NexAlgo AI with Dynamic TP/SL

Apr 18

The NexAlgo Indicator combines a Gaussian kernel regression engine with adaptive volatility thresholds to generate clear, data‑driven trade signals and built‑in risk levels. It predicts the next bar’s price relative to a simple moving average, then measures the average deviation between actual and forecasted values to form dynamic bands. Breakouts beyond these bands, aligned with the prediction’s direction, produce buy or sell signals directly on your chart.

How It Works & What You’ll See

Kernel Regression Forecast: A rolling “lookback” window builds a Gaussian similarity matrix of recent prices. This matrix is used to project the next price, smoothing around a moving average.

Adaptive Volatility Bands: The indicator computes the mean absolute error between actual and predicted prices, multiplies it by your chosen volatility factor, and plots upper and lower bands.

Signal Triggers: When price closes above the upper band while the prediction is rising, a green “BUY” label appears; when price closes below the lower band as the forecast falls, a red “SELL” label is shown.

Automatic SL/TP Levels: After each signal, the script scans recent swing highs/lows and applies an ATR buffer. Stop‑loss is set conservatively at the more protective of these levels, while take‑profit is calculated by your reward‑to‑risk ratio and capped near the opposite swing extreme.

Customizable Inputs

Lookback Period & Smoothing: Adjust how many bars the regression and volatility calculations use, and tune the noise regularization to suit fast or slow markets.

Volatility Multiplier: Widen or tighten the adaptive bands to control signal frequency and confidence.

Swing Lookback & ATR Options: Define how far back the indicator searches for swing points, and choose between ATR calculation methods.

Reward‑to‑Risk Ratio: Set your preferred multiple of stop‑loss distance for take‑profit targets.

What Makes NexAlgo Different

Hybrid Statistical Approach: Unlike fixed‑period moving averages or standard regression, the Gaussian kernel adapts locally to evolving price patterns and regimes.

Self‑Adjusting Thresholds: Volatility bands derive from prediction errors—so they expand in choppy markets and contract in trending conditions.

Integrated Risk Controls: Automatically calculated stop‑loss and take‑profit levels remove manual guesswork, yet remain grounded in both ATR and price structure.

Trader‑Driven Flexibility: Every parameter—from lookback length to risk ratio—can be dialed in for scalping, swing trading, or longer‑term strategies.

Getting Started
• Apply NexAlgo to your preferred timeframe (5–15 min for intraday scalps, 1 h–4 h for swings, daily for position plays).
• Begin with default settings and gradually adjust lookback and smoothing to balance responsiveness versus noise.
• Experiment with volatility multipliers: tighten in strong trends, widen when markets churn.
• Backtest different ATR buffers and reward ratios to discover your ideal risk‑reward profile.

Release Notes

UI Updated: Default inputs set to most commonly used/popular values.

SL Logic Modified: Stop Loss is now calculated to always remain smaller than Take Profit for safer risk management.

Release Notes

name change

Release Notes

Issues Fixed