Squeeze Momentum Strategy Buy Sell TP SL Alerts

The Squeeze Momentum Strategy [LazyBear] Buy Sell TP SL Alerts indicator provides a comprehensive backtesting framework based on the classic Squeeze Momentum concept, enabling traders to automate entries and exits with integrated risk management.

Usage

This strategy is designed to identify periods of volatility contraction (squeezes) and subsequent momentum breakouts. It offers four distinct logic types to trigger trades:

• Momentum Up/Dn: Entries based on momentum crossovers of its own signal line.
• Momentum Up & below 0 / Dn & above 0: A more conservative approach filtering entries based on the zero-line position.
• Directional Bias: Longs only below zero or Shorts only above zero to catch mean reversion or trend exhaustion.
• Zero Crossover: Classic signals triggered when momentum crosses the zero line.

Traders can independently toggle Long and Short trades, which is particularly useful for markets with a strong upward bias or where shorting is restricted. The tool also includes visual Take Profit (TP) and Stop Loss (SL) levels on the chart once a position is active.

Details

The strategy is a Pine Script v6 implementation that combines Bollinger Bands and Keltner Channels to detect "Squeezes" (when Bollinger Bands trade within Keltner Channels). Momentum is calculated using a linear regression of the price relative to the average of the Donchian mid-point and a simple moving average.

Key enhancements include:

• Separated Risk Parameters: Independent TP and SL percentages for Long and Short positions to account for different market velocities during rallies versus sell-offs.
• Squeeze Filter: An optional setting to ensure trades are only taken when the squeeze has "fired" (volatility is expanding).
• Custom Backtesting Range: A time-based filter allowing users to isolate specific market regimes (uptrends, downtrends, or sideways) for performance analysis.

Settings

Backtesting Settings

• From/To Date: Enables and sets the specific date range for the strategy backtest.

Squeeze Momentum Settings

• BB Length/Mult: Period and multiplier for Bollinger Bands.
• KC Length/Mult: Period and multiplier for Keltner Channels.
• Take Entry only when Squeeze On: Filters entries to only occur when volatility is expanding after a squeeze.

Strategy Settings

• Switch Strategy Logic Type: Selects between the four available entry/exit logic variations.
• Enable Longs/Shorts: Toggles the execution of directional trades.
• Long/Short SL %: Sets the stop loss percentage for each direction.
• Long/Short TP %: Sets the take profit percentage for each direction.
• Exit only when TP/SL hit: When enabled, the strategy ignores momentum-based exit signals and relies solely on price targets.

FAQ

How do I use the Squeeze Momentum Strategy [LazyBear] Buy Sell TP SL Alerts?

Select your preferred logic type in the settings and adjust the SL/TP percentages. Use the date filters to see how the strategy performed during specific historical periods.

Can I optimize Long and Short trades separately?

Yes, the strategy provides independent inputs for Long and Short risk management and the ability to disable either direction entirely to focus on specific market conditions.

How can I access this indicator?

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