Backstep, which define the sensitivity of pivot detection.

Signal Generation:
A down ZigZag (new low pivot) with a "Buy" label indicates a potential reversal to the upside.

An up ZigZag (new high pivot) with a "Sell" label suggests a potential reversal to the downside.

Additional labels like "Exit Short" and "Exit Long" mark potential exit points for existing positions.

Confirmation: Signals are only generated once a pivot point is fully confirmed at the close of a bar.

2. kNN Algorithm
Purpose: The kNN algorithm classifies the current market state by comparing it to historical patterns, predicting the likelihood of a successful trade.

Features: It uses normalized price, ATR (volatility), RSI (momentum), and volume, weighted based on user preferences.

Process:
Calculates the distance between the current market state and historical states.

Identifies the k nearest neighbors (similar past setups).

Determines the signal (buy, sell, or neutral) based on the majority outcome of these neighbors, along with a confidence score.

Threshold: Signals are only triggered if the kNN confidence exceeds a user-defined level (e.g., 55%).

3. Signal Filtering
To reduce false positives and enhance reliability, the strategy applies multiple filters:
Market Regime Filter: Uses RSI to avoid trading in overbought or oversold conditions, minimizing entries at market extremes.

Volatility Breakout Filter: Triggers signals during periods of increased volatility, which often signal strong price moves.

Multi-Timeframe Confirmation: Ensures signals align with the trend on a higher timeframe, improving success rates by following the broader market direction.

Micro-Trend Strength: Analyzes short-term trend strength and acceleration to confirm the signal’s validity based on immediate price action.

Why the Strategy Doesn’t Repaint
"Repainting" occurs when a strategy retroactively changes past signals based on new data, making backtesting unreliable. The Trend Vanguard Strategy avoids this through:
Non-Repainting ZigZag: Configured with repaint = false, ensuring pivot points remain fixed once confirmed, unaffected by future price action.

Bar Confirmation: Signals are only generated at the close of the bar (barstate.isconfirmed), preventing mid-bar adjustments or retroactive changes.

Historical kNN Data: The kNN algorithm uses only past data up to the point of signal generation, avoiding look-ahead bias and ensuring predictions are based solely on available information.

This combination guarantees that historical signals remain consistent, making the strategy trustworthy for both backtesting and live trading.
How to Set It Up
Here’s a step-by-step guide to implementing the updated Trend Vanguard Strategy on TradingView:
1. Add the Script to TradingView
Copy the updated Pine Script code from the open-source link or repository.

Open the Pine Editor in TradingView, paste the code, save it, and add it to your chart.

2. Configure Inputs
Customize the strategy to suit your trading style:
ZigZag Settings:
Depth: Minimum bars between pivots.

Deviation: Minimum price change (%) for a pivot.

Backstep: Minimum bars before a new pivot can form.

Tip: Lower values detect smaller trends; higher values focus on larger moves.

kNN Settings:
kNN Lookback: Number of bars for historical training data.

k Value: Number of nearest neighbors to consider.

Feature Weights: Adjust the influence of price, ATR, RSI, and volume.

Filters: Enable/disable market regime, volatility breakout, multi-timeframe, and micro-trend filters as needed.

Risk Management:
Risk Per Trade: Percentage of capital to risk.

ATR Length and ATR Multiplier: Set dynamic stop-loss and take-profit levels based on volatility.

3. Select Performance Mode
Choose between Standard, High, or Ultra modes:
Higher modes increase kNN lookback and calculation precision for better accuracy but may slow performance.

4. Visual Elements
Toggle options to display:
ZigZag lines.

Trade signals (buy/sell/exit labels).

Quantum probability clouds (visualizing kNN confidence).