INVITE-ONLY SCRIPT
QV 1W/1M 2BX & FVB Strategy
Use on Weekly Timeframe
### Overview of the Strategy
The "QV 1W/1M 2BX & FVB Strategy" is a TradingView Pine Script (version 5) strategy designed for trend-following trading on financial instruments like stocks, forex, or cryptocurrencies. It supports both long and short directions (user-selectable via input), with a focus on multi-timeframe momentum analysis using custom oscillators (called "Xtrender"), a volatility-based trailing line (Red ATR), Fair Value Bands (FVB) for deviation-based targets, and Break of Structure (BOS) for invalidation. The strategy allows pyramiding (adding to positions) and includes multiple exit mechanisms, including full exits and partial scale-outs. It's optimized for higher timeframes like weekly (1W) and monthly (1M) by default, but can be customized.
The strategy overlays indicators on the chart but runs in a non-overlay mode for its own panel (showing histograms). It uses 5% of equity per trade by default, with pyramiding limited to one additional entry (effectively doubling the position). It incorporates risk management through ATR-based stops and band deviations, and provides alerts for key events like band touches or BOS breaks.
The name likely refers to:
- **1W/1M**: Default timeframes for the two Xtrender oscillators.
- **2BX**: Dual "B-Xtrender" oscillators (short-term on two timeframes).
- **FVB**: Fair Value Bands for scaling out.
It assumes good intent for directional trading and doesn't enforce drawdown limits beyond the exits.
### Key Indicators and Calculations
The strategy relies on several custom indicators to generate signals:
1. **Short-Term Xtrender Oscillators**:
- These are momentum indicators based on RSI of the difference between two EMAs (Exponential Moving Averages), shifted by -50 to center around zero.
- **TF1 (e.g., 1W)**: Calculated as `RSI(EMA(close, short_l1) - EMA(close, short_l2), short_l3) - 50`, fetched from the specified timeframe.
- **TF2 (e.g., 1M)**: Same formula, but on a higher timeframe for broader trend confirmation.
- A combined version sums them for potential use, but the strategy primarily uses them separately.
- Plotted as histograms: Green shades for positive/upward momentum (brighter for 2-bar increases or zero crosses), red shades for negative/downward.
- TF2 direction persists across bars to detect if it's increasing or decreasing.
2. **Long-Term Xtrender**:
- Simpler RSI of an EMA: `RSI(EMA(close, long_l1), long_l2)`.
- Not directly used in entries/exits in this script (possibly a remnant or for visualization).
3. **Red ATR Line**:
- A volatility-based trailing line, similar to SuperTrend.
- Calculated using ATR (Average True Range) over a length (default 10), multiplied by a factor (default 2.5).
- It flips direction based on price closes above/below the previous line value, creating an upper/lower bound.
- Plotted as a red line on the price chart (overlay=true).
- Used for entries (pyramiding on cross), exits (full exit on adverse cross), and conditional checks.
4. **Fair Value Bands (FVB)**:
- Based on a smoothed "fair price" (SMA of OHLC4 over fair_value_length, default 33).
- Calculates median deviations from this fair price using historical high/low spreads and pivot highs/lows.
- Creates three upper bands (for longs) and three lower bands (for shorts) at multipliers (0.6x, 1.0x, 1.4x by default).
- Upper bands: Fair price + deviation spreads (boosted for pivots outside bands).
- Lower bands: Fair price - deviation spreads.
- Plotted in yellow/orange/red gradients, visible only for the selected direction.
- Used for scale-out exits and re-entry conditions after full exits.
5. **Break of Structure (BOS)**:
- Tracks the last swing low (for longs) or swing high (for shorts) using pivotlow/pivothigh over 5 bars left/right.
- Plotted as a white line if enabled.
- Acts as a support/resistance level for invalidation exits.
6. **2-Bar Conditions**:
- For longs: TF1 Xtrender red (below 0) and decreasing for two consecutive bars.
- For shorts: TF1 Xtrender green (above 0) and increasing for two consecutive bars.
- Used for adverse momentum exits.
7. **Other Checks**:
- TF1 cross above/below zero.
- Large changes in TF1 Xtrender (greater than exit_amount, default 40).
A custom T3 (Tillson T3) smoothing function is defined but not used in the visible code—possibly for future extensions.
