Daily Stock Trend Pullbacks Using RSI and ATR Risk Levels

Summary

This long-only swing strategy seeks pullbacks during an established uptrend in liquid US stocks. It defines the bullish regime with the faster moving average above the slower one and price above the faster average. An RSI reading in a designated pullback zone within the recent bars, followed by a cross back above its threshold, supplies the entry trigger. A filter requiring ATR to exceed a fraction of price excludes quieter markets.

At entry, the strategy places a stop and profit target at ATR multiples and sizes the position from a chosen equity risk amount divided by the per-share stop distance. It also exits if the moving averages cross into a bearish regime. The script specifies daily bars, trading costs, slippage, and a configurable backtest date range. The accompanying text gives an expected win-rate range and profit-factor goal, but provides no supporting backtest results; these are targets, not demonstrated performance. Outcomes may depend on ticker, period, costs, and parameter choices.

Key ideas

• The strategy enters long only when price and moving averages indicate an uptrend.
• A recent RSI pullback followed by a move back above its threshold triggers an entry.
• ATR relative to price filters out low-volatility conditions.
• Stop distance and position size are linked to ATR and a chosen equity risk percentage.
• A bearish moving-average crossover closes the position, while stated performance expectations lack supporting evidence.

Tags

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