Pivot Reversal Supply and Demand Strategy with Daily Risk Limits

Summary

This Pine Script strategy looks for reversals near supply and demand zones derived from the latest confirmed pivot highs and lows. It combines the pivot condition with a bullish or bearish candle, an RSI threshold, and a volume check against a moving average. Entries are restricted to a New York trading session, with controls for the number of trades per day and a daily equity drawdown cap. The script description also identifies staged take profit levels and end of day position closure as intended features.

The excerpt supplies parameter defaults and entry logic, but stops at the start of the execution section, so the exit and position management details cannot be assessed here. It presents no backtest results or evidence that the filters improve performance. Pivot confirmation requires later bars, and the chosen thresholds, session settings, costs, and instrument may materially affect results; the strategy should be evaluated with realistic execution assumptions.

Key ideas

• The strategy defines supply and demand areas around the latest confirmed pivot points, using an ATR based width.
• Long and short setups combine zone interaction with candle direction, RSI thresholds, and a volume filter.
• Session timing, a daily trade limit, and a daily drawdown cap restrict when new positions may be opened.
• The excerpt mentions staged profit targets and end of day closure, but omits the execution logic needed to evaluate them.
• No performance results are included, so the proposed filters require independent testing.

Tags

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