AI-Based TradingView Indicator Gets Incredible Win Rate

have you ever thought about creating a trading strategy based on AI indicator an indicator that learns from its previous performance and improves the quality of its signals well we've got something really special for you today the trading view indicator we're about to share with you in this video is truly worth your time not only will we teach you how to use this tool in your trading but also give you a full strategy that you can start using right now to make good profits Traders before we start be sure to like this video And subscribe to our Channel we have reached 10 000 subscribers in a short amount of time which proves that our Channel provides a lot of value to the trading community so how can we add this indicator to our chart first log into trading View and open a chart of any security navigate to the indicators menu and search for machine learning we've already made a video about this type of indicator in the past however we used a different tool for this strategy we will use the one that was created by capissimo this strategy uses a classic machine learning algorithm nearest neighbors to let you make a prediction for the next Market move being an unsupervised machine learning algorithm k n is one of the most simple learning algorithms the indicator consists of labels that show us when to buy and when to sell depending on the strength of the signal the label changes its opacity stronger signals have higher opacity in order to filter out reliable signals from fake ones we came up with a very interesting concept so that we will need to add two more indicators to the chart so access the indicators one more time and search for linear regression Channel select this indicator that you can see under the technical section once you've installed it on the chart open its settings and change the length to 200. you can change the colors of the channel as well the linear regression indicator visualizes the general price trend of a specific part of the chart based on the linear regression calculation the central line of the indicator is the linear regression calculation itself and the lines above or below it are X number of standard deviations removed from the main one this is a good tool to use to determine when a price is unusually far away from its Baseline the bands indicate support and resistance when the prices stay outside the channel for a significant period of time the reversal might be expected ahead typically when the channel is pointing upwards a strong uptrend is present during an uptrend only long positions can be taken when the channel is pointing downwards the market isn't a downtrend only short positions can be taken at this time the linear regression channel can also protect us from a ranging Market a range can easily be spotted since the channel is usually flat during this time for the third indicator search for neglected volume by dgt select this indicator right here it is very important to adjust its settings in the way we're doing right now first set the length to 15 and the relative volume strength threshold to 10. next go to style and uncheck everything except the relative volume histogram after you've adjusted the indicator the chart should look like this okay now let's proc to the exact rules of buying and selling with this strategy so for a Buy Signal to be valid the following criteria must be in place first the linear regression channel is pointing upwards second the machine learning indicator prints a by label at the time the label is printed the price bar must break the linear regression middle band to the upside third the volume bar must be green when all three rules are in place you can confidently open a long trade set your stop loss below the recent swing and Target two times the risk [Music] let us show one more example so that you fully understand the strategy so here we have the linear regression Channel pointing to the upside this is the ultimate signal of an uptrend the machine learning indicator spotted a long entry we can also see that the price bar breaks above the middle regression line this rule is in place to avoid entries in the overbought OR oversold areas lastly we check the volume the bar is green which indicates a large number of orders to buy at this time period [Music] now let's learn the rules for a short position first the linear regression Channel must be pointed downwards second the AI indicator must print a sell signal the price bar needs to break the middle regression level to the downside at the time the signal is printed third condition the volume bar needs to be read place an order to sell at the close of the trigger Candlestick and Target two times the risk just like with long traits Traders remember not to risk more than five percent of your account with this strategy risk management is key if you follow the rules we just showed you you can expect a win ratio of over 75 percent this strategy is suitable for trading Forex Pairs and cryptocurrencies the best time frame for this strategy is between 3 and 15 minutes okay before we end this video Let's see one more example of a short trade we see how price broke below the middle regression level and the signal was issued the volume confirmed the entry thanks for watching this video good luck

Channel: Magic Indicator Strategies

Views: 86,806

Keywords: best indicator for scalping, tradingview indicators, scalping trading strategy, forex trading strategy, algo trading, tradingview, technical analysis, best tradingview indicator, best tradingview indicator for scalping, price action, scalping strategy, scalping forex, 5 minute scalping strategy, tradeiq, tradingview tutorial, chatgpt, ai trading, artificial intelligence

Id: gy5z_COXErY

Length: 6min 57sec (417 seconds)

Published: Tue Feb 07 2023