Volatility Surge Strategy by Shiroi-
By Shiroi-
Performance Metrics
- Author: Shiroi-
- Symbol: BINGX:BTCUSDT.P
- Timeframe: 5 minutes
- Win Rate: 32.4%
- Profit Factor: 0.413
Description
█ OVERVIEWVolatility Surge Strategy (VSS) is an original indicator inspired by the concept of the Williams VIX Fix — a method of measuring the depth of price decline from a recent high to replicate VIX-like behavior on any instrument.This script is a fully independent implementation built from scratch. The core calculation concept (drop depth from highest close) is a publicly known mathematical formula with no copyright. All Pine Script code is original.█ HOW IT WORKS• Volatility Index (VI): Measures how far the current low has dropped from the highest close over a lookback period, expressed as a percentage.• BB Filter: Applies a Bollinger Band to the VI. When VI exceeds the upper band, a volatility spike is detected.• Switch Signal: Triggers an entry when the candle direction flips (bearish → bullish or vice versa) while a spike is still active — catching the moment momentum begins to shift.█ ENTRY LOGIC• Bullish Switch: Spike active on two consecutive bars + previous bar bearish + current bar bullish → Long entry• Bearish Switch: Spike active on two consecutive bars + previous bar bullish + current bar bearish → Short entry• All entries fire only on confirmed bars (barstate.isconfirmed)█ RISK MANAGEMENT• Stop Loss: ATR × SL Multiplier below/above entry close• Take Profit: SL distance × Risk/Reward Ratio• Fixed lot size (1 unit default)• Commission: 0.05% per side | Slippage: 2 ticks█ SETTINGSVolatility Index• Lookback Period (default 22) — reference window for highest close; increase to reduce sensitivityBB Filter• BB Period (default 20) — smoothing window for VI• BB Multiplier (default 2.0) — spike detection threshold; increase to require stronger movesRisk Management• ATR Period (default 14)• SL ATR Multiplier (default 1.5)• Risk/Reward Ratio (default 1.5)█ ALERTS• High Volatility — VI crosses above the upper band (either candle direction)• Bullish Switch — spike active, candle flips bearish → bullish• Bearish Switch — spike active, candle flips bullish → bearishSet alerts to "Once Per Bar Close" for best accuracy.█ NOTES• This indicator works best as a filter or confirmation tool combined with trend direction, key levels, or divergence signals.• Short timeframes tend to produce noise; higher timeframes (daily and above) show more stable results in testing.• Past performance does not guarantee future results.