Macro Score - DFMA-Based

This trading strategy operates on a scoring system that combines the weighting of diverse technical signals to create a singular macro score, which is used to determine entry and exit points. By leveraging the Democratic Fibonacci Moving Average (DFMA) along with other indicators like the DPO, CMO, Jurik Volatility Bands, and Stoch RSI, the strategy generates long and short signals. These signals, each carrying different importance, contribute to the overall score that dictates market position stances.

To trade this strategy manually on TradingView, one should follow a systematic approach:

• Configure Indicators: Begin by plotting the DFMA on your chart. Since this is an average of Fibonacci MAs from lengths 3 to 233, you would need to calculate and plot these MAs and then compute their average for the DFMA line. Next, add the DPO, CMO, Jurik Volatility Bands, and Stoch RSI indicators.
• Analyze Crossovers: Watch for crossovers between the DFMA and the price or individual Fibonacci MAs. Assign a higher score to these crossovers due to their weight in the strategy.
• Signal Weights: Develop a scoring system where you assign weights to the indicators based on their importance in generating a signal. For instance, you might decide that a DFMA crossover is worth 2 points while a DPO signal is worth 1 point.
• Thresholds: Define clear thresholds for entry and exit points based on your scoring system. For example, you may establish a macro score above +5 for a long entry and below -5 for a short entry.
• Trade Management: Set your take profit (TP) and stop loss (SL) levels in accordance with your risk tolerance. You could configure TP and SL as a percentage of your entry price to automate this aspect. Keep an eye on the macro score for trailing your stop or taking profit early if the score starts to reverse before hitting your predefined TP or SL.
• Manual Scoring: While the pre-coded strategy automatically calculates the macro score, manually you must note the signals and add or subtract from your score accordingly. Keep a notebook or spreadsheet to track the score over time.
• Discretionary Adjustments: Use your discretion to adjust weights or entry/exit thresholds based on market conditions or performance.

This strategy is well-suited for traders who value a systematic, indicator-based approach to the markets. Its reliance on a macro score informed by technical signals makes it appropriate for:

• Quantitative Traders: Those who prefer to base their decisions on numerical data and enjoy working with a quantifiable method of assessing trade opportunities.
• Swing Traders: Individuals looking to capitalize on medium-term market trends, as the use of Fibonacci Moving Averages helps to smooth out short-term volatility.
• Technical Analysts: Traders with a penchant for technical analysis will appreciate the integration of indicators like the DPO, CMO, and Stoch RSI.

The strategy aligns with a discretionary trading style where the trader has the flexibility to adjust indicator weights and thresholds to cater to evolving market environments or personal risk profiles.

• Strategy Essence: Utilizes a macro score derived from weighted technical signals, coupled with the DFMA, to decide market entry and exit points.
• Operational Mechanism: Scores from indicators like DPO, CMO, Jurik Volatility Bands, and Stoch RSI dictate the overall trading signal based on predefined weights and thresholds.
• Manual Implementation: Involves plotting several indicators on TradingView, manually scoring each signal, and adhering to calculated entry and exit thresholds for trade execution.
• Automation Option: Profitview’s automation or TradingView alerts facilitate setting up and executing trades based on strategy signals.
• Optimization Approach: Discretionary adjustments to signal weights and thresholds to align with market conditions and personal risk tolerance.
• Risk Management: Incorporates stop loss, take profit, and trailing stops, with the flexibility to adjust the TP/SL ratio to manage risk efficiently.