Signalgo Strategy I

Signalgo Strategy I: Technical Overview

Signalgo Strategy I is a systematically engineered TradingView strategy script designed to automate, test, and manage trend-following trades using multi-timeframe price/volume logic, volatility-based targets, and multi-layered exit management. This summary covers its operational structure, user inputs, entry and exit methodology, unique technical features, and practical application.

Core Logic and Workflow
Multi-Timeframe Data Synthesis
User-Defined Timeframe: The user chooses a timeframe (e.g., 1H, 4H, 1D, etc.), on which all strategy signals are based.

Cross-Timeframe Inputs: The strategy imports closing price, volume, and Average True Range (ATR) for the selected interval, independently from the chart’s native timeframe, enabling robust multi-timeframe analysis.

Price Change & Volume Ratio: It calculates the percent change of price per bar and computes a volume ratio by comparing current volume to its 20-bar moving average—enabling detection of true “event” moves vs. normal market noise.

Hype Filtering
Anti-Hype Mechanism: An entry is automatically filtered out if abnormal high volume occurs without corresponding price movement, commonly observed during manipulation or announcement periods. This helps isolate genuine market-driven momentum.

User Inputs
Select Timeframe: Choose which interval drives signal generation.

Backtest Start Date: Specify from which date historical signals are included in the strategy (for precise backtests).

Take-Profit/Stop-Loss Configuration: Internally, risk levels are set as multiples of ATR and allow for three discrete profit targets.

Entry Logic

Trade Signal Criteria:

Price change magnitude in the current bar must exceed a fixed sensitivity threshold.

Volume for the bar must be significantly elevated compared to average, indicating meaningful participation.

Anti-hype check must not be triggered.

Bullish/Bearish Determination: If all conditions are met and price change direction is positive, a long signal triggers. If negative, a short signal triggers.

Signal Debouncing: Ensures a signal triggers only when a new condition emerges, avoiding duplicate entries on flat or choppy bars.

State Management: The script tracks whether an active long or short is open to avoid overlapping entries and to facilitate clean reversals.

Exit Strategy

Take-Profits: Three distinct profit targets (TP1, TP2, TP3) are calculated as fixed multiples of the ATR-based stop loss, adapting dynamically to volatility.

Reversals: If a buy signal appears while a short is open (or vice versa), the existing trade is closed and reversed in a single step.

Time-Based Exit: If, 49 bars after entry, the trade is in-profit but hasn’t reached TP1, it exits to avoid stagnation risk.

Adverse Move Exit: The position is force-closed if it suffers a 10% reversal from entry, acting as a catastrophic stop.

Visual Feedback: Each TP/SL/exit is plotted as a clear, color-coded line on the chart; no hidden logic is used.

Alerts: Built-in TradingView alert conditions allow automated notification for both entries and strategic exits.

Distinguishing Features vs. Traditional MA Strategies
Event-Based, Not Just Slope-Based: While classic moving average strategies enter trades on MA crossovers or slope changes, Signalgo Strategy I demands high-magnitude price and volume confirmation on the chosen timeframe.

Volume Filtering: Very few MA strategies independently filter for meaningful volume spikes.

Real Market Event Focus: The anti-hype filter differentiates organic market trends from manipulated “high-volume, no-move” sessions.

Three-Layer Exit Logic: Instead of a single trailing stop or fixed RR, this script manages three profit targets, time-based closures, and hard adverse thresholds.

Multi-Timeframe, Not Chart-Dependent: The “main” analytical interval can be set independently from the current chart, allowing for in-depth cross-timeframe backtests and system runs.

Reversal Handling: Automatic handling of signal reversals closes and flips positions precisely, reducing slippage and manual error.

Persistent State Tracking: Maintains variables tracking entry price, trade status, and target/stop levels independently of chart context.

Trading Application

Strategy Sandbox: Designed for robust backtesting, allowing users to simulate performance across historical data for any major asset or interval.

Active Risk Management: Trades are consistently managed for both fixed interval “stall” and significant loss, not just via trailing stops or fixed-day closes.

Alert Driven: Can power algorithmic trading bots or notify discretionary traders the moment a qualifying market event occurs.