AQPRO ScalperX

3 hari lalu

📝 INTRODUCTION

AQPRO ScalperX is a trading indicator designed for fast-paced, intraday trading. It uses Donchian channel breakouts, combined with a proprietary filtering system, to catch buy and sell opportunities as close to the beginning as possible without losing quality of the signals.

On top of core signals, ScalperX includes a real-time max profit tracker, a multi-timeframe (MTF) dashboard, support and resistance zones, and risk management visualization tools like automatic rendering of TP and SL lines. The indicator is fully customizable for both its visuals and functional settings.



🎯 PURPOSE OF USAGE
This indicator was initially designed with the idea of trying to make such a tool, that would be able to catch trend reversal in the most safe way. In this particular situation term 'safe way' is very abstract and it is up to interpretation, but we decided that our definition will be 'trading with price breakouts', meaning that we would like to capitalize on price breaking its previous structure in the direction opposite to the previous one.

You can clearly see on the chart how buy and sell signals are going one after another on the screenshot below:

This ensures that we follow trend consistently and without missing out on potential profits. Just like they say: "let the winners run".

Even though indicator with similar goals already exist in the open market, we believe that our proprietary algorithms and filters for determining price breakouts can make a big difference to traders, which employ similar strategies on daily basis, by helping them understand where are the potential high-quality breakouts might be. We haven't found indicator with exact same functionality as ours, which means that traders will be able to leverage an actually new tool to generate new price insights.

In short, main goals of this indicator are as follows:

• Catching high-quality price breakouts, filtered to reduce the amount of choppy moves and false signals;
  
• Tracking potential profits in real-time, directly on trader's chart;
  
• Organizing data visualization of data pf latest signals from chosen asset from multiple timeframe in one dashboard;
  
• Automated highlighting of key support and resistance zones on the chart, which serve as confirmation for main signals;
  

⚙️ SETTINGS OVERVIEW

Options for customization of this indicator are straightforward, but let's review them to make things certainly clear:

🔑 ScalperX / Main Settings

• Range — defines the "wideness" of the breakout boxes. Higher values create wider breakout zones and impact breakout sensitivity;
  
• Filter — adjusts the spacing between breakout boxes, determining the strictness of signal filtering. Higher values lead to more selective and rarer signals;
  
• Show Max Profit — displays a real-time line and label that updates when a trade achieves a new peak profit, measured in ticks.

⏰ MTF Signal / Main Settings

• Show MTF Signals — enables the generation of buy/sell signals from selected higher timeframes, displayed as labels on the current chart;
  
• Timeframe — specifies the higher timeframe to use for MTF signal detection, such as 1 hour (1h) or 4 hours (4h).

🗂️ MTF Dashboard / Main Settings

• Show MTF Dashboard — activates a dashboard that tracks entries, TP, SL, and overall trade bias for one selected symbol across four customizable timeframes;
  
• * Dashboard position (Vertical) — adjusts whether the dashboard appears on the Top, Middle, or Bottom of the chart;
  
• * Dashboard position (Horizontal) — aligns the dashboard Left, Center, or Right within the chart window;
  * the name of the parameter is hidden in the settings

🗂️ MTF Dashboard / Ticker

• Ticker to Track — Allows you to choose the specific ticker symbol (e.g., BINANCE:BTCUSDT) for MTF tracking.

🗂️ MTF Dashboard / Timeframes

• * Timeframe 1 — set the first timeframe for multi-timeframe analysis (e.g., 15 minutes);
  
• * Timeframe 2 — set the second timeframe for multi-timeframe analysis (e.g., 30 minutes);
  
• * Timeframe 3 — set the third timeframe for multi-timeframe analysis (e.g., 1 hour);
  
• * Timeframe 4 — set the fourth timeframe for multi-timeframe analysis (e.g., 4 hours).
  * the name of the parameter is hidden in the settings

🛡️ Risk Management / Main Settings

• Show TP&SL — displays dynamic lines and labels for the entry, Take Profit (TP), and Stop Loss (SL) of the most recent signal, updated in real-time until a new signal triggers;
  
• Risk-to-Reward Ratio (R:R) — defines the ratio for TP and SL calculation to control your risk and reward on every trade.

📐 Support & Resistance / Main Settings

• Show Support & Resistance Zones — enables dynamic zones based on pivot points, colored bullish or bearish based on price context;
  
• History Lookback — defines the number of bars to consider when calculating support and resistance levels. Increasing this results in zones derived from longer-term price structures.

