OPEN-SOURCE SCRIPT
Bootstrap Confidence Break [forexobroker]
Bootstrap Confidence Break flags bars whose return falls outside a 90 percent confidence interval on the rolling mean return. The CI uses the standard-error formulation that is asymptotically equivalent to the percentile bootstrap when N >= 30, but is fully deterministic — no random number generation, no repainting. Signals fire on EMA cross when the move is statistically significant.
🔶 ALGORITHM
1. r = close - close[1] (single-bar return).
2. mu = sma(r, N); sd = stdev(r, N); se = sd / sqrt(N).
3. CI high = mu + 1.645 * se; CI low = mu - 1.645 * se (90 percent two-sided).
4. Outside-up regime when r > CI_high; outside-down when r < CI_low.
🔶 SIGNAL LOGIC
- Buy: outside-up AND close crosses EMA up AND not already long AND cooldown elapsed AND barstate.isconfirmed.
- Sell: outside-down AND close crosses EMA down.
- Position-lock state machine.
🔶 INPUTS
- Return Window (default 40)
- Pullback EMA Length (default 8)
- Cooldown Bars (default 4)
- Visual: dashboard, glow, EMA toggle, buy / sell colors
🔶 ALERTS
BCB Buy, BCB Sell, BCB Any Signal, BCB Outside Up, BCB Outside Down, BCB EMA Up, BCB EMA Down, BCB 2-Sigma, BCB Webhook JSON.
🔶 LIMITATIONS
- Standard-error CI assumes approximately normal returns; heavy-tailed distributions widen the true tail risk and make this more conservative than a true percentile bootstrap.
- 90 percent interval is a reasonable default; adjust the multiplier (1.645) for stricter or looser cutoffs by editing the script.
- Signal cadence depends entirely on volatility regime; quiet markets produce few outside-CI bars.
- Combining CI break with EMA cross dampens whipsaws but slightly delays entry vs raw CI break.
🔶 ALGORITHM
1. r = close - close[1] (single-bar return).
2. mu = sma(r, N); sd = stdev(r, N); se = sd / sqrt(N).
3. CI high = mu + 1.645 * se; CI low = mu - 1.645 * se (90 percent two-sided).
4. Outside-up regime when r > CI_high; outside-down when r < CI_low.
🔶 SIGNAL LOGIC
- Buy: outside-up AND close crosses EMA up AND not already long AND cooldown elapsed AND barstate.isconfirmed.
- Sell: outside-down AND close crosses EMA down.
- Position-lock state machine.
🔶 INPUTS
- Return Window (default 40)
- Pullback EMA Length (default 8)
- Cooldown Bars (default 4)
- Visual: dashboard, glow, EMA toggle, buy / sell colors
🔶 ALERTS
BCB Buy, BCB Sell, BCB Any Signal, BCB Outside Up, BCB Outside Down, BCB EMA Up, BCB EMA Down, BCB 2-Sigma, BCB Webhook JSON.
🔶 LIMITATIONS
- Standard-error CI assumes approximately normal returns; heavy-tailed distributions widen the true tail risk and make this more conservative than a true percentile bootstrap.
- 90 percent interval is a reasonable default; adjust the multiplier (1.645) for stricter or looser cutoffs by editing the script.
- Signal cadence depends entirely on volatility regime; quiet markets produce few outside-CI bars.
- Combining CI break with EMA cross dampens whipsaws but slightly delays entry vs raw CI break.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
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All scripts & content provided by Forexobroker are for informational & educational purposes only.
🔵Join our free telegram for updates : t.me/dominicwalsfxhtrader
All scripts & content provided by Forexobroker are for informational & educational purposes only.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
🔵Gain access to our powerful tools : forexobroker.com/tv
🔵Join our free telegram for updates : t.me/dominicwalsfxhtrader
All scripts & content provided by Forexobroker are for informational & educational purposes only.
🔵Join our free telegram for updates : t.me/dominicwalsfxhtrader
All scripts & content provided by Forexobroker are for informational & educational purposes only.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.