\section{TradingView Pine Script Strategies}

TradingView's Pine Script provides a powerful platform for developing and backtesting trading strategies. This section examines a sophisticated multi-timeframe RSI strategy with EMA distance trading.

\subsection{Pine Script Overview}

Pine Script is TradingView's domain-specific language for creating custom indicators and strategies. Unlike MQL5, Pine Script is designed specifically for technical analysis and strategy development.

\subsection{SSE Index RSI Bounce Strategy}

This strategy is specifically designed for the Shanghai Stock Exchange (SSE) Index, combining multiple timeframe RSI analysis with EMA distance trading.

\subsubsection{Strategy Architecture}

The strategy implements three distinct entry mechanisms:

\textbf{1. Weekly RSI Bounce:}
\begin{itemize}
    \item Monitors weekly RSI for oversold conditions
    \item Enters long when weekly RSI crosses above oversold level (27)
    \item Position size: 14\% of equity
    \item Targets major trend reversals
\end{itemize}

\textbf{2. Daily RSI Bounce:}
\begin{itemize}
    \item Monitors daily RSI for oversold conditions
    \item Enters long when daily RSI crosses above oversold level (27)
    \item Position size: 11\% of equity
    \item Captures short-term momentum shifts
\end{itemize}

\textbf{3. EMA Distance Entry:}
\begin{itemize}
    \item Enters when price extends 16+ pips from 200 EMA
    \item Requires price to remain above EMA
    \item Position size: 53\% of equity
    \item Exploits mean reversion opportunities
\end{itemize}

\subsubsection{Core Implementation}

\begin{lstlisting}[style=pinescriptstyle, caption=Pine Script Strategy Structure]
//@version=6
strategy("SSE Index RSI Bounce Strategy", overlay=true, 
         default_qty_type=strategy.percent_of_equity, 
         initial_capital=10000, pyramiding=100)

// Input parameters
rsi_length = input.int(17, "RSI Length", minval=1)
rsi_oversold = input.int(27, "RSI Oversold Level", minval=1, maxval=50)
rsi_overbought = input.int(86, "RSI Overbought Level", minval=50, maxval=100)
ema_length = input.int(177, "EMA Length", minval=1)

// Calculate indicators
rsi_daily = ta.rsi(close, rsi_length)
rsi_weekly = request.security(syminfo.tickerid, "1W", ta.rsi(close, rsi_length))
ema_200 = ta.ema(close, ema_length)
\end{lstlisting}

\subsubsection{Multi-Timeframe Analysis}

Pine Script's \texttt{request.security()} function enables seamless multi-timeframe analysis:

\begin{lstlisting}[style=pinescriptstyle]
// Get weekly RSI
rsi_weekly = request.security(syminfo.tickerid, "1W", ta.rsi(close, rsi_length))
rsi_weekly_prev = request.security(syminfo.tickerid, "1W", ta.rsi(close, rsi_length)[1])

// Weekly bounce detection
weekly_bounce = rsi_weekly_prev < rsi_oversold and rsi_weekly > rsi_oversold
\end{lstlisting}

This allows the strategy to analyze weekly conditions while executing on any timeframe.

\subsubsection{Entry Logic}

\textbf{RSI Bounce Detection:}
\begin{lstlisting}[style=pinescriptstyle]
// Daily RSI bounce: RSI was below 30 and now crosses above 30
daily_bounce = rsi_daily[1] < rsi_oversold and rsi_daily > rsi_oversold

// Weekly RSI bounce: RSI was below 30 and now crosses above 30
weekly_bounce = rsi_weekly_prev < rsi_oversold and rsi_weekly > rsi_oversold
\end{lstlisting}

\textbf{EMA Distance Calculation:}
\begin{lstlisting}[style=pinescriptstyle]
// Calculate pip size (adjusts for instrument)
pip_size = syminfo.mintick * 10
price_ema_distance = math.abs(close - ema_200) / pip_size

// EMA distance entry condition
ema_distance_entry = price_ema_distance >= ema_distance_threshold * 100 
                     and close > ema_200
\end{lstlisting}

