Profitable Pullback Strategy Mark804📝 Strategy Description: Pullback Trading Strategy v2.0 by Mark804
Overview
This strategy is a refined, trend-following pullback system designed to identify high-probability entry points within an established trend. Based on **EMA stacking**, it captures short-term retracements (pullbacks) in the direction of the larger trend. It has been fully updated to **Pine Script v5** with dynamic inputs, clear visualization, backtesting functionality, and risk management via stop loss and take profit.
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🔧 How It Works
1. **Trend Detection**
The strategy first identifies a trend using a combination of four EMAs:
* **Fast EMA**
* **Signal EMA**
* **Medium EMA**
* **Slow EMA** (optional filter)
A valid trend is defined by **EMA stacking**:
* **Uptrend**: Fast > Signal > Medium (> Slow, if enabled)
* **Downtrend**: Fast < Signal < Medium (< Slow, if enabled)
This ensures the strategy trades **only in the direction of the dominant trend**, avoiding countertrend setups.
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2. **Pullback Entry Conditions**
The strategy looks for pullbacks (retracements) within the confirmed trend:
*Buy Setup (Long Pullback)**:
* In an uptrend
* Price **closes below** the Signal EMA on the previous bar
* Then **closes back above** the Signal EMA on the current bar
* **Sell Setup (Short Pullback)**:
* In a downtrend
* Price **closes above** the Signal EMA on the previous bar
* Then **closes back below** the Signal EMA on the current bar
These conditions aim to enter on price dips or rallies that offer better entries while staying aligned with trend momentum.
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3. **Entry & Exit Logic**
When a pullback signal is detected:
* A **market order** is placed in the trend direction
* A **take profit** and **stop loss** is applied immediately based on percentage inputs
Example:
* Take Profit: 2% above entry (for long)
* Stop Loss: 1% below entry (for long)
This creates a favorable **risk-to-reward ratio** and clear exit strategy.
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4. **Customizable Inputs**
All key parameters can be tuned via the script’s settings panel:
* `maSrc`: Source for EMAs (default: `close`)
* `fastLen`, `signalLen`, `mediumLen`, `slLen`: EMA lengths
* `slEnabled`: Toggle to include the slow EMA as a trend filter
* `takeProfitPct`, `stopLossPct`: % values for TP and SL
* `showRibbon`: Toggle visibility of EMA lines (the "ribbon")
This flexibility allows optimization for different timeframes, assets, or market conditions.
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5. **Visuals & Alerts**
* **EMA Ribbon**: Optionally plots all 4 EMAs in distinct colors
* **Alerts**: Configurable alerts for both Buy and Sell pullback signals
* **Strategy Tester**: Fully compatible with TradingView’s backtester to review performance
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✅ Key Features
* Pine Script **v5** compatible
* Simple yet powerful **trend-pullback strategy**
* Built-in **risk management** (TP/SL)
* Highly **customizable** and easy to optimize
* Works on **any timeframe or market** (stocks, crypto, forex, etc.)
* Optional **EMA Ribbon** and slow filter for visual context
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📊 Strategy Use Cases
* Intraday trading
* Swing trading
* Trend continuation setups
* Building automated systems in TradingView
* Manual trade confirmation for other systems
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⚙️ Example Settings
| Parameter | Value |
| ----------------- | --------- |
| Fast EMA Length | 8 |
| Signal EMA Length | 13 |
| Medium EMA Length | 21 |
| Slow EMA Length | 55 |
| Take Profit (%) | 2.0 |
| Stop Loss (%) | 1.0 |
| Use Slow EMA | ✅ Enabled |
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📌 Important Notes
* This is a **trend-following strategy**. Best results occur in trending markets.
* In sideways or choppy markets, false signals may occur. Consider using higher timeframes or combining with volume filters.
* You can expand this strategy further by integrating:
* Multi-timeframe trend confirmation
* Additional filters (e.g. RSI, MACD)
* Trailing stop loss for dynamic exits
* Visual overlays (e.g. pivot points, fractals) for added context
