Scalping with Williams %R, MACD, and SMA (1m) — Strategy by girishmanuja
By girishmanuja
Performance Metrics
- Author: girishmanuja
- Symbol: NSE:NIFTY
- Timeframe: 1 minute
- Net P&L: +27,702.00 INR (+138.51%)
- Win Rate: 35.9%
- Profit Factor: 1.732
- Max Drawdown: 17,352.00 INR (31.89%)
- Total Trades: 64
- Sharpe Ratio: 0.204
Description
Overview:This trading strategy is designed for scalping in the 1-minute timeframe. It uses a combination of the Williams %R, MACD, and SMA indicators to generate buy and sell signals. It also includes alert functionalities to notify users when trades are executed or closed.Indicators Used:Williams %R: A momentum indicator that measures overbought and oversold conditions. The Williams %R values range from -100 to 0.Length: 140 bars (i.e., 140-period).MACD (Moving Average Convergence Divergence): A trend-following momentum indicator that shows the relationship between two moving averages of a security's price.Fast Length: 24 barsSlow Length: 52 barsMACD Length: 9 bars (signal line)SMA (Simple Moving Average): A trend-following indicator that smooths out price data to create a trend-following indicator.Length: 7 barsConditions and Logic:Timeframe Check:The strategy is designed specifically for the 1-minute timeframe. If the current chart is not on the 1-minute timeframe, a warning label is displayed on the chart instructing the user to switch to the 1-minute timeframe.Williams %R Conditions:Buy Condition: The strategy looks for a crossover of Williams %R from below -94 to above -94. This indicates a potential buying opportunity when the market is moving out of an oversold condition.Sell Condition: The strategy looks for a crossunder of Williams %R from above -6 to below -6. This indicates a potential selling opportunity when the market is moving out of an overbought condition.Deactivate Buy: If Williams %R crosses above -40, the buy signal is deactivated, suggesting that the buying condition is no longer valid.Deactivate Sell: If Williams %R crosses below -60, the sell signal is deactivated, suggesting that the selling condition is no longer valid.MACD Conditions:MACD Histogram: Used to identify the momentum and the direction of the trend.Long Entry: The strategy initiates a buy order if the MACD histogram shows a positive bar after a negative bar while a buy condition is active and Williams %R is above -94.Long Exit: The strategy exits the buy position if the MACD histogram turns negative and is below the previous histogram bar.Short Entry: The strategy initiates a sell order if the MACD histogram shows a negative bar after a positive bar while a sell condition is active and Williams %R is below -6.Short Exit: The strategy exits the sell position if the MACD histogram turns positive and is above the previous histogram bar.Trend Confirmation (Using SMA):Bullish Trend: The strategy considers a bullish trend if the current price is above the 7-bar SMA. A buy signal is only considered if this condition is met.Bearish Trend: The strategy considers a bearish trend if the current price is below the 7-bar SMA. A sell signal is only considered if this condition is met.Alerts:Long Entry Alert: An alert is triggered when a buy order is executed.Long Exit Alert: An alert is triggered when the buy order is closed.Short Entry Alert: An alert is triggered when a sell order is executed.Short Exit Alert: An alert is triggered when the sell order is closed.Summary:Buy Signal: Activated when Williams %R crosses above -94 and the price is above the 7-bar SMA. A buy order is placed if the MACD histogram shows a positive bar after a negative bar. The buy order is closed when the MACD histogram turns negative and is below the previous histogram bar.Sell Signal: Activated when Williams %R crosses below -6 and the price is below the 7-bar SMA. A sell order is placed if the MACD histogram shows a negative bar after a positive bar. The sell order is closed when the MACD histogram turns positive and is above the previous histogram bar.This strategy combines momentum (Williams %R), trend-following (MACD), and trend confirmation (SMA) to identify trading opportunities in the 1-minute timeframe. It is designed for short-term trading or scalping.