AccumulationPro Money Flow Strategy

AccumulationPro Money Flow Strategy identifies stock trading opportunities by analyzing money flow and potential long-only opportunities following periods of increased money inflow. It employs proprietary responsive indicators and oscillators to gauge the strength and momentum of the inflow relative to previous periods, detecting money inflow, buying/selling pressure, and potential continuation/reversals, while using trailing stop exits to maximize gains while minimizing losses, with careful consideration of risk management and position sizing.

Setup Instructions:
1. Configuring the Strategy Properties:

• Click the "Settings" icon (the gear symbol) next to the strategy name.
  
• Navigate to the "Properties" tab within the Settings window.
  
• Initial Capital: This value sets the starting equity for the strategy backtesting. Keep in mind that you will need to specify your current account size in the "Inputs" settings for position sizing.
  
  
• Base Currency: Leave this setting at its "Default" value.
  
• Order Size: This setting, which determines the capital used for each trade during backtesting, is automatically calculated and updated by the script. You should leave it set to "1 Contract" and the script will calculate the appropriate number of contracts based on your risk per trade, account size, and stop-loss placement.
  
• Pyramiding: Set this setting at 1 order to prevent the strategy from adding to existing positions.
  
• Commission: Enter your broker's commission fee per trade as a percentage, some brokers might offer commission free trading.
• Verify Price for limit orders: Keep this value as 0 ticks.
  
• Slippage: This value depends on the instrument you are trading, If you are trading liquid stocks on a 1D chart slippage might be neglected. You can Keep this value as 1 ticks if you want to be conservative.
  
• Margin for long positions/short positions: Set both of these to 100% since this strategy does not employ leverage or margin trading.
  
• Recalculate: Select the "After order is filled" option.
  Select the "On every tick" option.
• Fill Orders:
  • Keep “Using bar magnifier” unselected.
    
  • Select "On bar close".
  • Select "Using standard OHLC"

2. Configuring the Strategy Inputs:

• Click the "Inputs" tab in the Settings window.
  
• From/Thru (Date Range): To effectively backtest the strategy, define a substantial period that includes various bullish and bearish cycles. This ensures the testing window captures a range of market conditions and provides an adequate number of trades. It is usually favorable to use a minimum of 8 years for backtesting. Ensure the "Show Date Range" box is checked.
  
• Account Size: This is your actual current Account Size used in the position sizing table calculations.
  
• Risk on Capital %: This setting allows you to specify the percentage of your capital you are willing to risk on each trade. A common value is 0.5%.
  

3. Configuring Strategy Style:

• Select the "Style" tab.
  
• Select the checkbox for “Stop Loss” and “Stop Loss Final” to display the black/red Average True Range Stop Loss step-lines
  
• Make sure the checkboxes for "Upper Channel", "Middle Line", and "Lower Channel" are selected.
  
• Select the "Plots Background" checkboxes for "Color 0" and "Color 1" so that the potential entry and exit zones become color-coded.
  
• Having the checkbox for "Tables" selected allows you to see position sizing and other useful information within the chart.
  
• Have the checkboxes for "Trades on chart" and "Signal Labels" selected for viewing entry and exit point labels and positions.
  
• Uncheck* the "Quantity" checkbox.
  
• Precision: select “Default”.
  
• Check “Labels on price scale”
  
• Check “Values in status line”
  

Strategy Application Guidelines:

Entry Conditions:
The strategy identifies long entry opportunities based on substantial money inflow, as detected by our proprietary indicators and oscillators. This assessment considers the strength and momentum of the inflow relative to previous periods, in conjunction with strong price momentum (indicated by our modified, less-lagging MACD) and/or a potential price reversal (indicated by our modified, less-noisy Stochastic). Additional confirmation criteria related to price action are also incorporated. Potential entry and exit zones are visually represented by bands on the chart.

A blue upward-pointing arrow, accompanied by the label 'Long' and green band fills, signifies a long entry opportunity. Conversely, a magenta downward-pointing arrow, labeled 'Close entry(s) order Long' with yellow band fills, indicates a potential exit.

Take Profit:
The strategy employs trailing stops, rather than fixed take-profit levels, to maximize gains while minimizing losses. Trailing stops adjust the stop-loss level as the stock price moves in a favorable direction. The strategy utilizes two types of trailing stop mechanisms: one based on the Average True Range (ATR), and another based on price action, which attempts to identify shifts in price momentum.

Stop Loss:
The strategy uses an Average True Range (ATR)-based stop-loss, represented by two lines on the chart. The black line indicates the primary ATR-based stop-loss level, set upon trade entry. The red line represents a secondary ATR stop-loss buffer, used in the position sizing calculation to account for potential slippage or price gaps.

To potentially reduce the risk of stop-hunting, discretionary traders might consider using a market sell order within the final 30 to 60 minutes of the main session, instead of automated stop-loss orders.

Order Types:
Market Orders are intended for use with this strategy, specifically when the candle and signal on the chart stabilize within the final 30 to 60 minutes of the main trading session.

Position Sizing:
A key aspect of this strategy is that its position size is calculated and displayed in a table on the chart. The position size is calculated based on stop-loss placement, including the stop-loss buffer, and the capital at risk per trade which is commonly set around 0.5% Risk on Capital per Trade.

Backtesting:
The backtesting results presented below the chart are for informational purposes only and are not intended to predict future performance. Instead, they serve as a tool for identifying instruments with which the strategy has historically performed well.

It's important to note that the backtester utilizes a tiny portion of the capital for each trade while our strategy relies on a diversified portfolio of multiple stocks or instruments being traded at once.

Important Considerations:
Volume data is crucial; the strategy will not load or function correctly without it. Ensure that your charts include volume data, preferably from a centralized exchange.

Our system is designed for trading a portfolio. Therefore, if you intend to use our system, you should employ appropriate position sizing, without leverage or margin, and seek out a variety of long opportunities, rather than opening a single trade with an excessively large position size.

If you are trading without automated signals, always allow the chart to stabilize. Refrain from taking action until the final 1 hour to 30 minutes before the end of the main trading session to minimize the risk of acting on false signals.

To align with the strategy's design, it's generally preferable to enter a trade during the same session that the signal appears, rather than waiting for a later session.

Disclaimer:
Trading in financial markets involves a substantial degree of risk. You should be aware of the potential for significant financial losses. It is imperative that you trade responsibly and avoid overtrading, as this can amplify losses. Remember that market conditions can change rapidly, and past performance is not indicative of future results. You could lose some or all of your initial investment. It is strongly recommended that you fully understand the risks involved in trading and seek independent financial advice from a qualified professional before using this strategy.