Viper VWAP Intraday

The Viper VWAP Intraday tool is a specialized strategy designed to capture trend-based breakouts while utilizing a Choppiness Index filter to avoid false signals during sideways market conditions. By combining Volume Weighted Average Price (VWAP) with trend validation, the script identifies high-probability entry points during active trading sessions.

Usage

The strategy is primarily intended for intraday trading on volatile assets. Users should look for signals that occur when the price breaks through the VWAP line, provided the market is not in a "choppy" state.

• Long Entries: Triggered when the VWAP is rising, volume is increasing, and the Choppiness Index (CI) is below the defined Trend Factor threshold.
• Short Entries: Triggered when the VWAP is falling, volume is increasing, and the CI is below the Trend Factor threshold.
• Intraday Management: The tool includes a session-based square-off feature, ensuring all positions are closed before the market end-time to avoid overnight risk.
• Risk Management: Users can define specific percentage-based Take Profit and Stop Loss levels to automate trade exits.

Details

The script relies on two primary technical concepts:

1. VWAP (Volume Weighted Average Price): Unlike standard moving averages, VWAP factors in volume at specific price points, providing a more accurate "true average" price for the session.
2. Choppiness Index (CI): This indicator measures market trendiness on a scale of 1 to 100. Higher values (typically >61.8) indicate a range-bound or choppy market, while lower values (typically <38.2) indicate a trending market. By requiring the CI to be below a certain "Trend Factor," the strategy attempts to filter out low-momentum trades.

Settings

Session & Risk

• Market session: Defines the time window for active trading and the final square-off time.
• Long Take Profit (%): The target percentage for closing long positions.
• Short Take Profit (%): The target percentage for closing short positions.
• Long Stop Loss (%): The percentage threshold for stopping out long trades.
• Short Stop Loss (%): The percentage threshold for stopping out short trades.

Strategy Parameters

• Length: The lookback period used for the Choppiness Index and Money Flow calculations.
• Trend Factor: The threshold for the Choppiness Index; values below this indicate the market is trending enough to permit a trade.

FAQ

How do I use the Market Session setting?

Input your local market hours (e.g., "0915-1455"). The strategy will only enter trades during this window and will automatically close any open positions at the end of the session.

What is the best timeframe for this strategy?

While it can be used on various timeframes, it is optimized for intraday charts such as the 10-minute or 15-minute intervals where volume and VWAP interactions are most significant.

How can I get access to Viper VWAP Intraday?

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