### How the Strategy Works: Entries
The strategy enters positions based on momentum alignment across timeframes, with safeguards to avoid re-entering immediately after full exits.
- **Direction Selection**:
- User chooses "Long" or "Short" via input. The strategy only trades in that direction.
- **Main Entry** (if enabled):
- **For Longs**:
- TF2 Xtrender is increasing (change > 0) or above a threshold (default 10).
- TF1 Xtrender is increasing (current > previous).
- No existing long position (position_size <= 0).
- If previously fully exited a long, price must be <= 2x upper band (upper2) to re-enter.
- **For Shorts**:
- TF2 Xtrender is decreasing (change < 0) or below -threshold.
- TF1 Xtrender is decreasing (current < previous).
- No existing short position (position_size >= 0).
- If previously fully exited a short, price must be >= 2x lower band (lower2) to re-enter.
- Entry size: 5% of equity (default).
- **Pyramiding** (if enabled):
- Adds one more entry (doubling the position) when price crosses the Red ATR line in the favorable direction.
- For longs: Crossover above Red ATR.
- For shorts: Crossunder below Red ATR.
- Tracks initial quantity to ensure only one add-on per trade cycle.
- Pyramiding limit: 1 (as set in strategy declaration).
Upon entry, it records the initial position size, resets flags for scaling/exiting, and sets the BOS level (last swing low/high).
### How the Strategy Works: Exits
Exits are modular, with toggles for each type. Full exits set a "has_fully_exited" flag to prevent immediate re-entries until price retraces to the 2x band. Partial scale-outs (50%) can repeat unlimited times if price oscillates around bands.
- **Full Exits** (close entire position, mark as fully exited):
1. **ATR Exit** (if enabled): Adverse cross of Red ATR (e.g., close below for longs).
2. **2-Bar Exit** (if enabled): Adverse 2-bar momentum in TF1, and price below/above Red ATR (e.g., red and decreasing for longs).
3. **TF1 Below/Above Zero Exit** (if enabled): TF1 crosses zero adversely, only if price is on the wrong side of Red ATR.
4. **Large TF1 Change Exit** (if enabled): Adverse large drop/rise in TF1 (> exit_amount).
5. **BOS Exit** (if enabled): Price crosses BOS level adversely (e.g., below swing low for longs).
6. **3x Band Exit** (if enabled): Price crosses above 3x band (for longs) or below (for shorts), but waits for a cross back inside to exit fully.
- **Partial Scale-Outs** (50% of current position, repeatable):
1. **1x Band** (if enabled): Cross above 1x upper (longs) or below 1x lower (shorts), then cross back inside.
2. **2x Band** (if enabled): Similar logic for 2x bands.
Exits use waiting flags to detect the full cross-and-return cycle, ensuring they trigger only after touching and retreating from the band.
### Alerts
- **Band Touch Alerts** (if enabled): Triggers on price touching any 1x/2x/3x upper/lower band from above or below (real-time, freq_all).
- **BOS Touch Alert** (if enabled): Price touches BOS level from adverse side.
- **BOS Cross Alert** (if enabled and BOS exit on): Price crosses and closes beyond BOS (once per bar close).
- Alerts reset per new bar to allow multiple triggers if conditions recur.
### Additional Notes
- **State Management**: Uses `var` variables for persistent states like TF2 direction, swing levels, position tracking, and alert flags.
- **Visualization**: Histograms for Xtrenders, lines for Red ATR, Fair Value (blue middle), bands (colored), and BOS (white).
- **Customization**: All key params (lengths, multis, thresholds) are inputs. Disabling features simplifies the strategy.
- **Limitations**: No built-in stop-loss beyond BOS/ATR; relies on equity percent sizing. Assumes chart timeframe is lower than TF1/TF2 for security requests.
- **Performance**: Backtesting would depend on the asset and settings—e.g., works best in trending markets due to momentum filters.
This strategy combines trend confirmation (multi-TF oscillators), volatility trailing (Red ATR), and deviation targets (FVB) for a balanced approach to capturing moves while scaling out profits and cutting losses on reversals.
