OPEN-SOURCE SCRIPT
Risk Management Strategy Template
This strategy is intended to be used as a base template for building new strategies.
It incorporates the following features:
Risk management:
Trade entry:
Trade exit:
Backtesting:
Trade drawings:
Debugging:
Strategy conditions
Trade entry:
LONG
SHORT
Trade exit:
The idea is to use RSI to catch pullbacks within the main trend.
Note that this strategy is intended to be a simple base strategy for building upon. It was not designed to be traded in its current form.
It incorporates the following features:
Risk management:
- Configurable X% loss per stop loss
- Configurable R:R ratio
Trade entry:
- Calculated position size based on risk tolerance
Trade exit:
- Stop Loss currently configurable ATR multiplier but can be replaced based on strategy
- Take Profit calculated from Stop Loss using R:R ratio
Backtesting:
- Configurable backtesting range by date
Trade drawings:
- TP/SL boxes drawn for all trades. Can be turned on and off
- Trade exit information labels. Can be turned on and off
- NOTE: Trade drawings will only be applicable when using overlay strategies
Debugging:
- Includes section with useful debugging techniques
Strategy conditions
Trade entry:
LONG
- C1: Price is above EMA line
- C2: RSI is crossing out of oversold area
SHORT
- C1: Price is below EMA line
- C2: RSI is crossing out of overbought area
Trade exit:
- Stop Loss: Stop Loss ATR multiplier is hit
- Take Profit: R:R multiplier * Stop Loss is hit
The idea is to use RSI to catch pullbacks within the main trend.
Note that this strategy is intended to be a simple base strategy for building upon. It was not designed to be traded in its current form.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.