WJ Strategy B: Scored Oversold Signals with Delayed Entry

Summary

WJ Strategy B builds a composite score from three kinds of weakness: price below the lower Bollinger Band, price below progressively longer moving averages, and low RSI readings. When the score reaches at least 3, the strategy starts monitoring rather than buying immediately. It then waits for the score to fall below 3 and remain flat or decline for a configurable number of bars, while price is at or above a short entry moving average, before placing a long order. The listed defaults include a two-day confirmation period and a 10-period entry average, though the chart timeframe is not specified.

The visible script sets a fixed cash amount per entry and allows pyramiding, but the excerpt gives no performance report or instrument-specific backtest evidence. Its final-bar close-all instruction also means the shown script does not establish a conventional ongoing exit rule. Repeated entries, bar-timeframe dependence, and the absence of a clear protective stop are important limitations. The supplied material ends before fully explaining the strategy concept.

Key ideas

• The strategy scores oversold conditions using Bollinger Bands, moving averages, and RSI.
• A high score starts monitoring; an entry requires a later lower score and price above the entry average.
• The confirmation duration and indicator settings are configurable.
• The script permits repeated long entries but does not show a conventional ongoing exit plan.
• The excerpt includes no backtest results or evidence of performance.

Tags

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