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3C Reversal Filter v1

Script from: TradingViewSwingTrend followingMomentumBotReversal

The 3C Reversal Filter v1 combines multiple technical indicators to identify potential trend reversals. It smooths out market noise using SMA, then amplifies distinct price changes through a dual-EMA application. The strategy factors in ATR and standard deviation for interpreting volatility and employs a Fibonacci-based multiplier for trailing signals. It integrates with 3 commas bot for automated trade execution, suggesting the use of simple bots with specific settings for optimization.

Mantle (MNTUSD)

+ 3C Reversal Filter v1

@ 4 h

2.89

Risk Reward

85.94 %

Total ROI

19

Total Trades

MNTUSDT SPOT (MNTUSDT)

+ 3C Reversal Filter v1

@ 4 h

1.19

Risk Reward

1,299.89 %

Total ROI

494

Total Trades

MNTUSDT SPOT (MNTUSDT)

+ 3C Reversal Filter v1

@ 2 h

1.06

Risk Reward

623.73 %

Total ROI

631

Total Trades

Mantle (MNTUSD)

+ 3C Reversal Filter v1

@ 2 h

1.04

Risk Reward

279.15 %

Total ROI

638

Total Trades

CAKE / TetherUS (CAKEUSDT)

+ 3C Reversal Filter v1

@ 4 h

1.04

Risk Reward

99.36 %

Total ROI

831

Total Trades

RUNE / US Dollar (RUNEUSD)

+ 3C Reversal Filter v1

@ 2 h

1.02

Risk Reward

181.57 %

Total ROI

1350

Total Trades

Norwegian Cruise Line Holdings Ltd. (NCLH)

+ 3C Reversal Filter v1

@ Daily

2.23

Risk Reward

10.52 %

Total ROI

18

Total Trades

Hewlett Packard Enterprise Company (HPE)

+ 3C Reversal Filter v1

@ 4 h

1.65

Risk Reward

199.37 %

Total ROI

163

Total Trades

NextEra Energy, Inc. (NEE)

+ 3C Reversal Filter v1

@ 15 min

1.58

Risk Reward

81.26 %

Total ROI

116

Total Trades

Hewlett Packard Enterprise Company (HPE)

+ 3C Reversal Filter v1

@ 2 h

1.57

Risk Reward

202.86 %

Total ROI

193

Total Trades

NextEra Energy, Inc. (NEE)

+ 3C Reversal Filter v1

@ 2 h

1.57

Risk Reward

107.28 %

Total ROI

139

Total Trades

Walt Disney Company (The) (DIS)

+ 3C Reversal Filter v1

@ 4 h

1.53

Risk Reward

106.30 %

Total ROI

108

Total Trades
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Guide

How does the 3C Reversal Filter v1 strategy work ?

The 3C Reversal Filter v1 is a trading strategy that uses advanced technical indicators to facilitate trend detection and short-term momentum identification. The strategy focuses on understanding price movements through various calculations:

  • Step 1: Analyses price movement by considering factors like Average True Range (ATR), percentage change, and standard deviation.
  • Step 2: Uses a Simple Moving Average (SMA) to get a smoothed price.
  • Step 3: Computes the absolute value of the change from one bar to the next.
  • Step 4: Refines the data by applying an Exponential Moving Average (EMA) twice to the results of Step 3.
  • Step 5: Creates a slow trailing line by multiplying the Step 4 output by the Fibonacci-based value of 1.618 (alternative values like 2.618 or 4.236 can also be used).

For automated trading, the strategy integrates with 3 commas bots. Traders can set up both LONG and SHORT bots, input the corresponding bot ID and token address in the strategy's settings, and use a specific webhook URL in conjunction with the placeholder {{strategy.order.alert_message}} for alert messages.

How to use the 3C Reversal Filter v1 strategy ?

