Regime-Gated Trading with Six-Pillar Signal Scoring
Summary
This strategy first classifies conditions using ADX and the ratio of current ATR to its longer average. It permits directional trading in trend regimes, distinguishing bullish and bearish states by price relative to an EMA. Directional filters combine price versus VWMA, a fast and slow HMA ribbon, and an optional higher-timeframe EMA. Entries then use a weighted score from market structure, OBV slope, momentum readings, liquidity, volatility, and fractal efficiency, subject to configurable score and direction-gap thresholds.
Stops adapt to volatility, while exits use two risk-reward targets and a maximum holding period. The script includes configurable fees, slippage, and equity-based sizing, plus a dashboard for strategy statistics. These settings describe a backtest framework, not evidence of profitability: the excerpt supplies no instrument, test period, or reported results. The many adjustable thresholds and weighted components also make out-of-sample validation important.
Key ideas
- ADX and ATR relative to their average classify trend and volatility regimes.
- Trend direction is filtered with VWMA, an HMA ribbon, and an optional higher-timeframe EMA.
- Six weighted signal pillars contribute to separate bullish and bearish confluence scores.
- Volatility conditions determine stop distance, while risk-reward targets and a time limit govern exits.
- The code exposes backtest costs and performance statistics but provides no performance results in the supplied text.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.