📊Market Control Shifts (old)

Overview

Our Market-Bias algorithm is designed to find shifts in market control based on a number of metrics hand picked to yield the most likely directional prediction. Additionally, by design, the easy to use settings menu provides the ability to customize market periods which are fitting to users individual needs. In this section, a rundown of each setting within the algorithm is given so that the user can properly adjust the settings as needed for optimal results.

The signals given by this 'indicator' are what we call "raw signals". This means that these signals provide very useful insight and in many cases great trade opportunities, however, on their own they are not enough to have a complete strategy. These raw signals provide a foundation to guide our machine-learning algorithms in their real-time predictions about investment opportunity. Understand the machine-learning is not done in this indicator itself, it is done based off this indicator in order to produce refined results that yield better returns than just the raw signals.

Model Settings

Setting: Analysis Lookback

Purpose:

  • Determines how many candles the model looks back in history to gather data for analysis.

Adjusting:

  • Turning up this setting means that the model will look back further in history and therefore will be less reactive to short term bias shifts resulting in longer control continuations.

  • Turning down this setting means that the model will look back a shorter time in history and therefore will be more sensitive to short term bias shifts resulting in shorter control continuations.

Examples:

Regression Settings

Setting: Regression Degree

Purpose:

  • Determines fitment of regression line to price movements.

Adjusting:

  • Turning this setting up results in a regression line which is more closely fitted to price movements.

  • Turning this setting down results in a regression line which is less fitted to price movements.

  • Should be adjusted depending on how reactive the user wants the regression analysis to be to price movements.

  • High degrees yield more reactive fitment, low degrees yield less reactive fitment.

Setting: Regression Length

Purpose:

  • Determines how far back in history price is to be regressed.

Adjusting:

  • When model lookback is set to analyze more historical data, regression length should also be turned up to accommodate for a longer period of analysis.

  • When model lookback is set to analyze less amounts of historical data, regression length should generally be lower to accommodate a shorter period of analysis.

  • When a bullish bias shift occurs, the price at the close of the current bar must also be above the regression line for a bullish signal to plot. Oppositely when a bearish bias shift occurs the price must be below the regression line for a bearish signal to plot.

Setting: Regression Averaging

Purpose:

  • Averages the regression line in order to decrease unwanted short term reactions to price.

Adjusting:

  • Uses a 10:1 factor for averaging. This mean if 'Regression Averaging' is set to 1, the regression line will be averaged over the last 10 bars.

Alerts

  • To setup alerts, start by clicking the alert tab on TradingView

  • Next under the first condition tab, select 'Market Control Shifts [Stonekeep]'

  • Finally under the second condition tab, select the desired bullish or bearish alert.

  • To have an alert for both simply, create two separate alerts, one with the 'Bullish Control Shift' condition and one with the 'Bearish Control Shift' condition.

Developer Notes

IMPORTANT (Please Read)

Conclusions

  • The raw signal data has been determined to be a great indication for all types of traders but please note further market analysis will always be needed to confirm possible entry and exit points.

  • As a company and community our aim is to be able to provide a complete toolset which does the fore mentioned 'further analysis' through the algorithms which are currently still under development, soon to be released to all.

  • Take the time to familiarize yourself with all the settings and their individual effects on the potential entries our algorithm gives before acting on any potential investment decisions.

  • Branch out of your previous trading style and discover all the capabilities our tool provides, this will help to give a broader understanding of how our algorithm performs in all different types of markets.

  • Draw your own conclusions about applicability from your own individual analysis of the models performance in various markets and develop your style based on this.

  • Most of all please enjoy this tool for all it is as the process to getting it here was extremely long and very hard. I am simply thrilled to now be able to share it with all of you; my only hope is everyone who uses it can share in the riches it's capable of providing.

Minor Things to avoid

Swings on low timeframe stocks

  • If trading in the stock market on low time frames it is recommended to avoid holding positions into the next trading day.

  • The only time significant loss has been observed to occur is on low timeframes in the stock market given a large difference in the open of the current day and the close of the previous day.

Ex.

Exits on longer analysis intervals

  • Avoid holding positions signal to signal when trading on longer analysis intervals especially, find your own exits based on your own risk profile for ALL trades.

  • Even though colors are plotted signal to signal, this is not an indication for when to exit trades, only to indicate potentially good times to enter.

  • The only time potential trades could be taken signal to signal is when trading with a higher frequency of entries due to the lack of drawdown that can be taken on.

  • With longer analysis intervals, price has the ability to move against a position more before a bias switch occurs, hence the necessity to find exits on ones own when using longer analysis intervals.

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