EMA + BB Pullback Strategy (Long & Short) by ShashankV24

By ShashankV24

Performance Metrics

Description

Title: Trend-Aligned Bollinger Pullback Strategy [v1.0]Description:This is a comprehensive, fully customizable trend-pullback strategy built in Pine Script v6.0. It is designed to capture mean-reversion opportunities within an established trend. Instead of trading breakouts, this strategy waits for momentum to establish itself, and then targets temporary price extremes (pullbacks) to secure optimal entries.It combines the momentum-tracking power of Dual EMAs with the volatility bands of Bollinger Bands, bundled with a robust suite of risk management and filtering options.Core Strategy LogicThis strategy operates on the principle of buying the dip in an uptrend, and selling the rip in a downtrend.1. Trend Alignment (EMAs)The baseline momentum is determined by a fast and slow Exponential Moving Average.Bullish Momentum: Fast EMA (14) is above the Slow EMA (34).Bearish Momentum: Fast EMA (14) is below the Slow EMA (34).2. The Pullback Entry (Bollinger Bands)Once the trend is established, the strategy waits for price to overextend against the trend.Long Entry: The candle's Low must pierce the Lower Bollinger Band, signaling an oversold dip in an uptrend.Short Entry: The candle's High must pierce the Upper Bollinger Band, signaling an overbought spike in a downtrend.3. Dynamic & Fixed ExitsThe strategy features an advanced Take Profit engine. Because pullbacks can be volatile, you can customize how the strategy secures profits:Fixed Stop Loss: Hardcoded at 3% (fully adjustable) to protect against trend reversals.Take Profit Method: Choose between three distinct exit models directly from the settings:Middle Band Only: Exits dynamically when price mean-reverts back to the Bollinger Band basis (20 SMA).Fixed % Only: Exits purely on a mathematical target (default 5%).Whichever Occurs First: The script automatically calculates both the fixed percentage and the dynamic Middle Band price, placing a limit order at whichever is closest to the entry price to secure profits as quickly as possible.Fully Customizable FeaturesEvery aspect of this script is modifiable via the TradingView settings menu, allowing you to adapt it to different timeframes and asset classes:Directional Toggles: Choose to trade Long only, Short only, or Both.Confirmation Candle Filter: When enabled, the strategy won't just blindly buy a dip. It will wait for the current candle to close green (for longs) or red (for shorts) before executing, confirming that buyers/sellers are stepping back in.Master Trend Filter (200 EMA): A built-in macro filter. When enabled, Longs will only execute if price is above the 200 EMA, and Shorts will only execute if price is below the 200 EMA.Custom Parameters: Adjust EMA lengths, Bollinger Band lengths and standard deviations, and all Risk Management percentages to fit your backtesting needs.++++++++++++++++++++++++++++++++++++++++++++++⚠️ RISK WARNING & LEGAL DISCLAIMER ⚠️DO NOT blindly deploy this strategy with real capital.This Pine Script is provided for educational and backtesting purposes only and does not constitute financial, investment, or trading advice.Backtesting is not reality: Historical performance does not guarantee future results. Backtests do not perfectly account for live market variables such as slippage, spread widening, liquidity issues, and exchange fees, all of which can turn a profitable backtest into a losing live strategy.Automated Risk: Algorithmic trading carries a high level of risk. Market conditions change continuously, and a strategy that performs well in a ranging market may suffer severe drawdowns in a trending or highly volatile market.Your Responsibility: You are solely responsible for your own trades, your money, and your risk management. The author assumes absolutely no liability for any financial losses incurred from using this script.Best Practice: Always thoroughly forward-test any new script on a Paper Trading / Demo account for an extended period across multiple market conditions before ever considering risking real money. Use this tool as a baseline to study mechanics and build your own robust trading system.++++++++++++++++++++++++++++++++++++++++++++++

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