Pinescript Trading Indicators by Kenzing Australia

Tradingview Freelancer Grant Peace

Pine Script Trading Indicators for Tradingview

Probability Genius

$99.99 USD

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Introduction

Thank you for purchasing an indicator or bundle from Kenzing®. This brief introduction contains instructions on how the indicator functions and how to adjust the input values that allow you to personalise the indicator according to your trading strategy. Information on how to access the indicator after purchase is not included in this document and can be found in the Read Me FAQ document.

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Understanding the Probability Genius

The Probability Genius is a strategy that places a buy order after a desirable number of down candlesticks have closed consecutively, and then every candle after until an up candlestick occurs. Each position is closed after only one candlestick in the desired time stamp.

The strategy allows for the user to put a value on every candle so that increasingly large positions can be taken to cover the cost of the previous loss to an extent that the trader receives a profit.

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Indicator Utility

Based on compounding probability, every consecutive candle lower increases the likelihood of the next candle in the time stamp closing higher. For this reason, the strategy may achieve many small losses until a large win occurs, resulting in a straight equity curve with large steps that occur on occasion.

AUD/USD 1 Day Time Stamp

Due to the nature of the strategy under default input values, profitable trades sit around 50% regardless of the security under testing. The strategy assumes that if a position was taken after every bar in the time stamp, you would achieve close to a 50% win/loss ratio. However, the trades increase progressively in size as deviation increases. As a result, the RoMaD can be extremely high on the occasion that many consecutive bars close low.

As a rule of thumb, equities appreciate over time. For this reason, the strategy takes only long positions. However, the strategy can be applied to any other markets such as foreign currency exchange (FX), cryptocurrencies and Exchange Traded Funds (ETF’s) as it is a strictly technical strategy.

The performance summary below is an example of results that the strategy has produced under default input values that have been optimized for performance across a broad range of market securities and represent typical performance of the strategy. Furthermore, these input values can be modified for optimal performance against a single asset and will be discussed in further detail in the next segment.

NASDAQ:AAPL 1 Day Time Stamp

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Input Values

This indicator uses editable parameters. Changing these will result in immediate changes to the strategy.

The input values are labelled according to the trade in the series that they represent. If five consecutive candles close low, the input value labelled, “Five_Bar_Trend” defines the volume of units that will be purchased on this occasion.

If the trader wishes to reduce risk, input values can be set at zero to delay initiation of transactions, resulting in reduced draw-down and increased profitability. This can be beneficial when looking to reduce brokerage costs.

Delaying the initiation of transactions will result in lower trade frequency, increased profitability, profit factor, and average trade. Note that the net profit is significantly less.

NASDAQ:AAPL 1 Day Time Stamp

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