TradeIQA YouTuber backtests the best buy and sell trading view indicator for scalping with 80% accuracy on a Bitcoin five-minute chart. The results were over 200% growth.
Back Testing the Best Buy and Sell Trading View Indicator for Scalping with 80% Accuracy
Introduction
In this article, we will be discussing an indicator discovered by Online Trade Signals that claims to have an 80% accuracy rate for scalping. The indicator is called Chandelier Exit by Ever Get, and we will be backtesting it on a Bitcoin five-minute chart. But before we get started, we want to thank the subscribers for supporting this channel.
Setting Up the Chart and Indicator
The first step is to change the candlesticks from Japanese to Hikanashi, which some traders believe might give different backtesting results. However, on a five-minute chart, the difference is insubstantial. We then add the Chandelier Exit by Ever Get to the chart but discover that the signals are not accurate. To rectify this, we adjust the ATR period from 22 to 1 and the ATM multiplier from 3 to 2. We also change the style by removing unnecessary lines and changing the labels to “below” for buy trades and “above” for sell trades.
Adding the Second Indicator
To increase the accuracy of the trades, we add a second indicator called LSMMA or zero-lag moving average by Verified. We change the settings on this moving average from 32 to 50.
Entry Rules
The entry rules are straightforward. To enter a short position, we need a sell signal from the indicator, and the price needs to be sitting below the moving average. To enter a long position, we need a buy signal from the indicator, and the price needs to be above the moving average. We ignore trades where the price is below the moving average when entering a long position.
Exit Rules
When entering a short position, we set our stop loss at the recent swing high and exit the trade when the price closes above the moving average. When entering a long position, we set our stop loss at the recent swing low and exit the trade when the price closes below the moving average.
Backtesting Results
After backtesting the system for 100 trades, we discover that the system has a win rate of 51%. Despite not having the highest win rate compared to other systems we have tested, the system has still managed to make a return of 212.52% on a 1000-pound account.
Comparison to Other Systems
Compared to other systems we have tested, this system has the lowest win rate but has still managed to make a considerable return. The system that still holds the record for the highest return is the insane scalping crypto strategy that had a win rate of 60% and made over 390% return on the account.
Conclusion
Overall, the backtested results of the system are impressive, but traders should remember that these results are based on historical data and might not necessarily be a predictor of future trades. However, if used correctly, this system could be a valuable addition to a trader’s arsenal.
