YouTube Video Transcript
[Music] hey this is david for big bits and in this video we are going to cover some of the common mistakes that people make when they use trading view and maybe just some general ideas to help you use training view a little bit better now i have worked with a lot of people on trading view and my youtube channel has over oh just about 3 000 subscribers is the time of this recording and there is one thing that pretty much everyone who i have worked with has not really understood basically out of the gate it’s something i’ve had to explain to them as to why it’s occurring and this has to do with the strategies and where you’re entering and exiting positions and there’s a couple other things related to strategies here on trading view that people have some issues with and don’t really understand but there’s also some other things about training view that people just don’t take advantage of that they really could use that would help them and prevent them from making mistakes so we’re going to talk about all these different types of mistakes that we can kind of prevent and hopefully teach you some of the common things that people do that hopefully you won’t do so to get started i have added an rsi strategy to my chart here and you’ll see there is an entry here on a long and here it closes the long now what happens a lot of time that people don’t really seem to grasp is that they think that their long should have entered here because their indicator whenever their settings to their indicator show that you should be buying it doesn’t actually buy on that candle and that’s because the strategy orders won’t execute typically by default until after the candle has closed so why is it on the next candle because if the candle has closed and you can’t execute until the candle is closed you’re likely going to be entering in at the open position at the next candle so that is why it’s over there and this really uh impacts a lot of people’s view of their indicators because they’ll see oh i should have bought here well look where i could have entered down here i would have made so much more so it really changes your perception on how good your indicator or strategy might actually be by actually knowing how it’s going to actually interpret these in the strategy tester and when it puts the actual orders in on the emulator so you’ll also notice it kind of does a similar thing here with the short there’s a big red candle here and your indicator will probably be telling you that you should have sold here all of your indicators all of your data on your indicator should be saying you know this is a red candle this is bad we should sell and ideally you probably would have wanted to sell during the middle of this before it went too much further down but you’ll notice it won’t actually sell until here and it you’ll notice it’s at the very bottom of that green candle so you actually miss out on the gains that would have reduced your loss on this so what happens again people see that their indicator should have shorted here they think that it should shorten at the top of the candle at the open of that candle when really it won’t be able to short or close their long until the beginning of the next candle because it only executes at the close of the previous candle so that’s one thing that really messes with people and especially with these types of candles where there’s very large movements that really make your indicators print the signals that are going to close your positions or open them they really mess with your entry and also they just it’s just really confusing for people when they have an indicator that shows them short here but the short doesn’t occur until here it’s just kind of really confusing to them and it’s pretty much everyone i’ve worked with who doesn’t have experience with building their own indicators or strategies uh they’ll look at the indicator and they’ll see this is where it should have closed or this is where it should have shorted so why isn’t it doing it until here something is wrong nothing is really wrong it’s just that your indicator its strategy wasn’t executed until the candle closed so your position didn’t close or you didn’t short until their very beginning of the next candle so it’s kind of unfortunate but it kind of makes you rethink how you’re going to be doing your indicators how you’re going to be building your indicators and your strategies to kind of account for this potential change so that’s something to keep in mind now when we go to the strategy tester one of the other very common things that people forget about and let’s go ahead and zoom in here make sure my head isn’t in the way there we go um no that’s not good let me pull up the let’s see let’s pull up the alerts and let’s move these over so we can get a better look at this without having to scroll every time one of the things a lot of the strategies you’ll find on trading if you don’t have is commission and also slippage so when you’re evaluating a strategy you want to be realistic you don’t want to be fooled by a strategy that’s entering and exiting positions every two minutes and it has insane profits where if you had accounted for fees it probably would have lost a lot because it was getting in and out of position so often that the fees just completely ate up all of your capital so that’s something to keep in mind and you’ll notice this particular strategy doesn’t have a commission on it as well now there isn’t really a section here to show you how much your slippage impacted your trade but on your list of trades it will impact where you entered your position so let me go back up here let’s go back and let’s actually take it out of zoom move this back over there we go so here if you had slippage and you wanted to close your position here at the very beginning of this candle and your slippage was you know one percent you wouldn’t have actually seen this red arrow until it was down one percent so if there are gaps in your order books that you’re trading and you know how big they typically are you can account for this slippage in your strategy and if you don’t know how to do that it’s in the pine code reference manual if you have any questions i’d probably try to post something later about this but i do have several videos on youtube already about how to do this and how to account for commissioning fees so if you want to check that out you can but that is pretty much it for looking at the strategy and kind of evaluating it those are the most common mistakes now continuing on with the theme of strategies is using the search bar and how is this really related what people tend to do is they tend to kind of scan for strategies on trading view by searching them and a lot of people don’t even know that the search bar has a drop down and you can actually search for different things a lot of people will search for scripts that are very profitable and they will try to use them for themselves so let’s take a look at a strategy here and get one to pull up so this one is for bitcoin and i don’t know anything about this strategy i’m really just using this to prove a point to you is that you can find these strategies and if you did not know about the commission and the slippage and where the entries are actually occurring or if you were looking at the indicator and you wouldn’t know where the entries would occur it would probably be somewhat confusing if you were to use this script so you can actually take a look at some of the information here when you search for the script you can actually see the overview of this strategy the performance summary and the list of trades now keep in mind i can already tell you just by looking at the script it may or may not be a very good script but this is trading