EMA Crossover with RSI FilterEMA Crossover with RSI
Overview:
This strategy capitalizes on trend shifts by using a fast EMA (6-period) crossing a slow EMA (200-period) combined with an RSI filter for confirmation. It is optimized for a 4-hour timeframe to capture medium-term trends with fewer noise signals. Starting with an initial capital of $100, it reinvests 100% of equity in each trade and includes a 0.05% commission for realistic backtesting.
Strategy Setup:
Suggested Timeframe: 4-hour chart for balanced trend-capturing and signal accuracy.
Initial Capital: $100
Position Size: 100% of current equity per trade.
Commission: 0.05% per trade to simulate actual trading costs.
Indicators Used:
EMA (Exponential Moving Average):
6-period EMA: Tracks short-term price movements.
200-period EMA: Represents long-term trend direction.
RSI (Relative Strength Index):
14-period RSI: Adds a momentum filter to avoid false entries.
Entry and Exit Conditions:
Long Entry Condition:
Triggered when the 6-period EMA crosses above the 200-period EMA (bullish crossover).
RSI must be above 50 to confirm positive momentum.
When both conditions are met, a long position is opened.
Exit Condition:
The long position closes when the 6-period EMA crosses below the 200-period EMA (bearish crossover) and RSI is below 50, signaling a trend reversal.
Chart Display:
EMA Plots:
6-period EMA in green for short-term trends.
200-period EMA in red for long-term trend direction.
The 4-hour timeframe and commission consideration allow for realistic backtesting with an accurate view of net performance over time.
Indicators and strategies
voss 1 of 1 Price Action Volumetric Order Blocks [voss]Indicator Name: Order Block Finder
Description:
This TradingView indicator automatically detects and highlights Order Blocks — key zones where large institutions or professional traders have placed significant buy or sell orders, often resulting in sharp price moves. Order Blocks represent areas of strong demand (bullish order blocks) or supply (bearish order blocks) that price tends to revisit or react to.
Features:
Bullish Order Blocks:
The indicator identifies and marks areas where price experiences a strong reversal or acceleration upward after an institutional buying spree. These are typically seen after a significant price drop followed by a consolidation before a sharp upward movement. The Bullish Order Block is marked with a green box or green shaded area.
Bearish Order Blocks:
These are zones of institutional selling pressure where price reverses or accelerates downward after a buying climax. The Bearish Order Block is marked with a red box or red shaded area.
Zone Validity:
The indicator will adjust the order block zones based on recent price action, providing dynamic updates to reflect the validity and relevance of the zone. Older order blocks that no longer hold relevance are faded or removed.
Trend Confirmation:
The Order Block Finder will also highlight trend direction using a simple moving average (SMA) or other trend indicators, giving users an idea of whether to focus on bullish or bearish order blocks.
Alerts:
Set custom alerts for when price approaches an identified order block or when a breakout from an order block occurs. This feature helps traders stay informed in real-time about critical market zones.
Color-Coded Zones:
The indicator will color code the order block zones (green for bullish, red for bearish) and provide adjustable opacity so traders can customize the visibility according to their preference.
Automatic Drawing:
The indicator automatically draws order block zones on the chart, saving traders the time and effort of manually plotting them. The zones are based on the concept of "last up candle before a down move" for bearish order blocks and "last down candle before an up move" for bullish order blocks.
Historical & Real-Time Data:
The Order Block Finder works with both real-time and historical data, allowing traders to identify potential entry or exit points not only for the current market conditions but also to review past market reactions.
How to Use:
Look for price action that approaches the identified order block zones.
If price retraces into a bullish order block in an uptrend, it could be an ideal buying opportunity.
Conversely, if price retraces into a bearish order block in a downtrend, it could signal a shorting opportunity.
Combine with other indicators (e.g., RSI, MACD, or volume analysis) to confirm signals.
Best for:
Swing traders, day traders, and institutional traders who rely on supply and demand-based strategies.
Traders looking to identify key zones for potential reversals or continuation patterns based on institutional order flow.
