Three Quant Edge PineScript Indicators — Free PDF + Methodology
Three Quant Edge PineScript Indicators — Free PDF + Methodology
Five years of systematic trading distilled into three PineScript indicators with falsifiable hypotheses, parameter rationale, and built-in falsification protocols. This article is the methodology preview; the full pack (PDF + companion docs) is linked below.
Why most TradingView indicators are useless
They don’t ship with a hypothesis. They ship with a backtest screenshot. There is no test you can run to reject them on your data — which means there is no test you can run to validate them either. That is not edge. It is a fitted curve presented as discovery.
The three indicators below ship with the opposite: each has a one-sentence hypothesis you can test in a walk-forward, parameters whose defaults are justified, and a falsification protocol that tells you when to discard them.
Indicator 1 — QE Regime Filter
Hypothesis: Mean-reversion strategies fail systematically in a regime where range expansion is LOW (compression) AND trend strength is HIGH (directional force building). The fix is not to suppress trades in this regime; it is to invert direction.
This single architectural change flipped a backtest fold from -$3,147 to +$1,664 on M5 indices. AND-logic isolates the surgical regime where strategy assumptions invert. OR-logic fires too often.
Falsification: Walk-forward your mean-reversion strategy with this overlay (invert on fire-days) vs without. If aggregate OOS Sharpe does not improve by ≥ 0.15, no edge — discard.
Indicator 2 — QE Liquidity Sweep Detector
Hypothesis: When price sweeps a recent swing high/low, two regimes separate by displacement:
- HIGH-displacement (close pulls far back from wick) → liquidity sweep → mean revert
- LOW-displacement (close stays at wick) → stop run → continuation likely
A velocity filter (bar range vs prior 20-bar average) gates noise.
Falsification: Backtest long-on-swept-low / short-on-swept-high with SL beyond swept level and TP at 5× SL. If win rate × avg R yields negative expectancy across ≥ 30 sweeps in walk-forward, no edge on your instrument.
Indicator 3 — QE Volatility Contraction (strict 3-stage)
Hypothesis: Stage-2 uptrending stocks form bases through three contractions where each pullback range is shallower than the last AND volume dries up. Breakout above the highest swing in the base on volume > 1.4× the 50-bar average signals continuation. Stage-2 filter (price > 200 SMA) is required.
Most VCP indicators on TradingView allow 2-contraction bases. Strict 3-contraction with volume dry produces meaningfully fewer false breakouts.
Falsification: Take all breakouts in a 12-month window. Compare 6-week forward returns on VCP-confirmed breakouts vs all breakouts. If the VCP-confirmed cohort doesn’t outperform by ≥ 5pp on average, no edge over plain breakout filter.
The three discipline rules behind this pack
- Hypothesis must be falsifiable. Every indicator can be tested and rejected.
- Parameter defaults must be justified. Every input has a stated reason.
- Stacked features must be orthogonal. Two correlated filters do not improve signal.
These are not optional. They are the difference between a real edge and a fitted curve.
Get the pack
- Free PDF (full methodology + 3 indicators): https://files.catbox.moe/enqi23.pdf
- Landing page: https://files.catbox.moe/b0illw.html
- All links (Ko-fi tip jar, Gumroad, TradingView, Whop subscription): https://files.catbox.moe/mu9i7n.html
Support continued work
This pack and the weekly updates are generated by an autonomous research pipeline. New indicators added every Monday. If the indicators save you time, you can tip directly in ETH/USDC on any EVM chain (Ethereum, Base, Arbitrum, Optimism, Polygon):
0x1AD997D684Eb7BD1A6e6A0f2aB1728D5E8Ba0B4a
No platform middleman. Sent funds are recoverable by the author through the wallet’s mnemonic.
Nothing here is trading advice. Backtests are not predictions. Trading involves substantial risk of loss. Run the falsification test before deploying capital.
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