Profit Runner Index Trading View Indicator
Profit Runner Index Trading View Indicator
The Profit Runner takes a very unique, yet effective approach to the stochastic oscillator. Specifically, it calculates a weighted average of 2 sets of fast and slow K and D values. We found that this resulted in a reliable oscillator that is not overly-responsive or prone to false signals. We then added in both fast and slow Hull Moving Average to get even more out of the stochastics’ signals and pinpoint exit points based on their relative values.
Why Those Indicators? –
Stochastics are always among our top tools of choice. This is because it achieves the perfect balance of simplicity and accuracy. By setting upper and lower bounds, it allows traders to see distinguish overbought and oversold states. In the same way that the fast and slow Hull Moving Averages help us time exits, the fast and slow K and D values offer a clear picture of price movement from multiple different angles.
The Graph –
We kept it simple and to the point with this chart. The red and green alternating area plot represents a weighted average of the fast K, fast D, slow K and slow D values. The upper red line is the threshold at which we consider a security to be overbought. The lower green line is the oversold line. The two Hull Moving Averages are not plotted for the sake of maintaining a cleaner visual appearance.
What is it Used For? –
The Profit Runner can be used on any timeframe.
How to Use –
Traders should enter long positions when the area plot representing the stochastics turns from red to green and then exit that position when the area plot turns red. It is then recommended to refrain from buying back in until the area plot turns from red to green again.
Vertical red(sell) and green(buy) lines are also included to show traders the exact moment at which all entry/exit conditions have been met.
Users can adjust the lengths of the main and fast stochastics in the input menu. The 'Length for Main Stochastic' value should always be greater than the 'Length for Fast Stochastic' value. Increasing these values increases the number of periods used in the stochastics' calculation.
The input menu also allows traders to modify the Smooth K and Smooth D values for both the fast and main stochastics. These values represent the lengths of the simple moving averages used for smoothing the stochastic. Decreasing these values results in higher responsiveness and more frequent signals, while increasing them results in more patient, less frequent signals.
The upper and lower bounds for the composite stochastic are adjustable in the input options menu. Modifying the upper bound changes the threshold at which exit signals are generated. Altering the lower bounds affects the threshold at which the indicator will identify entry signals.
Lastly, traders can chose their stop and limit levels. This is a helpful tool to prevent large losses.
When a buy signal is generated, an alert with the message “Profit Runner – Enter Long” is delivered. Similarly, a sell signal is accompanied by the message “Profit Runner – Exit Long”.
When users purchase Profit Programmers scripts, they gain access to both the strategy and study versions. The purpose of the strategy is to help traders finetune the many input options and run backtests with these different settings to discover the optimal settings for achieving the best results for their specific intended purpose. Unfortunately, TradingView does not allow you to create alerts using a strategy script, so the best way to work around this is to spend time tweaking the various settings in the strategy script, compare the results and then implement those settings into your study through the study script’s input menu. This way, your alerts will still be delivered and you can be confident that those alerts are being generated based on the settings that you achieved the best backtesting results with. This is useful for both high frequency day traders and those implementing automated trading systems (‘bots’) which rely on alert messages to stay up to date; or execute trades automatically in the case of trading bots.
All strategies include input options which allow users to execute backtests with specific stop and limit percentages. These prices are then plotted on top of the price chart, with the red area symbolizing the stop loss and green area representing the limit.If users do not wish to use a limit or a stop, they can set those input values equal to 0.0 and the strategy will ignore those parameters when running its backtest.
Lastly, traders can adjust the date range on which the backtest is performed. This is great for gaining insight on how the indicator responds during various market conditions(ie: How should I tweak the settings when the market is in a long term bear/bull run? How did it respond during the sharp price increase in x month of y year?).
Some Backtesting Results -
How to Install -
Enter your TradingView user name into the forum on the product page when you purchase the indicator.
Within 24 hours our team will validate the username and purchase, which will let them send you our invite only scripts
Your indicator will be shown in the "invite only scripts" category under your "Indicator" panel in Trading View
*We have no affiliation with TradingView.com, we purely sell studies and strategies based off the proprietary pine script language used on Trading View