Range Box (Close Prices)Wskaznik tworzy range box korzystając z cen zamknięcia ignorując tzw wick, pomocne dla osób grających na wyłamanie z zasięgu w danym czasie
Fibonacci Ratios with EMA Channel
Trend following indicator that determines a target position with a retracement to the Ema average.
Oğuzhan T.
Market Stats Panel [Daveatt]█ Introduction
I've created a script that brings TradingView's watchlist stats panel functionality directly to your charts. This isn't just another performance indicator - it's a pixel-perfect (kidding) recreation of TradingView's native stats panel.
Important Notes
You might need to adjust manually the scaling the firs time you're using this script to display nicely all the elements.
█ Core Features
Performance Metrics
The panel displays key performance metrics (1W, 1M, 3M, 6M, YTD, 1Y) in real-time, with color-coded boxes (green for positive, red for negative) for instant performance assessment.
Display Modes
Switch seamlessly between absolute prices and percentage returns, making it easy to compare assets across different price scales.
Absolute mode
Percent mode
Historical Comparison
View year-over-year performance with color-coded lines, allowing for quick historical pattern recognition and analysis.
Data Structure Innovation
Let's talk about one of the most interesting challenges I faced. PineScript has this quirky limitation where request.security() can only return 127 tuples at most. £To work around this, I implemented a dual-request system. The first request handles indices 0-63, while the second one takes care of indices 64-127.
This approach lets us maintain extensive historical data without compromising script stability.
And here's the cool part: if you need to handle even more years of historical data, you can simply extend this pattern by adding more request.security() calls.
Each additional call can fetch another batch of monthly open prices and timestamps, following the same structure I've used.
Think of it as building with LEGO blocks - you can keep adding more pieces to extend your historical reach.
Flexible Date Range
Unlike many scripts that box you into specific timeframes, I've designed this one to be completely flexible with your date selection. You can set any start year, any end year, and the script will dynamically scale everything to match. The visual presentation automatically adjusts to whatever range you choose, ensuring your data is always displayed optimally.
█ Customization Options
Visual Settings
The panel's visual elements are highly customizable. You can adjust the panel width to perfectly fit your workspace, fine-tune the line thickness to match your preferences, and enjoy the pre-defined year color scheme that makes tracking historical performance intuitive and visually appealing.
Box Dimensions
Every aspect of the performance boxes can be tailored to your needs. Adjust their height and width, fine-tune the spacing between them, and position the entire panel exactly where you want it on your chart. The goal is to make this tool feel like it's truly yours.
█ Technical Challenges Solved
Polyline Precision
Creating precise polylines was perhaps the most demanding aspect of this project.
The challenge was ensuring accurate positioning across both time and price axes, while handling percentage mode scaling with precision.
The script constantly updates the current year's data in real-time, seamlessly integrating new information as it comes in.
Axis Management
Getting the axes right was like solving a complex puzzle. The Y-axis needed to scale dynamically whether you're viewing absolute prices or percentages.
The X-axis required careful month labeling that stays clean and readable regardless of your selected timeframe.
Everything needed to align perfectly while maintaining proper spacing in all conditions.
█ Final Notes
This tool transforms complex market data into clear, actionable insights. Whether you're day trading or analyzing long-term trends, it provides the information you need to make informed decisions. And remember, while we can't predict the future, we can certainly be better prepared for it with the right tools at hand.
A word of warning though - seeing those red numbers in a beautifully formatted panel doesn't make them any less painful! 😉
---
Happy Trading! May your charts be green and your stops be far away!
Daveatt
EMA 10 Breakout Scalping IndicatorEMA 10 Scalping Breakout Indicator
The EMA 10 Breakout Scalping Indicator is designed to help traders catch short-term price movements by signaling potential breakout opportunities. This indicator uses a 10-period exponential moving average (EMA) to identify key support and resistance levels. It provides clear buy and sell signals based on price breaking above or below the EMA.
Features:
BUY Signal: The indicator generates a green label below the bar when the price crosses above the EMA, indicating a potential uptrend and buying opportunity.
