Custom Indicators · Super Swing Trading Strategy · Shorting Tactics

1. The core principles of super swing trading and shorting strategies.

In quantitative trading, successful strategies are often built on the precise capture of market patterns and the optimization of risk-reward ratios. The core principle of Super Swing Trading · Shorting Strategy is to capture significant downward momentum at important market peaks through mathematical modeling and data analysis, automating shorting operations to reduce position risk while enhancing capital efficiency. This method is particularly suitable for highly volatile assets and can seek high-probability trading opportunities during adjustment swings.

1. Analysis of Core Ideas

The design inspiration for the super swing trading tracking strategy comes from the theoretical assumptions of mean reversion and momentum reversal. The core idea is to capture signals of price rebound weakness through quantitative indicators after a price rebound and pullback at high levels, and to convert these signals into clear shorting entry/additional position points. In this way, investors can avoid risk exposure after a strong price increase, relying on data-driven methods to achieve precise shorting operations.

From the perspective of strategic goals, Super Swing Trading emphasizes three core advantages:

Lowering position costs:

Shorting in the weak rebound range at high market levels, locking in profits during the price retracement trend. Swing trading retracements are often accompanied by heightened market panic. By quantifying insights into price trend reversals or fluctuations, one can accurately identify suitable shorting opportunities, thereby avoiding the cost pressure and position risks caused by implicit factors in high price differentials.

Improve capital efficiency:

Automatically identify signals of rebound fatigue and avoid frequent trial and error caused by inefficient fluctuations through set quantitative conditions. Compared to traditional subjective trading methods, automated quantitative strategies can gain deeper insights into market mechanisms and swing trading reversal patterns, while avoiding excessive participation in ineffective volatile markets, thereby enhancing the overall return on capital utilization.

Accurately capture trend lows:

By opening a short position at the high of the trend, we can reduce the blind acceptance of losses due to price pullbacks. In a weakening market, the market often presents linear downward movements or horizontal fluctuations, while quantitative strategies identify weak price rebounds. The super swing trading tracking strategy accurately models pullback amplitudes, candlestick structures, trading volumes, and other axis data to help investors lock in the profit space from pullbacks.

👉Advantages:

Good opportunity: The combination of market rhythm - a pullback at a high trend meets a quantitative model that issues precise shorting signals, gathering trading opportunities with a higher win rate.

Good risk control: Start to build short positions at the top price range, which can quickly avoid floating losses after the price stabilizes, and use quantitative adjustments to accurately time trades, employing hedging strategies to effectively reduce the burden of capital utilization.

2. Detailed Explanation of Key Indicators

This strategy relies on the following key quantitative indicators to assist in signal capture and operational decision-making:

1. The recent high points, low points, and average values of the last 50 candlesticks:

Use historical price data to calculate the extreme values and averages of the range, thereby determining the price range in which the current swing trading is located.

The relative position of high and low points can reveal whether the market is in an overbought or oversold state, providing a reference for subsequent judgments.

2. The rise and fall of candlestick patterns:

By calculating the price amplitude of single or multiple candlesticks, capture the strength of market fluctuations to identify potential trend reversal signals.

A significant increase in volatility often indicates a deepening divergence between bulls and bears, making it a key moment for strategy intervention.

3. Volume rebound low point:

The combination of volume and price is an important means to enhance the effectiveness of strategies. An abnormal increase or decrease in trading volume often indicates that the market is approaching a key turning point.

Set the low point of the trading volume as a reference to further filter out noise signals and accurately locate the rebound buying point of the "super level" swing trading.

3. Causes of Signal Logic

This strategy is based on statistical logic analysis. When the price reaches a peak in a key resistance area and is accompanied by a significant change in trading volume, it usually releases signals of fund outflows in the short or medium term. This market behavior is characterized by the "decline of bullish momentum":

As the bullish buy orders gradually diminish, market trading becomes sluggish, and funds gradually withdraw to seek low-risk ranges. This withdrawal momentum often triggers a rapid reversal in prices. Based on this logic, the strategy can capture shorting opportunities with a higher win rate and a better risk-reward ratio.

By rigorously setting quantitative conditions, the super-level tracking shorting strategy relies on high-precision indicators to automatically filter out core operation signals of "relatively high position weakness." If combined with setting profit-taking points, it allows the strategy to possess strong adaptability in different swing trading market conditions.

4. Practical Significance and Unique Advantages

Eliminate Emotional Trading: Accurate shorting signals generated by quantitative indicators help trading decisions break free from subjective emotional interference, preventing investors from falling into losses due to chasing highs and selling lows or blindly entering long positions.

Dealing with complex market conditions: In a market environment where there is volatility or unclear trends, this strategy relies on "high-level fatigue" swing trading signals to capture opportunities for short-term market pullbacks or trend reversals.

Reduce trading costs: The design of indicators that combine volume and price effectively filters out low-quality signals at high levels where market rebounds are weak, avoiding frequent attempts at shorting during choppy market conditions. This reduces operational frequency, optimizes trading costs, and improves overall profit efficiency.