### Overview of the Strategy
The "QV 1W/1M 2BX & FVB Strategy" is a TradingView Pine Script (version 5) strategy designed for trend-following trading on financial instruments like stocks, forex, or cryptocurrencies. It supports both long and short directions (user-selectable via input), with a focus on multi-timeframe momentum analysis using custom oscillators (called "Xtrender"), a volatility-based trailing line (Red ATR), Fair Value Bands (FVB) for deviation-based targets, and Break of Structure (BOS) for invalidation. The strategy allows pyramiding (adding to positions) and includes multiple exit mechanisms, including full exits and partial scale-outs. It's optimized for higher timeframes like weekly (1W) and monthly (1M) by default, but can be customized.
The strategy overlays indicators on the chart but runs in a non-overlay mode for its own panel (showing histograms). It uses 5% of equity per trade by default, with pyramiding limited to one additional entry (effectively doubling the position). It incorporates risk management through ATR-based stops and band deviations, and provides alerts for key events like band touches or BOS breaks.
The name likely refers to:
- **1W/1M**: Default timeframes for the two Xtrender oscillators.
- **2BX**: Dual "B-Xtrender" oscillators (short-term on two timeframes).
- **FVB**: Fair Value Bands for scaling out.
It assumes good intent for directional trading and doesn't enforce drawdown limits beyond the exits.
### Key Indicators and Calculations
The strategy relies on several custom indicators to generate signals:
1. **Short-Term Xtrender Oscillators**:
- These are momentum indicators based on RSI of the difference between two EMAs (Exponential Moving Averages), shifted by -50 to center around zero.
- **TF1 (e.g., 1W)**: Calculated as `RSI(EMA(close, short_l1) - EMA(close, short_l2), short_l3) - 50`, fetched from the specified timeframe.
- **TF2 (e.g., 1M)**: Same formula, but on a higher timeframe for broader trend confirmation.
- A combined version sums them for potential use, but the strategy primarily uses them separately.
- Plotted as histograms: Green shades for positive/upward momentum (brighter for 2-bar increases or zero crosses), red shades for negative/downward.
- TF2 direction persists across bars to detect if it's increasing or decreasing.
2. **Long-Term Xtrender**:
- Simpler RSI of an EMA: `RSI(EMA(close, long_l1), long_l2)`.
- Not directly used in entries/exits in this script (possibly a remnant or for visualization).
3. **Red ATR Line**:
- A volatility-based trailing line, similar to SuperTrend.
- Calculated using ATR (Average True Range) over a length (default 10), multiplied by a factor (default 2.5).
- It flips direction based on price closes above/below the previous line value, creating an upper/lower bound.
- Plotted as a red line on the price chart (overlay=true).
- Used for entries (pyramiding on cross), exits (full exit on adverse cross), and conditional checks.
4. **Fair Value Bands (FVB)**:
- Based on a smoothed "fair price" (SMA of OHLC4 over fair_value_length, default 33).
- Calculates median deviations from this fair price using historical high/low spreads and pivot highs/lows.
- Creates three upper bands (for longs) and three lower bands (for shorts) at multipliers (0.6x, 1.0x, 1.4x by default).
- Upper bands: Fair price + deviation spreads (boosted for pivots outside bands).
- Lower bands: Fair price - deviation spreads.
- Plotted in yellow/orange/red gradients, visible only for the selected direction.
- Used for scale-out exits and re-entry conditions after full exits.
5. **Break of Structure (BOS)**:
- Tracks the last swing low (for longs) or swing high (for shorts) using pivotlow/pivothigh over 5 bars left/right.
- Plotted as a white line if enabled.
- Acts as a support/resistance level for invalidation exits.
6. **2-Bar Conditions**:
- For longs: TF1 Xtrender red (below 0) and decreasing for two consecutive bars.
- For shorts: TF1 Xtrender green (above 0) and increasing for two consecutive bars.
- Used for adverse momentum exits.
7. **Other Checks**:
- TF1 cross above/below zero.
- Large changes in TF1 Xtrender (greater than exit_amount, default 40).
A custom T3 (Tillson T3) smoothing function is defined but not used in the visible code—possibly for future extensions.
### How the Strategy Works: Entries
The strategy enters positions based on momentum alignment across timeframes, with safeguards to avoid re-entering immediately after full exits.
- **Direction Selection**:
- User chooses "Long" or "Short" via input. The strategy only trades in that direction.
