Pump Catcher [BitMEX]

The Pump Catcher [BitMEX] indicator identifies high-probability breakout opportunities by analyzing relative volume fluctuations and MACD momentum to capture significant market "pumps" and "dumps."

Usage

The tool monitors current volume relative to its historical average to detect periods of market accumulation and expansion. When the volume ratio falls below a specified threshold (e.g., 0.9) and subsequently crosses back above it, the script evaluates the MACD slope to determine the trade direction.

• Long Entry: Occurs when volume crosses above the threshold, the volume signal is rising, and the MACD trend is positive.
• Short Entry: Occurs when volume crosses above the threshold, the volume signal is rising, and the MACD trend is negative.
• Exits: The strategy exits a position when the fast volume EMA crosses below the slow volume EMA, indicating a decline in market interest and momentum.

Details

This script is a modified version of the BitMEX pump catcher concept. While the original logic relied on candle direction for entries, this version utilizes the difference in MACD (momentum) to filter for higher-quality trend direction. This adjustment aims to increase net profitability and reduce drawdowns by avoiding false signals often found in raw price action during low-volatility periods. The volume ratio is calculated by comparing the sum of the last 24 hours of volume against a 1200-hour historical baseline.

Settings

MACD

• Fast Length: The period for the fast Exponential Moving Average used in MACD calculation.
• Slow Length: The period for the slow Exponential Moving Average used in MACD calculation.

Volume

• Threshold: The relative volume level required to trigger a trade interest (default is 0.9 or 90% of historical volume).
• Fast Length: The period for the fast volume EMA used for exit signals.
• Slow Length: The period for the slow volume EMA used for both entry confirmation and exit signals.

Trade

• Leverage: The multiplier used to calculate position size based on equity.
• Stop Loss Percent: The percentage distance for the hard stop loss.
• Risk Percent: The percentage of equity to risk per trade.

FAQ

How do I use the Pump Catcher [BitMEX] for the best results?

The script is specifically tuned for the BitMEX:XBTUSD 1-hour chart. It is designed to capture significant Bitcoin moves and may not perform optimally on altcoins or lower timeframes where fees and noise are more prevalent.

What determines the exit of a trade?

The trade is closed when the fast volume EMA crosses under the slow volume EMA, which signifies that the "pump" or "dump" has lost its momentum and market interest is fading.

How can I access this indicator?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.