OPEN-SOURCE SCRIPT
[Mustang Algo] Channel Strategy
# Mustang Algo Channel Strategy - Universal Market Sentiment Oscillator
## 🎯 ORIGINAL CONCEPT
This strategy employs a unique market sentiment oscillator that works on ALL financial assets. It uses Bitcoin supply dynamics combined with stablecoin market capitalization as a macro sentiment indicator to generate universal timing signals across stocks, forex, commodities, indices, and cryptocurrencies.
## 🌐 UNIVERSAL APPLICATION
- **Any Asset Class:** Stocks, Forex, Commodities, Indices, Crypto, Bonds
- **Market-Wide Timing:** BTC/Stablecoin ratio serves as a global risk sentiment gauge
- **Cross-Market Signals:** Trade any instrument using macro liquidity conditions
- **Ecosystem Approach:** One oscillator for all financial markets
## 🧮 METHODOLOGY
**Core Calculation:** BTC Supply / (Combined Stablecoin Market Cap / BTC Price)
- **Data Sources:** DAI + USDT + USDC market capitalizations
- **Signal Generation:** RSI(14) applied to the ratio, double-smoothed with WMA
- **Timing Logic:** Crossover signals filtered by overbought/oversold zones
- **Multi-Timeframe:** Configurable timeframe analysis (default: Daily)
## 📈 TRADING STRATEGY
**LONG Entries:** Bullish crossover when market sentiment is oversold (<48)
**SHORT Entries:** Bearish crossover when market sentiment is overbought (>55)
**Universal Timing:** These macro signals apply to trading any financial instrument
## ⚙️ FLEXIBLE RISK MANAGEMENT
**Three SL/TP Calculation Modes:**
- **Percentage Mode:** Traditional % based (4% SL, 12% TP default)
- **Ticks Mode:** Precise tick-based calculation (50/150 ticks default)
- **Pips Mode:** Forex-style pip calculation (50/150 pips default)
**Realistic Parameters:**
- Commission: 0.1% (adjustable for different asset classes)
- Slippage: 2 ticks
- Position sizing: 10% of equity (conservative)
- No pyramiding (single position management)
## 📊 KEY ADVANTAGES
✅ **Universal Application:** One strategy for all asset classes
✅ **Macro Foundation:** Based on global liquidity and risk sentiment
✅ **False Signal Filtering:** Overbought/oversold zones reduce noise
✅ **Flexible Risk Management:** Multiple SL/TP calculation methods
✅ **No Lookahead Bias:** Clean backtesting with realistic results
✅ **Cross-Market Correlation:** Captures broad market risk cycles
## 🎛️ CONFIGURATION GUIDE
1. **Asset Selection:** Apply to stocks, forex, commodities, indices, crypto
2. **Timeframe Setup:** Daily recommended for swing trading
3. **Sentiment Bounds:** Adjust 48/55 levels based on market volatility
4. **Risk Management:** Choose appropriate SL/TP mode for your asset class
5. **Direction Filter:** Select Long Only, Short Only, or Both
## 📋 BACKTESTING STANDARDS
**Compliant with TradingView Guidelines:**
- ✅ Realistic commission structure (0.1% default)
- ✅ Appropriate slippage modeling (2 ticks)
- ✅ Conservative position sizing (10% equity)
- ✅ Sustainable risk ratios (1:3 SL/TP)
- ✅ No lookahead bias (proper historical simulation)
- ✅ Sufficient sample size potential (100+ trades possible)
## 🔬 ORIGINAL RESEARCH
This strategy introduces a revolutionary approach to financial markets by treating the BTC/Stablecoin ratio as a global risk sentiment gauge. Unlike traditional indicators that analyze individual asset price action, this oscillator captures macro liquidity flows that affect ALL financial markets - from stocks to forex to commodities.
## 🎯 MARKET APPLICATIONS
**Stocks & Indices:** Risk-on/risk-off sentiment timing
**Forex:** Global liquidity flow analysis for major pairs
**Commodities:** Risk appetite for inflation hedges
**Bonds:** Flight-to-safety vs. risk-seeking behavior
**Crypto:** Native application with direct correlation
## ⚠️ RISK DISCLOSURE
- Designed for intermediate to long-term trading across all timeframes
- Market sentiment can remain extreme longer than expected
- Always use appropriate position sizing for your specific asset class
- Adjust commission and slippage settings for different markets
- Past performance does not guarantee future results
## 🚀 INNOVATION SUMMARY
**What makes this strategy unique:**
- First to use BTC/Stablecoin ratio as universal market sentiment indicator
- Applies macro-economic principles to technical analysis across all assets
- Single oscillator provides timing signals for entire financial ecosystem
- Bridges traditional finance with digital asset insights
- Combines fundamental liquidity analysis with technical precision
## 🎯 ORIGINAL CONCEPT
This strategy employs a unique market sentiment oscillator that works on ALL financial assets. It uses Bitcoin supply dynamics combined with stablecoin market capitalization as a macro sentiment indicator to generate universal timing signals across stocks, forex, commodities, indices, and cryptocurrencies.