SELL Signal: A red label appears above the bar when the price crosses below the EMA, suggesting a potential downtrend and opportunity to sell.
EMA Visualization: The 10-period EMA is plotted on the chart to visually track the short-term trend.
Real-Time Alerts: Quickly identify breakout points on any time frame for active scalping or trend-following strategies.
How to use:
BUY Signal: Enter a long position when the price crosses above the EMA.
SELL Signal: Enter a short position when the price crosses below the EMA.
EMA: EMA helps determine the direction of the trend. A price above the EMA indicates an uptrend, while a price below it suggests a downtrend.
Personalization:
You can easily adjust the EMA period to suit your trading style and time frame.
This indicator is ideal for scalpers or day traders looking to trade based on short-term price movements.
Perfect for:
Scalping: Catch small price movements with quick entries and exits.
Trend Following: Use the EMA to identify the current trend and enter trades accordingly.
Conclusion:
This simple yet powerful indicator helps traders spot potential breakouts based on the EMA 10. By combining price action and EMA, traders can execute timely trades and improve their decision-making process in both trend and range markets.
Let me know if you find this indicator useful, or feel free to suggest features you'd like to see added. Happy trading!
Smoothed Heiken Ashi Trend FilterThis indicator applies the Heiken Ashi technique with added smoothing and trend filtering to help reduce noise and improve trend detection.
Components of the Indicator:
Heiken Ashi Calculations:
Heiken Ashi Close (ha_close): This is the smoothed average of the current bar’s open, high, low, and close prices, calculated with a simple moving average (SMA) to filter out noise.
Heiken Ashi Open (ha_open): This is the average of the previous Heiken Ashi Open and the current Heiken Ashi Close. It’s also initialized to smooth the transition on the first bar.
Heiken Ashi High (ha_high) and Low (ha_low): These values are calculated as the highest and lowest values among the high, Heiken Ashi Open, and Heiken Ashi Close for each bar.
Smoothing and Noise Reduction:
Smoothing Length: The indicator applies a smoothing length to the Heiken Ashi Close, calculated with an SMA. This reduces minor fluctuations, giving a clearer view of the price action.
Minimum Body Size Filter: This filter calculates the body size of each Heiken Ashi candle and compares it to a percentage of the Average True Range (ATR). Only significant candles (those with larger bodies) are plotted, reducing weak or indecisive signals.
Trend Filtering with Moving Average:
The indicator uses a simple moving average (SMA) as a trend filter. By comparing the Heiken Ashi Close to the moving average:
Bullish Trend: The Heiken Ashi candle is green when it’s above the moving average.
Bearish Trend: The Heiken Ashi candle is red when it’s below the moving average.
How to Use This Indicator:
Trend Identification:
Green candles signify a bullish trend, while red candles signify a bearish trend.
The smoothing and trend filtering make it easier to identify sustained trends and avoid reacting to short-term fluctuations.
Filtering Out Noise:
Minor price fluctuations and small-bodied candles (often resulting in indecisive signals) are filtered out, leaving only significant signals.
Adjustable Parameters:
Smoothing Length: Controls the degree of smoothing applied to the Heiken Ashi Close value. Increasing this value will make the Heiken Ashi candles smoother.
Minimum Body Size: This is a percentage of the ATR, used to filter out small or indecisive candles.
Trend Moving Average Length: Controls the period of the moving average used as a trend filter.
This Smoothed Heiken Ashi Trend Filter indicator is useful for identifying trends and filtering out noisy signals. By smoothing and filtering, it helps traders focus on the overall trend rather than minor price movements.
Let me know if there’s anything more you’d like to add or adjust!
