Since the last video, I have improved the beep boop indicator even more. This is how the beep boop indicator looks like on TradingView. It is based on the MACD indicator and comes with green and red bars. When a green bar appears on the beep boop indicator, it indicates a buying pressure. When a red bar appears on the beep boop indicator, it indicates a selling pressure. Furthermore, the beep boop indicator uses a 50 period exponential moving average to calculate its values. If you watched the previous video, you probably noticed that this beep boop indicator looks a little bit different. In the last video, the buy entry signal was when two green bars appeared in a row, and the sell entry signal was when two red bars appeared in a row. Exit signal was when two opposite bars appeared in a row. Furthermore, the red and green bars only appeared in a short term uptrend. In other words, if the price was above the 50 period moving average.

 

The new version of the beep boop indicator is better, because it gives buy and sell signals at the same time. In the new version, the long entry signal is when the first green bar appears, and the sell signal is when the first red bar appears. Furthermore, an exit signal is when the white bar appears for the first time. Also in the new version of the beep boop, price doesn’t always have to be above or below the 50 period moving average, you can change it anytime you want.

 

Since we have tested other trading strategies 100 times with a fixed reward to risk ratio, I have tested this strategy with a fixed reward to risk ratio as well. Furthermore, I used the 200 period exponential moving average to find the long term trend direction.

 

So here’s how the complete beep boop trading strategy goes. If the beep boop indicator gives a green bar, and if the price is above the 200 moving average, the long entry signal is at the first green bar. Stoploss goes below the pullback.

Similarly, If the beep boop indicator gives a red bar, and if price is below the 200 period moving average, the short entry signal is at the first red bar. Stoploss goes above the pullback.

 

So I tested the beep boop indicator 100 times, here’s what happened.

 

Number 1. At the beginning, the beep boop indicator gave 10 winning trades in a row, and till the 28th trades, the profit on the profit graph was almost going straight up. The beep boop gives a decent amount of entry signals in a short time period. It is heavily based on the MACD indicator. MACD strategy had an excellent win rate, but one of the reasons it worked so well, is because it didn’t give many entry signals in a short time. At the start when price was trending strongly, the beep boop indicator performed really well. Most of the time, the entry was not too late, but was also not too early, so the stop loss that was set near the pullback, was at a good enough distance from the entry, especially in a trend.

 

Number 2. The win rate in the Trading Rush App was pretty high at one point even with multiple trades, but when the trend started to change direction, the beep boop indicator started to give false signals. The only time you should consider using the beep boop indicator, is when the market is giving relatively smaller pullbacks in a one sided market. For example, the MACD strategy had an excellent win rate of more than 60 percent, and in that strategy the MACD crossover has to be below the zero line in a buy setup, and that does not happen if the price does not give a relatively bigger pullback. Since the beep boop indicator is based on the MACD indicator, it’s like taking entry signals with the MACD strategy but with few extra conditions and without following the zero line rule. When MACD or some other strategy is not giving an entry signal in a strong trend, and you feel like you are missing out on a big move, the beep boop indicator can be useful because it gives multiple entry signals even in a strong trend.

 

Number 3. The beep boop indicator is excellent for finding the trend direction. If my computer can learn to find the trend direction with it, it should be pretty easy for everyone. You can even use it while doing multi timeframe analysis. For example, you can use the beep boop indicator on a higher timeframe to find the trend direction. If the beep boop indicator is forming green bars, the trend direction on the higher timeframe is up. So it is a good idea to look for long trading opportunities only on the entry time frame.

 

So after testing the beep boop indicator 100 times, I got an approximate win rate of 48 percent with a reward risk ratio of 1.5 to 1 which is pretty good. It gave 10 winners in a row when the price was trending in one direction for a long time. And it gave 7 losers in a row when the price was changing the trend direction or was in a range. But as you can see in the Trading Rush App, during the backtest, it managed to make a profit of 2000. The custom indicator with a professional name that we created for Bill the Computer in the last video, actually works.

 

Since this is a custom indicator, and if you want to try it yourself, here’s how to install it on TradingView. This is a free indicator but you won’t find it on TradingView under the public library, because I’m not publishing there for two reasons. Number 1, it will show some of my account information and I don’t want that in the long run. Number 2, not everyone uses Trading View. So I will share the source of the Beep Boop indicator on the Patreon Page or on the Official Trading Rush Website for free. This way people who use different trading platforms can read and understand how the Indicator was written without signing up for trading View. I have already shared the previous version of the beep boop indicator on Patreon for free. To Install it on TradingView, just copy the source code from the Patreon page, and paste it in the Pine Editor on TradingView. Click save and add it to your chart. It will be available under the “My scripts” section.

 

Now, like I said before, the Indicator uses MACD and Exponential moving average to calculate its values, and if you click on the indicator settings, you can change some of those values. For example, by default, it gives a buy signal if there is a short term uptrend going on, and gives a sell signal if there is a short term downtrend going on, and it uses a 50 period moving average to find that short term trend. You can change that value if you want to experiment with it on your own.