Granny's Simple Strategy

/*backtest
start: 2025-09-23 00:00:00
end: 2025-10-16 00:00:00
period: 10m
basePeriod: 10m
exchanges: [{"eid":"Futures_Binance","currency":"ETH_USDT","balance":5000}]
*/

// This Pine Script® code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © rdjxyz

//@version=5
strategy("Granny Strategy", overlay=true, initial_capital=10000, default_qty_type=strategy.percent_of_equity, default_qty_value=100)

// ============================================================================
// INPUTS
// ============================================================================
// Display
showCandleNumbers = input.bool(false, "Show Candle Numbers (0, 1, 2, 3)", group="Display")

// Time Filter
useTimeFilter = input.bool(false, "Use Time Window Filter", group="Time Filter")
timeZone = input.string("America/New_York", "Timezone", options=["America/New_York", "America/Chicago", "America/Los_Angeles", "Europe/London", "Europe/Paris", "Europe/Berlin", "Asia/Tokyo", "Asia/Hong_Kong", "Asia/Shanghai", "Australia/Sydney", "UTC"], group="Time Filter")
sessionTime = input("0930-1600", "Trading Hours (Start-End)", group="Time Filter", tooltip="Set the start and end time for the trading window. Format: HHMM-HHMM")

// EMA
showEMA = input.bool(true, "Show EMA", group="EMA")
emaLength = input.int(50, "EMA Length", minval=1, group="EMA")

// Risk/Reward
stopLossTicks = input.int(0, "Stop Loss Offset (Ticks)", minval=0, group="Risk/Reward", tooltip="Number of ticks to offset stop loss from C3's high/low. 0 = exact high/low, positive = further away")
riskRewardRatio = input.float(2.0, "Risk:Reward Ratio", minval=0.1, step=0.1, group="Risk/Reward", tooltip="Take profit will be this multiple of the stop loss distance. E.g., 2.0 = 2R, 1.5 = 1.5R")
breakEvenAtRR = input.float(0, "Move SL to Break Even at R:R", minval=0, step=0.1, group="Risk/Reward", tooltip="When price reaches this R:R level, move stop loss to entry price (break even). Set to 0 to disable. E.g., 1.0 = break even at 1R, 2.0 = break even at 2R")

// Exceptions
emaBiasCandle = input.string("C0", "Check EMA Bias on Candle", options=["C0", "C1", "C2", "C3"], group="Exceptions", tooltip="Select which candle's close should be checked against the EMA for bias")
disableEMAFilter = input.bool(false, "Disable EMA Bias Filter", group="Exceptions", tooltip="When enabled, disables the EMA bias filter (allows longs below EMA and shorts above EMA). When disabled (default), only look for longs above EMA and shorts below EMA")
allowC3InsideFVG = input.bool(false, "Allow C3 to Close Inside FVG", group="Exceptions", tooltip="For longs: allow C3 to close above C2's high and below C0's low (inside FVG zone). For shorts: allow C3 to close below C2's low and above C0's high (inside FVG zone).")
allowC3OutsideC1Open = input.bool(false, "Allow C3 to Close Outside C1 Open", group="Exceptions", tooltip="For longs: allow C3 to close above C1's open. For shorts: allow C3 to close below C1's open.")
allowC2OppositeDirection = input.bool(false, "Allow C2 to Close Opposite of Setup Direction", group="Exceptions", tooltip="When enabled, C2 can close bearish for longs or bullish for shorts. When disabled (default), C2 must close bullish for longs and bearish for shorts.")

// Debugging
// showDebug = input.bool(false, "Show Debug Markers", group="Debugging")

// ============================================================================
// INDICATORS
// ============================================================================
ema50 = ta.ema(close, emaLength)

// ============================================================================
// TIME WINDOW CHECK
// ============================================================================
// Check if current bar is within the trading window
inTimeWindow = not useTimeFilter or not na(time(timeframe.period, sessionTime, timeZone))

// ============================================================================
// HELPER FUNCTIONS
// ============================================================================

// Check if candle is bullish
isBullish(index) =>
    close[index] > open[index]

// Check if candle is bearish
isBearish(index) =>
    close[index] < open[index]

// Check if candle has bottom wick
hasBottomWick(index) =>
    low[index] < math.min(open[index], close[index])