Heikin Ashi Reversal Strategy for Gold with SL/TP//@version=5
indicator("Heikin Ashi Reversal Strategy for Gold with SL/TP", overlay=true)
// Heikin Ashi Calculations (without `request.security`, calculated on the current chart's timeframe)
haClose = (open + high + low + close) / 4
var float haOpen = na
haOpen := na(haOpen ) ? (open + close) / 2 : (haOpen + haClose ) / 2
haHigh = math.max(high, math.max(haOpen, haClose))
haLow = math.min(low, math.min(haOpen, haClose))
// Define Heikin Ashi trend conditions
bullish = ta.crossover(haClose, haOpen) // Bullish signal when haClose crosses above haOpen
bearish = ta.crossunder(haClose, haOpen) // Bearish signal when haClose crosses below haOpen
// Input fields for Take Profit and Stop Loss levels (adjustable for Gold)
tpLevel = input.float(0.5, title="Take Profit (%)") // Example: 0.5% TP
slLevel = input.float(0.3, title="Stop Loss (%)") // Example: 0.3% SL
// Entry price, Take Profit, and Stop Loss calculations
var float entryPrice = na
if (bullish)
entryPrice := close
if (bearish)
entryPrice := close
takeProfit = entryPrice * (1 + tpLevel / 100) // TP based on percentage above entry
stopLoss = entryPrice * (1 - slLevel / 100) // SL based on percentage below entry
// Plot Buy and Sell signals with labels for visibility
plotshape(series=bullish, location=location.belowbar, color=color.green, style=shape.labelup, title="Buy Signal", text="BUY")
plotshape(series=bearish, location=location.abovebar, color=color.red, style=shape.labeldown, title="Sell Signal", text="SELL")
// Plot TP and SL levels
plot(takeProfit, color=color.green, style=plot.style_line, linewidth=1, title="Take Profit")
plot(stopLoss, color=color.red, style=plot.style_line, linewidth=1, title="Stop Loss")
// Optional: Debugging Heikin Ashi values (can be removed if not needed)
plot(haOpen, color=color.blue, title="Heikin Ashi Open")
plot(haClose, color=color.purple, title="Heikin Ashi Close")
Russian Roulette IndicatorThis indicator is dangerous and I don't recommend you to use it. I was just back testing What would it look like if we try to randomize the entries just like Russian Roulette. The only thing that this script relies on is the 200MA where the script will activate and starts flipping a coin with every single candle. It's your choice to buy or sell.
Candle Range Display (Real-Time) TheAnhCandle Range Display (Real-Time) TheAnh
Candle Range Display (Real-Time) TheAnh
Candle Range Display (Real-Time) TheAnh
Candle Range Display (Real-Time) TheAnhCandle Range Display (Real-Time) TheAnh
Multi-Timeframe Strategy with Pivots. 1m trend follow breakouts.This is a basic script that shows bullish and bearish pivots above or below the aligning moving averages. It also give an entry indicator when price taps, or crosses a moving average before moving past the corresponding pivot.
This is a personal strategy that in my findings has shown around a 60% win rate when aligned with higher timeframe trend, and high volume times of entry.
This indicator needs refinement, but it is as close as I can get using Ai coding, since I don't know how to code.
If you stumble across this indicator/ strategy and have refinement suggestions, let me know!
Thanks. Happy Trading!
Volume to Candle Size Ratio - UpdatedBased on the script from but with some added features (more to come)
(don't mind that the screen shot above has 3 of the same indicator....I was testing/debugging when it took and published the screen shot)
What's new:
- Works across all time frames, not just the 5 minute
- Added a moving average line
- Added alerts so that you don't have to watch the charts
Soon to come:
- Add levels/zones to be shown on the chart and used with the indicator. The indicator will alert you when a volume/price ratio candle approaches your levels (would also be useful for automated backtesting)
- Using the volume profile and the indicator to automate finding levels/zones for you
Average Bullish & Bearish Percentage ChangeAverage Bullish & Bearish Percentage Change
Processes two key aspects of directional market movements relative to price levels. Unlike traditional momentum tools, it separately calculates the average of positive and negative percentage changes in price using user-defined independent counts of actual past bullish and bearish candles. This approach delivers comprehensive and precise view of average percentage changes.