- **Main Entry** (if enabled):
- **For Longs**:
- TF2 Xtrender is increasing (change > 0) or above a threshold (default 10).
- TF1 Xtrender is increasing (current > previous).
- No existing long position (position_size <= 0).
- If previously fully exited a long, price must be <= 2x upper band (upper2) to re-enter.
- **For Shorts**:
- TF2 Xtrender is decreasing (change < 0) or below -threshold.
- TF1 Xtrender is decreasing (current < previous).
- No existing short position (position_size >= 0).
- If previously fully exited a short, price must be >= 2x lower band (lower2) to re-enter.
- Entry size: 5% of equity (default).
- **Pyramiding** (if enabled):
- Adds one more entry (doubling the position) when price crosses the Red ATR line in the favorable direction.
- For longs: Crossover above Red ATR.
- For shorts: Crossunder below Red ATR.
- Tracks initial quantity to ensure only one add-on per trade cycle.
- Pyramiding limit: 1 (as set in strategy declaration).
Upon entry, it records the initial position size, resets flags for scaling/exiting, and sets the BOS level (last swing low/high).
### How the Strategy Works: Exits
Exits are modular, with toggles for each type. Full exits set a "has_fully_exited" flag to prevent immediate re-entries until price retraces to the 2x band. Partial scale-outs (50%) can repeat unlimited times if price oscillates around bands.
- **Full Exits** (close entire position, mark as fully exited):
1. **ATR Exit** (if enabled): Adverse cross of Red ATR (e.g., close below for longs).
2. **2-Bar Exit** (if enabled): Adverse 2-bar momentum in TF1, and price below/above Red ATR (e.g., red and decreasing for longs).
3. **TF1 Below/Above Zero Exit** (if enabled): TF1 crosses zero adversely, only if price is on the wrong side of Red ATR.
4. **Large TF1 Change Exit** (if enabled): Adverse large drop/rise in TF1 (> exit_amount).
5. **BOS Exit** (if enabled): Price crosses BOS level adversely (e.g., below swing low for longs).
6. **3x Band Exit** (if enabled): Price crosses above 3x band (for longs) or below (for shorts), but waits for a cross back inside to exit fully.
- **Partial Scale-Outs** (50% of current position, repeatable):
1. **1x Band** (if enabled): Cross above 1x upper (longs) or below 1x lower (shorts), then cross back inside.
2. **2x Band** (if enabled): Similar logic for 2x bands.
Exits use waiting flags to detect the full cross-and-return cycle, ensuring they trigger only after touching and retreating from the band.
### Alerts
- **Band Touch Alerts** (if enabled): Triggers on price touching any 1x/2x/3x upper/lower band from above or below (real-time, freq_all).
- **BOS Touch Alert** (if enabled): Price touches BOS level from adverse side.
- **BOS Cross Alert** (if enabled and BOS exit on): Price crosses and closes beyond BOS (once per bar close).
- Alerts reset per new bar to allow multiple triggers if conditions recur.
### Additional Notes
- **State Management**: Uses `var` variables for persistent states like TF2 direction, swing levels, position tracking, and alert flags.
- **Visualization**: Histograms for Xtrenders, lines for Red ATR, Fair Value (blue middle), bands (colored), and BOS (white).
- **Customization**: All key params (lengths, multis, thresholds) are inputs. Disabling features simplifies the strategy.
- **Limitations**: No built-in stop-loss beyond BOS/ATR; relies on equity percent sizing. Assumes chart timeframe is lower than TF1/TF2 for security requests.
- **Performance**: Backtesting would depend on the asset and settings—e.g., works best in trending markets due to momentum filters.
This strategy combines trend confirmation (multi-TF oscillators), volatility trailing (Red ATR), and deviation targets (FVB) for a balanced approach to capturing moves while scaling out profits and cutting losses on reversals.
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact QuantVault directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Author's instructions
To get the QV 1W/1M 2BX & FVB Strategy, subscribe at quant-vault.com. This site offers paid access to TradingView Pine Scripts like this one for trend trading in stocks, forex, and crypto.
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.
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact QuantVault directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Author's instructions
To get the QV 1W/1M 2BX & FVB Strategy, subscribe at quant-vault.com. This site offers paid access to TradingView Pine Scripts like this one for trend trading in stocks, forex, and crypto.
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.