This strategy demonstrates an adaptive momentum approach using volatility-normalized trend strength. It is designed for educational and analytical purposes and uses deterministic, fully transparent logic compatible with Pine Script v6.
ML-Inspired Concept (Educational Context)
Pine Script cannot train or execute real machine-learning models.
Instead, this strategy demonstrates ML-style thinking by:
- Converting price data into features
- Normalizing features to account for volatility differences
- Producing a bounded confidence score
- Applying thresholds for decision making This is not predictive AI and does not claim forecasting capability.
Strategy Logic
- EMA is used to measure directional bias
- EMA slope represents momentum change
- ATR normalizes the slope (feature scaling)
- A clamped score between −1 and +1 is generated
- Trades trigger only when the score exceeds defined thresholds
Risk & Execution
- Position size capped at 5% equity
- Commission and slippage included for realistic testing
- Signals are calculated on closed bars only
Purpose
This script is intended to help traders explore adaptive momentum concepts and understand how feature normalization can be applied in systematic trading strategies.
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