Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

AlphaTrend – Amibroker AFL Code to Manage Sideways Markets

3 min read

Very simple and interesting trend following strategy which could manage sideways markets to a greater extent while following the trend. Recently I got inspired by the Pinescript coder Mr KivancOzbilgic and with his indicator Alphatrend in Tradingview and so the strategy conversion for Amibroker users.

What is Alphatrend?

Alpha Trend tries to solve those problems such as:

1-To minimize stop losses and overcome sideways market conditions.
2-To have more accurate BUY/SELL signals during trending market conditions.
3- To have significant support and resistance levels.
4- To bring together indicators from different categories that are compatible with each other and make a meaningful combination regarding momentum, trend, volatility, volume and trailing stop loss.

Purposes of Alpha Trend:
1- Acts like a dead indicator like its ancestor Magic Trendin sideways market conditions and doesn’t give many false signals.
2- With another line with 2 bars offset off the original one Alpha Trend has BUY and SELL signals from their crossovers.

Trading Rules

BUY when AlphaTrend line crosses above its 2 bars offset line
SELL when Alpha Trend line crosses below its 2 bars offset line

Alpha Trend lines
-act as support levels when an uptrend occurs trailing 0.5*ATR (default coefficient) distance from bar’s low values
-conversely, act as resistance levels when a downtrend occurs trailing 0.5*ATR (default coefficient) distance from bar’s high values and acting as trailing stop losses
the more Alpha Trend lines are straighter the more supports and resistances become stronger.

Alphatrend – Amibroker AFL Code

//Alphatrend - Trend Follow Strategy
//Coded by Rajandran R - Founder - Marketcalls / Co-Founder - Algomojo
//Website : www.algomojo.com / www.marketcalls.in
//Code Inspired from Tradingview - KivancOzbilgic
//Tradingview URL : https://tradingview.com/script/o50NYLAZ-AlphaTrend/

//Alpha Trend tries to solve those problems such as:

//1-To minimize stop losses and overcome sideways market conditions.
//2-To have more accurate BUY/SELL signals during trending market conditions.
//3- To have significant support and resistance levels.
//4- To bring together indicators from different categories that are compatible with each other and make a meaningful combination regarding momentum, trend, volatility , volume and trailing stop loss.


_SECTION_BEGIN("AlphaTrend");

SetBarsRequired(sbrAll,sbrAll);

coeff = Param("Multiplier",0.5,0.1,1,0.1);
AP = Param("Common Period", 20, 1, 100, 1);

iATR = MA(ATR(1),AP);

src = Close;

showsignalsk = True;
novolumedata = False;

upT = Low - iATR * coeff;
downT = High + iATR * coeff;

hlc3= (H+L+C)/3;

rs = RSIa(Close,14);
mf = MFI(14);

AlphaTrend = 0.0;

//AlphaTrend := (novolumedata ? ta.rsi(src, 14) >= 50 : 
//				ta.mfi(hlc3, 14) >= 50) ? upT < nz(AlphaTrend[1]) ? nz(AlphaTrend[1]) : upT :
//				 downT > nz(AlphaTrend[1]) ? nz(AlphaTrend[1]) : downT


for(i=1;i<BarCount;i++)
{
if(novolumedata){
	Alphatrend[i] = rs[i]>= 50;

}//end novolumedata
else if(mf[i] >= 50){

if(upT[i] < Alphatrend[i-1])
{
Alphatrend[i] = Alphatrend[i-1] ;
}
else{

Alphatrend[i] = upT[i];

}

}

else
{
if(downT[i] > Alphatrend[i-1])
{
Alphatrend[i] = Alphatrend[i-1] ;
}
else 
{
Alphatrend[i] = downT[i];
}

}//end else 



}//end for loop

color = IIf(AlphaTrend>Ref(AlphaTrend,-2), colorGreen, IIf(AlphaTrend<Ref(AlphaTrend,-2), colorred, 
		IIf(Ref(AlphaTrend,-1) > Ref(AlphaTrend,-3), colorblue, colorYellow)));


Buy = Cross(Alphatrend,Ref(Alphatrend,-2));
Sell = Cross(Ref(AlphaTrend,-2),AlphaTrend);


Buy = ExRem(Buy,Sell);
Sell = ExRem(Sell,Buy);

Short = Sell;
Cover = Buy;


