OPEN-SOURCE SCRIPT
Swing Point Hedge Strategy
🎯 Strategy Concept:
This bot trades primary trend positions and automatically hedges when key support/resistance levels break, protecting your capital from reversals.
📊 Market Structure Detection:
Uptrend Structure:
✅ Higher Highs (HH): Each swing high is higher than the previous
✅ Higher Lows (HL): Each swing low is higher than the previous
🟢 Green triangles and lines
Downtrend Structure:
✅ Lower Highs (LH): Each swing high is lower than the previous
✅ Lower Lows (LL): Each swing low is lower than the previous
🔴 Red/Orange triangles and lines
💡 Trading Logic:
Primary Positions (Trend Following):
UPTREND:
Long Entry: Price breaks above Higher High
Opens 2x position size
Follows the trend
Green triangle marker
DOWNTREND:
Short Entry: Price breaks below Lower Low
Opens 2x position size
Follows the trend
Red triangle marker
Hedge Positions (Risk Protection):
When LONG (Uptrend):
Hedge Short: If price breaks below Higher Low (HL)
Support broken = potential reversal
Opens 1x SHORT position (hedge)
Orange X marker
Up to 2 hedge positions allowed
When SHORT (Downtrend):
Hedge Long: If price breaks above Lower High (LH)
Resistance broken = potential reversal
Opens 1x LONG position (hedge)
Aqua X marker
Up to 2 hedge positions allowed
🛡️ How Hedging Works:
Example Scenario:
Bot opens LONG (2x size) on Higher High break
Price pulls back and breaks Higher Low (support)
Bot opens HEDGE SHORT (1x size) automatically
Net Position: Still LONG 1x (2 - 1 = 1)
Protection: If trend reverses, hedge minimizes loss
If trend resumes: Close hedge, keep primary position
📈 Risk Management:
Stop Loss Options:
Fixed percentage-based (2% default)
Applied to all positions
Protects capital from major moves
Take Profit:
Fixed percentage (3% default)
Locks in profits automatically
Optional toggle
Position Sizing:
Primary: 50% equity (2x with pyramiding)
Hedge: 25% equity (1x)
Max 2 hedge positions per primary
🎨 Visual Features:
Swing Point Markers:
🔼 Triangles up: Swing lows (Green = HL, Red = LL)
🔽 Triangles down: Swing highs (Green = HH, Orange = LH)
Lines: Connect swing points showing structure
Support/Resistance Zones:
Red zones: Previous swing highs (resistance)
Green zones: Previous swing lows (support)
Automatically extend to right
Entry Signals:
🟢 Large green triangle: Primary long entry
🔴 Large red triangle: Primary short entry
🟠 Orange X: Hedge short entry
🔵 Aqua X: Hedge long entry
📊 Info Table Shows:
Market Structure: Uptrend ↑ / Downtrend ↓ / Neutral
Previous High/Low: Key levels being monitored
Primary Position: Current trend position
Hedge Count: How many hedges are active
Net Position: Actual market exposure
Open P&L: Real-time profit/loss
Performance Stats: Total trades, net profit
⚙️ Settings:
Swing Detection:
Length: 5 bars (adjustable 2-20)
Smaller = more swings, more signals
Larger = major swings only
Hedge Options:
Toggle hedge on/off
Auto-close hedges on retrace
Max number of hedges (1-3)
Risk Settings:
Stop loss percentage
Take profit percentage
Toggle each independently
🎯 Use Cases:
Best For:
Volatile markets with false breaks
Protecting trending positions
Risk-averse traders
Swing trading timeframes (15m - 4H)
Strategy Benefits:
✅ Automatic risk protection
✅ Reduces drawdown
✅ Captures reversals
✅ No manual intervention needed
✅ Clear visual feedback
This is a sophisticated hedging bot that automatically protects your positions while keeping you in profitable trends! 🚀
This bot trades primary trend positions and automatically hedges when key support/resistance levels break, protecting your capital from reversals.
📊 Market Structure Detection:
Uptrend Structure:
✅ Higher Highs (HH): Each swing high is higher than the previous
✅ Higher Lows (HL): Each swing low is higher than the previous
🟢 Green triangles and lines
Downtrend Structure:
✅ Lower Highs (LH): Each swing high is lower than the previous
✅ Lower Lows (LL): Each swing low is lower than the previous
🔴 Red/Orange triangles and lines
💡 Trading Logic:
Primary Positions (Trend Following):
UPTREND:
Long Entry: Price breaks above Higher High
Opens 2x position size
Follows the trend
Green triangle marker
DOWNTREND:
Short Entry: Price breaks below Lower Low
Opens 2x position size
Follows the trend
Red triangle marker
Hedge Positions (Risk Protection):
When LONG (Uptrend):
Hedge Short: If price breaks below Higher Low (HL)
Support broken = potential reversal
Opens 1x SHORT position (hedge)
Orange X marker
Up to 2 hedge positions allowed
When SHORT (Downtrend):
Hedge Long: If price breaks above Lower High (LH)
Resistance broken = potential reversal
Opens 1x LONG position (hedge)
Aqua X marker
Up to 2 hedge positions allowed
🛡️ How Hedging Works:
Example Scenario:
Bot opens LONG (2x size) on Higher High break
Price pulls back and breaks Higher Low (support)
Bot opens HEDGE SHORT (1x size) automatically
Net Position: Still LONG 1x (2 - 1 = 1)
Protection: If trend reverses, hedge minimizes loss
If trend resumes: Close hedge, keep primary position
📈 Risk Management:
Stop Loss Options:
Fixed percentage-based (2% default)
Applied to all positions
Protects capital from major moves
Take Profit:
Fixed percentage (3% default)
Locks in profits automatically
Optional toggle
Position Sizing:
Primary: 50% equity (2x with pyramiding)
Hedge: 25% equity (1x)
Max 2 hedge positions per primary
🎨 Visual Features:
Swing Point Markers:
🔼 Triangles up: Swing lows (Green = HL, Red = LL)
🔽 Triangles down: Swing highs (Green = HH, Orange = LH)
Lines: Connect swing points showing structure
Support/Resistance Zones:
Red zones: Previous swing highs (resistance)
Green zones: Previous swing lows (support)
Automatically extend to right
Entry Signals:
🟢 Large green triangle: Primary long entry
🔴 Large red triangle: Primary short entry
🟠 Orange X: Hedge short entry
🔵 Aqua X: Hedge long entry
📊 Info Table Shows:
Market Structure: Uptrend ↑ / Downtrend ↓ / Neutral
Previous High/Low: Key levels being monitored
Primary Position: Current trend position
Hedge Count: How many hedges are active
Net Position: Actual market exposure
Open P&L: Real-time profit/loss
Performance Stats: Total trades, net profit
⚙️ Settings:
Swing Detection:
Length: 5 bars (adjustable 2-20)
Smaller = more swings, more signals
Larger = major swings only
Hedge Options:
Toggle hedge on/off
Auto-close hedges on retrace
Max number of hedges (1-3)
Risk Settings:
Stop loss percentage
Take profit percentage
Toggle each independently
🎯 Use Cases:
Best For:
Volatile markets with false breaks
Protecting trending positions
Risk-averse traders
Swing trading timeframes (15m - 4H)
Strategy Benefits:
✅ Automatic risk protection
✅ Reduces drawdown
✅ Captures reversals
✅ No manual intervention needed
✅ Clear visual feedback
This is a sophisticated hedging bot that automatically protects your positions while keeping you in profitable trends! 🚀
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.