// Check if candle has top wick
hasTopWick(index) =>
    high[index] > math.max(open[index], close[index])

// ============================================================================
// LONG SETUP DETECTION
// ============================================================================

// Detection happens progressively as candles form:
// - C0 and C1 are marked when we're on C2 (can confirm FVG exists)
// - C2 is marked when it forms (current bar meets sweep criteria)
// - C3 is marked when it forms (current bar inverts FVG)

// Check for C2 (current bar): Sweeps C1 low, closes bullish inside C1 range
// When on C2: C0 is at [2], C1 is at [1], C2 is at [0]
// The pattern is: C0 -> C1 (bearish, creates FVG) -> C2 (sweeps and recovers)

// C1 checks (the bar at [1])
c1_is_bearish = close[1] < open[1]
c1_has_wick = low[1] < math.min(open[1], close[1])

// FVG check: gap between C0 and C2 after the bearish move
// The bearish FVG is the gap between C0's low and C2's high (current bar)
fvg_gap_exists = low[2] > high[0]

// C2 checks (current bar at [0])
c2_sweeps_c1_low = low < low[1]
c2_closes_above_c1_low = close > low[1]
c2_closes_below_c0_low = close < low[2]
c2_direction_ok_long = allowC2OppositeDirection or close > open

// EMA bias check for C2 detection (C0, C1, or C2)
ema_check_c2_long = disableEMAFilter or (emaBiasCandle == "C0" ? close[2] > ema50[2] : emaBiasCandle == "C1" ? close[1] > ema50[1] : emaBiasCandle == "C2" ? close > ema50 : true)

isC2Long = c1_is_bearish and c1_has_wick and fvg_gap_exists and c2_sweeps_c1_low and c2_closes_above_c1_low and c2_closes_below_c0_low and c2_direction_ok_long and ema_check_c2_long

// Store that C2 formed (for detecting C3 on the very next bar)
var bool c2LongFormed = false
if isC2Long
    c2LongFormed := true
else
    c2LongFormed := false  // Reset if not C2 - ensures C3 must be the immediate next bar

// Check for C3 (current bar): Inverts FVG and closes below C1 open
// IMPORTANT: C3 must be the bar immediately after C2 (no gaps allowed)
// When on C3: C0 is at [3], C1 is at [2], C2 is at [1]
// "Invert" means price closes back below C1's open (reversing back toward the FVG)
// Must also close above C0's low (staying within the reversal zone)
c2_formed_prev_long = c2LongFormed[1]
c3_c1_open_condition_long = allowC3OutsideC1Open or close < open[2]
c3_range_condition_long = allowC3InsideFVG ? (close > high[1] and close < low[3]) : close > low[3]
isC3Long = c2_formed_prev_long and c3_c1_open_condition_long and c3_range_condition_long

// Debug for C3 conditions
// if showDebug and c2_formed_prev_long
//     debugC3 = "C3: "
//     debugC3 += c2_formed_prev_long ? "C2✓ " : "C2✗ "
//     debugC3 += c3_c1_open_condition_long ? "OPEN✓ " : "OPEN✗ "
//     debugC3 += c3_range_condition_long ? "RANGE✓" : "RANGE✗"
//     debugC3 += " | C1open:" + str.tostring(open[2]) + " C0low:" + str.tostring(low[3]) + " Close:" + str.tostring(close)
//     label.new(bar_index, high, debugC3, color=color.new(color.orange, 70), textcolor=color.white, style=label.style_label_down, size=size.small)

// EMA bias check for C3 (if user selected C3)
ema_check_c3_long = disableEMAFilter or emaBiasCandle != "C3" or close > ema50

