Silver Futures Adaptive Strategy 1-18-20261. Hybrid Trading Logic
The strategy doesn't rely on a single method; instead, it switches between three distinct entry archetypes depending on market conditions:
Trend Following: Activated when ADX is high. It looks for "Golden Crosses" (EMA 21/50) confirmed by a long-term 200 EMA filter.
Breakout: Enters when the price exceeds the 20-period highest high or lowest low, provided there is a "Volume Spike" to confirm the move.
Mean Reversion: Activated when ADX is low (ranging market). It uses Bollinger Bands and RSI to buy oversold dips or sell overbought peaks.
2. Key Technical Indicators
The strategy uses a robust stack of indicators to filter out "noise":
ADX (Average Directional Index): Acts as the "brain" that determines if the market is trending (ADX > 20) or ranging.
Triple EMA Filter: Uses 21, 50, and 200 EMAs to ensure trades are only taken in the direction of the dominant trend.
Volume Filter: Requires volume to be 20% higher than the 20-period average to validate an entry, preventing "fake-outs."
Silver-Adjusted ATR: Calculates volatility specifically for Silver, applying a 1.2x multiplier to account for the metal's unique price action.
3. Advanced Risk Management
The strategy is built for execution with the following safeguards:
Dynamic Stops/TP: Stop losses and take profits are not fixed dollar amounts; they are based on ATR (Average True Range), meaning they widen during high volatility and tighten during low volatility.
Trailing Stop: Includes an optional trailing stop feature to lock in profits as the trade moves in your favor.
Position Sizing: Defaults to 10% of equity per trade with a maximum of 3 "pyramiding" entries (scaling into a winning position).
4. Automation & UI Features
JSON Alert Messages: The script generates machine-readable JSON alerts. This makes it "plug-and-play" for automated trading bots, sending the action, price, SL, and TP in a single message.
Dashboard Info Panel: A table on the top-right of the chart displays real-time data:
Market State: Trending vs. Ranging.
Live Stats: Current ADX, RSI, and ATR values.
Visual Cues: It plots support/resistance steplines and labels entries with green/red triangles for easy backtesting.
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