FEATURES:
Count-Based Averages: Separate averaging of bullish and bearish %𝜟 based on their respective number of occurrences ensures reliable and precise momentum calculations.
Customizable Averaging: User-defined number of candle count sets number of past bullish and bearish candles used in independent averaging.
Two Methods of Candle Metrics:
1. Net Move: Focuses on the body range of the candle, emphasizing the net directional movement.
2. Full Capacity: Incorporates wicks and gaps to capture full potential of the bar.
The indicator classifies Doji candles contextually, ensuring they are appropriately factored into the bullish or bearish metrics to avoid mistakes in calculation:
1. Standard Doji - open equals close.
2. Flat Close Doji - Candles where the close matches the previous close.
Timeframe Flexibility:
The indicator can be applied across any desired timeframe, allowing for seamless multi-timeframe analysis.
HOW TO USE
Select Method of Bar Metrics:
Net Move: For analyzing markets where price changes are consistent and bars are close to each other.
Full Capacity: Incorporates wicks and gaps, providing relevant figures for markets like stocks
Set the number of past candles to average:
🟩 Average Past Bullish Candles (Default: 10)
🟥 Average Past Bullish Candles (Default: 10)
Why Percentage Change Is Important
Standardized Measurement Across Assets:
Percentage change normalizes price movements, making it easier to compare different assets with varying price levels. For example, a $1 move in a $10 stock is significant, but the same $1 move in a $1,000 stock is negligible.
Highlights Relative Impact:
By measuring the price change as a percentage of the close, traders can better understand the relative impact of a move on the asset’s overall value.
Volatility Insights:
A high percentage change indicates heightened volatility, which can be a signal of potential opportunities or risks, making it more actionable than raw price changes. Percents directly reflect the strength of buying or selling pressure, providing a clearer view of momentum compared to raw price moves, which may not account for the relative size of the move.
By focusing on percentage change, this indicator provides a normalized, actionable, and insightful measure of market momentum, which is critical for comparing, analyzing, and acting on price movements across various assets and conditions.
AlphaTrend Strategy(cemamca)kıvançbeyin indikatörü stratejiye dönüştü altında ve gümüşte güzel çalışıyor
WSITEEE Imbalance/FVG (FAIR VALUE GAP)This Pine Script is a powerful tool for traders who work with the Smart Money concept and FVGs. It allows for the visualization of imbalances on the chart, highlighting key zones that can serve as important levels for decision-making. With flexible color and label settings, the script can be tailored to individual needs, enhancing data visualization on the chart.
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Stochastic RSI with Golden Entries/ExitsStochastic RSI with gold entries/exits
Review
The Stochastic RSI with Golden Entries/Exits indicator is designed to provide traders with high probability entry and exit points based on the Stochastic RSI. By combining RSI and stochastic indicators, this tool aims to capture overbought and oversold conditions in a precise manner, allowing traders to spot potential reversal points with precision.
Main features and functionality
Stochastic RSI Calculation:
The indicator calculates the Relative Strength Index (RSI) and applies a stochastic function to the RSI values. This approach provides a nuanced view of overbought and oversold conditions, helping traders identify turning points even in trending markets.
The main stochastic RSI parameters are:
K Line (blue) – A smoothed version of the Stochastic RSI %K line that helps filter out noise.
D line (orange) – additional smoothing of the K line used as a signal line.
These lines can be customized through parameters allowing adjustments based on trading style or market conditions.
Golden entry and exit signals:
Golden Entry: The script identifies potential buy signals (golden entries) when the K line crosses above the D line below the oversold level (20). These conditions are often associated with bullish reversals.
Gold Exit: Sell signals (gold exits) occur when the K line crosses below the D line above the overbought level (80), signaling a possible bearish reversal.
Visual signals (points) are displayed on the graph:
Green circle below bar for gold entry points.
Red circle above bar for Golden Exit points.
Visual improvements:
Bands and Middle Line: The upper (80) and lower (20) bands provide reference points for overbought and oversold conditions, while the middle band (50) helps measure the neutral zone.
