Sovereign Horizon Matrix (SHM) v8.0 — Strategy by Kenpachi_ii
By Kenpachi_ii
Performance Metrics
- Author: Kenpachi_ii
- Symbol: COINBASE:BTCUSD
- Timeframe: 24 hours
- Win Rate: 48.2%
- Profit Factor: 7.617
Description
SHM Bidirectional v8.0⚔️ Executive Summary (SHM v8.0)SHM Bidirectional v8.0 is an institutional-grade, macro trend-following execution matrix engineered for higher-timeframe swing trading on the Daily chart.Built primarily for Bitcoin (BTC)—and modeled after real-world Coinbase Nano Bitcoin Futures execution mechanics—SHM v8.0 combines an 8-pillar technical framework with strict, non-repainting risk management. It eliminates chart fatigue and emotional bias, allowing Institutional and Retail traders to capture major trends while keeping their time free for the gym, work, and family.* Primary Design: Daily Chart Swing Trading & Automation-Ready Execution Engine* Core Focus: Bitcoin (BTC) macro expansion cycles (Fully adjustable for Altcoins, Futures, and Equities)* Key Mechanics: Dual Baseline (63/480 WMA), Dual Break & Retest Engines, RSI Momentum Gate, and 3-Module Risk Engine* Backtest Snapshot (BTC Daily): 7.617 Profit Factor | 18.85% Max Drawdown | 124.49% CAGR (56 trades)⚙️ Purpose, Asset Focus & Time-Saving DesignThe Purpose:SHM v8.0 was created to solve a fundamental trading challenge: eliminating emotional bias, filtering out bad breakouts, and enforcing strict, automated risk management across volatile market cycles. The goal is to provide traders with a clean, repeatable strategy that captures real trends while shielding capital during choppy sideways movement.Primary Target & Chart Focus:* Primary Asset: Engineered primarily for Bitcoin (BTC) to handle its unique cycles, volatility spikes, and macro trend expansions.* Daily Chart Focus: Designed specifically around higher-timeframe swing trading on the Daily chart. This makes it ideal for traders who don't have the time to sit in front of charts all day managing intraday noise.* Full Adjustability: Works seamlessly across other crypto pairs, futures, and stocks. You have complete freedom to tweak all parameters—WMA lengths, envelope percentages, RSI filters, and stop distances—to match any market or timeframe.⚙️ Core System ArchitectureSHM v8.0 functions as a macro trend-following execution matrix. Because every signal and exit runs on fixed non-repainting calculations, it can also operate as a quantitative trend follower when linked to automated webhooks or trading bots.1. Dual Baseline Framework: Combines a 63 Fast Institutional WMA with a 480 Macro Baseline WMA Tide filter to keep daily trades aligned with macro market structure.2. Dual Break & Retest (B&R) Engine: Dedicated Micro (63 WMA) and Macro (480 WMA) engines track depth, touch penetration, and bounce candles to filter out false breakouts.3. Timeframe-Locked RSI Momentum Gate: Verifies directional expansion so you don't buy near local tops or short into oversold bottoms.4. Triple-Band Envelope System: Uses multi-layer WMA volatility bands to highlight expansion channels and potential exhaustion zones visually.🛡️ SHM Modular Risk EngineThe script features three non-repainting exit modules:* Module 1 (Flat TP to Breakeven): Moves your stop loss straight to entry price once a set profit percentage target is reached.* Module 2 (65 WMA Ribbon Trail): Dynamically trails stops along the 65 WMA ribbon floor or ceiling during sustained trends.* Module 3 (Candle-Close Trail): Steps your stop loss behind recent candle closes to lock in profits during sharp extensions.📊 Default Properties, Backtest Metrics & Real-World ExecutionTo maintain total transparency and adhere to TradingView backtesting standards, default strategy Properties reflect realistic exchange execution mechanics (modeled after Coinbase Nano Bitcoin Futures / Derivatives environment settings):* Initial Capital: $717 USD* Position Sizing: 80% of Equity (default size is set higher for compounding, but can easily be adjusted in settings to match your personal risk tolerance)* Leverage: 4x Long / ~3x Short* Commission: 0.075% per trade* Slippage & Delay: 30 ticks slippage / 1 tick order execution delay* Execution Realism: Calculates on bar closes, order fills, and real-time bar ticks.📈 Historical Performance Context (Daily Chart)* Historical Data Source: Because newer derivatives tickers lack long-term price history, the full historical aggregate BTC chart was used to provide maximum sample depth.* Trade Frequency: Running on the Daily chart generates a focused sample size of 56 trades across the dataset. While it doesn't hit the high trade counts of lower-timeframe scalpers, the efficiency of the framework stands out: * Profit Factor: 7.617 * Max Equity Drawdown: 18.85% * Average Winning Trade: +56.41% vs. Average Loss: -3.29% * Compound Annual Growth Rate (CAGR): 124.49%📌 Usage & Automation* Execution Modes: Toggle between pure Price Action Baseline entries, Break & Retest Standalone entries, or Combined execution in the input menu.* Automation Ready: All order conditions and trailing exits execute instantly on confirmed bar closes, making SHM fully compatible with webhook automation tools.⚠️ Disclaimer & Compliance:This script is published for educational and technical analysis backtesting purposes only. Past backtested results do not guarantee future performance. Always apply strict risk management and adjust commission, slippage, and position sizing settings to match your specific execution platform prior to live deployment.