Daily Bias on 5 minutes Reversal Strategy

16 Haz

This strategy combines higher-timeframe bias (daily and 1-hour) with 5-minute reversal signals to identify intraday trades. It aims to capitalize on false breakouts of the previous day's high/low, with strict risk management (Strict position sizing, max risk cap, and R:R enforcement), Avoids Over-Trading (1 trade/day rule prevents chasing), SL buffer adapts to volatility.

#1. This strategy does not utilize indicators. We will use the daily (D) price range and look for breakout attempts and rejections at the extreme points on the lower time frame (1h). If rejection occurs, it establishes our bias (bullish or bearish). For final confirmation, we move to the 5-minute timeframe to observe attempts to retest that daily price range. If significant rejection occurs again, that becomes our entry point.

#2. When rejection occurs, the 1-hour candle may form a new extreme point (low/high). Therefore, we will no longer use the daily price range as our trade exit point but instead the new extreme level established after the breakout attempt and price rejection.

To prevent premature trade exits, we also add an SL buffer using ATR while still capping the maximum acceptable risk per trade (as a percentage). Take profit is calculated using a risk-to-reward ratio, with a default setting of 1.5x.

#3. Key Input Parameters

a. Timeframes :
1. Daily TF ((Anchor for daily high/low (default: D).)
2. 1H Bias TF (Bias confirmation timeframe (default: 60))
3. Execution TF (Entry signal timeframe (default: 5, should match chart).

b. Trade Management
1. SL Buffer ATR Multiplier (Buffer beyond swing low/high (default: 6.0))
2. Min ATR Threshold (Minimum buffer size (default: 1.0))
3. Risk Reward Ratio (TP distance multiplier (default: 1.5))
4. Max Risk Allowed (Max risk % of entry (default: 3.0%))
Lookback Bars for SL Bars for swing low/high (default: 60))

c. Break Thresholds
1. 1H Candle Break Threshold (ATR multiplier for 1H break (default: 0.75))
2. 5M Candle Break Threshold (ATR multiplier for 5M break (default: 0.5))

17 Haz

Sürüm Notları

This strategy combines higher-timeframe bias (daily and 1-hour) with 5-minute reversal signals to identify intraday trades. It aims to capitalize on false breakouts of the previous day's high/low, with strict risk management (Strict position sizing, max risk cap, and R:R enforcement), Avoids Over-Trading (1 trade/day rule prevents chasing), SL buffer adapts to volatility.

#1. This strategy does not utilize indicators. We will use the daily (D) price range and look for breakout attempts and rejections at the extreme points on the lower time frame (1h). If rejection occurs, it establishes our bias (bullish or bearish). For final confirmation, we move to the 5-minute timeframe to observe attempts to retest that daily price range. If significant rejection occurs again, that becomes our entry point.

#2. When rejection occurs, the 1-hour candle may form a new extreme point (low/high). Therefore, we will no longer use the daily price range as our trade exit point but instead the new extreme level established after the breakout attempt and price rejection.

To prevent premature trade exits, we also add an SL buffer using ATR while still capping the maximum acceptable risk per trade (as a percentage). Take profit is calculated using a risk-to-reward ratio, with a default setting of 1.5x.

#3. Key Input Parameters

a. Timeframes :
1. Daily TF ((Anchor for daily high/low (default: D).)
2. 1H Bias TF (Bias confirmation timeframe (default: 60))
3. Execution TF (Entry signal timeframe (default: 5, should match chart).

b. Trade Management
1. SL Buffer ATR Multiplier (Buffer beyond swing low/high (default: 6.0))
2. Min ATR Threshold (Minimum buffer size (default: 1.0))
3. Risk Reward Ratio (TP distance multiplier (default: 1.5))
4. Max Risk Allowed (Max risk % of entry (default: 3.0%))
5. Lookback Bars for SL Bars for swing low/high (default: 60))

c. Break Thresholds
1. 1H Candle Break Threshold (ATR multiplier for 1H break (default: 0.75))
2. 5M Candle Break Threshold (ATR multiplier for 5M break (default: 0.5))

Note : settings are optimized for BTCUSDT.P (Binance). For other assets, users can make necessary adjustments.

17 Haz

Sürüm Notları

This strategy uses multi timeframes, which often have the risk of repainting. Because this strategy prioritizes strict risk management, it must be ensured that the SL calculation is truly safe. A new, more robust formula is used to calculate the maximum risk allowed for a trade to take place.

25 Haz

Sürüm Notları

Improved visualization:
1. Daily range will not be visible when there is an open trade
2. TP and SL are not just lines but display areas so they are more attractive

dün

Sürüm Notları

The moderator suggested considering commissions and slippage so this script more closely reflects what might happen in real-world trading. Each exchange has different commissions, so you can adjust them to suit your specific exchange. Slippage can also vary, so you can adjust it to suit your experience with the exchange you're using.

The moderator also asked me to briefly explain the values I entered in the input parameters. Here, I'll only explain one of them: the SL buffer and Risk-Reward ratio. In the previous version, I used a 6 ATR SL buffer with a 1.5 Risk-Reward ratio. To illustrate the potential difference in results, in this version, I changed them to 3 and 2, respectively. You can see the difference: with a 3 ATR SL buffer and a 2x Risk-Reward ratio, the trade closes faster than with 6 and 1.5. You can adjust these further.