Confluence Strategy Using Hann Ribbons, Market Structure, and Risk-Based Sizing

Summary

This strategy combines crossovers between Hann-filtered price series with market-structure signals. It tracks swing highs and lows, flags breaks of those levels, and uses a structural trend state to avoid entries against a confirmed direction. An ADX range screens market regimes; optional filters restrict trading to selected sessions or require price to be near a recent fair value gap. Entries are evaluated on confirmed bars and only taken while flat.

Stops are placed beyond a recent 20-bar extreme with an ATR buffer, and position size is calculated from equity, a risk percentage, and stop distance. The script also offers a reward-to-risk target and an optional ATR trailing stop. The provided document is incomplete: its central execution section is omitted, so the exact exit behavior and some implementation details cannot be fully assessed. It describes configurable logic and reports no performance evidence. Outcomes may vary by market, timeframe, costs, and settings; risk-based sizing also relies on instrument quantity and point-value conventions being appropriate.

Key ideas

• Hann-filter crossovers provide frequent directional entry triggers, while breaks of tracked swing levels can also signal entries.
• A structural trend state, ADX bounds, and optional session and fair value gap filters constrain trades.
• The position sizing formula links equity risk to the distance between entry and an ATR-buffered recent extreme.
• The strategy includes configurable reward-to-risk targets and an optional ATR-based trailing stop.
• The source is truncated around execution and provides no reported backtest results, limiting assessment of its exits and performance.

Tags

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