Multi SMA and Stochastic Combined Trend Following Trading Strategy

/*backtest
start: 2024-11-26 00:00:00
end: 2024-12-25 08:00:00
period: 4h
basePeriod: 4h
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

//@version=5
strategy("Purple SMA Strategy", overlay=true)

// === INPUTS ===
zoneLength = input.int(20, "Price Zone Length", minval=5)
tickSize = input.float(1.0, "Tick Size for Hard Stop")
hardStopTicks = input.int(50, "Hard Stop Loss in Ticks")

// === CALCULATE ZONES ===
h = ta.highest(high, zoneLength)
l = ta.lowest(low, zoneLength)
priceRange = h - l
lvl5 = h
lvl4 = l + (priceRange * 0.75)  // Orange line
lvl3 = l + (priceRange * 0.50)  // Yellow line
lvl2 = l + (priceRange * 0.25)  // Green line
lvl1 = l

// === INDICATORS ===
sma19 = ta.sma(close, 19)
sma74 = ta.sma(close, 74)

// === CANDLE COLOR CONDITIONS ===
isGreenCandle = close > open
isRedCandle = close < open

// === CONTINUOUS TREND DETECTION ===
isThreeGreenCandles = close > open and close[1] > open[1] and close[2] > open[2]
isThreeRedCandles = close < open and close[1] < open[1] and close[2] < open[2]

var bool inGreenTrend = false
var bool inRedTrend = false

// Update trends
if isThreeGreenCandles
    inGreenTrend := true
    inRedTrend := false
if isThreeRedCandles
    inRedTrend := true
    inGreenTrend := false
if (inGreenTrend and isRedCandle) or (inRedTrend and isGreenCandle)
    inGreenTrend := false
    inRedTrend := false

// === STOCHASTIC CONDITIONS ===
k = ta.stoch(close, high, low, 60)
d = ta.sma(k, 10)
isOverbought = d >= 80
isOversold = d <= 20
stochUp = d > d[1]
stochDown = d < d[1]

// === SMA COLOR LOGIC ===
sma19Color = if isOverbought and stochUp
    color.green
else if isOverbought and stochDown
    color.red
else if isOversold and stochUp
    color.green
else if isOversold and stochDown
    color.red
else if stochUp
    color.blue
else if stochDown
    color.purple
else
    color.gray

sma74Color = sma74 < sma19 ? color.green : color.red

// === CROSSING CONDITIONS ===
crossUpSMA = ta.crossover(close, sma74)
crossDownSMA = ta.crossunder(close, sma74)

// === ENTRY CONDITIONS ===
buyCondition = crossUpSMA and close > lvl4
sellCondition = crossDownSMA and close < lvl2

// === POSITION MANAGEMENT ===
var float stopLevel = na
var bool xMode = false

// Entry and Stop Loss
if buyCondition
    strategy.entry(id="Long", direction=strategy.long)
    stopLevel := close - (hardStopTicks * tickSize)
    xMode := false

if sellCondition
    strategy.entry(id="Short", direction=strategy.short)
    stopLevel := close + (hardStopTicks * tickSize)
    xMode := false

// Update stops based on X's
if strategy.position_size != 0 and (inGreenTrend or inRedTrend)
    xMode := true
    if strategy.position_size > 0  // Long position
        stopLevel := low
    else  // Short position
        stopLevel := high

// Exit logic
if strategy.position_size > 0  // Long position
    if low <= stopLevel
        strategy.close(id="Long")
    else if xMode and not (inGreenTrend or inRedTrend)
        strategy.close(id="Long")

if strategy.position_size < 0  // Short position
    if high >= stopLevel
        strategy.close(id="Short")
    else if xMode and not (inGreenTrend or inRedTrend)
        strategy.close(id="Short")

// === PLOTTING ===
plot(sma19, "SMA 19", color=sma19Color, linewidth=2)
plot(sma74, "SMA 74", color=sma74Color, linewidth=2)
plot(lvl5, "Upper Zone Top", color=color.red, linewidth=2)
plot(lvl4, "Upper Zone Bottom", color=color.orange, linewidth=2)
plot(lvl3, "Middle Line", color=color.yellow, linewidth=2)
plot(lvl2, "Lower Zone Top", color=color.green, linewidth=2)
plot(lvl1, "Lower Zone Bottom", color=color.blue, linewidth=2)

// Plot X signals
plotshape(inGreenTrend, title="Bullish Line", style=shape.xcross, location=location.belowbar, color=color.white, size=size.tiny)
plotshape(inRedTrend, title="Bearish Line", style=shape.xcross, location=location.abovebar, color=color.white, size=size.tiny)

// Zone fills
var p1 = plot(lvl5, display=display.none)
var p2 = plot(lvl4, display=display.none)
var p3 = plot(lvl2, display=display.none)
var p4 = plot(lvl1, display=display.none)
fill(p1, p2, color=color.new(color.red, 90))
fill(p3, p4, color=color.new(color.green, 90))

// Plot entry signals
plotshape(buyCondition, title="Buy", style=shape.square, location=location.belowbar, color=color.new(color.blue, 20), size=size.tiny, text="BUY", textcolor=color.blue)
plotshape(sellCondition, title="Sell", style=shape.square, location=location.abovebar, color=color.new(color.red, 20), size=size.tiny, text="SELL", textcolor=color.red)