Scored Oversold Entries with Stabilization and Trend-Filtered Accumulation

Summary

This hybrid accumulation strategy scores potential oversold conditions using three inputs: a close below the lower Bollinger Band, price below long moving averages, and tiered low RSI readings. Higher combined scores activate one of two monitoring modes. After the score stops increasing for a configurable number of bars, an entry also requires price to recover above a short moving average; if price is below the last purchase, it must hold above that average for two consecutive observations.

The deeper-score mode adds a position and records its price and time. The other mode is intended to add only after price exceeds the most recent deeper-mode entry and a two-week cooldown has passed. Entries use fixed cash sizing and can pyramid. The script’s calculation of scores and entry rules is provided, but the accompanying promotional claims are not supported by reported tests or performance data. The code closes all positions on the last bar for reporting purposes, so that behavior limits interpretation of strategy results. Mean-reversion entries can still face extended declines, and no explicit loss limit is shown.

Key ideas

• The strategy combines Bollinger Band, moving-average, and RSI conditions into a single oversold score.
• A score decline or stabilization period and recovery above a short moving average are used to time entries.
• A second entry mode requires a higher price than the last deeper-mode purchase and a two-week wait.
• Fixed-cash entries can pyramid, while the script shows no explicit protective loss exit.
• The document gives implementation rules but no measured evidence of profitability or risk-adjusted performance.

Tags

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