Fibonacci Pivot Reversal Entries with Risk-Based Sizing
Summary
This strategy calculates daily Fibonacci pivot levels from the daily high, low, and close, then looks for reversal candles at selected support and resistance levels. Longs are signaled after price probes below S3 and closes back above it, or under a Monday-specific condition near S1. Shorts use the corresponding rejection at R3 or a Monday condition near R1. Stops sit a configured pip distance beyond the relevant pivot, while profit targets are set at the pivot point or another support or resistance level. Entries are modeled at the signal candle's high for longs and low for shorts.
Quantity is calculated from account equity, a per-trade risk percentage, the entry-to-stop distance, and a contract multiplier. The script also limits daily entries and blocks new ones after a daily equity-loss threshold. However, the document's daily-pivot request uses current daily values with lookahead enabled, which can introduce future information and repainting in historical or live use. It offers no verified performance results; pip conventions and instrument suitability also require careful configuration.
Key ideas
- The script uses Fibonacci-style support and resistance levels derived from daily price data.
- Reversal signals occur when price crosses a selected level intrabar and closes back on the other side.
- Stops are placed beyond the pivot, and targets use other pivot levels.
- Trade quantity scales with equity risk and the distance from entry to stop.
- Current-day pivot inputs with lookahead enabled may cause repainting or future-data bias.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.