OPEN-SOURCE SCRIPT
Volatility Regime Filter(ATR based)
The Volatility Regime Filter -
Not all trends are created equal. Entering trades during "dead" markets or extreme panic can ruin a system's win rate.
How it works: The system calculates the Average True Range (ATR) over 14 periods, then ranks current volatility against the last 100 periods using a percentile scale (0 to 100).
The Rule: The ATR Percentile must be between 20 and 90.
Why it matters: It forces the system to skip trades when the market is asleep (under 20th percentile) or during erratic, unpredictable volatility spikes like news events or market crashes (above 90th percentile).
Happy Trading.
Not all trends are created equal. Entering trades during "dead" markets or extreme panic can ruin a system's win rate.
How it works: The system calculates the Average True Range (ATR) over 14 periods, then ranks current volatility against the last 100 periods using a percentile scale (0 to 100).
The Rule: The ATR Percentile must be between 20 and 90.
Why it matters: It forces the system to skip trades when the market is asleep (under 20th percentile) or during erratic, unpredictable volatility spikes like news events or market crashes (above 90th percentile).
Happy Trading.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.