By Web3Quant — Nov 7, 2023

TradingView Indicator Performance - Part 1

While the I's are being dotted and T's are being crossed I thought why not give a sneak peek...

Also, let's witness together how this indicator stands its ground under real market conditions.

I will be updating the HTF/LTF live on Twitter for various Model longs. Also, we can do an AMA of sorts for any asset you folks want to see.

The estimated time for roll-out would be next month. Will keep you posted.

We will divide it into 2 parts. Part 1 - Crypto. Part 2 - TradFI.

If you haven't already then read the last post first. It's important.

There we covered What (problems are we solving) and HOW (are we solving them)

I would like to reiterate that, NOT claiming this as the ultimate indicator, I am sure there are many great ones out there.

It's designed to be Simple & Objective which can be used in real-time, and in confluence with the Web3Quant model updates.

If any of you come back to me with a better alternative that outperforms this and meeting ALL the requirements, then not only will I LOVE it.

I will also gift you the All-Access sub worth $3000 as a thank-you.

I will always choose the best ideas, even if they are not mine.

So what makes an indicator useful?

It needs to be able to give definitive - Buy & Sell as early as possible.
Otherwise, you only get ambiguity and noise. Not Signal.
The signal needs to be clean without flips/flops. which allows you to stay in the trade for as long as possible to ride the full move
Otherwise, Whipsaws/sideways markets will kill most gains.
Should be universal (in both, settings and asset coverage).
Otherwise, it will never be practical unless you are a single-asset trader.
Should work on a standard & consistent time frame which can be set as HTF/LTF.
Otherwise, you will forever be in analysis paralysis mode for every new asset.

So how does the Web3Quant indicator work?

Green indicates a buy; red, a sell. No guesswork.

Those lines also act as support/resistance levels respectively.

What are the timeframes and the use cases for each?

3Day, Daily, 4hour.

3Day - For Investors who operate with a value thesis but need an instant quant-based decision.

For traders, it's a great Bull/Bear regime filter.

A good regime filter alone can save you from a lot of pain. It's no secret that during the bull everyone makes money. even folks who can't spell the word Trading.

But 90% of them cannot keep the money they made. Why?

Coz they don't know when the music has stopped. They keep trading or bag-holding and give everything back during the bear.

Only a few can mentally recover from the pain of round-tripping the bull run gains.

A regime filter will ensure both investors and traders are always on the right side of the trade.

Daily - This will be the universal High Time Frame (HTF).

4-hour - This will be the universal Low Time Frame (LTF).

These are suitable for positional trades. Good enough to ride 50-100x as you will see in the results.

Indicator works on scalping timeframes too but will cover that in a separate post as it's a very different ball game.

Depending on trading style one can only operate on HTF, LTF, or a combination of both.

In the coming days, I will publish a lot of insights on different ways one can use this indicator for

Building Regime Filters in both Crypto and TradFi.
Relative Strength for Alt Cross Pairs. Alt/BTC, SOL/ETH, etc
How to gauge Alt/BTC Season and other Dominance Plays.
How to play on-chain names that do not have much fundamental info or price history.
Options trading, Income-generating strategies on VIX, covered call ETFs, etc.
Psychological aspects and combining indicators with subjective elements around us and many more things that you would like me to cover.

All of this will be more of a value-add than just giving access to the indicator alone IMO.

Let's get into the results...

To keep this post short we will only cover indicators HTF Signals on Daily Time Frame.

Will go through selective coins to cover the different "categories" of coins.

Rest you play with when you get access to the indicator or we can during AMAs.

BTC should give an idea of the entire space.
SOL - Extreme winner. Extreme FUD. Most hated coin.
DOGE - OG meme play.
LUNA - Meteoric rise and Fall to Zero.
ADA - Light on fundamentals but heavy on cultish following.

Nothing against others but chose these as they are a lot harder to play with conventional value thesis or due to extreme sentiments/newsflow/noise.

BITCOIN

2023 was particularly challenging for a lot of Trend traders. So many extreme news-flows and FUD (from USDC depeg to Binance collapse scare to ETF application pumps to SEC losing battles) which resulted in 10 days of massive up moves led by a lot of chops and sideways movement. It's a good test for any indicator. Web3Quant Indicator got you in by end of Dec 2022. Pretty much at the bottom when folks were calling for 10K BTC. Exited at opportune times too. Even got you in by end of Sep 2023. The sentiment was really bearish then too.

Indicator Exited by Mid-November 2021. That was pretty much the TOP of the bull cycle. We had a couple of fakeouts in between. Those can be eliminated/reduced with the Regime Filter. Will write more in the future posts.

indicator exited **before** the COVID crash. Got you in shortly after. Most importantly kept you in the trade from Oct 2020 to April 2021. Exited when there was a mini "bear" phase. Got you in for the next upmove with one fakout. and Finally exited In Nov 2021.

Caught the entire "Echo bubble" of 2019 without fakeouts.

Exited the markets in Jan 2018. Multiple fake entries but exited them quickly too. Again those can be reduced with regime filter.

Caught both the waves in the 2013 cycle. Whats really interesting is it did not turn red in the flash crash but later on.

SOL

Caught both the up moves in 2021. One was 20x and the other 5x. Exited Nov 21. Caught some mini-upmoves too. Went long in Sep and caught the current frenzy too.

LUNA - The Rise

First upmove was 50x. Exited before it took the massive dip (not sure many of you remember that one.. in the early days Do Kwon appreared on the right track tring to build a consumer app.) Next leg up was 10x.

LUNA - The fall

Exited BEFORE the so-called "Black Swan" Event which caused a 98% drop in days.

DOGE

ADA

Caught the upmove in the mania but exited in Sep 2021. That turned out to be the top of ADA too. Much before the entire market topped out. That's why its important to play every coin/asset on its own flows rather than a fixed mindset. Again fakeouts can be reduced with Regime filters.

See you in PART 2.

** Web3Quant is not registered with any financial regulatory agencies. Web3Quant content is purely for research, education, and entertainment purposes and should NOT be considered personalized financial advice. Do your own research and consult your financial advisor.**

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