Daily Stock Trend Pullbacks with RSI Confirmation and ATR Exits

Summary

This long-only daily stock strategy looks for pullbacks within an established uptrend. It defines the bullish regime as the 50-period EMA above the 200-period EMA, with price above the faster average. After RSI has recently entered a pullback zone, it waits for RSI to cross back above its threshold. An ATR-to-price filter excludes lower-volatility conditions. Entries use a risk-based share quantity derived from equity and the distance to an ATR stop; the script also sets an ATR-based profit target and closes if the moving-average regime breaks.

The script lists liquid US stocks and ETFs as intended examples, uses daily bars, and includes commissions and slippage in its strategy settings. The excerpt is truncated during the plotting section and supplies no strategy report or measured results, so the rules cannot be assessed for profitability from this document. Its parameters and date range are configurable, and results would depend on the chosen asset, data, execution assumptions, and test period.

Key ideas

• The strategy trades long when the faster EMA is above the slower EMA and price remains above the faster EMA.
• It looks for an RSI recovery after a recent pullback into a specified zone.
• Position size is calculated from a fixed percentage of equity risk and the distance to an ATR-based stop.
• The script sets an ATR-based profit target and exits if the moving-average trend regime breaks.
• The supplied excerpt has no performance report and is truncated, so it offers no evidence of profitability.

Tags

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