🎨 Visual Settings / ScalperX

• Bullish Box — defines the color for bullish breakout boxes;
  
• Bearish Box — defines the color for bearish breakout boxes;
  
• Max Profit — sets the color for the max profit line on the chart.

🎨 Visual Settings / S&R

• Support — defines color used for standard support zones;
  
• Resistance — defines color used for standard resistance zones;
  
• Strong Support — defines special color for zones classified as "strong support";
  
• Strong Resistance — defines special color for zones classified as "strong resistance".

🎨 Visual Settings / MTF Dashboard

• Bullish — sets the color for bullish trade states in the MTF dashboard;
  
• Bearish — sets the color for bearish trade states in the MTF dashboard.

🔔 Alerts / Main Settings

• Buy & Sell — toggles alerts for buy and sell signals detected by the indicator in the current chart timeframe;
  
• MTF Buy & Sell — toggles alerts for buy and sell signals detected across the selected MTF timeframes.
  

📈 APPLICATION GUIDE

Application flow of this indicator very easy to understand and get used to, because all of the necessary elements — analysis, drawing, alert — are already automated by our algorithms. Let's review how the indicator works.

Let's start with the most basic thing — how will your indicator look when you load it on your chart for the first time:

AQPRO ScalperX consists mainly of 6 logic blocks:

1. ScalperX signals;
   
2. Risk visualization;
   
3. Max Profit tracking;
   
4. MTF scalper signals;
   
5. MTF dashboard;
   
6. Support & Resistance zones.
   

Description of each logic block is provided in the corresponding sections below.


SCALPERX SIGNALS

Signals, generated by our indicator, are shown on the chart as coloured up/down triangle. When a signal appears on the chart, indicator also create a box of length equal to 'Range' parameter from "Main Settings" group of settings. This box is intended to show which area of the price was broken by current candle.

It also important to acknowledge, the breakout itself happens only when price closes beyond broken price area with its close (!) price. Breakouts with highs or lows are not counted. This reduces the amount of low-quality signals and ensures that only the strong breakout will appear on the chart.

VERY IMPORTANT NOTE: all signals are considered valid only on the close of the candle, which triggered the signal, so if you want to enter a trade by any signal, wait for its candle to close and open your trade right on the next candle.

Talking about scalper's settings, we need to shed a light on how the changes in them affect signal's quality.

Parameter 'Range' defines the amount of bars, that will be review prior to current candle to determine wether the price area of this bars is good enough to track and if current candle actually broke this price area.

👍 Rule of thumb: the higher the 'Range' is, the "wider" the boxes. Also the with the increase of this parameter rises the lag of the signals, so be carefully with setting high values to this parameter.

See the visual showcase of signals with different 'Range' parameters on the screenshot below:

The example above features two instancies of ScalperX with two different 'Range' parameter values: 15 (leftchart) and 5 (right chart). You can clearly see, that on left chart here are 2 signals in comparison to 6 signals on right chart. Also signals on the left side have bigger lag and they don't catch the start of the move in comparison to how quickly tops and bottoms are catched with low 'Range'. However, low 'Range' will lead to excessive amount of signals, quality of which during 'whipsaw' markets is not that great.

✉️ Our advice on how to optimally set 'Range' parameter:

• Use low values to trade during the times, when there are a lot of clean up and down impulses. This way you will catch reversal opportunities sooner and the quality of the signals will still be great;
  
• Use high values on the 'whipsaw' markets. This will filter out many bad signals, that you would get with low-value 'Range', and will drastically reduces amount of losing trades.
  

Talking about the 'Filter' parameter, this particular setting defines the 'strictness' of rules which will be applied to price area validation process. Essentially, the higher this parameter is, the stronger price impulse has to be confirm the breakout. However, changes in this parameter will not impact the "wideness" of boxes at all.

👍 Rule of thumb: the higher the 'Filter' is, the more separated the signal will be. Setting this parameter to high value will lead to increase in lag and big reduction in amount of signals, so be careful this parameter to high values.

See the visual showcase of signals with different 'Filter' parameters on the screenshot below:

The example above features two instancies of ScalperX with two different 'Filter' parameter values: 20 (left chart) and 2.5 (right chart). You can clear see, that low 'Filter' generated 6 signals, while higher one generated only 4 signals. However if you look closer, you will see that 2 signals, that existing in the yellow dashed area on the right chart, don't exist in the same area on the left chart. This is because high value of this parameter requires price impulse to be very strong in order for the indicator to mark this breakout as a valid one. What is more important is that these 2 'missing' signals were actually bad and, technically, we actually cut our losses in this case with high value of 'Filter'. You can see that the leftmost sell signal on the left chart eventually closed in a nice profit, in comparison to the same trade being closed in a loss on the right chart because of the 2 signals that we were talking about above.

