For trending markets the sister strategy (" EMA% Channel + Trending Strategy") should instead be used.
The obvious fallback to this strategy is that:
- If the bands are too wide we don't have a good definition of trending vs ranging and the price can move up/down significantly and trend whilst remaining within the ranging channel. We try to mitigate this through use of a stoploss defined by ATR and a pretty tight channel. This is a tightrope exercise as making the percentage channels tighter misses earlier entries in optimal cases. Change the parameters to find an and percentages to find the best R/R in your case.
Potential further iteration:
- It would be good to see if the R/R changes positively if we only allow shorts above the and longs below it.
All options are configurable and code open source. Happy trading!
- Now only allowing shorts above the EMA and longs below it. R/R increased!
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.