S4_IBS_Mean_Rev_3candleExit — Strategy by Trading_Alpha01
By Trading_Alpha01
Performance Metrics
- Author: Trading_Alpha01
- Symbol: NASDAQ:NVDA
- Timeframe: 1 day
- Net P&L: +4,483.15 USD (+44.83%)
- Win Rate: 84.2%
- Profit Factor: 3.448
- Max Drawdown: 2,194.58 USD (15.58%)
- Total Trades: 19
- Sharpe Ratio: 0.797
Description
Overview:This is a rules-based, mean reversion strategy designed to trade pullbacks using the Internal Bar Strength (IBS) indicator. The system looks for oversold conditions based on IBS, then enters long trades, holding for a maximum of 3 bars or until the trade becomes profitable.The strategy includes:✅ Strict entry rules based on IBS✅ Hardcoded exit conditions for risk management✅ A clean visual table summarizing key performance metricsHow It Works:1. Internal Bar Strength (IBS) Setup:The IBS is calculated using the previous bar’s price range:IBS = (Previous Close - Previous Low) / (Previous High - Previous Low)IBS values closer to 0 indicate price is near the bottom of the previous range, suggesting oversold conditions.2. Entry Conditions:IBS must be ≤ 0.25, signaling an oversold setup.Trade entries are only allowed within a user-defined backtest window (default: 2024).Only one trade at a time is permitted (long-only strategy).3. Exit Conditions:If the price closes higher than the entry price, the trade exits with a profit.If the trade has been open for 3 bars without showing profit, the trade is forcefully exited.All trades are closed automatically at the end of the backtest window if still open.Additional Features:📊 A real-time performance metrics table is displayed on the chart, showing:- Total trades- % of profitable trades- Total P&L- Profit Factor- Max Drawdown- Best/Worst trade performance📈 Visual markers indicate trade entries (green triangle) and exits (red triangle) for easy chart interpretation.Who Is This For?This strategy is designed for:✅ Traders exploring systematic mean reversion approaches✅ Those who prefer strict, rules-based setups with no subjective decision-making✅ Traders who want built-in performance tracking directly on the chartNote: This strategy is provided for educational and research purposes. It is a backtested model and past performance does not guarantee future results. Users should paper trade and validate performance before considering real capital.