OPEN-SOURCE SCRIPT
Volatility Reversion Scalper
Overview
A strategie don't just blindly buy dips—they hunt for high-probability exhaustion points during market panics. This script combines the legendary a synthetic volatility index with Fibonacci Bollinger Bands to pinpoint exact structural bottoms. It is designed to deploy capital only when the market is fearful and a bullish reversal is technically confirmed.
⚙️ Core Mechanics
Fibonacci Bollinger Bands: Instead of standard deviations, this script utilizes a highly reactive 0.618 Fibonacci multiplier on a 10-period SMA. It wraps tightly around the price action to detect micro-deviations and immediate oversold conditions.
CM Williams Vix Fix: Originally developed by Larry Williams, this component acts as a synthetic VIX for any asset. The strategy waits for the VIX Fix to spike into the 99th percentile, indicating extreme retail capitulation and optimal institutional buying zones.
🎯 Entry Logic (The 3-Key Lock)
A long position is strictly executed when these three conditions align on a confirmed bar:
Volatility Spike: The VIX Fix indicator flashes maximum fear.
Band Pierce: The price opens or closes below the lower Fibonacci Bollinger Band.
Bullish Rejection: The current candle closes green (close > open) following a previous red candle (close[1] < open[1]), signaling immediate buyer step-in and momentum shift.
🛡️ Risk Management & DCA (Dollar Cost Averaging)
Smart Pyramiding: To handle cascading drops and "falling knives," the script features a built-in DCA mechanism. It will only add a new leg to the position if the asset drops 10% or more below your current average entry price.
Fixed Take Profit: The exit logic is purely mechanical and emotionless. A limit order is automatically placed at exactly 5% profit above your average entry price, ensuring rapid capital turnover during high-volatility bounces.
💡 Backtesting & Usage Tips
Timeframe: This logic performs best on Daily (1D) or 4-Hour (4H) charts, where volatility spikes carry true structural weight.
Built-in Date Filter: Includes an adjustable date range (defaulted to 2020–2025) so you can easily stress-test the strategy across specific market regimes, such as the 2020 pandemic crash or the 2022 bear market.
A strategie don't just blindly buy dips—they hunt for high-probability exhaustion points during market panics. This script combines the legendary a synthetic volatility index with Fibonacci Bollinger Bands to pinpoint exact structural bottoms. It is designed to deploy capital only when the market is fearful and a bullish reversal is technically confirmed.
⚙️ Core Mechanics
Fibonacci Bollinger Bands: Instead of standard deviations, this script utilizes a highly reactive 0.618 Fibonacci multiplier on a 10-period SMA. It wraps tightly around the price action to detect micro-deviations and immediate oversold conditions.
CM Williams Vix Fix: Originally developed by Larry Williams, this component acts as a synthetic VIX for any asset. The strategy waits for the VIX Fix to spike into the 99th percentile, indicating extreme retail capitulation and optimal institutional buying zones.
🎯 Entry Logic (The 3-Key Lock)
A long position is strictly executed when these three conditions align on a confirmed bar:
Volatility Spike: The VIX Fix indicator flashes maximum fear.
Band Pierce: The price opens or closes below the lower Fibonacci Bollinger Band.
Bullish Rejection: The current candle closes green (close > open) following a previous red candle (close[1] < open[1]), signaling immediate buyer step-in and momentum shift.
🛡️ Risk Management & DCA (Dollar Cost Averaging)
Smart Pyramiding: To handle cascading drops and "falling knives," the script features a built-in DCA mechanism. It will only add a new leg to the position if the asset drops 10% or more below your current average entry price.
Fixed Take Profit: The exit logic is purely mechanical and emotionless. A limit order is automatically placed at exactly 5% profit above your average entry price, ensuring rapid capital turnover during high-volatility bounces.
💡 Backtesting & Usage Tips
Timeframe: This logic performs best on Daily (1D) or 4-Hour (4H) charts, where volatility spikes carry true structural weight.
Built-in Date Filter: Includes an adjustable date range (defaulted to 2020–2025) so you can easily stress-test the strategy across specific market regimes, such as the 2020 pandemic crash or the 2022 bear market.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.