Session-Filtered Shooting Star Short Strategy with Risk Controls
Summary
This automated strategy looks for bearish shooting-star candles during a configurable weekday session. A signal requires the bar to make a higher high than the prior bar and close, along with its open, in the lower portion of its range. Optional filters require an overbought RSI, a bullish prior candle, or a high over a chosen lookback period. The default configuration enables the RSI filter and limits signals to one trade per session.
On a confirmed signal, the script enters short, places a stop above the signal bar, and sets a target using a configurable risk-to-reward multiple. Position size is calculated from strategy equity and a user-set risk percentage. The script also sends alerts for external execution and displays a basic performance table. It flags trades where a bar touches both stop and target, since the assumed exit order may be uncertain. The document supplies implementation details but no independent performance results; backtest outcomes depend on instrument, timeframe, execution assumptions, and selected settings.
Key ideas
- The setup shorts a shooting-star-like candle after price makes a higher high than the prior bar.
- A short signal can be gated by session, weekday, RSI, prior-bar direction, and recent-high filters.
- The stop is placed above the signal bar, and the target distance is set by a risk-to-reward input.
- Position size is based on a chosen fraction of strategy equity at risk per trade.
- Bars that reach both exit levels are flagged because their simulated outcome may be ambiguous.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.