Lecture Notes: Advanced Momentum Indicator Testing

Speaker: DP Roberts

Introduction

• DP Roberts: Experienced in testing trading strategies and indicators.
• Community: Active on Discord, helping traders become profitable.
• Resources: Offers access to spreadsheets and a custom trading indicator via Patreon.

Overview of Testing

• Total Strategies Tested: 375
  • Winning Strategies: 119
  • Top Strategy: Achieved 87% win rate with the Academy of Forex indicator.
• Total Indicators Tested: 1,041
  • Winning Indicators: 433

Today's Test: Advanced Momentum Indicator

• Focus: MSO (Market Structure Oscillator) - claimed as the most accurate momentum indicator on TradingView.
• Features: Identifies market structure, presented as an oscillator with histogram.
• Basic Setup: Will use minimal options from the source video.

Setting Up the Indicator

• Indicator Name: Market Structure Oscillator
• Configuration:
  • Enable "Cycle Oscillator Crosses Signals" for visual cues (orange and blue dots).

Trading Setup

Long Trade Setup

• Signal: Blue dot appears.
• Condition:
  • Oscillating line above zero line (at 50 on the oscillator).
  • Blue histogram bar present.
• Trade Execution:
  • Entry at signal.
  • Stop Loss: Below pivot point.
  • Target: 1 to 1.5 risk-reward ratio.
• Outcome: Successful trade reaching take profit after consolidation.

Short Trade Setup

• Signal: Orange dot appears.
• Condition:
  • Oscillating line below zero line.
  • Orange histogram bar present.
• Trade Execution:
  • Entry at signal.
  • Stop Loss: Above pivot point.
  • Target: 1 to 1.5 risk-reward ratio.
• Outcome: Successful trade reaching take profit.

Results

• 50 Trade Test:
  • Winning Trades: 24
  • Losing Trades: 26
  • Win Rate: 48%
  • Profit Analysis:
    • Win: $14,400
    • Loss: $10,400
    • Overall Gain: $4,000
• Comparison: Academy of Forex Indicator
  • 18 trades: 15 wins, 3 losses, 80% win rate.
  • Profit: $5,400
  • Applying position management increases rates to high 90%.

Additional Information

• Patreon Access:
  • Free trial and $15/month access to Academy of Forex Indicator.
  • Position management strategy guidance.
  • Crypto broker setup guide with high leverage and low requirements.
  • Additional scalp strategy with 100% backtest win rate.

Conclusion

• Indicator Status: Added to "Yes" list.
• Next Steps: Proceed to next video for further testing.

Note: For further study, explore linked strategy and position management videos as mentioned by the speaker. Consider joining the discussed platforms for additional resources.