Bitcoin Scalping Strategy (Sampled with: PMARP+MADRID MA RIBBON)

The Bitcoin Scalping Strategy (Sampled with: PMARP+MADRID MA RIBBON) indicator is a quantitative tool designed to identify high-probability scalping opportunities on the daily timeframe by combining trend-following ribbon dynamics with price-relative-to-moving-average exhaustion metrics.

Usage

The strategy identifies entry points based on the confluence of the Madrid MA Ribbon and PMARP (Price Moving Average Ratio Percentile) levels. It is specifically optimized for capturing 1-3% price movements within broader macro trends.

Entry Conditions

• Long Entries: Triggered when the Madrid MA Ribbon displays positive momentum (lime conditions) and the RSI is below 80. The strategy also checks for the absence of engulfing candles to avoid potential bull traps.
• Short Entries: Triggered when the Madrid MA Ribbon conditions turn red, signaling bearish momentum.

Exit Conditions

• Take Profit: Fixed at 1% (measured at the close of the bar, which may result in average profits slightly higher than 1%).
• Stop Loss: Fixed at 27.75%.
• Dynamic Closing: Long positions may be closed if PMARP falls below 99, while short positions may be closed if PMARP rises above 01, provided the respective position is active.

Pyramiding

The script is configured to prevent order pyramiding, ensuring that a new position is only opened after the previous one has been closed.

Details

This strategy is a composite tool that reverse-engineers and combines the logic of two prominent studies:

1. Price Moving Average Ratio Percentile (PMARP): Measures where the current price ratio sits relative to its historical distribution over a specific lookback period.
2. Madrid MA Ribbon: A series of moving averages that visualize trend strength and direction through color-coded ribbon transitions.

By integrating these concepts, the strategy attempts to filter trend-following signals from the ribbon using the percentile-based exhaustion levels provided by PMARP, aiming for a high hit rate in volatile markets like BTCUSD.

Settings

Main Properties

• Price source: Determines the price data used for calculations (default is close).
• Indicator Type: Toggle between PMAR (Ratio) and PMARP (Percentile).
• PMAR length: The period used for the base moving average calculation.
• MA type: Selection of the moving average method (SMA, EMA, HMA, RMA, VWMA).

Line plot settings

• Color type: Choose between Spectrum or Solid coloring for the oscillator.
• Lookback: The number of bars used to calculate the PMARP percentile (max 1900).

Signal MA Settings

• Signal MA: Toggles the visibility of a smoothed signal line.
• MA length: Smoothing period for the signal line.

Visual Alert Level Settings

• Hi/Lo PMARP alert level: Thresholds for overbought and oversold percentile levels.
• Hi/Lo alert line: Toggles the visibility of horizontal threshold lines.

Take Profit and Stop Loss

• Take Profit: The percentage target for closing winning trades.
• Stop Loss: The percentage threshold for closing losing trades.

FAQ

How do I use this for different timeframes?

While optimized for the daily timeframe to achieve a high hit rate, users can adjust the PMAR length and lookback periods to suit lower timeframes for more frequent signals.

What assets does this work best with?

The strategy was specifically designed for Bitcoin (BTCUSDT) across major exchanges like Bybit, Binance, and Coinbase, but it can be applied to other high-liquidity crypto assets.

How can I access this script?

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