A Simple Pullback Strategy
This lesson demonstrates how to convert an extremely simple strategy idea into a Pine Script strategy script with a 75% win rate. This idea was inspired by this video by Joe Marwood.
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// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/ // © ZenAndTheArtOfTrading / www.PineScriptMastery.com // @version=5 strategy("Simple Pullback Strategy", overlay=true, initial_capital=50000, default_qty_type=strategy.percent_of_equity, default_qty_value=100, // 100% of balance invested on each trade commission_type=strategy.commission.cash_per_contract, commission_value=0.005) // Interactive Brokers rate // Get user input i_ma1 = input.int(title="MA 1 Length", defval=200, step=10, group="Strategy Parameters", tooltip="Long-term MA") i_ma2 = input.int(title="MA 2 Length", defval=10, step=10, group="Strategy Parameters", tooltip="Short-term MA") i_stopPercent = input.float(title="Stop Loss Percent", defval=0.10, step=0.1, group="Strategy Parameters", tooltip="Failsafe Stop Loss Percent Decline") i_lowerClose = input.bool(title="Exit On Lower Close", defval=false, group="Strategy Parameters", tooltip="Wait for a lower-close before exiting above MA2") i_startTime = input.time(title="Start Filter", defval=timestamp("01 Jan 1995 13:30 +0000"), group="Time Filter", tooltip="Start date & time to begin searching for setups") i_endTime = input.time(title="End Filter", defval=timestamp("1 Jan 2099 19:30 +0000"), group="Time Filter", tooltip="End date & time to stop searching for setups") // Get indicator values ma1 = ta.sma(close, i_ma1) ma2 = ta.sma(close, i_ma2) // Check filter(s) f_dateFilter = time >= i_startTime and time <= i_endTime // Check buy/sell conditions var float buyPrice = 0 buyCondition = close > ma1 and close < ma2 and strategy.position_size == 0 and f_dateFilter sellCondition = close > ma2 and strategy.position_size > 0 and (not i_lowerClose or close < low[1]) stopDistance = strategy.position_size > 0 ? ((buyPrice - close) / close) : na stopPrice = strategy.position_size > 0 ? buyPrice - (buyPrice * i_stopPercent) : na stopCondition = strategy.position_size > 0 and stopDistance > i_stopPercent // Enter positions if buyCondition strategy.entry(id="Long", direction=strategy.long) if buyCondition[1] buyPrice := open // Exit positions if sellCondition or stopCondition strategy.close(id="Long", comment="Exit" + (stopCondition ? "SL=true" : "")) buyPrice := na // Draw pretty colors plot(buyPrice, color=color.lime, style=plot.style_linebr) plot(stopPrice, color=color.red, style=plot.style_linebr, offset=-1) plot(ma1, color=color.blue) plot(ma2, color=color.orange)