Long Trend Entries with BBWP Expansion and Stochastic RSI

Summary

This script describes a long-only trading strategy combining volatility expansion, trend alignment, and momentum timing. It calculates Bollinger Band Width Percentile (BBWP) from a selectable moving-average basis and compares current width with a rolling history. An entry requires BBWP to clear a configurable threshold and rise over consecutive bars, the fast EMA to exceed the slow EMA, and Stochastic RSI to cross upward. The entry code uses Stochastic RSI, although comments and order labels refer to MACD; the MACD calculations are commented out.

The strategy exits when BBWP reaches a high percentile and Stochastic RSI crosses down, or when price hits a trailing stop based on recent swing lows. The stop can only move upward while a long position is open. The script includes chart markers and sets commission and slippage assumptions, but the provided document gives no performance results or market-specific validation. Its adjustable settings and stated 4-hour design context do not establish that the approach generalizes across assets or timeframes.

Key ideas

• Entries require rising BBWP above a threshold, fast EMA above slow EMA, and an upward Stochastic RSI cross.
• The strategy calculates BBWP as a percentile rank of recent Bollinger Band Width values.
• Exit signals combine an elevated BBWP reading with a downward Stochastic RSI cross.
• A swing-low stop trails upward and is submitted as a protective exit while a long position is open.
• MACD is mentioned in comments, but its calculations are disabled and Stochastic RSI supplies the momentum signals.

Tags

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