CTO Line indicator for TradingView

cto_line.pine

//@version=4
study(title="CTO Line", shorttitle="CTO", overlay=true, resolution="")
smma(src, length) =>
    smma = 0.0
    smma := na(smma[1]) ? sma(src, length) : (smma[1] * (length - 1) + src) / length
    smma
v1 = smma(hl2, 15)
m1 = smma(hl2, 19)
m2 = smma(hl2, 25)
v2 = smma(hl2, 29)
p2 = v1<m1 != v1<v2 or m2<v2 != v1<v2
p3 = not p2 and v1<v2
p1 = not p2 and not p3
c = p1 ? color.orange : p2 ? color.silver : color.navy
line1 = plot(v1, "Line 1", color=c)
line2 = plot(v2, "Line 2", color=c)
fill(line1, line2, color=c)

How is this supposed to be used? I know it's best on 4hr time frames. When I use it as an indicator for a strategy backtest it actually doesn't perform very well. Something like 46% over the course of 3 years.

I used logic such as:
Close and open long position when orange is triggered.
Close and open short when blue is triggered.

I even experimented with closing the position if it enters a greyzone and awaiting for a new color to occur to re-enter. This marginally improved the backtest.

Am I using this indicator wrong or something or is it not made for automated trading?

Alternatively I can reach a 260% gain on BTC since 2020 using tradingviews default "supertrend" indicator and fiddling around with the ATR params. I thought larson line would be better..!

Worked great!! Thanks.

Hi @BreWep its clear you have respect for Larsson. i do too.. his course price is just too steep for me.
do you have any content from his course fundamentals that you could share.
it would really help. and thanks for the help on the pine editor for the larsson line.

BTW he says that the indicator is free the course is paid so no need to feel guilty of using this source code