⚡Titan Protocol: Cyclops

31 mar

The "Titan Protocol: Cyclops" is a versatile, multi-indicator trading strategy designed to work on any asset class. It combines 9 various technical indicators to generate a composite trend signal, which is then smoothed and used to trigger long, short, or neutral positions. The strategy is highly customizable, allowing users to adjust indicator parameters, thresholds, and smoothing methods to suit their trading preferences. It includes backtesting capabilities, performance metrics, and visual overlays to assist traders in decision-making.

Key Features

1. Universal Application: Can be applied to any asset (stocks, forex, crypto, etc.) with adjustable settings.
   
2. Composite Trend Signal: Aggregates signals from multiple indicators into a single trend score.
   
3. Flexible Position Management: Supports long-only or long/short strategies with optional cash positions.
   
4. Visualization: Displays trend signals via histogram and candle color overlays, alongside equity curves and HODL comparisons.
   
5. Backtest Metrics: Provides return percentage, max drawdown, and equity curve analysis.
   

Strategy Settings

• Start Date: Backtesting begins from a user-defined date (default: January 1, 2018).
  
• Shorts Option: Toggle to enable/disable short positions (default: disabled).
  
• Signal Smoothing: Applies a moving average (e.g., DEMA, EMA) with a customizable length (default: 2) to the trend signal.
  
• Thresholds: Long entry threshold (default: 0.1) and short entry threshold (default: -0.4).
  
• Display Options: Equity curve, HODL comparison, and table positioning for metrics.
  

Signal Calculation

• Each indicator contributes a score (+1 for bullish, -1 for bearish, 0 for neutral).
  
• The composite trend score is averaged across active indicators and smoothed using a user-selected moving average (default: DEMA).
  

Conditions

• Long Entry: Smoothed trend crosses above the long threshold (default: 0.1).
  
• Short Entry: Smoothed trend crosses below the short threshold (default: -0.4) if shorts are enabled; otherwise, closes long positions to cash.
  
• Neutral Zone: Trend between thresholds triggers no action.
  

Visualization

• Histogram: Displays the smoothed trend signal with color coding (green for long, red for short, gray for neutral).
  
• Candle Overlay: Candles are colored based on the trend (green for long, red for short, purple for cash).
  
• Equity Curve: Plots strategy equity vs. HODL equity for performance comparison.
  
• Tables: Shows HODL stats (return %, max drawdown) and strategy/HODL labels.
  

Performance Metrics
Return Percentage: Calculated from the backtest start date.
Max Drawdown: Measures the largest peak-to-trough decline during the backtest.
HODL Comparison: Benchmarks strategy performance against a buy-and-hold approach.

Trend Aggregation
The strategy calculates a trend score by summing individual indicator signals and normalizing by the number of active indicators. This score is then smoothed to reduce noise.

Trade Execution
Long: Triggered when the smoothed trend crosses above the long threshold.
Short (Optional): Triggered when the trend crosses below the short threshold (if enabled).
Cash: Exits to cash when short conditions are met and shorts are disabled.

Risk Management
Uses a percentage of equity for position sizing (default: 100%).
Incorporates slippage (default: 1) and processes orders on candle close.

Customization
Users can enable/disable individual indicators, tweak lengths, multipliers, and thresholds, and select from various moving average types (SMA, EMA, DEMA, etc.).

Usage Tips

• Asset Selection: Works best on trending assets; adjust thresholds for choppy markets.
  
• Backtesting: Test across different timeframes and assets to optimize parameters.
  
• Shorts: Enable shorts for bearish markets or disable for long-only strategies.
  
• Smoothing: Increase the smoothing length for fewer but more reliable signals.
  

This strategy is a powerful tool for traders seeking a data-driven approach to trend-following across diverse markets, blending multiple indicators into a cohesive system. Adjust settings based on your risk tolerance and market conditions for optimal results.

9 abr

Notas de prensa

Added Updated Backtest Table

9 abr

Notas de prensa

Table Update v2

17 abr

Notas de prensa

Script Adjustments

6 may

Notas de prensa

Improved script's loading speed.
Updated the backtest table.