Long Entries After a Heikin-Ashi Color Reversal

Summary

This long-only strategy looks for a reversal pattern in Heikin-Ashi candles: a configurable run of green candles must follow a red candle. The validation period defaults to three green candles, and the script obtains Heikin-Ashi open and close values on the chart timeframe. Once the pattern appears, it submits a long entry subject to a maximum position-size setting. Inputs also define quantity and percentage-based profit and stop levels.

The strategy attempts to manage open positions with a profit limit, a stop, and a trailing component, and sends alert messages on entry and exit. The document cautions that results depend on timeframe and that historical simulations assume favorable execution and liquidity. The code offers no backtest results. Its trailing-stop input is not used in the shown calculation, so the trailing behavior should be inspected before treating it as an active risk control; simulated results also need realistic costs and fill assumptions.

Key ideas

• The entry pattern requires consecutive green Heikin-Ashi candles after a red candle.
• The validation length, order quantity, position cap, and percentage exits are configurable.
• The strategy permits long entries only and can issue alerts for entries and exits.
• The trailing-stop input is not used in the displayed trail calculation.
• The document provides cautions about backtesting but no strategy performance evidence.

Tags

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