Swing Structure Pullbacks with Risk-Based Position Sizing

Summary

This strategy identifies swing highs and lows with pivot calculations, then classifies direction using higher highs and higher lows or lower highs and lower lows. In an uptrend it looks for price to pull back near the latest higher low and close above it; in a downtrend it looks for a move near the latest lower high and a close below it. The script draws swing structure, entry zones, and stop levels to make the setup visible.

Position size is calculated from account equity, a configurable risk percentage, and the distance to a swing-based stop. The script also describes trailing stops that follow later swing points and exits when price takes out a recent swing extreme. The available document is incomplete, so details of the trailing-stop implementation and other exit behavior cannot be fully assessed. It reports no backtest results. Pivot confirmation requires bars after the candidate swing, and the stated swing, zone, and risk settings require instrument-specific interpretation; no evidence is given that they generalize across markets.

Key ideas

• Pivot highs and lows are used to identify swings and infer trend direction.
• Long entries seek pullbacks near higher lows, while short entries seek rallies near lower highs.
• Entry zones and stop levels are based on a configurable distance around the swing point.
• Position size scales with equity and the distance between entry and stop.
• The available source is incomplete and provides no performance evidence.

Tags

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