Trend Pulse OBV — Strategy by ADXAE
By ADXAE
Performance Metrics
- Author: ADXAE
- Symbol: NASDAQ:AAPL
- Timeframe: 1 day
- Win Rate: 50.0%
- Profit Factor: 4.779
Description
Trend Pulse OBV StrategyTrend Pulse OBV is an educational long-only strategy designed to study trend-channel breakouts that are confirmed by volume flow and a higher-level regime filter.The strategy combines three main ideas:1. A Trend Pulse Channel breakout.2. OBV confirmation using On-Balance Volume relative to its EMA.3. A regime filter using price relative to an EMA.The purpose of the script is to test whether upside breakouts above an adaptive channel are more selective when confirmed by both volume accumulation and broader trend direction.This is a strategy script for research, backtesting, and forward-testing only. It is not financial advice, does not predict future price movement, and does not guarantee profitable results. Historical strategy results are hypothetical and can differ significantly from live trading because of slippage, commissions, liquidity, spread, execution quality, timeframe selection, and market regime changes.Core conceptThe strategy is built around a Trend Pulse Channel. The channel uses a smoothed filter based on the selected source price and a filtered true-range calculation to create an upper breakout band.A long entry can occur when price crosses above the Trend Pulse Channel upper band, but only if the selected confirmation filters are satisfied.The strategy does not open short positions.Entry logicA long entry occurs when all selected conditions are satisfied:* Price crosses above the Trend Pulse Channel upper band.* Price is within the selected date range.* The regime filter is satisfied, if enabled.* The OBV confirmation filter is satisfied, if enabled.* No long position is already open.The strategy is designed to avoid entering every channel breakout. Instead, it requires confirmation that price is breaking out while broader trend and volume conditions support the move.Trend Pulse ChannelThe Trend Pulse Channel is calculated from:* A selected source price, default HLC3.* A multi-pole smoothing filter.* A filtered true-range stream.* A range multiplier used to define the upper band.The upper channel band is used as the breakout trigger.The midline is used as a possible exit reference when the midline exit is enabled.OBV confirmation filterThe OBV filter compares On-Balance Volume to an EMA of OBV.When the filter is enabled, long entries are allowed only when OBV is above its EMA. This is intended to require evidence that volume flow supports the upside breakout.This does not guarantee continuation. It only adds a volume-based confirmation condition to the channel breakout.Regime filterThe regime filter compares price to a selected EMA.When enabled, long entries require price to be above the regime EMA. This is intended to reduce long entries during weaker or downward market environments.The regime EMA can also be used as an exit condition if the regime exit is enabled.Lag ModeLag Mode applies a zero-lag style pre-transform to both the price source and the true-range stream before they are filtered.This can make the Trend Pulse Channel respond faster to new price movement, but it can also increase sensitivity and may create more false signals in choppy markets.Exit logicThe strategy has multiple exit mechanisms:1. ATR stopAt entry, the script calculates a fixed stop price using the previous bar’s ATR multiplied by the selected ATR stop multiplier. This stop remains fixed after entry.2. Midline exitWhen enabled, the strategy exits if price closes below the Trend Pulse Channel midline.3. Regime EMA exitWhen enabled, the strategy exits if price closes below the regime EMA.The first active exit condition to trigger can close the position.Risk and position sizingThe default strategy uses percent-of-equity position sizing.Users should review the default order size carefully before publishing or relying on backtest results. A large percent-of-equity allocation can make historical results look stronger or weaker than they would under more conservative risk assumptions.For public publication, users should use realistic position sizing, commission, and slippage assumptions that match the market being tested.Default strategy propertiesThe script uses the following strategy properties:* Initial capital: 1,000* Position sizing: percent of equity* Default order size: 70% of equity* Commission: 0.1%* Slippage: defined in the strategy settings* Pyramiding: 1* Fill orders on standard OHLC: enabled* Calculate on every tick: disabled* Calculate on order fills: disabled* Bar magnifier: disabled* Process orders on close: disabled* Long-only executionThese values are provided for testing and can be changed by the user. They should not be interpreted as recommended risk settings.Important backtesting noteTradingView strategy results are simulations based on historical chart data. They are not live trading results.Backtest results can change significantly depending on:* Symbol.* Timeframe.* Date range.* Liquidity.* Spread.* Commission.* Slippage.* Position size.* Trend Pulse period.* Number of poles.* Range multiplier.* Lag Mode setting.* OBV EMA length.* Regime EMA length.* ATR length.* ATR stop multiplier.* Exit settings.* Market regime.Users should test the strategy on a sufficiently large number of trades and across different market conditions before drawing conclusions. A small sample of trades is not enough to evaluate a strategy reliably.How to use itA practical workflow is:1. Select the symbol and timeframe to test.2. Use a realistic date range that includes different market regimes.3. Confirm that the strategy produces a sufficient number of trades.4. Adjust commission and slippage to reflect the market being tested.5. Review whether the percent-of-equity order size is suitable.6. Compare results with the OBV filter on and off.7. Compare results with the regime filter on and off.8. Compare exits using the midline exit, regime exit, and ATR stop behavior.9. Forward-test before considering any real-world use.InputsDate Range* Start Date: first date included in the backtest.* End Date: last date included in the backtest.Trend Pulse Channel* Source: price source used in the channel calculation.* Poles: smoothing pole count used by the filter.* Period: main channel smoothing period.* Range Multiplier: controls the distance of the upper channel band.* Lag Mode: applies the zero-lag pre-transform before filtering.OBV Confirmation Filter* Require OBV > EMA(OBV, N): enables or disables OBV confirmation.* OBV EMA Length: EMA length applied to OBV.Regime Filter* Require close > regime EMA: enables or disables the regime filter.* Regime EMA Length: EMA length used for the regime filter.Exit Logic* Exit on close < TPC midline: exits when price closes below the channel midline.* Exit on close < regime EMA: exits when price closes below the regime EMA.Risk — ATR Stop* ATR Length: ATR period used for stop calculation.* ATR Stop Multiplier: ATR multiplier used to set the fixed stop distance at entry.Visual elementsThe strategy plots:* Trend Pulse Channel upper band.* Trend Pulse Channel midline.* Regime EMA.* Long entry markers.* Long exit markers.LimitationsThis strategy is long-only and does not evaluate short trades.The strategy can underperform during sideways, choppy, low-volume, or news-driven conditions.OBV confirmation can reduce some weak breakouts, but it cannot eliminate false breakouts.The regime EMA is a lagging trend filter and may delay entries or exits.The ATR stop is fixed at entry and may not adapt to changing volatility after the trade opens.A breakout above the channel does not guarantee trend continuation.No backtest can guarantee future performance.Recommended useTrend Pulse OBV is used as an educational framework for studying channel breakout behavior with volume-flow confirmation and regime filtering.It should be used with realistic backtesting assumptions, conservative position sizing, and independent validation before any trading decision.