// Overall long setup condition
longSetup = isC3Long and ema_check_c3_long

// Candle markers - visible when showCandleNumbers is enabled
// Mark C0 when on C2
plotchar(showCandleNumbers and isC2Long, "C0 Long", "0", location.abovebar, color.white, size=size.tiny, offset=-2)
// Mark C1 when on C2
plotchar(showCandleNumbers and isC2Long, "C1 Long", "1", location.belowbar, color.white, size=size.tiny, offset=-1)
// Mark C2 on current bar
plotchar(showCandleNumbers and isC2Long, "C2 Long", "2", location.belowbar, color.white, size=size.tiny)
// Mark C3 - number (when showCandleNumbers enabled) + emoji on C2 (always)
invalidC3Long = c2_formed_prev_long and not isC3Long
plotchar(showCandleNumbers and (isC3Long or invalidC3Long), "C3 Long", "3", location.belowbar, color.white, size=size.tiny)
plotchar(isC3Long, "Valid Long Setup", "👵🏻", location.belowbar, color.green, size=size.tiny, offset=-1)
plotchar(invalidC3Long, "Invalid Long Setup", "🤡", location.belowbar, color.red, size=size.tiny, offset=-1)

// Variables to store active trade lines for longs
var line longEntryLine = na
var line longSLLine = na
var line longTPLine = na
var label longEntryLabel = na
var label longSLLabel = na
var label longTPLabel = na

// Variables to track break even for longs
var bool longBreakEvenTriggered = false
var float longEntryPrice = na
var float longOneRLevel = na
var float longTPLevel = na

// Draw entry, stop loss, and take profit lines when C3 forms - always visible
if isC3Long
    slLevel = low - (stopLossTicks * syminfo.mintick)  // Stop loss level with tick offset
    // Take profit line
    slDistance = close - slLevel  // Stop loss distance
    tpLevel = close + (slDistance * riskRewardRatio)  // Take profit level


// ============================================================================
// SHORT SETUP DETECTION
// ============================================================================

// Check for C2 (current bar): Sweeps C1 high, closes bearish inside C1 range
// C1 would be at [1], C0 at [2]
c1_is_bullish = close[1] > open[1]
c1_has_top_wick = high[1] > math.max(open[1], close[1])

// FVG check: gap between C0 and C2 after the bullish move
// The bullish FVG is the gap between C0's high and C2's low (current bar)
fvg_gap_exists_short = high[2] < low[0]

c2_sweeps_c1_high = high > high[1]
c2_closes_below_c1_high = close < high[1]
c2_closes_above_c0_high = close > high[2]
c2_direction_ok_short = allowC2OppositeDirection or close < open

// EMA bias check for C2 detection (C0, C1, or C2)
ema_check_c2_short = disableEMAFilter or (emaBiasCandle == "C0" ? close[2] < ema50[2] : emaBiasCandle == "C1" ? close[1] < ema50[1] : emaBiasCandle == "C2" ? close < ema50 : true)

isC2Short = c1_is_bullish and c1_has_top_wick and fvg_gap_exists_short and c2_sweeps_c1_high and c2_closes_below_c1_high and c2_closes_above_c0_high and c2_direction_ok_short and ema_check_c2_short

// Store that C2 formed (for detecting C3 on the very next bar)
var bool c2ShortFormed = false
if isC2Short
    c2ShortFormed := true
else
    c2ShortFormed := false  // Reset if not C2 - ensures C3 must be the immediate next bar

// Check for C3 (current bar): Inverts FVG and closes above C1 open
// IMPORTANT: C3 must be the bar immediately after C2 (no gaps allowed)
// When on C3: C0 is at [3], C1 is at [2], C2 is at [1]
// "Invert" means price closes back above C1's open (reversing back toward the FVG)
// Must also close below C0's high (staying within the reversal zone)
c2_formed_prev_short = c2ShortFormed[1]
c3_c1_open_condition_short = allowC3OutsideC1Open or close > open[2]
c3_range_condition_short = allowC3InsideFVG ? (close < low[1] and close > high[3]) : close < high[3]
isC3Short = c2_formed_prev_short and c3_c1_open_condition_short and c3_range_condition_short

// EMA bias check for C3 (if user selected C3)
ema_check_c3_short = disableEMAFilter or emaBiasCandle != "C3" or close < ema50

