Monthly Returns of a Strategy in a Chart

This trading strategy identifies pivot highs and pivot lows based on specified input parameters, entering long positions when a pivot high is confirmed and short positions at a pivot low, with the exact price being slightly adjusted by a tick size. The goal is to capitalize on the reversals indicated by these pivots.

To trade this strategy manually on TradingView:

• Set the Pivot High and Pivot Low indicators with the parameters: leftBars = 2 and rightBars = 1.
• For long entries: Watch for a confirmed Pivot High (a high bar with 2 lower bars before it and 1 lower bar after it). Enter long with a stop order just above the Pivot High price plus the minimum tick size for the asset. This is a breakout approach on the pivot high reversal signal.
• For short entries: Observe a confirmed Pivot Low (a low bar with 2 higher bars before it and 1 higher bar after it). Enter short with a stop order just below the Pivot Low price minus the minimum tick size. This is a breakdown strategy on the pivot low reversal signal.
• Exit positions based on either your predefined take-profit and stop-loss levels or an opposite pivot signal (e.g., exit longs on a pivot low or shorts on a pivot high).
• Monitor and calculate monthly return on equity manually, comparing current month's equity with the previous month to gauge the strategy's performance. This requires tracking the account balance at the end of each month and computing the percentage change.

To enhance the "Monthly Returns of a Strategy in a Chart" strategy through manual trading on TradingView, you should consider incorporating additional technical analysis, discretionary decision-making, and risk management techniques. Here is a concise plan to improve its performance:

• Refined Entry Points: The current strategy uses pivot points for entries. You can fine-tune this by adding other confirmation signals such as moving average crossovers or strength indicators like RSI to confirm the trade entry. If both the pivot point and the additional indicator(s) align, it increases the probability of a successful trade outcome.
• Dynamic Position Sizing: Instead of using a fixed percentage of equity for each trade, consider using a variable position size based on the volatility of the asset. For instance, use a smaller position size during times of higher volatility to reduce risk or increase the size when a trade signal is stronger based on confirmations from multiple technical indicators.
• Enhanced Exit Strategy: Use trailing stops or moving average exits to maximize profits from long-running trends. Adjust the trailing stop based on significant support or resistance levels that could potentially reverse the price trend. A systematic approach to moving the stop loss can help in protecting gains while allowing the position to ride a trend as long as possible.
• Filtering Trades: Avoid taking trades during major news releases or when the market is expected to be less liquid as these conditions can lead to slippage and unexpected market moves. Instead, focus on entering trades during stable market periods for better control over entries and exits.
• Seasonal and Time Analysis: Some assets exhibit seasonal patterns or perform differently at certain times of the day or week. Analyze historical performance to recognize these patterns and adjust your trading times or take additional caution during periods that are historically less favorable.
• Manual Review of Progress: At the end of each month, instead of only focusing on the P/L from the automated chart, conduct a comprehensive review of all trades to identify what worked and what didn't. Use this information to refine the strategy for upcoming trading periods.
• Continual Learning: Keep abreast of new technical analysis methods, market changes, and economic conditions. Integrate novel insights into the trading strategy to stay aligned with the evolving markets.

This strategy suits technical day traders who specialize in short-term market movements and thrive on rapid decision-making. It's ideal for those comfortable with frequently adjusting trades and who possess the acumen to interpret pivot points — a key technical indicator for market reversals. The utilization of pivot highs and lows to enter positions aligns well with breakout and breakdown trading styles, targeting swift price changes. Thus, traders who exhibit:

• Aptitude for Technical Analysis: Ability to understand chart patterns and indicators.
• Active Trading: Willingness to manage trades on a day-to-day or even intra-day basis.
• Quick Reflexes: Readiness to act quickly as market conditions change.
• Risk Management: Proficiency in managing and mitigating risks inherent in short-term trading.

will find the strategy particularly advantageous. It caters to an analytical and dynamic trading approach that focuses on capitalizing on market momentum.

• Strategy Essence: Utilizes pivot highs/lows to capture market reversals, targeting quick profits from short-term price movements.
• Operational Mode: Runs on the TradingView platform; automation through custom script generates visual performance charts.
• Manual Trading: Enhance entries with additional indicators, adjust position sizes to volatility, and exit trades systematically through trailing stops.
• Risk Management: Apply variable position sizing and filter trades to avoid erratic market conditions, reducing potential slippage risks.
• Optimal Users: Tailored for technical day traders adept at swift decision-making and consistent market analysis.
• Trade Alerts: Combine automated alerts with manual oversight, facilitating on-the-spot decisions and strategy adjustments.
• Performance Review: Conduct monthly retrospective analyses to refine tactics and improve future profitability.
• Trader Development: Commit to continuous learning and strategy adaptation in response to market evolutions and new analytical techniques.