Risk Management Strategy Template

This strategy is intended to be used as a base template for building new strategies.

It incorporates the following features:

Risk management:
  • Configurable X% loss per stop loss
  • Configurable R:R ratio

Trade entry:
  • Calculated position size based on risk tolerance

Trade exit:
  • Stop Loss currently configurable ATR multiplier but can be replaced based on strategy
  • Take Profit calculated from Stop Loss using R:R ratio

  • Configurable backtesting range by date

Trade drawings:
  • TP/SL boxes drawn for all trades. Can be turned on and off
  • Trade exit information labels. Can be turned on and off
  • NOTE: Trade drawings will only be applicable when using overlay strategies

  • Includes section with useful debugging techniques

Strategy conditions

Trade entry:
  • C1: Price is above EMA line
  • C2: RSI is crossing out of oversold area
  • C1: Price is below EMA line
  • C2: RSI is crossing out of overbought area

Trade exit:
  • Stop Loss: Stop Loss ATR multiplier is hit
  • Take Profit: R:R multiplier * Stop Loss is hit

The idea is to use RSI to catch pullbacks within the main trend.

Note that this strategy is intended to be a simple base strategy for building upon. It was not designed to be traded in its current form.

Open-source script

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.


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.

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