Description: Many signal providers rely on well-known public scripts, such as ATR (SuperTrend or Trend Trader Karan TTK) trend or Fibonacci-based (imba algo) trend detection, to identify trend changes. However, these breakout signals are often triggered too late, after significant price movement, leading to poor risk vs. reward ratios. For example, the gg-shot indicator (both original and AI-optimized versions) uses Fibonacci levels to detect breakouts, with the trend line calculated as the midpoint (high + low) / 2 over a specific period. Following those signals often results in many losses due to delayed entries.
Problem: When signals are triggered after substantial price movement, the entry becomes too risky, providing the worst risk vs. reward scenario. This is especially true with indicators like the gg-shot, where entering on late breakout signals without considering pullbacks can lead to poor outcomes.
Proposed Solution: Introduce a new entry strategy called “Wait for Pullback %”:
The pullback zone should be defined as a configurable percentage (%).
If a signal provider or script sends a signal with trend line information (such as the gg-shot indicator), the bot can be configured to wait until the price approaches this pullback zone before activating orders.
For example, when the price is X% away (e.g., 1%) from the trend line, the bot would activate the orders.
Once the price moves into the pullback zone, the bot should shift the entry zone, take profit, and stop loss (SL) by the percentage (5) the price moved away from the original entry point to the pullback zone, then create the orders accordingly.
For example :
Original Signal:
📉 Long Entry Zone: 0.3475-0.3345
🎯Accuracy of this strategy - 90.68%
🧲Trend-Line: 0.3345
❌Stop-Loss: 0.3295
Wait for Pullback % set to 0.5%
The Bot Should Open the following:
📉 Long Entry Zone: 0.3466 -0.3440
Target 1: 0.3517
<…>
❌Stop-Loss: 0.3286
All values have been adjusted by approximately 0.26%, which corresponds to the distance between the original entry point and the price’s approach to the pullback zone.
Benefits:
This strategy would significantly improve the risk vs. reward ratio by avoiding late entries and waiting for better opportunities.
It reduces the risk of entering during overextended moves, allowing for more favorable and strategic entries.
By automating this pullback strategy, users can optimize their entries and increase profitability, avoiding the pitfalls of following breakout signals too late.
Thank you for considering the addition of this entry strategy.
Make this feature bidirectional, as some providers don’t supply the trend line detail. In such case, we can use a percentage-based pullback mechanism to open a trade instead of waiting for the price to approach the trend line. The default behavior should be to trigger trades based on an X% pullback, with an override option (checkbox) to also allow trades only when the price is approaching or within the pullback area, which is X% away from the trend line.
Default Option: Price pulls back X %
Override Option: Price is X% or less away from the trend line