The Advanced Trend Detection Strategy is a sophisticated trading algorithm based on the indicator "Percent Levels From Previous Close". This strategy is based on calculating the Pearson's correlation coefficient of logarithmic-scale linear regression channels across a range of lengths from 50 to 1000. It then selects the highest value to determine the length for the channel used in the strategy, as well as for the computation of the Simple Moving Average (SMA) that is incorporated into the strategy. In this methodology, a script is applied to an equity in which multiple length inputs are taken into consideration. For each of these lengths, the slope, average, and intercept are calculated using logarithmic values. Deviation, the Pearson's correlation coefficient, and upper and lower deviations are also computed for each length. The strategy then selects the length with the highest Pearson's correlation coefficient. This selected length is used in the channel of the strategy and also for the calculation of the SMA. The chosen length is ultimately the one that best fits the logarithmic regression line, as indicated by the highest Pearson's correlation coefficient. In short, this strategy leverages the power of Pearson's correlation coefficient in a logarithmic scale linear regression framework to identify optimal trend channels across a broad range of lengths, assisting traders in making more informed decisions.
Hi there! Testing out your indicator and there is one issue I notice for crypto charts e.g. BTC USDT. The strategy tester shows entries and exits for positions but the channel is not drawn or shown. Other than that, your idea is well done, thanks for sharing!