Token Metrics has officially launched its first TradingView Indicator, built to simplify your trading, remove emotions from your decisions, and improve your risk-adjusted returns.
This strategy combines multiple technical analysis indicators to output Long/Short signals for crypto assets on TradingView. The user can also backtest the signals to understand how this strategy would have performed in the past.
The performance on the backtest is not indicative of future performance. The backtest is essential for the user to learn how to use the strategy, its pros and cons, which market conditions this strategy is suited for, and what kind of risk profile it provides.
The Indicator can be accessed currently by customers of the Token Metrics platform by visiting your Settings Page and inputting your TradingView Username in the bottom left corner:
Once you provide your username, you will find the Indicator in TradingView under "Invite-Only Scripts":
Our TradingView Indicator comprises two separate indicators - a Trend Following and a Short-Term Mean Reverting Strategy - that can also be used individually; however, they are more powerful combined! It offers a comprehensive strategy that can be applied to various time horizons (Daily, Weekly, etc.) for higher net profits and lower drawdowns for long-term and high-frequency trading. With the option to assign stop-loss percentages, this indicator allows for flexible investment risk management.
Trend Following Indicator
This trend-following strategy combines multiple technical analysis indicators to output Long/Short signals for crypto assets on TradingView. The user can also backtest the signals to understand how this strategy would have performed in the past. The Trend Following Indicator does not intend to buy the exact bottom or sell the exact top. It is meant to get exposure to strong trends with little trading. The best timeframe for this indicator is Daily and Weekly. This strategy works very well in trending markets but not so well in choppy or range-bound markets. In highly volatile choppy markets, trend-following strategies can give false signals. Also, since the strategy does not trade very frequently, it could be high risk in terms of high max drawdown.
Disclaimer: The performance on the backtest is not indicative of future performance. The backtest is essential for the user to learn how to use the strategy, its pros and cons, which market conditions this strategy is suited for, and what kind of risk profile it provides.
Features
Token Metrics Clouds: Identifies the current trend of the market, Green for Bullish, Red for Bearish.
Token Metrics Trend Line: Adaptive trend line that determines the longer-term trend, as well as the longer-term potential resistance/support levels.
Token Metrics Channels: Channels that help identify shorter-term resistance/support levels, as well as potential breakout levels.
Signals: Defined Long and Short signals
Inputs
Start Date: The user inputs the start date of the strategy and signal generation for the backtest.
MA and Channel length: default value is 20 bars, and the user can change that value, for smaller values the indicator will react faster to prices which could lead to more trades and reduce accuracy. For higher values, the indicator will react slower to prices, reducing the number of trades and potentially increasing drawdown.
Token Metrics Mean-Reverting Indicator
This mean-reverting strategy combines multiple technical analysis indicators to output Long/Short signals for crypto assets on TradingView. The user can also backtest the signals to understand how this strategy would have performed in the past. It is intended to buy at the bottom of the channel and sell at the top. It is not intended to gain exposure to the prevailing trend. The best timeframe for this indicator is 15min, 30min, and 1hr timeframe. Mean-reversion is stronger on low time frame charts, like a minute and hourly. This strategy performs well during choppy and range-bound markets and not well during strong trends.
It is essential to set a stop-loss when following this strategy since the indicators do not provide a defined signal of when to close your short/long trades, unlike the Trend Following Indicator.
Disclaimer: The performance on the backtest is not indicative of future performance. The backtest is essential for the user to learn how to use the strategy, its pros and cons, which market conditions this strategy is suited for, and what kind of risk profile it provides.
Features
Token Metrics Channels: Channels that adapt to the level of volatility
Signals: Long and Short signals
Inputs
Length: default value is 20 bars, and the user can change that value; for smaller values, the indicator will react faster to prices which could lead to more trades and reduce accuracy. For higher values, the indicator will react slower to prices, reducing the number of trades and potentially increasing drawdown.
Adjustment Factor: default is 0.1; the user can change that value to adapt faster/slower to current levels of volatility.
Compared to the TM TradingView Indicator v1, the combined strategy's accuracy is, on average lower, that is because stop-loss signals are added into the strategy to get a higher return and lower maximum drawdown, and the trading is separated into four orders in maximum, therefore increasing the total closed trades. However, compared with the performance of v1 on most tokens, including BTC, ETH, XRP, and SOL, the increase of return and maximum drawdown improved significantly.