📈

Profitable Trading Strategies from Indicators

Mar 17, 2025

Lecture Notes: Transforming Trading Indicators into Profitable Strategies

Overview

  • Presentation on Claude 3.7 Sonet's ability to convert Trading View indicators into automated profit-generating strategies.
  • Potential for high profits: 1,600% returns and 80% win ratios.
  • Value of information: Worth thousands, but shared for free.

Strategy Development

Types of Strategies

  1. 4-Hour Time Frame Strategy (Swing Trading)
  2. 1-Minute Scalping Strategy (High-frequency trading)

Example Asset

  • Selected example: Solana price chart.

First Strategy: Market Structure with Inducements and Sweeps

Indicator Overview

  • Purpose: Identifies change of character (Chach) and break of structure (BOS) for potential trend reversals.
  • Chach: Occurs when price breaks a swing low (uptrend) or swing high (downtrend).
  • BOS: Recognized when the price surpasses previous swing highs or lows.
  • Inducements: Alerts traders to market movements that may lead to false entries/exits.
  • Liquidity Sweeps: Marks areas of high liquidity for potential reversal zones.

Building the Strategy

  1. Utilize Claude 3.7 Sonet to analyze the indicator.
  2. Ask Claude to create a swing trading strategy using the indicator’s features.
  3. Request Pine Script code with stop loss and take profit based on Average True Range (ATR).
    • Stop Loss: 2 ATR
    • Take Profit: 3 ATR

Implementation

  • Copy custom code into Trading View’s Pine editor.
  • Fix any errors in the script with Claude's assistance.
  • Check performance stats:
    • Win rate: 73% (potentially optimizing to 80-90%).
    • Total profit: Over 570%.

Automation

  1. Set up account balance and position size in strategy properties.
  2. Create a free account on Three Commas.
  3. Connect crypto exchange/wallet and select trading view strategy.
  4. Create alerts in Trading View with webhook URL for automation.

Second Strategy: High Low Cloud Trend

Indicator Overview

  • Calculates highest highs and lowest lows, creating dynamic bands to observe price movements.
  • Emphasizes mean reversion points for potential trend reversals.

Building the Scalping Strategy

  1. Use Claude to analyze High Low Cloud Trend indicator for scalping.
  2. Request strategy based on cloud formations and price action patterns.
  3. Implement dynamic stop loss and take profit based on ATR for risk management.

Troubleshooting

  • Work with Claude to resolve execution issues.
  • Adjust settings to maximize win ratios and improve performance metrics.

Conclusion

  • Two professional-grade trading strategies developed in minutes.
  • Both strategies offer potential for significant profits, normally costing thousands to develop.
  • Encourage viewers to like, subscribe, and comment for further engagement on implementing these strategies.

Full transcript