PROTECTED SOURCE SCRIPT
Alpha Protocol v2 [High Precision] - Trend Following & Momentum
Description: This strategy is designed for swing traders operating in the NSE (National Stock Exchange) or other high-volume equity markets. It utilizes a classic Trend Following approach filtered by institutional liquidity requirements and momentum confirmation.
The Core Philosophy: The "Alpha Protocol" is built on the premise that the strongest moves occur when price action aligns with the primary trend, supported by volume and volatility contraction. It aims to capture the "meat" of the move while strictly limiting downside risk.
Technical Architecture:
*RSI (14): Must be in the bullish zone (55-75) but not overheated.*
*MACD: Requires a bullish crossover or positive histogram expansion.*
ADX: Must be > 20 to ensure we are not trading in a choppy/sideways market.
Liquidity Filter: To ensure realistic execution, the script requires a minimum daily turnover (Price * Volume) of ₹5 Crores (configurable).
Price Action: Entries are triggered on a breakout of the 20-day high, confirmed by a strong close in the upper 30% of the daily range.
Risk Management (Hard Coded):
Instructions for Use:
Timeframe: Daily (D) is recommended.
Universe: Liquid Mid-caps and Large-caps (Nifty 500).
Alerts: This script is alert-compatible. Use the "Alert() function calls" option to receive precise Entry, Stop, and Target prices on your device.
Disclaimer: This script is for educational and backtesting purposes only. Past performance does not guarantee future results.
The Core Philosophy: The "Alpha Protocol" is built on the premise that the strongest moves occur when price action aligns with the primary trend, supported by volume and volatility contraction. It aims to capture the "meat" of the move while strictly limiting downside risk.
Technical Architecture:
- Trend Filter: The strategy only takes long positions when the 50-DMA is above the 200-DMA, and the 200-DMA slope is positive (rising).
- Momentum triggers:
*RSI (14): Must be in the bullish zone (55-75) but not overheated.*
*MACD: Requires a bullish crossover or positive histogram expansion.*
ADX: Must be > 20 to ensure we are not trading in a choppy/sideways market.
Liquidity Filter: To ensure realistic execution, the script requires a minimum daily turnover (Price * Volume) of ₹5 Crores (configurable).
Price Action: Entries are triggered on a breakout of the 20-day high, confirmed by a strong close in the upper 30% of the daily range.
Risk Management (Hard Coded):
- Stop Loss: Placed at the recent 10-day Swing Low.
- Circuit Breaker: If the Swing Low is more than 5% away from the entry price, the trade is ignored (Capital Protection Rule).
- Profit Target: Dynamic 1:2 Risk-Reward Ratio.
Instructions for Use:
Timeframe: Daily (D) is recommended.
Universe: Liquid Mid-caps and Large-caps (Nifty 500).
Alerts: This script is alert-compatible. Use the "Alert() function calls" option to receive precise Entry, Stop, and Target prices on your device.
Disclaimer: This script is for educational and backtesting purposes only. Past performance does not guarantee future results.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.