Aroon Signals with Trend Filters and Risk-Reward Trade Management

Summary

The visible portion of this open-source strategy combines Aroon-style high and low timing values with a trend filter requiring price to be above both a long SMA and EMA for longs, or below both for shorts. It sets a 14-period Aroon lookback, a fixed stop distance, and a target based on a risk-reward ratio. Optional break-even management moves the stop to entry after price reaches a configured reward multiple. The script also tracks wins, losses, and break-even exits and draws trade levels on the chart.

Entries are based on crossovers between the calculated Aroon values, subject to the trend filter and a delay after exits. Exits are checked against stop and target levels, with the target requiring an additional tick distance. The supplied document ends partway through the execution logic, so the complete order behavior and any remaining safeguards cannot be assessed. It includes no backtest settings or performance evidence. Fixed pip or point distances may also behave differently across instruments, and the shown rules do not establish how fees, slippage, or intrabar stop-and-target conflicts are handled.

Key ideas

• The visible entry logic uses Aroon value crossovers and can filter trades by price relative to a long SMA and EMA.
• The script configures a fixed stop distance and a target using a risk-reward ratio.
• An optional break-even rule moves the stop to entry after a specified reward multiple is reached.
• The code delays re-entry after an exit and checks stop and target conditions during an open trade.
• The source is truncated and provides no backtest settings or performance results.

Tags

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