123-Stormer Pattern Backtesting with EMA Filters and Timed Exits

Summary

This Pine Script strategy backtests a 123-Stormer price pattern with configurable long and short entries. It includes an option to require the third candle to be an inside bar and limits how many bars can pass between a signal and entry. Positions can also be closed after a set number of bars, with a profit target calculated as a multiple of the distance between entry and stop loss.

The strategy offers fast and slow exponential moving averages on a selectable timeframe as optional filters, along with a configurable date window. Its settings describe how to test and manage trades, but the supplied excerpt ends partway through the EMA calculations and does not show complete entry, stop-loss, or exit logic. No performance results are included, so the document establishes the strategy’s configurable design rather than evidence of profitability.

Key ideas

• The strategy is designed to trade the 123-Stormer pattern in either direction.
• An inside-bar condition can be required for the third candle.
• Entries may be restricted to a specified number of bars after a signal.
• The design includes time-based position closure and a reward target tied to stop distance.
• Optional fast and slow EMAs can filter signals using a selected timeframe.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.