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//@version=5
strategy("EMA Pullback & Continuation", overlay=true, initial_capital=1000, default_qty_type=strategy.percent_of_equity, default_qty_value=10)

// --- Inputs ---
emaFastLen = input.int(20, title="Fast EMA (Pullback Target)")
emaSlowLen = input.int(50, title="Slow EMA (Trend Direction)")
emaTrendLen = input.int(200, title="200 EMA (Macro Trend Filter)")
swingLookback = input.int(5, title="Swing High/Low Lookback (Stops)")
riskReward = input.float(2.0, title="Risk/Reward Ratio")

// --- Indicators ---
emaFast = ta.ema(close, emaFastLen)
emaSlow = ta.ema(close, emaSlowLen)
emaTrend = ta.ema(close, emaTrendLen)

plot(emaFast, color=color.new(color.blue, 0), title="20 EMA")
plot(emaSlow, color=color.new(color.orange, 0), title="50 EMA")
plot(emaTrend, color=color.new(color.gray, 50), title="200 EMA")

// --- Market Structure & Trend Filters ---
// Ensure price and moving averages are stacked in the direction of the trend
bullishTrend = close > emaTrend and emaFast > emaSlow
bearishTrend = close < emaTrend and emaFast < emaSlow

// --- Pullback & Conviction Logic ---
// Long: Price touches or dips below 20 EMA, but closes above it. 
// Conviction: Candle is bullish and body makes up more than 50% of the total candle range.
pulledBackLong = low <= emaFast and close > emaFast
bullishConviction = (close > open) and ((close - open) / (high - low) > 0.5)
longCondition = bullishTrend and pulledBackLong and bullishConviction

// Short: Price touches or spikes above 20 EMA, but closes below it.
// Conviction: Candle is bearish and body makes up more than 50% of the total candle range.
pulledBackShort = high >= emaFast and close < emaFast
bearishConviction = (open > close) and ((open - close) / (high - low) > 0.5)
shortCondition = bearishTrend and pulledBackShort and bearishConviction

// --- Execution & Risk Management ---
var float stopLoss = na
var float takeProfit = na

// Long Entry
if longCondition and strategy.position_size == 0
    // Stop loss placed at the lowest low of the last N candles
    stopLoss := ta.lowest(low, swingLookback)
    // Calculate risk to project the take profit target
    risk = close - stopLoss
    takeProfit := close + (risk * riskReward)
    
    strategy.entry("Long", strategy.long)
    strategy.exit("Exit Long", "Long", stop=stopLoss, limit=takeProfit)

// Short Entry
if shortCondition and strategy.position_size == 0
    // Stop loss placed at the highest high of the last N candles
    stopLoss := ta.highest(high, swingLookback)
    // Calculate risk to project the take profit target
    risk = stopLoss - close
    takeProfit := close - (risk * riskReward)
    
    strategy.entry("Short", strategy.short)
    strategy.exit("Exit Short", "Short", stop=stopLoss, limit=takeProfit)

Code: Select all

//@version=5
strategy("EMA Pullback & Trailing Continuation", overlay=true, initial_capital=1000, default_qty_type=strategy.percent_of_equity, default_qty_value=10)

// --- Inputs ---
emaFastLen = input.int(20, title="Fast EMA (Pullback Target)")
emaSlowLen = input.int(50, title="Slow EMA (Trend Direction)")
emaTrendLen = input.int(200, title="200 EMA (Macro Trend Filter)")
swingLookback = input.int(5, title="Swing High/Low Lookback (Initial Stop)")

// New Inputs for Trailing Stop
trailAtrMult = input.float(2.5, title="Trailing ATR Multiplier")
atrLen = input.int(14, title="ATR Length")

// --- Indicators ---
emaFast = ta.ema(close, emaFastLen)
emaSlow = ta.ema(close, emaSlowLen)
emaTrend = ta.ema(close, emaTrendLen)
atr = ta.atr(atrLen)

plot(emaFast, color=color.new(color.blue, 0), title="20 EMA")
plot(emaSlow, color=color.new(color.orange, 0), title="50 EMA")
plot(emaTrend, color=color.new(color.gray, 50), title="200 EMA")

// --- Market Structure & Trend Filters ---
bullishTrend = close > emaTrend and emaFast > emaSlow
bearishTrend = close < emaTrend and emaFast < emaSlow

// --- Pullback & Conviction Logic ---
pulledBackLong = low <= emaFast and close > emaFast
bullishConviction = (close > open) and ((close - open) / (high - low) > 0.5)
longCondition = bullishTrend and pulledBackLong and bullishConviction

pulledBackShort = high >= emaFast and close < emaFast
bearishConviction = (open > close) and ((open - close) / (high - low) > 0.5)
shortCondition = bearishTrend and pulledBackShort and bearishConviction

// --- Execution & Risk Management ---
var float stopLoss = na

// 1. Initial Entries and Market Structure Stop Placement
if longCondition and strategy.position_size == 0
    stopLoss := ta.lowest(low, swingLookback)
    strategy.entry("Long", strategy.long)
    strategy.exit("Exit Long", "Long", stop=stopLoss)

if shortCondition and strategy.position_size == 0
    stopLoss := ta.highest(high, swingLookback)
    strategy.entry("Short", strategy.short)
    strategy.exit("Exit Short", "Short", stop=stopLoss)

// 2. Dynamic ATR Trailing Logic (Executes only while in an active trade)
if strategy.position_size > 0
    // Calculate trail level from the current highest point
    trailLevel = high - (atr * trailAtrMult)
    // Ratchet Mechanism: Stop loss can only move UP, never down
    if trailLevel > stopLoss
        stopLoss := trailLevel
    // Continually update the exit order with the new stop
    strategy.exit("Exit Long", "Long", stop=stopLoss)

if strategy.position_size < 0
    // Calculate trail level from the current lowest point
    trailLevel = low + (atr * trailAtrMult)
    // Ratchet Mechanism: Stop loss can only move DOWN, never up
    if trailLevel < stopLoss
        stopLoss := trailLevel
    // Continually update the exit order with the new stop
    strategy.exit("Exit Short", "Short", stop=stopLoss)

// 3. Visual Feedback for the Trailing Stop
plot(strategy.position_size != 0 ? stopLoss : na, color=color.fuchsia, style=plot.style_linebr, linewidth=2, title="Active Trailing Stop")