Background shading: The area between the 80 and 20 bands is shaded, making it easier to identify areas where the Stochastic RSI may signal extreme conditions.
Background lighting for entries: The background turns soft yellow when the Golden Entry condition is met, helping traders easily spot potential buying opportunities.
How to use
Golden Entry: Use the green circles to spot potential long (buy) entries when the Stochastic RSI shows an oversold reversal.
Golden Exit: Use the red circles to identify potential short (sell) signals when the Stochastic RSI signals an overbought reversal.
Trend Confirmation: Combine this indicator with other trend following tools such as moving averages or price action signals to confirm trade entries and exits.
Customization options
K and D smoothing periods: Adjust the smoothness of the K and D lines to adapt to different time frames and market conditions.
RSI and Stochastic Lengths: Fine-tune RSI lengths and Stochastic calculations to tailor the sensitivity of the indicator.
Final thoughts
The Stochastic RSI with Golden Entries/Exits indicator offers a unique combination of RSI and stochastic analysis, highlighting potential reversal points with simple visual cues. Whether you are a day trader or a swing trader, this tool can help you refine your entry and exit strategies, especially in volatile markets.
Let me know if you find this indicator useful, or feel free to suggest features you'd like to see added. Happy trading!
rajinder//@version=5
indicator("Buy and Sell Signals on MA and RSI", overlay=true)
// Define the 50-period moving average
ma50 = ta.sma(close, 50)
// Define the 14-period RSI
rsi = ta.rsi(close, 14)
// Define the conditions for the buy signal
candleClosedAboveMA = close > ma50 // Current candle closed above the 50 MA
rsiCrossedAbove60 = ta.crossover(rsi, 60) // RSI crossed above 60
// Define the conditions for the sell signal
candleClosedBelowMA = close < ma50 // Current candle closed below the 50 MA
rsiCrossedBelow40 = ta.crossunder(rsi, 40) // RSI crossed below 40
// Generate buy and sell signals
buySignal = candleClosedAboveMA and rsiCrossedAbove60
sellSignal = candleClosedBelowMA and rsiCrossedBelow40
// Plot the moving average
plot(ma50, color=color.blue, linewidth=2, title="50 MA")
// Plot buy and sell signals on the chart
plotshape(series=buySignal, location=location.abovebar, color=color.green, style=shape.labelup, text="Buy", title="Buy Signal")
plotshape(series=sellSignal, location=location.belowbar, color=color.red, style=shape.labeldown, text="Sell", title="Sell Signal")
// Optional: Display buy and sell signals on the price chart with background color
bgcolor(buySignal ? color.new(color.green, 90) : na, title="Buy Signal Background")
bgcolor(sellSignal ? color.new(color.red, 90) : na, title="Sell Signal Background")
My scriptA Script of indicator for convergence of various EMA Order blocks and alerts with buy sell signals
Buy/Sell SignalExplanation of the Code
Sell Signal Condition: Checks if the pattern is a green candle followed by two red candles.
Buy Signal Condition: Checks if the pattern is a red candle followed by two green candles.
Plotting: Uses plotshape to show arrows above/below the bars when the conditions are met.
This script should be placed in the TradingView Pine Editor and will display buy/sell arrows on the chart where the patterns occur. You can adjust it to refine the pattern or the candle color criteria based on exact requirements. Let me know if you need further adjustments!
Simplified MetroThis is a derivative of J. Welles Wilder's RSI (Relative Strength Index) from 1978. This version uses a fast and slow offset of the RSI to create signals. The RSI itself has been removed from this version for visual simplicity, but its setting still has an impact on the fast and slow stepped lines.
The "RSI Period" sets the number of bars used to calculate the RSI. A higher value results in a smoother RSI, while a lower value makes it more reactive to price changes.
The "Fast Step Size" defines the step size for the fast trend line. A larger value makes the fast step line less sensitive to RSI changes, creating a smoother line.
The "Slow Step Size" defines the step size for the slow trend line. A larger value makes the slow step line less sensitive to RSI changes, resulting in a smoother line compared to the fast step.
