Market Structure Pullbacks with ADX Filtering and Scaled Exits

Summary

This strategy tracks external swing highs and lows to set a directional bias, then uses shorter internal pivots to identify pullback anchors. In an uptrend, it defines a retracement zone from the latest external high toward an internal low; in a downtrend, it measures a corresponding zone from the latest external low to an internal high. Entries are allowed when price enters that zone and ADX exceeds a configurable threshold.

Stops are placed beyond the internal pivot with an ATR buffer. Each position is split into two exit portions, with separate profit targets expressed as multiples of the initial risk. The script allows pyramiding and describes itself as aggressive, but supplies no backtest results, asset or timeframe context, or execution analysis. Pivot confirmation introduces delay, while repeated entries, broad pullback zones, and loose filtering may increase exposure and losses; the parameters need careful testing with realistic costs.

Key ideas

• External pivot breaks set the strategy's persistent bullish or bearish bias.
• Internal pivots define pullback anchors and a retracement zone for potential entries.
• An ADX threshold filters entries, while an ATR buffer places stops beyond the pivot.
• Exits divide a position between two risk-multiple targets.
• Pyramiding and loose entry conditions can increase exposure, and the document gives no performance evidence.

Tags

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