2. Super Swing Trading - Shorting Strategy Signal Effect

Chart OKX-ETHUSDT perpetual contract 30-minute timeframe

Signal Highlights: In a volatile market, each peak can issue a sell signal.

Chart OKX-BTCUSDT Perpetual Contract 30-minute Cycle

Signal Highlights: In a downtrend, each rebound high has issued a sell signal.

3. Super Swing Trading · Shorting Strategy for Selecting Coins

Chart Execute Currency Selection Settings

Chart Selected Coin Result

Quality Result 1: OKX-LAUNCHCOINUSDT perpetual contract, after a sell signal appears, has shown a certain degree of decline.

Quality Result 2: OKX-NEIROETHUSDT perpetual contract shows a sell signal, with a significant downward trend.

Quality Result 3: OKX-MAGICUSDT perpetual contract, every rebound high point during a decline can accurately trigger a sell signal.

👉Comprehensive Summary:

Based on the trends of OKX-LAUNCHCOINUSDT and OKX-NEIROETHUSDT, the strategy can stably identify signals within a short cycle and is accompanied by significant price declines, making it suitable for investors who prefer swing trading. As for the performance of OKX-MAGICUSDT, the strategy can not only accurately capture down signals but also quickly locate secondary shorting opportunities after each price rebound, making it more suitable for short-term traders looking for efficient trading opportunities.

4. Indicator Source Code

// Strategy applicable conditions: bearish market

// Strategy Principle: Look for points where the price retreats after a significant increase in volume and automatically execute shorting.

// Suggested running period: 5m / 15m / 30m

// Notes: The strategy only executes shorting, and it is necessary to set take profit and stop loss. It is recommended to take profit at 2% and stop loss at 1%, adjust according to leverage situation.

//

// @version=2

// Calculate the highest value of the last 50 bars

hhv = highest(high, 50)

// Calculate the lowest value of the last 50 bars

llv = lowest(low, 50)

// Calculate K-line length

len= abs(high - low)

// Calculate the average height of the candlestick

maLen = ma(len, 50)

// Define recent new highs and recent new lows

newHigh = high == hhv

newLow = low == llv

// Calculate price change percentage

degree = ((close - open) / open) * 100

// Calculate price changes

change = close - open

// Define conditions

lenLimit = len > maLen

newHighEnd = ((newHigh[1] && !newHigh) || newHigh) && change < 0 && lenLimit

newLowEnd = ((newLow[1] && !newLow) || newLow) && change > 0 && lenLimit

degreeThrehold = 0.2

maVol = ma(volume, 120)

volumeCondition = volume > maVol

volUp = volumeCondition && degree >= degreeThrehold

volDown = volumeCondition && degree <= -degreeThrehold

signal = 0

if (volUp && (newLowEnd || newLowEnd[1] || newLowEnd[2] || newLowEnd[3] || newLowEnd[4]) && (signal[1] != 1 && signal[2] != 1 && signal[3] != 1 && signal[4] != 1)) {

signal := 1

} else if (volDown && (newHighEnd || newHighEnd[1] || newHighEnd[2] || newHighEnd[3] || newHighEnd[4]) && (signal[1] != -1 && signal[2] != -1 && signal[3] != -1 && signal[4] != -1)) {

signal := -1

} else {

signal := 0

}

buy = signal == 1

sell = signal == -1

// Create corresponding alert conditions for use in the alert addition window.

alertcondition(sell, title='Sell Signal', direction="sell")

// Draw signals on the chart

plotText(sell, title='Sell', text='Sell', color='red', refSeries=high, placement='top')

// Spot buying or contract opening long

enterShort(sell, price='market', amount=1)

Five, Comprehensive

The core concept of shorting trading strategies lies in capturing signals of market rebound weakness through quantitative indicators, accurately assessing the potential for price retracement, and helping traders maximize profit opportunities during market downturns. Through strict signal validation and dynamic risk management, the strategy can not only effectively avoid the risks brought by short-term market volatility but also enhance the efficiency of capital utilization and operational precision.

Specific advantages:

Reduce the risk of chasing the market: By closely observing the market at high points and during weak rebound phases, the strategy helps traders avoid unnecessary blind trading, thereby significantly reducing the risk of losses caused by chasing the market.

Enhancing shorting efficiency: The automated quantitative signal generation mechanism can accurately identify the optimal timing for shorting operations, helping traders to seize the core intervals of short-term market sharp declines and trend pullbacks.

Focus on rebound fatigue nodes: By locking in the stages where the market's high rebound momentum weakens, optimize trading rhythm and create efficient shorting profit paths, suitable for short-term investors seeking stable returns.

This strategy combines multiple technical indicators and dynamic adjustment methods, including volume-price trend signals, rebound exhaustion monitoring tools, and an automated operating path for downtrends. The strategy has high accuracy and flexibility, effectively adapting to various market conditions, providing short-term traders with a real and reliable shorting solution.

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