OPEN-SOURCE SCRIPT
VIDYA Auto-Trading(Reversal Logic)
Overview
This script is a dynamic trend-following strategy based on the Variable Index Dynamic Average (VIDYA). It adapts in real time to market volatility, aiming to enhance entry precision and optimize risk management.
⚠️ This strategy is intended for educational and research purposes. Past performance does not guarantee future results. All results are based on historical simulations using fixed parameters.
Strategy Objectives
The objective of this strategy is to respond swiftly to sudden price movements and trend reversals, providing consistent and reliable trade signals under historical testing conditions. It is designed to be intuitive and efficient for traders of all levels.
Key Features
Momentum Sensitivity via VIDYA: Reacts quickly to momentum shifts, allowing for accurate trend-following entries.
Volatility-Based ATR Bands: Automatically adjusts stop levels and entry conditions based on current market volatility.
Intuitive Trend Visualization: Uptrends are marked with green zones, and downtrends with red zones, giving traders clear visual guidance.
Trading Rules
Long Entry: Triggered when price crosses above the upper band. Any existing short position is closed.
Short Entry: Triggered when price crosses below the lower band. Any existing long position is closed.
Exit Conditions: Positions are reversed based on signal changes, using a position reversal strategy.
Risk Management Parameters
Market: ETHUSD(5M)
Account Size: $3,000 (reasonable approximation for individual traders)
Commission: 0.02%
Slippage: 2 pip
Risk per Trade: 5% of account equity (adjusted to comply with TradingView guidelines for realistic risk levels)
Number of Trades: 251 (based on backtest over the selected dataset)
⚠️ The risk per trade and other values can be customized. Users are encouraged to adapt these to their individual needs and broker conditions.
Trading Parameters & Considerations
VIDYA Length: 10
VIDYA Momentum: 20
Distance factor for upper/lower bands: 2
Source: close
Visual Support
Trend zones, entry points, and directional shifts are clearly plotted on the chart. These visual cues enhance the analytical experience and support faster decision-making.
Visual elements are designed to improve interpretability and are not intended as financial advice or trade signals.
Strategy Improvements & Uniqueness
Inspired by the public work of BigBeluga, this script evolves the original concept with meaningful enhancements. By combining VIDYA and ATR bands, it offers greater adaptability and practical value compared to conventional trend-following strategies.
This adaptation is original work and not a direct copy. Improvements are designed to enhance usability, risk control, and market responsiveness.
Summary
This strategy offers a responsive and adaptive approach to trend trading, built on momentum detection and volatility-adjusted risk management. It balances clarity, precision, and practicality—making it a powerful tool for traders seeking reliable trend signals.
⚠️ All results are based on historical data and are subject to change under different market conditions. This script does not guarantee profit and should be used with caution and proper risk management.
This script is a dynamic trend-following strategy based on the Variable Index Dynamic Average (VIDYA). It adapts in real time to market volatility, aiming to enhance entry precision and optimize risk management.
⚠️ This strategy is intended for educational and research purposes. Past performance does not guarantee future results. All results are based on historical simulations using fixed parameters.
Strategy Objectives
The objective of this strategy is to respond swiftly to sudden price movements and trend reversals, providing consistent and reliable trade signals under historical testing conditions. It is designed to be intuitive and efficient for traders of all levels.
Key Features
Momentum Sensitivity via VIDYA: Reacts quickly to momentum shifts, allowing for accurate trend-following entries.
Volatility-Based ATR Bands: Automatically adjusts stop levels and entry conditions based on current market volatility.
Intuitive Trend Visualization: Uptrends are marked with green zones, and downtrends with red zones, giving traders clear visual guidance.
Trading Rules
Long Entry: Triggered when price crosses above the upper band. Any existing short position is closed.
Short Entry: Triggered when price crosses below the lower band. Any existing long position is closed.
Exit Conditions: Positions are reversed based on signal changes, using a position reversal strategy.
Risk Management Parameters
Market: ETHUSD(5M)
Account Size: $3,000 (reasonable approximation for individual traders)
Commission: 0.02%
Slippage: 2 pip
Risk per Trade: 5% of account equity (adjusted to comply with TradingView guidelines for realistic risk levels)
Number of Trades: 251 (based on backtest over the selected dataset)
⚠️ The risk per trade and other values can be customized. Users are encouraged to adapt these to their individual needs and broker conditions.
Trading Parameters & Considerations
VIDYA Length: 10
VIDYA Momentum: 20
Distance factor for upper/lower bands: 2
Source: close
Visual Support
Trend zones, entry points, and directional shifts are clearly plotted on the chart. These visual cues enhance the analytical experience and support faster decision-making.
Visual elements are designed to improve interpretability and are not intended as financial advice or trade signals.
Strategy Improvements & Uniqueness
Inspired by the public work of BigBeluga, this script evolves the original concept with meaningful enhancements. By combining VIDYA and ATR bands, it offers greater adaptability and practical value compared to conventional trend-following strategies.
This adaptation is original work and not a direct copy. Improvements are designed to enhance usability, risk control, and market responsiveness.
Summary
This strategy offers a responsive and adaptive approach to trend trading, built on momentum detection and volatility-adjusted risk management. It balances clarity, precision, and practicality—making it a powerful tool for traders seeking reliable trend signals.
⚠️ All results are based on historical data and are subject to change under different market conditions. This script does not guarantee profit and should be used with caution and proper risk management.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
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.