a very bullish asset and going long so there are a lot of gains made on it not every chart looks this nice so you can as another mistake look at these and be presented with these wonderful profits but at the same time this may not do so well if you try trading ge stock with it or something else you kind of get the point that these scripts these strategies can also be made to be presented to where they are more profitable than they actually are or would be across different types of securities so for example if you traded this on ge it probably wouldn’t do as well because the ge chart doesn’t really look that good that is something that’s very important to note and now that you know about the commission and the slippage on this one you can check to see if they are accounting for this there is a commission i believe that is 0.1 on the commission there is no slippage so at least they are accounting for commissions on this particular strategy it is on a very bullish asset and there is no slippage accounted for in the orders at least not that i can tell just by looking at the strategy here there’s no parameter for the slippage so that is also something to keep in mind now we’ve already talked about using the search bar and it’s important to note that using the search bar can help you a lot with a lot of different things as i said a lot of people don’t know that there are several different things that you can actually search most people probably just search for a different ticker so if you want to search for bitcoin or ethereum you could do that but you can also search for trading ideas this is actually pretty common and if you go to the ideas tab you can see those but if you wanted to search for a particular idea like you wanted to learn something in particular or you wanted to see ideas that specifically mention a certain indicator that might be the way you would do that is by selecting trading ideas and searching for that same thing goes with educational ideas these are a little bit different these are kind of like this video where you’re trying to educate someone and show them something there might be an educational idea about how to use a specific indicator or how to use a strategy or how to use certain features on trading view or like in this video what to look out for so that is something as well and of course we’ve already mentioned scripts and you can actually search for people so this probably not something a lot of people are going to use but maybe you’ve heard of somebody but you can’t remember their name you can just search for them here now one of the other great things about trading view is the screener option and a lot of people don’t know about this because they’ll typically just go directly to a chart but if you’re wanting to screen out certain stocks or certain different types of foreign currencies or cryptocurrencies you can do that using the screener i’m not going to go into how you can do this but essentially it’s like an excel sheet you can sort and filter based on whatever parameters that you really want and you can actually add in custom columns as well over here now beyond that one of the things that i really like is the ability to use the watch list so this is your watch list up here and you can very easily pull up these charts in your watch list let’s go to the watch list here there you go you can click on these different securities in your watch list and it’ll automatically load that chart and you’ll notice that the strategy is being implemented on all of these different ones that we’re switching through it’s a very easy way to go through a lot of the securities or the assets that you really like or that you’re wanting to trade so if you wanted to add a new one say we wanted to add basic attention token we could do that we can add that to our watch list we can click on it quickly pull up that chart and then we can switch back to whatever else we’re looking at so that’s something that can help you a lot too that a lot of people don’t realize is actually there and also the data window let’s see if there’s actually any data for this particular one not really but some of the stuff that’s already on the chart you can actually see so the data that’s up here the open high low and close that information all is also available in the data window and also any other indicators that you add to your chart anything that they plot will show up over here in the data window so the volume this is actually an indicator and you can see the value that is plotted for this particular indicator is 775 for the current candle so that is something that’s very useful say if you’re having a hard time reading the values or you’re troubleshooting creating your own scripts or your own strategies that’s something that’s really great as well and let’s see there is also hot list calendars ideas tons of things you can do that we’re not going to cover here but these are probably some of the most important ones that can help you get started and learning and kind of prevent you from making some mistakes hopefully and of course there is no trading advice here i am not a financial advisor i’m not telling you anything on what to do i’m just showing you some of the common mistakes or some of the common issues that people have with trading view that might help you in the future but that’s it for now and if you’re watching on youtube please like the video and while you’re down there please also subscribe if you’re watching this on trading view as an idea as a video idea on trading view please follow my profile and check it out check out all the scripts and the video ideas that i’ve already done there’s a lot of really good scripts that have been featured by trading view in their scripts of the month and some that are actually quite popular so thanks for watching the video everyone have a great day
YouTube Video Description
< br/> 🔻🔻🔻🔻 IMPORTANT LINKS BELOW 🔻🔻🔻🔻
TradingView Mistakes and Friendly Tips That Can Make a Huge Difference: In this TradingView Pine Script Tutorial/TradingView Update, we discuss some of the key mistakes that users make when they start using TradingView to find Strategies and use to operate the website to help improve their trading. What may seem like a great strategy, may not be as great as you think, and certain indicators may seem like they would make great strategies, when the reality may not be that simple. With Pine Script it is very easy for even beginners to create their own indicators or strategies that have many other indicators within them. Once we have completed the script, we can see our results immediately and begin working with more functions, indicators, and strategies.
From the TradingView Video Idea: https://www.tradingview.com/chart/SPX500USD/tixLVEB1-Common-TradingView-Mistakes-and-Friendly-Tips/
“In this video idea, I share some common mistakes I see people make when looking at and interpreting strategies and indicators on TradingView that may impact their profitability when trading. I also share some helpful tips on how to avoid falling for other people’s mistakes by getting sucked into public strategies that seem too good to be true, and also how to use some of the more undervalued features on TradingView to help improve your experience.”
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This channel focuses on Bitcoin, Ethereum, LiteCoin, Ripple, Link, Basic Attention Token and almost all cryptocurrencies that demand attention. Please like the video if you liked the video, and subscribe if you like these types of videos. David from BigBits is an experienced Software Engineer, but no one is perfect, If you find any issues with any of the open-source, free code, or code shown in videos please comment to let us know what to fix, we listen to our viewers!