This trading strategy utilizes specific market indicators to generate buy and sell signals. Entry points are determined when certain conditions are met, often involving price and indicator intersections. Exit points are also clearly defined by the script, frequently using stop-loss or other indicator-based signals. To trade this strategy manually on TradingView:
  • Identify the indicators used in the script (e.g., Moving Averages, RSI, MACD).
  • Set up these indicators on your TradingView chart with the specified parameters mentioned in the script.
  • Enter a trade when the price action corresponds with the buy conditions (indicator crossing, overbought/oversold levels, etc.).
  • Exit the trade based on the sell conditions (opposite indicator crossing, stop-loss hit, etc.) as indicated in the script.

How to optimize the 3C Reversal Filter v1 trading strategy ?

To enhance the 3C Reversal Filter v1 TradingView strategy manually, one can implement the following plan:

  • Refinement of Indicators: Experiment with different moving average lengths in the calculations to better suit the traded asset's volatility. Shortening the SMA for faster markets or lengthening it in slower, ranging markets could improve signal accuracy.
  • Custom Trailing Stop: Manually adjust the multiplier used in establishing the trailing stop. The default strategy uses a Fibonacci sequence value of 1.618, but testing multiples like 2.618 or 4.236 could yield better results for different market conditions.
  • Combination with Price Action: Incorporate candlestick patterns and support/resistance levels to confirm indicator signals, potentially increasing the success rate by adding a layer of price action analysis.
  • Additional Confirmation Indicators: Add other indicators like RSI or Stochastic for confirming overbought or oversold conditions, helping to filter out false reversals predicted by the strategy.
  • Volume Analysis: Consider the trading volume as an ancillary indicator to confirm the strength behind a potential reversal signal given by the strategy.
  • Adaptive Take Profit: Instead of a static take profit (TP) percentage, use Adaptive TP based on recent price swings or volatility which could maximize gains or minimize losses.
  • Fine-Tuning Position Sizing: Adjust position sizes based on the strength of the signal or confidence level from additional analytical layers, potentially improving the risk-reward ratio.
  • Correlation Confirmation: Assess the correlation of the traded asset with related markets to ensure the signal aligns with broader market trends.
  • Automated Alerts: While trading manually, use TradingView's alert feature to be notified of potential entries and exits to stay on top of the market without continuous monitoring.
  • Regular Backtesting: Regularly backtest the adjusted strategy with historical data to fine-tune parameters for existing market conditions.
  • Journaling Trades: Keep a detailed log of every trade to identify patterns in successful and unsuccessful trades, tailoring the strategy based on these insights.

For which kind of traders is the 3C Reversal Filter v1 strategy suitable ?

The 3C Reversal Filter v1 strategy is well-suited for traders who prefer technical analysis and are comfortable using a mix of indicators and mathematical calculations to identify trade opportunities. It is designed for traders who appreciate the integration of automated trading tools but are also willing to engage in manual tweaks and oversight.

  • Swing Traders: Because it involves the identification of trend reversals and short-term momentum, the strategy caters to swing traders looking to capture gains from potential market shifts over a few days or weeks.
  • Technical Traders: Those with a penchant for detailed technical indicator analysis and who are willing to experiment with indicator settings to optimize their trading approach will find this strategy particularly appealing.
  • Bot Users: The strategy's compatibility with trading bots like 3 commas makes it convenient for traders inclined towards automated trading, provided they're willing to perform initial setup and periodic reviews.

Key Takeaways of 3C Reversal Filter v1

  • Strategy Overview: Utilizes indicators such as ATR, SMA, and EMA to detect trends and momentum; integrates with 3 commas bot for trading automation.
  • Operation Method: Generates buy/sell signals based on a smoothed price range, which can be either automated or manually traded with custom alerts.
  • Manual Trading Advice: Apply price action, additional indicators, and volume analysis for entry/exit confirmation; adjust trailing stop using Fibonacci multipliers.
  • Optimization Suggestions: Experiment with SMA lengths and trailing stop values; use tools like backtesting and trade journaling to refine strategy effectiveness.
  • Risk Management: Size positions based on signal strength and confidence; implement adaptive take profit to capture optimal gains based on market volatility.
  • Trader Suitability: Best for technical and swing traders who favor a mix of automated and hands-on trading approaches; requires comfortable use of detailed analysis and regular strategy adjustment.
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