It is important to note, that setting 'Filter' to low values will not affect performance this much as it low value of 'Range' do, because the indicator already works on low values of this parameter by default and the signals on average are already good enough for trading.

✉️ Our advice on how to optimally set 'Filter' parameter:

• Use low values to trade on the markets with clean up and down impulses. This way you avoid excessive filtering and leave a room for good signals to come right at you;
  
• Use high values to trade on 'whipsaw' markets. Higher values of this parameter on these markets have same effect as high 'Range' parameter: filtering false signals and leaving room for actually strong price impulses, which you will later capitalize on.
  

RISK VISUALIZATION (TP&SL)

Rendering Take-Profits and Stop-Losses in our indicator works quite simple: for each new trade indicator creates new pairs of lines and labels for TP and SL, while lines & labels from previous trade are erased for aesthetics purposes. Each label shows price coordinates, so that each trader would be able to grap the numbers in seconds.
See the visual showcase of TP & SL visualization on the screenshot below:

Also, whenever TP or SL of the current trade is reached, drawing of both TP and SL stops. When the TP is reached, additional '✅' emoji on the TP price is shown as confirmation of Take-Profit.

However, while TP or SL has not been reached, TP&SL labels and lines will be prolonged until one of them will be reached or new signals will come.

See the visual showcase of TP & SL stopping being visualized & TP on the screenshot below:


MAX PROFIT TRACKING

This mechanic is not particularly a new one in field of trading, but people usually forgot that it can be a useful indicator of state of the market:

• when lines and labels of Max Profit are far from entry points on consistent basis, it usually means that indicator's signals actually can catch a beginning of good price moves, which enables trader to capitalize on them;
  
• when lines and labels of Max Profit are close to entry points on consistent basis, it means that either market is choppy or the indicator can't catch trading opportunities in time. To 'fix' this you can try to reconfigure scalper's parameters, which were described above.
  

Principles of Max Profit in this indicator are of industry-standard: when price updates its extremum and 'generates' more profit than it previously did, Max Profit label and line change their position to this extremum. Max Profit label displays the maximum potential amount of profit that a trader could have got during this trade in pips (!).

See the visual showcase of Max Profit work on the screenshot below:


MTF SCALPER SIGNALS

The principles of these signals are exactly the same as principles for classic Scalper signals. Refer to 'Scalper Signals' section above to rehearse the knowledge.

Logic behind these signals is very simple:

1. We take classic Scalper signals;
   
2. We request the data about these latest signals from specific other timeframe (user can choose it in the settings);
   
3. If such signals appeared, we display it on the chart as a big label with timeframe value inside of it. In comparison to classic signals, no additional boxes are created. TP&SL functionality doesn't cover MTF signals, so don't expect to see TP&SL lines and labels for MTF signals.
   

See the visual showcase of MTF Scalper signals on the screenshot below:


MTF DASHBOARD

The functionality of the dashboard is pretty simple, but it makes the dashboard itself a very powerful tool in a hands of experienced trader.

Let's review structure of MTF dashboard on the screenshot below:

The important feature of MTF dashboard is that its tracks latest trade's data from a particular ticker and its four timeframes, all of which any trader chooses in the settings. This means, that you can be on asset ABC, but track the data from asset XYZ. This allows for a quick scan of sentiment from different assets and their timeframes, which gives traders a clue on what is the trend on these assets both on lower and higher timeframes at the same moment and saves a lot of time from jumping from one asset & timeframe to another.

To see that this is exactly the case with our indicator, see the screenshot below:

Needless to say, that you can track current asset in the dashboard as well. This will have the same benefits, described in the paragraph above.

You can also customize colours for bullish and bearish patterns for MTF Dashboard in the settings.


SUPPORT & RESISTANCE ZONES

Support & resistance (S&R) zones are a great tool for confirming Scalper signals in complex situations. Using these zones to determine whether or a particular entry opportunity is good is a practice of professional traders, which we specifically added to our indicator for the reason of improving the quality of Scalper signals in long run.

The mechanics behind these zones is based on pivot points, the lookback for which you can customize in the parameter called 'History Lookback (Bars)' in "Support & Resistance / Main Settings" group of settings. Increasing this parameter will lead to a appearance of more 'global' zones, but they will appear much rarer, rather then zones, generated with low values of this parameter.

