Mean Reversion Pro Strategy [tradeviZion] by TradeVizion

By TradeVizion

Performance Metrics

Description

Mean Reversion Pro Strategy [tradeviZion]: User GuideA mean reversion trading strategy for daily timeframe trading.IntroductionMean Reversion Pro Strategy [tradeviZion] is a technical trading system that operates on the daily timeframe. The strategy uses a dual Simple Moving Average (SMA) system combined with price range analysis to identify potential trading opportunities. It can be used on major indices and other markets with sufficient liquidity.The strategy includes:Trading SystemFast SMA for entry/exit points (5, 10, 15, 20 periods)Slow SMA for trend reference (100, 200 periods)Price range analysis (20% threshold)Position management rulesVisual ElementsGradient color indicatorsThree themes (Dark/Light/Custom)ATR-based visualsSignal zonesStatus TableCurrent position informationBasic performance metricsStrategy parametersOptional messages📊 Strategy SettingsMain SettingsTrading ModeOptions: Long Only, Short Only, BothDefault: Long OnlyPosition Size: 10% of equityStarting Capital: $20,000Moving AveragesFast SMA: 5, 10, 15, or 20 periodsSlow SMA: 100 or 200 periodsDefault: Fast=5, Slow=100🎯 Entry and Exit RulesLong Entry ConditionsAll conditions must be met:Price below Fast SMAPrice below 20% of current bar's rangePrice above Slow SMANo existing positionShort Entry ConditionsAll conditions must be met:Price above Fast SMAPrice above 80% of current bar's rangePrice below Slow SMANo existing positionExit RulesLong PositionsExit when price crosses above Fast SMANo fixed take-profit levelsNo stop-loss (mean reversion approach)Short PositionsExit when price crosses below Fast SMANo fixed take-profit levelsNo stop-loss (mean reversion approach)💼 Risk ManagementPosition SizingDefault: 10% of equity per tradeInitial capital: $20,000Commission: 0.01%Slippage: 2 pointsMaximum one position at a timeRisk ControlUse daily timeframe onlyAvoid trading during major news eventsConsider market conditionsMonitor overall exposure📊 Performance DashboardThe strategy includes a comprehensive status table displaying:Strategy ParametersCurrent SMA settingsTrading directionFast/Slow SMA ratioCurrent StatusActive position (Flat/Long/Short)Current price with color codingPosition status indicatorsPerformance MetricsNet Profit (USD and %)Win Rate with color gradingProfit Factor with thresholdsMaximum Drawdown percentageAverage Trade value📱 Alert SettingsEntry AlertsLong Entry (Buy Signal)Short Entry (Sell Signal)Exit AlertsLong Exit (Take Profit)Short Exit (Take Profit)Alert Message FormatStrategy nameSignal type and directionCurrent priceFast SMA valueSlow SMA value💡 Usage TipsConsider starting with Long Only modeBegin with default settingsKeep track of your tradesReview results regularlyAdjust settings as neededFollow your trading plan⚠️ DisclaimerThis strategy is for educational and informational purposes only. It is not financial advice. Always:Conduct your own researchTest thoroughly before live tradingUse proper risk managementConsider your trading goalsMonitor market conditionsNever risk more than you can afford to lose📋 Release Notes14 January 2025Added New Fast & Slow SMA Options:Fibonacci-based periods: 8, 13, 21, 144, 233, 377Additional period: 50Complete Fast SMA options now: 5, 8, 10, 13, 15, 20, 21, 34, 50Complete Slow SMA options now: 100, 144, 200, 233, 377Bug Fixes:Fixed Maximum Drawdown calculation in the performance tableNow using strategy.max_drawdown_percent for accurate DD reportingPrevious version showed incorrect DD valuesPerformance metrics now accurately reflect trading resultsPerformance Note:Strategy tested with Fast/Slow SMA 13/377Test conducted with 10% equity risk allocationDaily TimeframeFor Beginners - How to Modify SMA Levels:Find this line in the code: Pine Script®fastLength = input.int(title="Fast SMA Length", defval=5, options=[5, 8, 10, 13, 15, 20, 21, 34, 50])To add a new Fast SMA period: Add the number to the options list, e.g., Pine Script®[5, 8, 10, 13, 15, 20, 21, 34, 50, 89]To remove a Fast SMA period: Remove the number from the options listFor Slow SMA, find: Pine Script®slowLength = input.int(title="Slow SMA Length", defval=100, options=[100, 144, 200, 233, 377])Modify the options list the same way⚠️ Note: Keep the periods that make sense for your trading timeframe💡 Tip: Test any new combinations thoroughly before live trading"Trade with Discipline, Manage Risk, Stay Consistent" - tradeviZion

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