Bullish Reversal-Bar Entries with Four-Layer DCA and ATR Targets
Summary
This long-only strategy identifies a potential bullish reversal bar when the bar closes above its midpoint, makes a low over a configurable recent-bar window, and sits below the three Alligator lines. Optional filters use the Awesome Oscillator and a volume-based measure. The first entry is a stop order above the reversal bar’s high; subsequent entries require price to fall below specified percentages from the initial layer before another qualifying reversal setup appears.
Position sizes are allocated across as many as four layers, with each layer weighted by a configurable size multiplier. The shared exit target is the position’s average price plus a multiple of ATR, and each layer has an exit order at that level. The script includes a date range, commission and slippage assumptions, and alert messages, but the document provides no reported results or drawdown analysis. It has no explicit loss stop, so layered averaging can increase exposure during a sustained decline; the optional filters and parameters need instrument-specific testing.
Key ideas
- A bullish reversal bar must set a recent low, close above its midpoint, and remain below the Alligator lines.
- Optional Awesome Oscillator and volume-derived filters can further qualify reversal bars.
- Up to four long entries are staged after specified declines from the first layer.
- Layer sizing grows according to a configurable multiplier, while the shared target is based on average entry price and ATR.
- No performance results or explicit loss stop are provided, leaving averaging-down risk unassessed.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.