The quality of these zones doesn't change much when changing this parameter — it only changes the frequency of the zones on the chart. Zones, generated fromhigh values of this parameter are more suitable for long-term trading, while zones, generated from low value of this parameter, are more suitable for short-term trading.

It also important to mention that any zone on the chart is considered active only until the moment its farther border (top border for resistance zones and bottom border for support zones) is reached by price's high or low.

Take a look on the screenshot below to see which zones does the indicator draw:

Let's review the zones themselves now:

1. Classic Support/Resistance Zone — a standard zone, which on average has amedium success rate to reverse the price when collided with it;
   
2. High-buyer-volume/High-seller-volume Support/Resistance Zone — a stronger zone, which on average has much better success rate to reverse the price when collided with it. Classic zone is marked as high-volume only if the up/down volume near the pivot point of this zone is greater than a certain threshold (not changeable);
   
3. Extreme Support/Resistance Zone — a zone, which appeared beyond price's least-possible-to-cross levels, and has to the highest success rate of reversing the price on encounter across the zones, mentioned previously. Classic zone, which appeared beyond certain price levels, calculated with our proprietary risk system, is considered extreme. Classic zone doesn't need to be high-volume to become an Extreme Zone!
4. High-buyer-volume/High-seller-volume Extreme Support/Resistance Zone — an Extreme Zone, which has also passed up/down volume evolution process, mentioned in the point 2.
   

Trading with the zones, mentioned above, with highest-on-paper success rate — especially Extreme Zones — does NOT guarantee you a price reversal when the price will reach this zone. However, by conducting our own extensive research with this indicator, we have found that using these zone will actually help you increase your success rate on average, because using these zones as confirmation systems filter out quite a number of false signals on average.

It is also important to mention, that opacity (same as 'transparency') of S&R zones depends on the volume of around zone's pivot point:

• if volume is high, zone has 'brighter'(less opacity) colour;
  
• if volume is low, zone has 'darker'(more opacity) colour.
  

Let's review examples of Scalper signal, which 1) where filtered out by our S&R zones and 2) where confirmed by our S&R zones. See the screenshot below:


The example above clearly shows the importance of having an S&R zone confirming the signal. This kind of 'team work' between of Scalper signals and S&R zones results in filtering lots of bad signals and confirmation of truly strong ones.



🔔 ALERTS

This indicator employs alerts for an event when new signal occurs on the current timeframe or on MTF timeframe. While creating the alert below 'Condition' field choose 'any alert() function call'.
When this alert is triggered, it will generate this kind of message:

// Alerts for current timeframe
string msg_template = "EXCHANGE:ASSET, TIMEFRAME: BUY_OR_SELL"
string msg_example = "BINANCE:BTCUSDT, 15m: Buy"

// Alerts for MTF timeframe
string msg_template_mtf = "MTF / EXCHANGE:ASSET, TIMEFRAME: BUY_OR_SELL"
string msg_example_mtf = "MTF / BINANCE:BTCUSDT, 1h: Buy"

📌 NOTES

• This indicators works best on assets with high liquidity; most suitable timeframes range from 1m to 4h (depends on your trading style);
  
• Seriously consider using S&R zones as confirmation to main Scalper signals or any of your own signals. Confirmation process may filter out a lot of signals, but your PNL History will say "thank you" to you in the long-run and you will see yourself how good confirmed signals actually do work;
  
• Don't forget to look at MTF dashboard from time to time to see global sentiment. This will help you time your entry moments better and will improve your performance in the long run;
  
• This indicator can serve both as primary source of signals and as confirmation tool, but we advise to try to combine it with your own strategy frst to see if it will improve your performance.
  

🏁 AFTERWORD

AQPRO ScalperX was designed to help traders identify high-quality price breakouts and generate market insights based on them, which include signal generation. Main feature of this indicator is Scalper algorithm, which generate price-breakout-based signals directly on your chart.

Alongside these signals you can leverage 1) MTF Dashboard to track latest trade's data from chosen asset and its four timeframes, 2) risk visualization functionality (TP&SL) to improve understanding of current market risks and 3) Support & Resistance zones, which serve as a great confirmation tool for Scalper signals, but can also work with any other signal generation tool to enhance its performance.



ℹ️ If you have questions about this or any other our indicator, please leave it in the comments.

20 jam lalu

Nota Keluaran

Update:
+ Added 'Use Current Ticker' parameter to 'MTF Dashboard / Ticker' settings group. When enabled, uses current chart's ticker as a ticker for tracking in MTF Dashboard.