This mean-reversion strategy plots Bollinger Bands and a long-term moving average directly on the price chart. It enters trades when price candles penetrate the outer Bollinger Bands beyond a user-defined body percentage, anticipating a price reversal. Entries
Strategy · Pine Script v6 · On the chart
Risk Managed Strategy
This strategy executes long trades when the closing price crosses above an Exponential Moving Average (EMA) and displays the EMA trend line directly on the price chart.
GitHub stars1on the repository
Pine versionv6current
Lines of code40
Settings5inputs
LicenceMPL-2.0
Last update4 days ago26 Oct 2026
Add It to Your TradingView Chart
- 1Copy the scriptPress Copy script above, or the copy button on the code below.
- 2Open the Pine EditorOpen a TradingView chart and choose Pine Editor at the bottom of the screen.
- 3Paste over the templateCreate a new strategy, select all of the template text and paste. Press Save and give it a name.
- 4Add it to the chartPress Add to chart. The trades and results appear in the Strategy Tester tab; adjust the settings with the gear icon.
Source Code
40 lines of Pine Script v6 from scripts/risk-strategy.pine.txt, published under MPL-2.0. Keep the author's credit and licence lines when you reuse it.
//@version=6
strategy("Risk Managed Strategy", overlay = true, initial_capital = 10000,
default_qty_type = strategy.percent_of_equity, default_qty_value = 100,
commission_type = strategy.commission.percent, commission_value = 0.05,
slippage = 2)
// 1. Settings: the trend rule and how much you risk
emaLen = input.int(50, "Trend average length")
atrLen = input.int(14, "ATR length")
stopMult = input.float(2.0, "Stop = ATR x", step = 0.5)
rewardMult = input.float(2.0, "Target = risk x", step = 0.5)
riskPct = input.float(1.0, "Risk % of equity", step = 0.25)
// 2. How far price normally moves in one candle
atr = ta.atr(atrLen)
trend = ta.ema(close, emaLen)
plot(trend, "Trend", color.orange, 2)
// 3. The entry rule, same as lesson 5
buySignal = ta.crossover(close, trend)
// 4. Stop distance in points, measured by the market itself
stopDist = atr * stopMult
// 5. Position size, so a stop loss always costs the same
riskCash = strategy.equity * riskPct / 100
riskQty = stopDist > 0 ? riskCash / stopDist : na
maxQty = strategy.equity / close
qty = math.min(riskQty, maxQty)
// 6. Enter with that calculated size
if buySignal and strategy.position_size == 0 and not na(qty)
strategy.entry("Long", strategy.long, qty = qty)
// 7. Stop and target, both measured from the entry price
entryPrice = strategy.position_avg_price
stopPrice = entryPrice - stopDist
takePrice = entryPrice + stopDist * rewardMult
if strategy.position_size > 0
strategy.exit("Exit", "Long", stop = stopPrice, limit = takePrice)
Overview
Position sizing is calculated dynamically to risk a fixed percentage of current equity based on the market's Average True Range (ATR). Exits are automatically set using an ATR-based stop loss and a take profit target derived from a risk-reward multiplier. Settings allow tuning of the EMA period, ATR period, stop multiplier, target multiplier, and risk percentage.
- Dynamic ATR-based position sizing
- ATR stop loss and take profit targets
- EMA crossover entry signals
- Configurable account equity risk percentage
Details
Published by
jayadevrana on GitHub
Type
Draws
On the price chart
Category
Markets
Any symbol
Timeframes
Any timeframe
Risk Notes
No repainting, lookahead or stacked entries were found in its code or README. That says nothing about how well it works: test it first.
Topics
algorithmic-tradingbacktestingema-crossoverpine-scriptpine-script-v6pinescriptrsitechnical-analysistrading-automationtrading-indicators
Settings
The inputs you can change from the gear icon on the chart. Defaults are the author's.
| Setting | Type | Default | Variable |
|---|---|---|---|
| Trend average length | int | 50 | emaLen |
| ATR length | int | 14 | atrLen |
| Stop = ATR x | float | 2.0 | stopMult |
| Target = risk x | float | 2.0 | rewardMult |
| Risk % of equity | float | 1.0 | riskPct |
Third-party code. ForexR did not write, test or endorse this script, and the summary above was generated automatically from its code and README. Indicators describe the past, and a strategy's backtest can look better than live trading, especially when a script repaints. Check it in the Strategy Tester and on a demo account before you rely on it.
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