Adaptive Fibonacci Trailing System

The Adaptive Fibonacci Trailing System indicator provides a regime-aware trade management framework that combines an adaptive trailing stop, dynamic Fibonacci zones, and a multi-factor confidence grading engine. It automatically calculates entry, stop-loss, and three take-profit levels for every signal, allowing traders to execute setups with pre-defined risk management and real-time performance tracking.

Usage

The Usage section describes how the script can be used to manage trades and filter signals.

Signal Modes

The system offers two distinct entry methodologies:

• Trail Flip: Generates signals only when the adaptive trailing stop flips direction. This mode is designed for trend-following and conviction-based trading.
• 0.5 Cross: Fires when the price crosses the Fibonacci 0.5 level (the premium/discount inflection point). This mode includes three strictness levels (Strict, Relaxed, None) to capture earlier entries.

Trade Management and Risk

Once a signal is generated, the indicator plots live SL and TP levels:

• Adaptive Stop-Loss: The stop adapts based on the market regime (Trending, Ranging, or Volatile), tightening in ranges and widening during trends.
• Break-Even Logic: When TP1 is reached, the stop-loss automatically moves to the entry price, securing the trade.
• Position Sizing: The dashboard provides a recommended risk percentage based on the signal's confidence grade (e.g., A+ setups receive higher capital allocation than C-grade setups).

Market Regime Detection

The indicator classifies market conditions into Trending, Ranging, or Volatile states using ADX and volatility ratios. Traders can use this to filter signals, such as avoiding trend-following entries during ranging regimes.

Details

The script utilizes several proprietary engines to determine market structure and setup quality:

• Structure Engine: Automatically detects swings based on an ATR-normalized impulse score. It anchors Fibonacci levels to the most recent valid swing structure.
• Confidence Grading Engine: A 6-factor model scores setups from 0-100% based on structure strength, regime alignment, ADX, volume, volatility, and SMA50 confluence. Scores are translated into grades (A+, A, B, C, D).
• Backtest Tracker: A built-in module logs every closed trade and breaks down the Win Rate and Profit Factor by confidence grade. This allows users to verify if higher-graded signals actually outperform lower ones on a specific timeframe or asset.

Settings

Structure & Regime

• Pivot Length: Sets the lookback period for swing detection (lower for scalping, higher for swing trading).
• Min Swing Score: Minimum significance required to validate a new structural swing.
• Trend/Volatile Thresholds: Adjusts the sensitivity of the regime detection engine.

Trailing & Signals

• Trailing Mode: Choose between Aggressive, Balanced, Conservative, or Adaptive (auto-adjusts to regime).
• Signal Mode: Toggle between Trail Flip and 0.5 Cross entries.
• Min Confidence %: Filters out signals that do not meet a specific quality score.

Risk Management

• Risk Preset: Pre-configured SL/TP ratios (Conservative, Balanced, Aggressive, Scalping).
• Break-Even After TP1: Toggles the automatic move of SL to entry.
• Base Risk %: The starting risk percentage for position sizing calculations.

Visuals & Dashboard

• Fib Cloud Style: Visual appearance of the premium/discount zone (Gradient, Solid, Pulsing).
• Dashboard Position/Size: Customizes the UI location and font scale.

FAQ

How do I interpret the confidence grades? Grades represent the confluence of technical factors. An A+ signal means the trend, volume, and volatility are all aligned with the structural breakout, whereas a C grade indicates a setup with weaker confirmation.

Does the indicator repaint its signals? No, all signals and labels are confirmed only on the bar close to ensure reliability for live trading and alerts.

How can I access the Adaptive Fibonacci Trailing System? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.