Moving Average Band Reversal and Trend Strategy with Scale-Ins

Summary

The excerpt describes an unfinished Pine Script strategy with two execution modes: reversal and trend following. Users can choose long, short, or both directions, select an SMA, EMA, HMA, or VWAP center line, and set the band calculation to ATR, standard deviation, or VWAP standard deviation. An initial distance threshold controls when a first entry is considered, and a bar-count setting can require price to remain beyond that threshold.

Risk and trade management inputs include adding positions at further ATR-based intervals, optionally waiting for a Heikin Ashi reversal before scaling in, and setting profit relative to average entry and an emergency stop relative to the initial entry. The excerpt also lists break-even trailing, a maximum dollar loss, base quantity, and a martingale-style scale-in option. Since the source ends before these mechanisms and signal rules are implemented, their precise behavior cannot be confirmed. It provides no backtest results, so it offers a configurable design outline rather than evidence of profitability.

Key ideas

• The strategy offers reversal and trend-following modes with selectable trade direction.
• Its band can use ATR, standard deviation, or VWAP standard deviation around a chosen average.
• The visible inputs allow threshold-based entries and additional entries as price moves against a position.
• Risk controls include profit targets, emergency stops, break-even trailing, and a maximum loss setting.
• The excerpt is incomplete and provides no backtest evidence.

Tags

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