Buy on 5% dip strategy with time adjustment

This script is a strategy called "Buy on 5% Dip Strategy with Time Adjustment 📉💡," which detects a 5% drop in price and triggers a buy signal 🔔. It also automatically closes the position once the set profit target is reached 💰, and it has additional logic to close the position if the loss exceeds 14% after holding for 230 days ⏳.

Strategy Explanation
Buy Condition: A buy signal is triggered when the price drops 5% from the highest price reached 🔻.


Take Profit: The position is closed when the price hits a 1.22x target from the average entry price 📈.


Forced Sell Condition: If the position is held for more than 230 days and the loss exceeds 14%, the position is automatically closed 🚫.


Leverage & Capital Allocation: Leverage is adjustable ⚖️, and you can set the percentage of capital allocated to each trade 💸.


Time Limits: The strategy allows you to set a start and end time ⏰ for trading, making the strategy active only within that specific period.


Code Credits and References
Credits: This script utilizes ideas and code from QuantNomad and jangdokang for the profit table and algorithm concepts 🔧.


Sources:


Monthly Performance Table Script by QuantNomad:

ZenAndTheArtOfTrading's Script:

Strategy Performance
This strategy provides risk management through take profit and forced sell conditions and includes a performance table 📊 to track monthly and yearly results. You can compare backtest results with real-time performance to evaluate the strategy's effectiveness.
The performance numbers shown in the backtest reflect what would have happened if you had used this strategy since the launch date of the SOXL (the Direxion Daily Semiconductor Bull 3x Shares ETF) 📅. These results are not hypothetical but based on actual performance from the day of the ETF’s launch 📈.

Caution ⚠️
No Guarantee of Future Results: The results are based on historical performance from the launch of the SOXL ETF, but past performance does not guarantee future results. It’s important to approach with caution when applying it to live trading 🔍.


Risk Management: Leverage and capital allocation settings are crucial for managing risk ⚠️. Make sure to adjust these according to your risk tolerance ⚖️.