## 🌐 UNIVERSAL APPLICATION
- **Any Asset Class:** Stocks, Forex, Commodities, Indices, Crypto, Bonds
- **Market-Wide Timing:** BTC/Stablecoin ratio serves as a global risk sentiment gauge
- **Cross-Market Signals:** Trade any instrument using macro liquidity conditions
- **Ecosystem Approach:** One oscillator for all financial markets
## 🧮 METHODOLOGY
**Core Calculation:** BTC Supply / (Combined Stablecoin Market Cap / BTC Price)
- **Data Sources:** DAI + USDT + USDC market capitalizations
- **Signal Generation:** RSI(14) applied to the ratio, double-smoothed with WMA
- **Timing Logic:** Crossover signals filtered by overbought/oversold zones
- **Multi-Timeframe:** Configurable timeframe analysis (default: Daily)
## 📈 TRADING STRATEGY
**LONG Entries:** Bullish crossover when market sentiment is oversold (<48)
**SHORT Entries:** Bearish crossover when market sentiment is overbought (>55)
**Universal Timing:** These macro signals apply to trading any financial instrument
## ⚙️ FLEXIBLE RISK MANAGEMENT
**Three SL/TP Calculation Modes:**
- **Percentage Mode:** Traditional % based (4% SL, 12% TP default)
- **Ticks Mode:** Precise tick-based calculation (50/150 ticks default)
- **Pips Mode:** Forex-style pip calculation (50/150 pips default)
**Realistic Parameters:**
- Commission: 0.1% (adjustable for different asset classes)
- Slippage: 2 ticks
- Position sizing: 10% of equity (conservative)
- No pyramiding (single position management)
## 📊 KEY ADVANTAGES
✅ **Universal Application:** One strategy for all asset classes
✅ **Macro Foundation:** Based on global liquidity and risk sentiment
✅ **False Signal Filtering:** Overbought/oversold zones reduce noise
✅ **Flexible Risk Management:** Multiple SL/TP calculation methods
✅ **No Lookahead Bias:** Clean backtesting with realistic results
✅ **Cross-Market Correlation:** Captures broad market risk cycles
## 🎛️ CONFIGURATION GUIDE
1. **Asset Selection:** Apply to stocks, forex, commodities, indices, crypto
2. **Timeframe Setup:** Daily recommended for swing trading
3. **Sentiment Bounds:** Adjust 48/55 levels based on market volatility
4. **Risk Management:** Choose appropriate SL/TP mode for your asset class
5. **Direction Filter:** Select Long Only, Short Only, or Both
## 📋 BACKTESTING STANDARDS
**Compliant with TradingView Guidelines:**
- ✅ Realistic commission structure (0.1% default)
- ✅ Appropriate slippage modeling (2 ticks)
- ✅ Conservative position sizing (10% equity)
- ✅ Sustainable risk ratios (1:3 SL/TP)
- ✅ No lookahead bias (proper historical simulation)
- ✅ Sufficient sample size potential (100+ trades possible)
## 🔬 ORIGINAL RESEARCH
This strategy introduces a revolutionary approach to financial markets by treating the BTC/Stablecoin ratio as a global risk sentiment gauge. Unlike traditional indicators that analyze individual asset price action, this oscillator captures macro liquidity flows that affect ALL financial markets - from stocks to forex to commodities.
## 🎯 MARKET APPLICATIONS
**Stocks & Indices:** Risk-on/risk-off sentiment timing
**Forex:** Global liquidity flow analysis for major pairs
**Commodities:** Risk appetite for inflation hedges
**Bonds:** Flight-to-safety vs. risk-seeking behavior
**Crypto:** Native application with direct correlation
## ⚠️ RISK DISCLOSURE
- Designed for intermediate to long-term trading across all timeframes
- Market sentiment can remain extreme longer than expected
- Always use appropriate position sizing for your specific asset class
- Adjust commission and slippage settings for different markets
- Past performance does not guarantee future results
## 🚀 INNOVATION SUMMARY
**What makes this strategy unique:**
- First to use BTC/Stablecoin ratio as universal market sentiment indicator
- Applies macro-economic principles to technical analysis across all assets
- Single oscillator provides timing signals for entire financial ecosystem
- Bridges traditional finance with digital asset insights
- Combines fundamental liquidity analysis with technical precision
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.