When the faster blue line crosses and closes above the slower fuchsia line we have a signal to go long, and vice versa we take a short position.
This indicator should not be traded on its own, but could be a valuable addition to a system used for identifying trends.
Sim Capital EMAA product of Sim Academy.
This script is an upgrade of the existing Triple MA Forecast from Sim Capital
To allow the user to display 7 different EMAs
Default Value
8 ema
13 ema
21 ema
34 ema
89 ema
200 ema
777 ema
Note:
Best to use on high timeframe, if on low timeframe change the forecast maximum to lower
ATT Model with Buy/Sell SignalsIndicator Summary
This indicator is based on the ATT (Arithmetic Time Theory) model, using specific turning points derived from the ATT sequence (3, 11, 17, 29, 41, 47, 53, 59) to identify potential market reversals. It also integrates the RSI (Relative Strength Index) to confirm overbought and oversold conditions, triggering buy and sell signals when conditions align with the ATT sequence and RSI level.
Turning Points: Detected based on the ATT sequence applied to bar count. This suggests high-probability areas where the market could turn.
RSI Filter: Adds strength to the signals by ensuring buy signals occur when RSI is oversold (<30) and sell signals when RSI is overbought (>70).
Max Signals Per Session: Limits signals to two per session to reduce over-trading.
Entry Criteria
Buy Signal: Enter a buy trade if:
The indicator displays a green "BUY" marker.
RSI is below the oversold level (default <30), suggesting a potential upward reversal.
Sell Signal: Enter a sell trade if:
The indicator displays a red "SELL" marker.
RSI is above the overbought level (default >70), indicating a potential downward reversal.
Exit Criteria
Take Profit (TP):
Define TP as a fixed percentage or point value based on the asset's volatility. For example, set TP at 1.5-2x the risk, or a predefined point target (like 50-100 points).
Alternatively, exit the position when price approaches a key support/resistance level or the next significant swing high/low.
Stop Loss (SL):
Place the SL below the recent low (for buys) or above the recent high (for sells).
Set a fixed SL in points or percentage based on the asset’s average movement range, like an ATR-based stop, or limit it to a specific risk amount per trade (1-2% of account).
Trailing into Profit
Use a trailing strategy to lock in profits and let winning trades run further. Two main options:
ATR Trailing Stop:
Set the trailing stop based on the ATR (Average True Range), adjusting every time a new candle closes. This can help in volatile markets by keeping the stop at a consistent distance based on recent price movement.
Break-Even and Partial Profits:
When the price moves in your favor by a set amount (e.g., 1:1 risk/reward), move SL to the entry (break-even).
Take partial profit at intermediate levels (e.g., 50% at 1:1 RR) and trail the remainder.
Risk Management for Prop Firm Evaluation
Prop firms often have strict rules on daily loss limits, max drawdowns, and minimum profit targets. Here’s how to align your strategy with these:
Limit Risk per Trade:
Keep risk per trade to a conservative level (e.g., 1% or lower of your account balance). This allows for more room in case of a drawdown and aligns with most prop firm requirements.
Daily Loss Limits:
Set a daily stop-loss that ensures you don’t exceed the firm’s rules. For example, if the daily limit is 5%, stop trading once you reach a 3-4% drawdown.
Avoid Over-Trading:
Stick to the max signals per session rule (one or two trades). Taking only high-probability setups reduces emotional and reactive trades, preserving capital.
Stick to a Profit Target:
Aim to meet the evaluation’s profit goal efficiently but avoid risky or oversized trades to reach it faster.
Avoid Major Economic Events:
News events can disrupt technical setups. Avoid trading around significant releases (like FOMC or NFP) to reduce the chance of sudden losses due to high volatility.
Summary
Using this strategy with discipline, a structured entry/exit approach, and tight risk management can maximize your chances of passing a prop firm evaluation. The ATT model’s turning points, combined with the RSI, provide an edge by highlighting reversal zones, while limiting trades to 1-2 per session helps maintain controlled risk.
