Parallax Momentum MNQ Strategy

# 📈 Parallax Momentum MNQ Strategy

## Overview
The Parallax Momentum MNQ Strategy is a sophisticated support/resistance breakout system specifically designed for Micro Nasdaq futures (MNQ) trading (also works on minis). This strategy combines dynamic level detection with momentum confirmation to identify high-probability entry opportunities while maintaining strict risk management protocols.

## 🎯 Key Features

### Core Strategy Logic
- **Dynamic Support/Resistance Detection**: Automatically identifies key levels using configurable lookback periods
- **Momentum Confirmation**: Volume-based filtering ensures trades align with market momentum
- **ATR-Based Risk Management**: Adaptive stop losses and take profits based on market volatility
- **Dual Entry System**: Both long and short opportunities with limit order execution

### Risk Management
- **ATR-Adaptive Stops**: Stop losses and take profits automatically adjust to market volatility
- **Reward-to-Risk Ratios**: Configurable R:R ratios with default 2:1 minimum
- **Maximum Loss Protection**: Optional daily loss limits to prevent overtrading
- **Session Time Filtering**: Trade only during specified market hours

### Strategy Modes
- **Conservative Mode**: 0.8x risk multiplier for cautious trading
- **Balanced Mode**: Standard 1.0x risk multiplier (default)
- **Aggressive Mode**: 1.2x risk multiplier for active trading

## 📊 Visual Features

### Dashboard Display
- Real-time strategy status and performance metrics
- Current support/resistance levels and ATR values
- Live risk-to-reward ratios for potential trades
- Win rate, profit factor, and drawdown statistics
- Adjustable dashboard size and positioning

### Chart Indicators
- Support and resistance lines with labels
- ATR-based levels (+/-1 ATR and +/-2 ATR)
- Dynamic visual updates as levels change
- Configurable line extensions and styling

## ⚙️ Configuration Options

### Entry Filters
- **Volume Filter**: Optional volume confirmation above SMA
- **Session Time Filter**: 12-hour format time restrictions
- **ATR vs Fixed Stops**: Choose between adaptive or fixed tick-based exits

### Risk Controls
- **ATR Period**: Default 14-period ATR calculation
- **Stop Loss Multiplier**: ATR-based stop distance (default 1.5x)
- **Take Profit Multiplier**: ATR-based target distance (default 1.5x)
- **Secondary Take Profit**: Optional TP2 with position scaling

## 📋 How It Works

### Entry Conditions
**Long Trades**: Triggered when price closes above support buffer but low touches support level, with volume and session confirmation

**Short Trades**: Triggered when price closes below resistance buffer but high touches resistance level, with volume and session confirmation

### Exit Strategy
- **Primary Take Profit**: ATR-based target with 2:1 R:R minimum
- **Stop Loss**: ATR-based protective stop
- **Optional TP2**: Extended target for partial profit taking
- **One Trade at a Time**: No overlapping positions

## 🎛️ Default Settings
- **Lookback Period**: 20 bars for support/resistance detection
- **ATR Period**: 14 bars for volatility calculation
- **Stop Loss**: 1.5x ATR from entry
- **Take Profit**: 1.5x ATR with 2:1 reward-to-risk ratio
- **Session**: 7:30 AM - 2:00 PM (configurable)


## ⚠️ Important Notes

### Risk Disclaimer
- This strategy is for educational and informational purposes only
- Past performance does not guarantee future results
- Always use proper position sizing and risk management
- Test thoroughly on historical data before live trading
- Consider market conditions and volatility when using

### Best Practices
- Backtest on sufficient historical data
- Start with conservative mode for new users
- Monitor performance regularly and adjust parameters as needed
- Use appropriate position sizing for your account
- Consider broker commissions and slippage in live trading

## 🔧 Customization
The strategy offers extensive customization options including:
- Adjustable time sessions with AM/PM format
- Configurable ATR and risk parameters
- Optional maximum daily loss limits
- Dashboard size and position controls
- Visual element toggles and styling

## 📈 Ideal For
- MNQ (Micro Nasdaq) futures traders
- Intraday momentum strategies
- Traders seeking systematic entry/exit rules
- Risk-conscious traders wanting automated stops
- Both beginner and experienced algorithmic traders

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**Version**: Pine Script v5 Compatible
**Timeframe**: Works on multiple timeframes (test on 1m, 3m, 5m, 15m)
**Market**: Optimized for MNQ but adaptable to other instruments
**Strategy Type**: Trend following with momentum confirmation