This content provides a detailed guide on utilizing the "iDSS" indicator suite, focusing on its four components (Confluence, Optimized Trend, Trend, and Mean Reversion) for trading, using Solana as an example. It emphasizes optimizing settings, understanding timeframes, and integrating macro awareness for more effective trading decisions.
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hello everyone today we are taking a
look at idss and taking a deeper dive
there our example today will be salana
but you can use any asset you want these
principles are going to apply all the
way across time frames and and across
any asset and so just adapt accordingly
to whatever asset you're looking at top
right here I have a little agenda for us
we're going to start out with talking
about time frames quickly then we're be
jumping into the settings we're going to
look at back testing settings trading
style for the Confluence model and then
playing around with the mean reversion
standard deviations next we'll look at a
few examples of where we find Confluence
across all four of the IEDs models and
then finally just a note on being aware
of what's going on in the world to begin
let's add our indicators in so I'm going
to go up to indicators invite only and
then we're going to add confluence mean reversion
reversion
optimized Trend and the regular Trend
okay so these four are what make up the
iids let's now talk about time frames
idss has been optimized for the 4H hour
time frame if you're trading on 4 hours
you're typically looking to stay in a
trade for 6 to8 weeks that could be a
little bit shorter could be a little bit
longer but generally speaking this is
going to be a swing trading strategy uh
in time time frame now 4 hour I think is
4 hours is uh very forgiving in case you
do mess up and so uh I would recommend
for everyone to start on a 4H hour and
as you get more experienced you can
start to zoom in to maybe a 1 hour or a
15 minute or a 5 minute however the
lower time frame you go the less
accurate it can be um so always make
sure to zoom out look at the higher time
frames you know if we are for example if
we are in a downtrend here
on a
4our even if you go into a 5 minute
you're probably going to find some blue
where the trend is turning up and it's
blue and you're going to say oh it's
time to get in but overall we're down we
are in a downtrend on the 4 Hour so be
careful about what time frame you're
using so for now in this example we're
just going to be looking at the 4H hour
time frame however it does work I adss
does work on all time frames okay let's
now take a look at the settings of each
of the models starting with the
Confluence model if I go into the
settings here in the top right our bias
for now we're going to keep it neutral
we always want to keep our bias neutral
until we have identified a opportunity
or a point where we want to buy and get
into a position or sell and get and get
out of a position okay now the back test
you'll notice right off the bat our win
rate is only
68% now one way you can play around with
the back test is by changing your start
date okay so currently and by default
our start date is
2018 markets change uh over time right
like we know between now and 2018
there's been two bull runs well the the
current one in the previous one and then
we went through a bare market and so
what kind of data do we care about what
kind of data do we want to look at and
so maybe we're only interested in when
this bull market started maybe we're
only interested in when maybe Trump was
elected okay there's major events in the
world that change the landscape of the
markets and so using older data yes it
can be helpful to know hey does this
perform over a bare Market does this
work did this work in the previous cycle
however for our purposes today I'm
interested in maybe what happened in the
last year or two I want recent data has
this worked for the current market
landscape again to the back test is just
a theoretical if you would have hit
every single one of these buy signals
and every single one of these sell
signals what would your win percentage
be it's very very unlikely that you're
going to be able to catch every single
Buy Signal on top of that right we can
see right off the bat here we have a Buy
Signal here and a Buy Signal here right
you wouldn't have taken either of these
maybe you took this buy when the trend
flipped here but you definitely wouldn't
would not have taken this Buy Signal
because the trend is still orange so
this automatically right we aren't
counting that as far as our personal
track record goes but the back test does
so just be aware of what the back test
is it's a theoretical perfect case where
you take every single one but that's not
really realistic for you to trade and
get every single Buy Signal especially
if the other models aren't saying that
you should be buying all right jumping
back in in to the settings here I'm
going to change my start date to 2023
okay so I'm just going to go January 1st
2023 how has that done so since uh
January 1st 2023 we have a 100% win rate
okay great that's great I know that at
least for this bull market we have done
well we're currently still in a bull
market so I don't see any reason to not
have it set up here okay and then as
always down here entry type is percent
current capital at 50 and then lifo we
got 50 here too okay so let's now go
optimized Trend does not have any
settings to play with so great going
down into Trend I have to turn my
showback test to True let me change my
date to be the same 2023 first okay so I
have a 76% win rate now if I change it
to very tight I have a 98% win rate okay
so I'm going to keep it on very tight
for now but you can play around with
what you like and what is going to give
you the best win
percentage same thing down here lifo
50/50 hit okay there let's go into mean
reversion now mean reversion same thing
have to hit my back test to True let's
go start date up here
2023 all right lifeo 5050 great so one
thing I do want to point out and this is
where um standard deviations really can
help you you can see we have down here
let me pull this up so everyone can see
right we've got a whole bunch of dots in
here all the of these buy signals well
for me and for most people you don't
care necessarily about all of the buy
signals we really just want outliers or
things that are really far away from the
mean so what we can do is let's change
our styling here this isn't going to
affect the back test but it can help you
visually so what I like to do is I set
to minus
1.75 and every asset's going to be
