Risk Management Strategy Template

10 Sep 2022

This strategy is intended to be used as a base template for building new strategies.

It incorporates the following features:

Risk management:

• Configurable X% loss per stop loss
  
• Configurable R:R ratio
  

Trade entry:

• Calculated position size based on risk tolerance
  

Trade exit:

• Stop Loss currently configurable ATR multiplier but can be replaced based on strategy
  
• Take Profit calculated from Stop Loss using R:R ratio
  

Backtesting:

• Configurable backtesting range by date
  

Trade drawings:

• TP/SL boxes drawn for all trades. Can be turned on and off
  
• Trade exit information labels. Can be turned on and off
  
• NOTE: Trade drawings will only be applicable when using overlay strategies
  

Debugging:

• Includes section with useful debugging techniques
  

Strategy conditions

Trade entry:
LONG

• C1: Price is above EMA line
  
• C2: RSI is crossing out of oversold area
  

SHORT

• C1: Price is below EMA line
  
• C2: RSI is crossing out of overbought area
  

Trade exit:

• Stop Loss: Stop Loss ATR multiplier is hit
  
• Take Profit: R:R multiplier * Stop Loss is hit
  

The idea is to use RSI to catch pullbacks within the main trend.

Note that this strategy is intended to be a simple base strategy for building upon. It was not designed to be traded in its current form.