Trend-Pivot Scaling with ADX, EMA, and ATR Targets

Summary

This script combines a 200-period EMA, directional indicators, and ADX to define bullish and bearish trends. It looks for confirmed pivot lows in a bullish trend to add long positions, and pivot highs in a bearish trend to add shorts. Adds are allowed only when price is below the average entry price for longs or above it for shorts, so the strategy scales into losing positions. The cash allocation sequence for up to five entries is 10, 10, 20, 40, and 80 units on each side.

A take-profit limit is placed relative to the basket’s average price using ATR. Its distance starts at three ATR and contracts as the number of open trades rises, down to 1.2 ATR at four or more trades. The post includes no backtest settings, performance statistics, stop-loss rule, or evidence that the scaling approach is profitable. Pivot confirmation also requires bars after the pivot, so signals are delayed. The publication text recommends independent testing before live use, but does not specify markets or timeframes.

Key ideas

• Trend direction requires price relative to the 200-period EMA, DI alignment, and ADX above 25.
• Pivot lows and highs trigger possible entries in the matching trend direction.
• The strategy adds only when the existing position is losing, with a progressively larger cash allocation sequence.
• Basket take-profit distance is based on ATR and shrinks as open trade count increases.
• The document provides no performance results or defined stop-loss rule.

Tags

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