The Barking Rat PRO

The Barking Rat PRO is designed around high/low pivot structure to capture meaningful market reversals. It intelligently identifies turning points by combining higher high/lower low (HH/LL) pivot detection, Fair Value Gap (FVG) confirmation, volatility-aware filters, and momentum checks. Unique features, such as a one-bar flip handler and a contextual ribbon overlay, provide traders with both clarity and precision. These tools help isolate high-probability setups while filtering out low-conviction signals, making trade opportunities easier to spot and act upon.




🧠 Core Logic: Structure-First, Filtered Reversals
The strategy takes a methodical, disciplined approach, prioritizing structural pivots over random signals. By layering multiple validation checks—structural pivots, gap confirmation, volatility filters, and momentum alignment—it highlights trades with high conviction while reducing exposure to noisy market conditions. The result is a clear, repeatable framework for reversal trading that can be applied across timeframes.

HH/LL Pivot Framework
Trades are triggered based on simple structural pivots: higher highs (HH) and lower lows (LL). When a structure flip occurs, the strategy either opens a new position or executes a one-bar delayed flip if an opposing position already exists. This ensures smooth transitions and avoids premature entries on minor market swings, keeping trading decisions focused on meaningful trend shifts.

Volatility & Distance Filters
To avoid low-quality trades, entries are validated against relative volatility, ensuring that pivots represent significant market movement. Trades must also be sufficiently spaced from previous entries and separated by a minimum number of bars, which prevents overtrading and clustered signals that can dilute performance.

Momentum Filter (RSI)
The strategy optionally aligns entries with momentum conditions using RSI. Long trades are favored when RSI is relatively low, suggesting potential exhaustion on the downside, while short trades are favored when RSI is relatively high, indicating potential overextension on the upside. This additional layer improves timing, helping traders avoid entering against strong, ongoing momentum.

Background Ribbon (Contextual Visuals)
A translucent ribbon overlays the chart to provide visual context of active trades. The ribbon displays volatility envelopes and position direction: green for long trades, red for short trades. It enhances clarity by giving traders a quick visual reference of the market environment without cluttering the chart.

Why These Parameters Were Chosen
The strategy focuses only on structurally meaningful pivots to ensure high-conviction trades.
Volatility filters confirm that trade signals are significant relative to recent price action, while FVG confirmation captures institutional-style imbalances.
Momentum and spacing rules prevent low-quality entries and overtrading, while the one-bar flip handler ensures seamless transitions when the structure reverses.
Ribbon overlays provide intuitive, real-time visualization of active trades and market context.

📈 Chart Visuals: Clear & Intuitive
- Green “▲” below a candle: Long entry triggered on LL → HH structure flip
- Red “▼” above a candle: Short entry triggered on HH → LL structure flip
- Translucent Ribbon: Green when long, Red when short

🔔 Alerts: Stay Notified Without Watching
The strategy supports real-time alerts on candle close, ensuring that only fully confirmed signals trigger notifications.

You must manually configure alerts within your TradingView account. Once set up, a single alert per instrument covers all relevant entries and exits, making hands-free monitoring simple and efficient.

⚙️ Strategy Report Properties

• Position size: 25% of equity per trade
  
• Initial capital: 10,000.00 USDT
  
• Pyramiding: 25 entries per direction
  
• Slippage: 2 ticks
  
• Commission: 0.055% per side
  
• Backtest timeframe: 1-minute
  
• Backtest instrument: HYPEUSDT
  
• Backtesting range: Aug 11, 2025 — Aug 28, 2025

💡Why 25% Equity Per Trade?
While it's always best to size positions based on personal risk tolerance, we defaulted to 25% equity per trade in the backtesting data — and here’s why:

1. Backtests using this sizing show manageable drawdowns even under volatile periods
   
2. The strategy generates a sizeable number of trades, reducing reliance on a single outcome
   
3. Combined with conservative filters, the 25% setting offers a balance between aggression and control
   
4. Users are strongly encouraged to customize this to suit their risk profile.

🔍 What Makes This Strategy Unique?
HH/LL Pivot Focus: Trades pivot structure flips instead of relying on generic indicators.

Fair Value Gap Confirmation: Only pivots supported by FVGs are acted upon, reducing noise.

One-Bar Flip Handler: Ensures clean transitions when the structure reverses, avoiding same-bar conflicts.

Volatility & Spacing Filters: Trades require sufficient movement from prior entries and minimum bar spacing to maintain quality.

Momentum-Aware Entries: RSI alignment favors entries near potential exhaustion points, improving signal reliability.

Contextual Ribbon Overlay: Visualizes volatility and active positions clearly, without cluttering the chart.