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INVITE-ONLY SCRIPT
Updated

Drawdown strategy indicator

3 453
This indicator uses drawdown and max drawdown to determine good areas to enter or exit the market.

It uses the ratio between those values and two thresholds provided by the user: top and bottom.

These two values will be used to highlight the areas that match the users strategy criteria.

I normally use this indicator on the 4h or higher timeframes.

On BTC using the default parameters it predicts the tops pretty nicely. The areas of accumulation or buy zones are consistent with the ones that follow each halving.

The chart shows:
- Drawdown
- max drawdown
- drawdown average
- drawdown ratio
- buy and sell zones

The study includes alerts for both buy and sell zones.
Release Notes
Support for backtesting the indicator.

Instructions:
1) switch on the "backtestable" toggle from settings
2) the source you want to use in the backtest script will appear as "drawdown signal"
3) use 1 for buy and 2 for sell

NOTE: this indicator works better in higher timeframes, I have used it mostly on 4h.

Invite-only script

Only users authorized by the author have access to this script, and this usually requires payment. You can add the script to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author — learn more here. For more details, follow the author's instructions below or contact TheTradingParrot directly.

TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.

Author's instructions

You can use this script by becoming a VIP or observer member of https://patreon.com/thetradingparrot

Warning: please read our guide for invite-only scripts before requesting access.

TheTradingParrot
Join our membership to gain access to the private scripts.
thetradingparrot.com
Also on:
alertsdrawdownMoving Averagesstrategy

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
alertsdrawdownMoving Averagesstrategy

Invite-only script

Only users authorized by the author have access to this script, and this usually requires payment. You can add the script to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author — learn more here. For more details, follow the author's instructions below or contact TheTradingParrot directly.

TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.

Author's instructions

You can use this script by becoming a VIP or observer member of https://patreon.com/thetradingparrot

Warning: please read our guide for invite-only scripts before requesting access.

TheTradingParrot
Join our membership to gain access to the private scripts.
thetradingparrot.com
Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.