SSL 4C MACD Laugerre RSI Strategy

The SSL 4C MACD Laugerre RSI Strategy indicator is a comprehensive trend-following tool that combines three core technical concepts to identify high-probability trade setups and manage risk. It utilizes the SSL Hybrid baseline for trend direction, a 4-color MACD for momentum confirmation, and the Laguerre RSI for overbought/oversold filtering.

Usage

The script is designed to identify momentum shifts within an established trend. Users can monitor the chart for specific signal combinations:

• Long Entry: Occurs when the price closes above the SSL Hybrid upper Keltner channel, the MACD signal is positive with rising MACD values, and the Laguerre RSI is below the overbought threshold.
• Short Entry: Occurs when the price closes below the SSL Hybrid lower Keltner channel, the MACD signal is negative with falling MACD values, and the Laguerre RSI is above the oversold threshold.
• Exits: The strategy provides logic to exit positions when the trend reverses (e.g., price crossing the opposite SSL channel) or momentum shifts on the MACD.
• Risk Management: The script includes a built-in position sizing calculator. If "Use Risk Management" is enabled, the tool automatically adjusts the quantity based on the distance to your stop loss to maintain a fixed percentage risk per trade.

Details

This strategy integrates several popular open-source concepts into a unified execution framework:

• SSL Hybrid: Acts as the primary trend filter using a baseline (SMA, EMA, HMA, etc.) and a Keltner-style channel to define volatility bands.
• 4-Color MACD: Provides a granular look at momentum. By comparing current MACD values to previous ones, the indicator can distinguish between strong and weakening momentum in both bullish and bearish phases.
• Laguerre RSI: A smoother version of the traditional RSI that uses Laguerre polynomials to reduce noise and provide more responsive overbought/oversold signals.

Settings

Time & Filters

• Start/End Date: Defines the backtesting window.
• Long/Short?: Toggles specific trade directions on or off.
• ATR Filter: An optional filter that prevents entries unless the current ATR is above its moving average, ensuring sufficient volatility.

Indicator Components

• SSL Hybrid: Customization for baseline type (e.g., EMA, LSMA, McGinley), length, and Keltner channel multiplier.
• 4 Color MACD: Standard MACD inputs for fast/slow moving averages and signal line length.
• Laguerre RSI: Source input, alpha (smoothing), and overbought/oversold level configurations.

Risk & Exit Management

• Stop Loss Type: Choose between Percent-based, ATR-based, or Lookback-based (Previous Low/High) stop losses.
• R:R Ratio: Sets the take profit target as a multiple of the risk taken on the trade.
• Take Profit Quantity %: Determines what percentage of the position to close when the TP target is hit.
• Risk Per Trade (%): Calculates order size based on equity to risk a specific percentage per trade.

FAQ

How do I use the Risk Management feature?

Enable "Use Risk Management" in the settings and define your "Risk Per Trade (%)". The strategy will then calculate your position size based on the distance between your entry and the selected Stop Loss type.

What do the background colors represent?

Green or red background highlights indicate that the MACD conditions (momentum and signal line direction) and Laguerre RSI conditions are currently aligned for potential trades.

How do I access SSL 4C MACD Laugerre RSI Strategy?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.