VSA with Absorption Proxy for Holmes and Bookmap Style — Strategy by uzair2join
By uzair2join
Performance Metrics
- Author: uzair2join
- Symbol: OANDA:XAUUSD
- Timeframe: 15 minutes
- Net P&L: +1,037.56 USD (+0.10%)
- Win Rate: 40.4%
- Profit Factor: 1.111
- Max Drawdown: 654.15 USD (0.07%)
- Total Trades: 1,661
Description
VSA + Absorption Proxy – Holmes / Bookmap Style (No Delta Data Required)This open-source strategy is a simplified, VSA (Volume Spread Analysis) inspired scalper that approximates **absorption** and **rejection** patterns commonly observed in professional order-flow tools (Bookmap, Holmes, Jigsaw, etc.) — using only standard OHLCV data.Core Concept & Why This Proxy?In VSA and order-flow trading, **absorption** occurs when aggressive selling is met with strong buying support (high volume + wide spread + reversal up), often signaling exhaustion of sellers and potential reversal/continuation up. **Rejection** is the mirror: aggressive buying met with strong selling (high volume + wide spread + reversal down).Because true bid/ask delta is not available in standard Pine Script, this script uses a directional volume proxy:- delta ≈ volume × (close - open) / (high - low)- Combined with wide spread (vs ATR) + high volume (vs SMA) + delta flipThis creates a reasonable proxy for spotting climactic volume bars where one side gets absorbed/rejected.Entry & Exit LogicLong (Absorption Bull):- High volume bar (volume > SMA(volume,20) × multiplier)- Wide spread (range > ATR(14) × multiplier)- Bullish candle (close > open)- Delta turns positive after being negative previous barShort (Rejection Bear): mirror logic (bearish candle + delta turns negative)Risk Management (fixed %):- Stop Loss: entry low/high adjusted by riskPct (default 1%)- Take Profit: risk × rrTarget (default 3.5:1)Visuals- Green background + triangle below bar → Absorption Bull signal- Red background + triangle above bar → Rejection Bear signalImportant Realism & Backtesting GuidelinesTo avoid misleading results, publish/test with:- Initial Capital: $10,000 – $50,000 (realistic retail/futures account)- Position sizing: 1–3% equity per trade (adjust via strategy properties)- Commission: $4–$10 round-turn per contract (futures) or 0.03–0.05% (forex/stocks)- Slippage: 1–4 ticks (futures) or 0.5–2 pips (forex) — higher during news- Dataset: ≥12–36 months on chosen timeframe (aim for 400–1000+ trades)- Risk per trade: 0.5–2% max — never exceed sustainable levelsExpectations:- Works best on high-volume instruments (NQ, ES, GC, BTC, major forex) during active sessions- Fewer signals in low-volatility/choppy periods- Drawdowns common during strong trends — this is a counter-trend / absorption catcher, not trend-following- News events (FOMC, NFP, earnings) can cause false signals — avoid or widen stopsHow to Use1. Apply to high-liquidity symbols (NQ1!, ES1!, GC1!, BTCUSD, EURUSD, XAUUSD)2. Timeframes: 3m–15m for scalping, 30m–1h for swing context3. Trade during high-volume sessions (London/NY overlap for forex, US open for futures)4. Look for confluence: - Absorption + nearby support / demand zone → stronger long - Rejection + nearby resistance / supply zone → stronger short5. Forward-test on demo extensively — absorption setups are high-conviction but low-frequency6. Always use proper position sizing — never risk more than 1–2% per tradePublish Recommendation- Use a clean chart: only this strategy, no extra indicators/drawings- Show realistic Strategy Tester results with commission/slippage applied- Screenshot during active session with visible absorption/rejection signal + background tintEducational tool — open-source for learning VSA/order-flow concepts. This is a proxy approximation — not true delta/order-flow. Trading involves substantial risk of loss. Test thoroughly and trade responsibly.Feedback welcome — especially parameter tuning ideas for different instruments!