// Overall short setup condition
shortSetup = isC3Short and ema_check_c3_short

// Candle markers - visible when showCandleNumbers is enabled
// Mark C0 when on C2
plotchar(showCandleNumbers and isC2Short, "C0 Short", "0", location.belowbar, color.white, size=size.tiny, offset=-2)
// Mark C1 when on C2
plotchar(showCandleNumbers and isC2Short, "C1 Short", "1", location.abovebar, color.white, size=size.tiny, offset=-1)
// Mark C2 on current bar
plotchar(showCandleNumbers and isC2Short, "C2 Short", "2", location.abovebar, color.white, size=size.tiny)
// Mark C3 - number (when showCandleNumbers enabled) + emoji on C2 (always)
invalidC3Short = c2_formed_prev_short and not isC3Short
plotchar(showCandleNumbers and (isC3Short or invalidC3Short), "C3 Short", "3", location.abovebar, color.white, size=size.tiny)
plotchar(isC3Short, "Valid Short Setup", "👵🏻", location.abovebar, color.green, size=size.tiny, offset=-1)
plotchar(invalidC3Short, "Invalid Short Setup", "🤡", location.abovebar, color.red, size=size.tiny, offset=-1)

// Variables to store active trade lines for shorts
var line shortEntryLine = na
var line shortSLLine = na
var line shortTPLine = na
var label shortEntryLabel = na
var label shortSLLabel = na
var label shortTPLabel = na

// Variables to track break even for shorts
var bool shortBreakEvenTriggered = false
var float shortEntryPrice = na
var float shortOneRLevel = na
var float shortTPLevel = na

// Draw entry, stop loss, and take profit lines when C3 forms - always visible
if isC3Short
    slLevelShort = high + (stopLossTicks * syminfo.mintick)  // Stop loss level with tick offset

    // Take profit line
    slDistanceShort = slLevelShort - close  // Stop loss distance
    tpLevelShort = close - (slDistanceShort * riskRewardRatio)  // Take profit level

// ============================================================================
// ENTRY & EXIT LOGIC
// ============================================================================

// Long entry
if longSetup and strategy.position_size == 0 and inTimeWindow
    slLevel = low - (stopLossTicks * syminfo.mintick)  // Stop loss level with tick offset
    slDistance = close - slLevel  // Stop loss distance
    tpLevel = close + (slDistance * riskRewardRatio)  // Take profit level

    strategy.entry("Long", strategy.long)
    strategy.exit("Long Exit", "Long", stop=slLevel, limit=tpLevel)

    // Initialize break even tracking
    if breakEvenAtRR > 0
        longBreakEvenTriggered := false
        longEntryPrice := close
        longOneRLevel := close + (slDistance * breakEvenAtRR)  // R:R trigger level
        longTPLevel := tpLevel

// Check for break even trigger on long trades
if strategy.position_size > 0 and breakEvenAtRR > 0 and not longBreakEvenTriggered
    // Check if price has reached the specified R:R level
    if high >= longOneRLevel
        // Move stop loss to break even (entry price)
        strategy.exit("Long Exit", "Long", stop=longEntryPrice, limit=longTPLevel)
        longBreakEvenTriggered := true

// Short entry
if shortSetup and strategy.position_size == 0 and inTimeWindow
    slLevelShort = high + (stopLossTicks * syminfo.mintick)  // Stop loss level with tick offset
    slDistanceShort = slLevelShort - close  // Stop loss distance
    tpLevelShort = close - (slDistanceShort * riskRewardRatio)  // Take profit level

    strategy.entry("Short", strategy.short)
    strategy.exit("Short Exit", "Short", stop=slLevelShort, limit=tpLevelShort)

    // Initialize break even tracking
    if breakEvenAtRR > 0
        shortBreakEvenTriggered := false
        shortEntryPrice := close
        shortOneRLevel := close - (slDistanceShort * breakEvenAtRR)  // R:R trigger level
        shortTPLevel := tpLevelShort

// Check for break even trigger on short trades
if strategy.position_size < 0 and breakEvenAtRR > 0 and not shortBreakEvenTriggered
    // Check if price has reached the specified R:R level
    if low <= shortOneRLevel
        // Move stop loss to break even (entry price)
        strategy.exit("Short Exit", "Short", stop=shortEntryPrice, limit=shortTPLevel)
        shortBreakEvenTriggered := true

// ============================================================================
// VISUALIZATION
// ============================================================================

// Plot EMA
plot(showEMA ? ema50 : na, "EMA", color=color.white, linewidth=2)

// Background color for bias
bgcolor(close > ema50 ? color.new(color.green, 95) : close < ema50 ? color.new(color.red, 95) : na)