BITCOIN BTC Machine Learning Approximation Strategy by NHBPROD

anteontem

Hey everyone, here's a new trading strategy script for Bitcoin, and I’m super excited to share it with you. It’s called the "BITCOIN BTC Machine Learning Approximation Strategy by NHBPROD." It employs a simplified machine learning technique referred to as K-means clustering approximation. It plots the mean price, upper cluster, and lower cluster, and prints a green and yellow background to visually cue you when to buy and when to sell. This is the strategy script, but I also have the indicator script which can be used to automate buy and sell signals directly to your phone, email, or your bot.

What It Does
The script calculates a dynamic mean price using linear regression and defines upper and lower zones based on standard deviation. These zones help identify potential support, resistance, or trend reversal areas on a chart. It visualizes the mean and clusters with plots and highlights significant areas where price moves above or below the clusters. Alerts are triggered when the price crosses these critical levels, enabling traders to stay informed about key market movements.

Backtest Results
Some notables:
Seemingly consistent profits on BTC 1 day chart.
I included slippage & I included commission.
100+, and covers the maximum amount of time allowed in tradingview.

The script is ready for BITCOIN and I deploy it on the 1 day timeframe because I feel like 1 day bars get enough data to make solid judgements for this type of indicator.

How to Use It
Look at the background—it’s color-coded and easy to spot.
green background = buy
red background = sell

This strategy (and the pairing indicator script) is able to be used to trade long only.