//Non Repainting  - Signals happens only after the close of the current
Buy = Ref(Buy,-1);
Sell = Ref(Sell,-1);
Short = Ref(Short,-1);
Cover = Ref(Cover,-1);


BuyPrice = ValueWhen(Buy,Open);
sellPrice = ValueWhen(sell,Open);
shortPrice = ValueWhen(Short,Open);
coverPrice = ValueWhen(cover,Open);

buycontinue = Flip(Buy,Sell);
color1 = IIf(buycontinue,colorGreen,colorRed);

cloud = ParamToggle("Cloud Enabled","TRUE|False",0);
	
if(cloud)
{
PlotOHLC(AlphaTrend,AlphaTrend,Ref(AlphaTrend,-2),Ref(AlphaTrend,-2), "AlphaTrend",color, styleCloud|styleNoLabel);		
}
else
{
Plot(Alphatrend,"Alphatrend",color1,styleLine | styleThick);
}

/* Plot Buy and Sell Signal Arrows */
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorGreen, 0, L, Offset=-40);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorLime, 0,L, Offset=-50);                      
PlotShapes(IIf(Buy, shapeUpArrow, shapeNone),colorWhite, 0,L, Offset=-45); 
PlotShapes(IIf(Short, shapeSquare, shapeNone),colorRed, 0, H, Offset=40);
PlotShapes(IIf(Short, shapeSquare, shapeNone),colorOrange, 0,H, Offset=50);                      
PlotShapes(IIf(Short, shapeDownArrow, shapeNone),colorWhite, 0,H, Offset=-45);

PlotShapes(Sell * shapestar, colorBrightGreen, 0, High, 12);
PlotShapes(Cover * shapestar, colorRed, 0, Low, -12);

_SECTION_END();


_SECTION_BEGIN("Price");
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, "Close", color1, styleNoTitle | ParamStyle("Style") | GetPriceStyle() ); 
_SECTION_END();



_SECTION_BEGIN("Trading Dashboard");

dashboard = ParamToggle("Show Dashboard","SHOW|HIDE",1);

if(dashboard)
{

fontsize = Param("Font Size",14,8,40,1);

GfxSelectFont("BOOK ANTIQUA", fontsize, 400);
GfxSetTextColor(colorWhite);
GfxSetBkMode(1); //Transparent mode

buycontinue = Flip(Buy,Sell);
sellcontinue = Flip(Sell,Buy);

color = IIf(buycontinue, colorGreen, IIf(sellcontinue, colorRed, colorGrey40));

GfxSelectPen(colorWhite); //pen -> draw outline of the shape
GfxSelectSolidBrush(SelectedValue(color));

width = Status("pxchartwidth");
height = Status("pxchartheight");


GfxRoundRect(20,height-150,320,height-30,10,10);

//Trading Signal Status - e.g Buy Signal or Short Signal
//Profit/Loss for Current Running Trade

sigstatus = WriteIf(buycontinue,"Buy Signal", WriteIf(sellcontinue,"Short Signal", "No Trade(Relax)"));
PNL = IIf(buycontinue,Close-BuyPrice, IIf(sellcontinue, ShortPrice-Close, Null));

//variable sigstatus -> string
//variable PNL -> Array

GfxTextOut("AlphaTrend",30,height-130);
GfxTextOut(sigstatus + " came @ : "+ IIf(buycontinue,BuyPrice, IIf(sellcontinue, ShortPrice, Null)),30,height-110);
GfxTextOut("Profit/Loss :"+SelectedValue(Prec(PNL,2)),30, height-90);


}

_SECTION_END();

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Mini Certification Course on Algorithmic Trading Strategies

If you are new to Automated trading? This certification course will help you to kickstart your automated trading with your broker and get to...
Rajandran R
1 min read

HalfTrend – Amibroker AFL Code – Better than Supertrend

Marketcalls had published Supertrend with multiple variations from 2012 onwards. And this time a very popular ATR based strategy Halftrend which is considered a...
Rajandran R
3 min read

AllinOneAlerts – Amibroker Alerts Module for Amibroker Users

AllinOneAlerts is one of the most important and most requested modules to bring all sorts of alerts with no extra coding efforts. Now even...
Rajandran R
5 min read

6 Replies to “AlphaTrend – Amibroker AFL Code to Manage Sideways Markets”

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More