Darvas Box strategy [Whitebox]

26 Feb 2023Embark on a strategic trading journey with the implementation of the Darvas Box strategy, meticulously crafted in this script, inspired by Nicolas Darvas's groundbreaking approach detailed in his seminal book, "How I Made $2,000,000 in the Stock Market".

Nicolas Darvas, a dancer by profession and a trader by passion, devised a unique trading strategy during his global tours, which enabled him to turn $36,000 into $2 million within an 18-month timeframe in the late 1950s. His method, known as the Darvas Box strategy, involves tracking stock prices that are trading at new highs and utilizing a unique box structure that helps to identify the rising stocks and manage the trades effectively.

This script brings Darvas's innovative strategy to your trading charts, providing a comprehensive tool that not only identifies and draws the Darvas Boxes automatically but also enables you to backtest the strategy across various assets and timeframes. With capabilities like automated stop-loss adjustments, strategic pyramiding entries, and dynamic trade management, the script offers a robust framework for traders who seek to explore the potential of the Darvas Box strategy in modern markets.

Whether you're navigating through the realms of stocks, forex, or cryptocurrencies, this script allows you to visualize and validate the Darvas Box strategy, offering customizable settings to tailor the strategy according to your trading style and risk management preferences. From seamless box formations and enhanced trade visualization to in-depth analysis with every box, the script encapsulates the essence of Darvas's method while integrating the adaptability required for today's diverse and dynamic markets.

Embark on your trading journey with a strategy that has stood the test of time, and leverage the capabilities of this script to explore, analyze, and strategize your trades in alignment with the principles laid down by Nicolas Darvas.

27 Feb 2023

Nota Keluaran

Version: 2023.02.27-r225

• Added trade outcome labels
  
• Added entry type selector (Stop / Market)
  
• Added "box test required" entry criteria
  
• Fixed issue with single bar trades
  

27 Feb 2023

Nota Keluaran

Version: 2023.02.27-r226

• Allow configuring the first entry's stop loss relative to the entry price
  

6 Mac 2023

Nota Keluaran

Version: 2023.03.06-r331

• Introduced the concept of Trade Groups (a Trade Group consists of multiple trades made in the same direction)
  
• Reorganized inputs
  
• Ability to set min/max stop loss %
  
• Fix trade outcome labels
  
• Improve Trading Widget
  

8 Mac 2023

Nota Keluaran

Version: 2023.03.09-r352

• Added Volume filter
  
• Added date range filter
  
• Fixed stop loss calculation
  

16 Mac 2023

Nota Keluaran

Version: 2023.03.17-r391

• Added tooltips
  
• Added Trade outcome labels to display per-trade information
  
• Added checkbox to allow plotting the avg. entry price
  

17 Mac 2023

Nota Keluaran

Version: 2023.03.18-r416

• Added "Darvas Box Formed" alert
  
• Added custom order sizing settings to allow customising both the initial and additional entries
  
• Added Darvas Box info label
  

29 Mac 2023

Nota Keluaran

Version: 2023.03.29-r528

• Added function selector
  
• Added bounce-based entry
  
• Allow ATR to be used for height filter
  

19 Mei 2023

Nota Keluaran

Version: 2023.05.19-r596

• Added support for alerts
  
• Added Darvas Box width filter
  
• Added "Close position early if price crosses MA" early exit condition
  
• Added "Status bar"
  

18 Ogo 2023

Nota Keluaran

Version: 2023.08.18-r598

• Update Strategy library to use position sizing issue detection mechanism
  

17 Sep 2023

Nota Keluaran

Version: 2023.09.18-r627

• Added 'Box top must be at an all-time high' checkbox
  
• Improved the Entry Volume Filter (now it can compare more than one historic candle's volume against the MA)
  
• Changed default value of 'Max. additional orders' to 9
  
• Changed the base entry's min/max stop loss guard to always use the entry price for comparison
  
• Added 'Round OHLC prices to the nearest tick' checkbox
  

3 Okt 2023

Nota Keluaran

Version: 2023.10.04-r638

• Added Moving Average Filter - This filter allows invalidating those Darvas Boxes that do not form on the expected side of the Moving Average
  

26 Nov 2023

Nota Keluaran

Version: 2023.11.26-r641

• Improved tooltips