Support and Resistance Signals with Sentiment and Risk-Based Sizing

Summary

The described framework combines predefined support and resistance levels, bullish and bearish sentiment thresholds, and a candlestick feedback condition to trigger long or short entries. It also presents a risk-reward target and position sizing based on account equity and a chosen per-trade risk percentage. The intended design includes take-profit and stop-loss exits, with chart plots for the levels and signals. Published parameters include example levels, sentiment thresholds, a reward-risk setting, and a risk percentage; backtest settings specify BTC/USDT futures.

The document offers no backtest performance results, so it provides a strategy outline rather than evidence of effectiveness. Its limitations include the subjective choice of fixed levels, potentially unreliable sentiment readings, and noisy candle signals. The supplied code also does not implement the described equity-based position sizing: the risk amount is calculated but unused. Its exit calls do not clearly apply the separately calculated stop prices as intended. Those gaps make implementation review and careful validation essential before interpreting the stated risk controls as operational.

Key ideas

• Entries combine fixed support or resistance levels with sentiment thresholds and a feedback condition.
• The framework describes sizing trades from equity and a per-trade risk allowance.
• Take-profit targets are presented in relation to a configurable reward-risk ratio.
• The code calculates a risk amount but does not use it to size positions.
• Fixed levels and uncertain sentiment or candle signals can produce unreliable entries.

Tags

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