LVN Rejection / Acceptance Strategy by AIScripts
By AIScripts
Performance Metrics
- Author: AIScripts
- Symbol: NASDAQ:NVDA
- Timeframe: 5 minutes
- Net P&L: +410.97 USD (+0.41%)
- Win Rate: 35.4%
- Profit Factor: 1.032
- Max Drawdown: 927.23 USD (0.92%)
- Total Trades: 780
Description
This strategy uses a simplified proxy for low-volume node behavior by combining a rolling mean, volatility bands, and relative volume filtering.It does not use a true volume profile. Instead, it approximates low-participation zones through statistical structure and volume contraction.The goal is to observe how price behaves when interacting with these dynamic low-activity regions.Zone ConstructionThe reference level is calculated using a simple moving average over a configurable length.A dynamic band is then created using ATR:Upper boundary = SMA + ATR × multiplierLower boundary = SMA − ATR × multiplierThis produces a volatility-adjusted range that expands and contracts with market conditions.Volume FilterA relative volume condition is applied:current volume is compared against its rolling averagelower-than-average activity is treated as reduced participationThis filter is used to reduce signals during high activity spikes.Trade LogicRejection conditionPrice briefly trades beyond a band boundaryCloses back inside the zoneOccurs under reduced volume conditionsThis behavior is treated as failure to accept value outside the range.Acceptance conditionPrice closes beyond the band boundaryHolds beyond that level on subsequent price actionThis is treated as acceptance and directional continuation.Risk ModelStop-loss distance is based on ATR multiplesTake-profit uses a fixed risk-to-reward ratioPosition sizing is fixed percentage of equity per tradeCommission and slippage are not included in this model and should be considered when evaluating performance.Testing NotesThis system is sensitive to:symbol volatilitytimeframe selectionparameter tuningIt should be evaluated over a sufficiently large sample of trades to reduce randomness in interpretation.Results are not intended to represent guaranteed outcomes and will vary across market conditions.VisualizationThe script plots:central moving averagedynamic upper and lower volatility bandsThese are used to visually track price interaction with the defined zone structure.