different so you'll have to play around
and get used to what you like to see
okay so if I hit okay here now I can see
that the only signals I really care
about are going to be the ones outside
of my cloud here see how we're way down
here and way up here okay so we we talk
about these Pico moments and getting in
when we have these opportunities this is
what we're talking about mean reversion
is extremely overextended One Direction
or the other and when I visually put it
on my chart like this I can see very
clearly okay this is overextended okay
so that is mean reversion 95% rate great
so now we've dialed in the settings for
all of our models when you have an 80%
win rate across uh all of the models
your win rate really jumps to more like
95% okay so if all the models can tell
you the same thing and they have high
win percentages your trades will almost
always work out okay so let's take a
look at some
examples current day it's February 20th
today we can see if I Zo in here we have
been in a major downtrend okay continue
to bleed lower and lower and lower if I
turn off the optimized Trend and just
look at the opt or if I turn off regular
Trend and just look at optimized Trend
um it's not looking great as in we're we
we're definitely in a strong downtrend
however we can see right now that we
might just be turning blue here if we
have a few more green candles here then
see how skinny this is starting to get
and it looks like we so we'll either
break down and we'll continue our
downtrend or we might break up a tiny
bit if this turns blue I'll also see I
got my Buy Signal here and I see my mean
reversion is outside of my standard
deviation uh threshold so this is
actually turning out to be
potentially a good setup okay we've got
this outside we've got our Buy Signal
here now we just need to wait for the
trend to flip blue okay let's take a
look at another example back here so
you'll say well I didn't get a Buy
Signal down here but this obviously this
was the uh Trump rally coming into the
inauguration right this would have been
great but I didn't get my Buy Signal
what I can do is go into the settings of
Confluence and say hey I really think
that this is an opportunity to buy we
can see mean reversion has been on the floor
floor
right we just had to run up all the way
back down we're on the floor here trend
has turned blue I would really like to
get in okay so I can change my bias here to
to
bullish and notice when I change to
bullish I get my Buy Signal okay so this
would have gotten you in right around
here that would have that would have
been great right and then we hold all
the way up and your exit point at least
here on optimized Trend would have been
somewhere in
here okay so not bad 35% in just six
days and that's again that's assuming
you get out at 250 and not somewhere up
here in the top so then you'll ask
yourself well how do I get out earlier
than that okay so maybe let's turn off
optimized Trend let's turn on regular
Trend cuz regular trend on very tight is
going to be more sensitive okay so now
you can see Trend changed back here here
right on the let's see 270 is somewhere
in here you also have mean reversion on
this candle way overextended this is up
to over three you can see this here over
three we have not had let me draw a
little line
here we have not had mean reversion this
High basically ever okay maybe all the
way back here and sure enough the last
instance of this was February 24 okay
and then we come all the way back down
before we make our move back to the
upside okay so that also could have been
an indication hey maybe you didn't sell
everything exactly but this is way
overextended on the mean reversion here
so at least taking some profits on your
position on the way up and then when we
get the orange flip of trend um you can
exit the position and then of course we
get our cell signal later all right so
now that I've entered here I just want
to make sure I go back to
neutral and I'll be ready for the next
opportunity one point that we really
need to make here you have to be aware
of the macro situation okay this section
here this runup was a runup to the uh
inauguration of President Trump on top
of that the Trump meme coin that drove
tons of volume happened at the same time
okay while the models are great they
don't know what's going on and so when
we start to see price get
overextended somewhere in here yes
that's a sign that we are overheated but
it doesn't mean you just have to exit
right away what is going on in the world
okay we know that Trump's coming in we
know that that coin has been craziness
we probably have further upside okay so
that's something to be aware of same
thing back here this is a probably a
better example here right we had this
huge run up this was November 4th or
when Trump did win the election um
where's my Buy Signal no Buy Signal okay
let me go to bullish okay even when I go
to bullish no Buy Signal still however
if you didn't take that trade you missed
out on a ton of potential gains well we
know that the Trump presidency is pro
crypto when he wins of course we start
to rally and so something to be aware of
as well okay to recap I know this has
been a bit of a longer video start with
a 4our time frame for the beginners out
there I think starting on the 4 Hour is
great however these principles of course
apply all the way across the board once
you start getting more advanced you can
start zooming in more to identify
exactly where to enter two dial in your
settings pick a back test date that
makes sense when has the landscape
changed for example again maybe the
Trump election when he won or maybe when
the bull market started
pick a appropriate back testing date
trading style or the trading bias in the
Confluence model we only change this
when we want to get more aggressively
enter or exit a position standard
deviations they can help us to filter
out the other signal and only take
signals on these Pico moments or where
we're really far overextended next we're
looking for what we're looking for a Buy
Signal a mean conversion dots and we're
looking for Trend to flip again golden
example here when I Chang to bullish is
right here we've got the Buy Signal here
we've got Trend changing blue and we've
got our little mean reversion dots down
here great and then make sure you are
aware of the macro maybe you missed a
trade uh sometimes it's not too late to
get in if you're aware of what's going
on in the world Okay so this was
idss on salana please use it on whatever
asset you'd like let me know if you have
any questions down below and I'll see
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