The Hulk Pullback Reversal is a strategy that utilizes moving averages, MACD, RSI and ADX to identify trend reversals during pullback phases. It specifically targets aggressive trend-followers, capitalizing on their common pullback characteristics for reversal trades.
The strategy uses EMAs to determine the overall trend direction, as well as building strength/weakness zones. When price pulls back from strength into weakness, the strategy identifies potential reversal opportunities.
To filter false entries, MACD is incorporated to confirm short-term reversal signals. When MACD absolute value exceeds a certain threshold, reversal probability increases. ADX is also required to be above a level, ensuring the market is trending rather than ranging.
Finally, RSI acts to avoid overbought/oversold regions. Signals are only generated when RSI values are within a defined range.
The trade count is reset on every EMA crossover. A maximum trade limit per crossover can also be set, avoiding over-trading.
When conditions are met, orders are placed based on stop loss and take profit ratios, for executing the reversal trade.
The biggest advantage of this strategy is using EMAs to build strength/weakness zones, capitalizing on pullback patterns. The multi-indicator filtering improves reliability.
Compared to single oscillator indicators, the addition of trend determination helps avoid unnecessary reversals. Controlling maximum trades per EMA crossover also prevents over-trading.
The biggest risk is when the trend-follower doesn’t pull back, breaking the EMAs directly. This would generate wrong signals and cause losses. Stop losses are required to control downside.
Improper indicator parameters can also degrade signal quality. Parameters need to be repeatedly tested and optimized for different market conditions.
Finally, oversized stop loss and continued aggression after reversal, can increase single trade loss. Reasonable stops and risk management are essential.
The strategy can be optimized in the following aspects:
Test different markets and parameters so EMAs better gauge the trend.
Optimize MACD parameters for more accurate and reliable reversal signals.
Adjust RSI range to avoid overly aggressive overbought/oversold levels.
Optimize stop loss and take profit ratios to reduce single trade risk.
The Hulk Pullback Reversal Strategy specifically targets pullback patterns of aggressive trend-followers, effectively capturing short-term reversal opportunities. It utilizes EMAs for multi-layered trend direction and strength filtering, with MACD, RSI for high-reliability entry confirmation. Proper parameter testing and optimizations enable adaptation to varying market environments, making it a very practical trend reversal strategy.
/*backtest start: 2023-09-16 00:00:00 end: 2023-10-16 00:00:00 period: 3h basePeriod: 15m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ // This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/ // © npietronuto1 //@version=5 strategy("Hulk Scalper x35 Leverage", shorttitle = "Smash Pullback Strat", overlay=true, initial_capital=100, default_qty_type=strategy.percent_of_equity, default_qty_value=100) //------------------------------------------------------------------------------------------------------------------------------------------------------------------------ //RSI rsiLength = input.int(20) RsiTopInput = input.int(2) RsiBotInput = input.int(-2) // toprsiLine = hline(RsiTopInput, title = "Rsi Top Line", linestyle = hline.style_solid) // botrsiLine = hline(RsiBotInput, title = "Rsi Bottom Line", linestyle = hline.style_solid) rsi = ta.rsi(close, rsiLength) rsiWeighted = rsi - 50 //Zeros Rsi to look nicer //------------------------------------------------------------------------------------------------------------------------------------------------------------------------ //------------------------------------------------------------------------------------------------------------------------------------------------------------------------ adxlen = input(14, title="ADX Smoothing") dilen = input(14, title="DI Length") dirmov(len) => up = ta.change(high) down = -ta.change(low) plusDM = na(up) ? na : (up > down and up > 0 ? up : 0) minusDM = na(down) ? na : (down > up and down > 0 ? down : 0) truerange = ta.rma(ta.tr, len) plus = fixnan(100 * ta.rma(plusDM, len) / truerange) minus = fixnan(100 * ta.rma(minusDM, len) / truerange) [plus, minus] adx(dilen, adxlen) => [plus, minus] = dirmov(dilen) sum = plus + minus adx = 100 * ta.rma(math.abs(plus - minus) / (sum == 0 ? 1 : sum), adxlen) sig = adx(dilen, adxlen) ADXfilterlevel = input.int(33, title = "ADX filter amount") // plot(sig, color=color.red, title="ADX") //------------------------------------------------------------------------------------------------------------------------------------------------------------------------ //------------------------------------------------------------------------------------------------------------------------------------------------------------------------ //MACD FastMacdLength = input.int(12, group = "MACD") SlowMacdLength = input.int(26, group = "MACD") SignalLength = input.int(11, group = "MACD") MacdTickAmountNeeded = input.float(5.45, title = "Tick Amount for entry", group = "MACD") res = input.timeframe("1", group = "MACD") // bullishgrow_col = input.color(defval = #3179f5) // bullishweaken_col = input.color(defval = #00e1ff) // bearishweaken_col = input.color(defval = #ff01f1) // bearishgrow_col = input.color(defval = #9d00e5) [FastMacd, SlowMacd, Macdhist] = ta.macd(close, FastMacdLength, SlowMacdLength, SignalLength) //Pull MACD from Lower timeframe MACD = request.security(syminfo.tickerid, res, Macdhist, gaps = barmerge.gaps_on) //Grow and Fall Color // getgrow_fall_col(Value) => // if Value >= 0 // if Value >= Value[1] // color.new(bullishgrow_col, transp = 10) // else if Value <= Value[1] // color.new(bullishweaken_col, transp = 10) // else if Value <= 0 // if Value <= Value[1] // color.new(bearishgrow_col, transp = 10) // else if Value >= Value[1] // color.new(bearishweaken_col, transp = 10) //CONDITIONS that check if MACD is overbought or oversold MACDisAboveBand = MACD > MacdTickAmountNeeded MACDisBelowBand = MACD < MacdTickAmountNeeded*-1 //Plot // plot(MACD, style = plot.style_columns, color = getgrow_fall_col(MACD)) //------------------------------------------------------------------------------------------------------------------------------------------------------------------------ //------------------------------------------------------------------------------------------------------------------------------------------------------------------------ //EMAs //Inputs EmaFastLength = input.int(50, title = "Ema Fast Length") EmaSlowLength = input.int(200, title = "Ema Slow Length") StrongUpTrendCol = input.color(color.rgb(74, 255, 163)) //WeakUptrend = input.color(color.rgb(74, 255, 163, 50)) StrongDownTrendCol = input.color(color.rgb(255, 71, 84)) //WeakDownTrend = input.color(color.rgb(255, 71, 84, 50)) //Calculations emaFast= ta.ema(close, EmaFastLength) emaSlow= ta.ema(close, EmaSlowLength) emaDist=emaFast-emaSlow EmaLengthFraction = emaDist/4 emafrac5 = emaSlow + EmaLengthFraction emafrac4 = emaSlow + EmaLengthFraction*2 emafrac3 = emaSlow + EmaLengthFraction*3 emafrac2 = emaSlow + EmaLengthFraction*4 UptrendCol_DowntrendCol= emaFast>=emaSlow ? StrongUpTrendCol:StrongDownTrendCol //Plot ema1p = plot(emaFast, color = color.new(#000000, transp = 100)) ema2p = plot(emafrac2, color = color.new(#000000, transp = 100)) ema3p = plot(emafrac3, color = color.new(#000000, transp = 100)) ema4p = plot(emafrac4, color = color.new(#000000, transp = 100)) ema5p = plot(emafrac5, color = color.new(#000000, transp = 100)) ema6p = plot(emaSlow, color = color.new(#000000, transp = 100)) fill(ema2p,ema3p, color = color.new(UptrendCol_DowntrendCol, 70)) fill(ema3p,ema4p, color = color.new(UptrendCol_DowntrendCol, 60)) fill(ema4p,ema5p, color = color.new(UptrendCol_DowntrendCol, 50)) fill(ema5p,ema6p, color = color.new(UptrendCol_DowntrendCol, 40)) //Conditons FastEma_above_SlowEma = emaFast > emaSlow FastEma_below_SlowEma = emaFast < emaSlow emaCrossEvent = ta.crossover(emaFast, emaSlow) or ta.crossover(emaSlow, emaFast) //------------------------------------------------------------------------------------------------------------------------------------------------------------------------ //------------------------------------------------------------------------------------------------------------------------------------------------------------------------ //Trade Cap per EMA X //Inputs MaxTrades_PerCross_Checkbox = input.bool(true, "Limit Trades Per Cross", group = "Filters") TrdCount = 0//Variable that keeps current trade count if(TrdCount[1] > 0)//Passes variable on to current candle TrdCount := TrdCount[1] //Reset trade count if EMAs X emaXevent = ta.crossover(emaFast, emaSlow) or ta.crossover(emaSlow, emaFast) // Check for EMA cross if(emaXevent) TrdCount := 0 //Conditions MaxTrades = input.int(6) IsMaxTrades_BelowCap = TrdCount[1] < MaxTrades //Condition that applies max trade count if(not MaxTrades_PerCross_Checkbox) IsMaxTrades_BelowCap := true //------------------------------------------------------------------------------------------------------------------------------------------------------------------------ //------------------------------------------------------------------------------------------------------------------------------------------------------------------------ //STRATEGY LOGIC //Parameters TakeProfitInput = input.float(0.0135, title = "Take Profit %", group = "TP/SL") StopLossInput = input.float(0.011, title = "Stop Loss %", group = "TP/SL") //TP/SL calculations Long_takeProfit = close * (1 + TakeProfitInput) Long_stopLoss = close * (1 - StopLossInput) Short_takeProfit = close * (1 - TakeProfitInput) Short_stopLoss = close * (1 + StopLossInput) //LONG and Short LongConditionPt1 = close > emaSlow and MACDisBelowBand and sig > ADXfilterlevel LongConditionPt2 = FastEma_above_SlowEma and IsMaxTrades_BelowCap and strategy.position_size == 0 //Checks if Rsi Inbetween Lines LongConditionPt3 = rsiWeighted < RsiTopInput and rsiWeighted > RsiBotInput ShortConditionPt1 = close < emaSlow and MACDisAboveBand and sig > ADXfilterlevel ShortConditionPt2 = FastEma_below_SlowEma and IsMaxTrades_BelowCap and strategy.position_size == 0 //Checks if Rsi Inbetween Lines ShortConditionPt3 = rsiWeighted < RsiTopInput and rsiWeighted > RsiBotInput // longCondition = FastEma_above_SlowEma and MACDisBelowBand and IsMaxTrades_BelowCap and rsiWeighted < RsiTopInput and strategy.position_size == 0 longCondition = LongConditionPt1 and LongConditionPt2 and LongConditionPt3 if(longCondition) strategy.entry("long", strategy.long) strategy.exit("exit", "long", limit = Long_takeProfit, stop = Long_stopLoss) TrdCount := TrdCount + 1//ADD to Max Trades Count alert("Go Long with TP at" + str.tostring(Long_takeProfit) + "and SL at" + str.tostring(Long_stopLoss), alert.freq_once_per_bar_close) shortCondition = ShortConditionPt1 and ShortConditionPt2 and ShortConditionPt3 if(shortCondition ) strategy.entry("short", strategy.short) strategy.exit("exit", "short", limit = Short_takeProfit, stop = Short_stopLoss) TrdCount := TrdCount + 1 //ADD to Max Trades Count alert("Go Short with TP at" + str.tostring(Short_takeProfit) + "and SL at" + str.tostring(Short_stopLoss), alert.freq_once_per_bar_close)template: strategy.tpl:40:21: executing "strategy.tpl" at <.api.GetStrategyListByName>: wrong number of args for GetStrategyListByName: want 7 got 6