NEXT GEN INSPIRED BY OLIVER VELEZ

DYOR NFA


1. Initial Setup & Application
Load the Strategy to your desired chart (e.g., EURUSD M5, as suggested by the script's backtest).

Overlay: Ensure the script is set to overlay=true (which it is) so the signals and Moving Averages plot directly on the price chart.

Equity Management: Review the initial strategy settings for capital and position sizing:

Initial Capital: Defaults to 10,000.

Default Qty Type: Set to strategy.percent_of_equity (22%), meaning 22% of your available equity is used per trade. Adjust this percentage based on your personal risk tolerance.

2. Reviewing Key Indicator Inputs
The script uses default values that are optimized, but you can adjust them in the settings panel:

Fast EMA: Defaults to 9 (e.g., a 9-period Exponential Moving Average).

Slow EMA: Defaults to 21 (e.g., a 21-period Exponential Moving Average). These EMAs define the short-term trend.

ATR: Defaults to 14 (Average True Range). Used to dynamically calculate volatility for SL/TP distances.

Final R:R: Defaults to 4.5 (minimum R:R required for a signal). This is the core of the strategy's high reward goal.

3. Interpreting Entry Signals
A trade signal is generated only when all conditions—EMA trend, "Elephant Logic" momentum, and non-ranging market—are met.

Long Signal: Appears as a green triangle (▲) below the bar, labeled "COMBO".

Short Signal: Appears as a red triangle (▼) above the bar, labeled "COMBO".

Live Plan: Upon signal, a detailed label is immediately plotted on the chart showing the FULL BATTLE PLAN:

SL: Calculated Stop Loss price.

TP: Calculated Take Profit price (based on the Final R:R).

Risk/Reward Pips: The calculated pips for the trade's risk and reward.

R:R = 1:4.5: The exact Risk-to-Reward ratio.

4. Understanding Market Conditions & Visuals
The script provides visuals to help you understand the current market state:

Trend EMAs: The 9 EMA (green) and 21 EMA (purple/magenta) are plotted to show the underlying trend.

Long trades only fire when Price > 9 EMA > 21 EMA.

Short trades only fire when Price < 9 EMA < 21 EMA.

Ranging Market (Rejection): Bars turn a light gray/silver when the proprietary "Reject Ranging" logic is active, indicating a low-volatility period. No new trades will be taken during these bars.

Momentum Bar: Bars turn a gold/yellow color when the "Elephant Logic" (high-momentum, large-body candles over 2-3 periods) is detected, highlighting powerful price movement.

5. Execution and Exit Logic
The strategy handles entry, scaling, and exit automatically:

Entry: A market order is placed (strategy.entry) immediately upon the bar where the longSetup or shortSetup condition is met.

Scaling Out (+1R): If the trade moves favorably by an amount equal to the initial risk (1R), the script closes a portion of the position (strategy.close with comment "+1R"). This partial exit locks in profit equivalent to the initial risk.

Re-entry (Pyramiding): After the +1R exit, the strategy attempts a re-entry (LONG RE/SHORT RE diamond plot) if the price meets certain criteria near the 9 EMA, trying to capitalize on further trend continuation.

Final Exits:

Take Profit: A limit order is set at the calculated TP level (stopDist * minRR).

Stop Loss: A stop order is set at the calculated SL level (stopDist * 1.3), slightly wider than the initial SL distance, likely to account for spread/slippage, ensuring the maximum loss is defined.

Trailing Stop: A trailing stop is applied to the re-entry positions (LONG RE/SHORT RE) to protect profits as the market moves further in the direction of the trade.