ianzeng123
🔱 What is the Pitchfork Strategy? Precise as Poseidon’s Trident!
Did you know? This strategy works like the ancient Greek sea god Poseidon’s trident - a powerful trading weapon built from three key points! 📈 It identifies three important market turning points (pivot points) and draws a “trident-shaped” channel to help you capture golden breakout opportunities.
Imagine setting up a simple tent at the beach with three sticks 🏕️ - one main support pole and two others forming the tent boundaries. When the wind (price) breaks through the tent boundaries, that’s our signal to act!
📊 Core Strategy Logic: Three Points Define Everything
Key Point! The essence of this strategy lies in: - 🎯 Smart Pivot Detection: Automatically finds market highs and lows, ensuring they alternate (no consecutive highs or lows) - 📐 Pitchfork Construction: Uses three points to draw median line, upper line, and lower line, forming a price channel - 💥 Breakout Signals: Go long when price breaks above upper line, go short when it breaks below lower line - 🛡️ Risk Control: Stop loss at median line, take profit at 1:1 ratio
It’s like observing crowd flow at a busy subway station 🚇, watching three key nodes to predict which direction the crowd will surge!
🎪 Entry Timing: Catching the Breakout Moment
Pitfall Guide: Not every breakout is worth chasing!
Long Conditions: - Price breaks above pitchfork upper line ⬆️ - Overall trend is upward (positive median line slope) - Like joining a fast-moving bubble tea queue when it suddenly accelerates!
Short Conditions: - Price breaks below pitchfork lower line ⬇️ - Overall trend is downward (negative median line slope) - Like following the crowd toward exits when a concert ends
💰 Risk Management: Only Risk 1% Per Trade
The most thoughtful aspect of this strategy is its built-in scientific money management! 🧮
- Risk Control: Only risk 1% of account capital per trade
- Stop Loss Placement: Set at pitchfork median line, giving price room to breathe
- Profit Target: 1:1 risk-reward ratio, steady without being greedy
- Position Sizing: Automatically adjusts trade size based on stop distance
It’s like riding a roller coaster at an amusement park 🎢 - you must fasten your safety belt (stop loss), but still leave room for excitement!
🌟 Strategy Advantages: Why Is It So Popular?
- High Objectivity: Purely based on price action, unaffected by emotions
- Great Adaptability: Works on any timeframe, from minutes to weekly charts
- Controllable Risk: Built-in money management prevents major losses from single mistakes
- Simple Operation: Clear signals that even beginners can quickly master
Remember, trading is like learning to ride a bicycle 🚴♀️ - you might fall at first, but once you find balance, you can ride freely! This pitchfork strategy serves as your “training wheels,” helping you maintain balance while navigating the markets.
/*backtest
start: 2024-10-29 00:00:00
end: 2025-10-27 08:00:00
period: 1h
basePeriod: 1h
exchanges: [{"eid":"Futures_Binance","currency":"SOL_USDT"}]
*/
//@version=5
strategy("Pitchfork Trading Friends",
overlay=true,
default_qty_type=strategy.percent_of_equity,
default_qty_value=100) // We will calculate size manually
// === 1. INPUTS ===
leftBars = input.int(10, "Pivot Left Bars", minval=1)
rightBars = input.int(10, "Pivot Right Bars", minval=1)
riskPercent = input.float(1.0, "Risk Per Trade %", minval=0.1, step=0.1)
// === 2. PIVOT DETECTION & STORAGE ===
// Find pivot points
float ph = ta.pivothigh(high, leftBars, rightBars)
float pl = ta.pivotlow(low, leftBars, rightBars)
// Store the last 3 pivots (P1, P2, P3)
var float p1_price = na
var int p1_bar = na
var float p2_price = na
var int p2_bar = na
var float p3_price = na
var int p3_bar = na
var int lastPivotType = 0 // 0=none, 1=high, -1=low
// Update pivots when a new one is found, ensuring they alternate
if not na(ph) and lastPivotType != 1
p1_price := p2_price
p1_bar := p2_bar
p2_price := p3_price
p2_bar := p3_bar
p3_price := ph
p3_bar := bar_index[rightBars]
lastPivotType := 1
if not na(pl) and lastPivotType != -1
p1_price := p2_price
p1_bar := p2_bar
p2_price := p3_price
p2_bar := p3_bar
p3_price := pl
p3_bar := bar_index[rightBars]
lastPivotType := -1
// === 3. PITCHFORK CALCULATION & DRAWING ===
// We need 3 valid points to draw
bool has3Pivots = not na(p1_bar) and not na(p2_bar) and not na(p3_bar)
// Declare lines
var line medianLine = na
var line upperLine = na
var line lowerLine = na
// Declare line prices for strategy logic
var float ml_price = na
var float ul_price = na
var float ll_price = na
if (has3Pivots)
// P1, P2, P3 coordinates
p1_y = p1_price
p1_x = p1_bar
p2_y = p2_price
p2_x = p2_bar
p3_y = p3_price
p3_x = p3_bar
// Calculate midpoint of P2-P3
mid_y = (p2_y + p3_y) / 2.0
mid_x = (p2_x + p3_x) / 2.0
// Calculate Median Line (ML) slope
float ml_slope = (mid_y - p1_y) / (mid_x - p1_x)
// Calculate price on current bar for each line
// y = m*(x - x_n) + y_n
ml_price := ml_slope * (bar_index - p1_x) + p1_y
// Identify which pivot is high (P2 or P3)
float highPivot_y = p2_y > p3_y ? p2_y : p3_y
int highPivot_x = p2_y > p3_y ? p2_x : p3_x
float lowPivot_y = p2_y < p3_y ? p2_y : p3_y
int lowPivot_x = p2_y < p3_y ? p2_x : p3_x
// Upper/Lower line prices
ul_price := ml_slope * (bar_index - highPivot_x) + highPivot_y
ll_price := ml_slope * (bar_index - lowPivot_x) + lowPivot_y
// === 4. STRATEGY LOGIC ===
// Define trend by pitchfork slope
bool trendUp = ml_slope > 0
bool trendDown = ml_slope < 0
// Entry Conditions
bool longEntry = ta.crossover(close, ul_price) // Breakout
bool shortEntry = ta.crossunder(close, ll_price) // Breakdown
// Risk Calculation
float capital = strategy.equity
float riskAmount = (capital * riskPercent) / 100
// --- LONG TRADE ---
if (longEntry and trendUp)
float sl_price = ml_price // SL at median line
float stop_loss_pips = close - sl_price
float tp_price = close + stop_loss_pips // 1:1 TP
// Calculate position size
float positionSize = riskAmount / (stop_loss_pips * syminfo.pointvalue)
if (positionSize > 0)
strategy.entry("Long", strategy.long, qty=positionSize)
strategy.exit("SL/TP Long", from_entry="Long", stop=sl_price, limit=tp_price)
// --- SHORT TRADE ---
if (shortEntry and trendDown)
float sl_price = ml_price // SL at median line
float stop_loss_pips = sl_price - close
float tp_price = close - stop_loss_pips // 1:1 TP
// Calculate position size
float positionSize = riskAmount / (stop_loss_pips * syminfo.pointvalue)
if (positionSize > 0)
strategy.entry("Short", strategy.short, qty=positionSize)
strategy.exit("SL/TP Short", from_entry="Short", stop=sl_price, limit=tp_price)