\subsubsection{Position Management}

The strategy uses separate position tracking for each entry type:

\begin{lstlisting}[style=pinescriptstyle]
// Track positions separately
var int weekly_trade_count = 0
var int daily_trade_count = 0
var int ema_distance_trade_count = 0
var float weekly_position_qty = 0.0
var float daily_position_qty = 0.0
var float ema_distance_position_qty = 0.0

// Entry execution
if weekly_entry
    strategy.entry("Weekly_Long", strategy.long, qty=weekly_position_size, 
                   comment="Weekly RSI Bounce #" + str.tostring(weekly_trade_count + 1))
    weekly_trade_count := weekly_trade_count + 1
    weekly_position_qty := weekly_position_qty + weekly_position_size
\end{lstlisting}

\subsubsection{Exit Logic}

\textbf{Partial Exits:}
\begin{lstlisting}[style=pinescriptstyle]
// Partial exit for weekly positions on daily RSI overbought
if daily_rsi_overbought and weekly_position_qty > 0
    exit_qty = weekly_position_qty * (partial_exit_percent / 100)
    strategy.close("Weekly_Long", qty=exit_qty, 
                   comment="Weekly Partial Exit Daily OB")
    weekly_position_qty := math.max(0, weekly_position_qty - exit_qty)
\end{lstlisting}

\textbf{Complete Exits:}
\begin{lstlisting}[style=pinescriptstyle]
// Complete exit for weekly positions on weekly RSI overbought
if weekly_rsi_overbought and weekly_position_qty > 0
    strategy.close("Weekly_Long", comment="Complete Exit Weekly OB")
    weekly_position_qty := 0.0
    weekly_trade_count := 0
\end{lstlisting}

\textbf{EMA Crossover Exit:}
\begin{lstlisting}[style=pinescriptstyle]
// Exit all positions when EMA crosses from above price to below price
ema_above_price_prev = ema_200[1] > close[1]
ema_below_price_now = ema_200 < close
ema_exit_condition = ema_above_price_prev and ema_below_price_now

if ema_exit_condition and strategy.position_size > 0
    strategy.close_all("EMA Cross Exit")
\end{lstlisting}

\subsubsection{Enhanced Version Features}

The enhanced version adds sophisticated filtering mechanisms:

\textbf{EMA Alignment Filter:}
\begin{lstlisting}[style=pinescriptstyle]
// Calculate fast and slow EMAs for alignment check
fast_ema = ta.ema(close, fast_ema_length)
slow_ema = ta.ema(close, slow_ema_length)
ema_alignment_distance = math.abs(fast_ema - slow_ema) / pip_size

// EMA Alignment Filter Logic
ema_alignment_ok = false
if ema_alignment_direction == "both"
    ema_alignment_ok := ema_alignment_distance >= ema_alignment_threshold
else if ema_alignment_direction == "above"
    ema_alignment_ok := fast_ema > slow_ema and 
                        ema_alignment_distance >= ema_alignment_threshold
\end{lstlisting}

\textbf{Price Proximity Filter:}
\begin{lstlisting}[style=pinescriptstyle]
// Prevent trades when price is too close to 200 EMA
price_proximity_ok = price_ema_distance >= price_proximity_threshold * 100

// Enhanced EMA Distance Entry with filters
ema_distance_entry = price_ema_distance >= ema_distance_threshold * 100 
                     and close > ema_200 
                     and ema_alignment_ok 
                     and price_proximity_ok
\end{lstlisting}

\subsubsection{Visual Feedback}

The strategy provides comprehensive visual feedback:

\begin{lstlisting}[style=pinescriptstyle]
// Background colors for conditions
bgcolor(weekly_bounce ? color.new(color.green, 90) : na, 
        title="Weekly RSI Bounce")
bgcolor(daily_bounce ? color.new(color.blue, 90) : na, 
        title="Daily RSI Bounce")
bgcolor(ema_distance_entry ? color.new(color.purple, 90) : na, 
        title="EMA Distance Entry")

// Plot entry and exit signals
plotshape(weekly_entry, "Weekly Entry", shape.triangleup, 
          location.belowbar, color.green, size=size.normal)
plotshape(daily_entry, "Daily Entry", shape.triangleup, 
          location.belowbar, color.blue, size=size.small)
plotshape(ema_distance_entry, "EMA Distance Entry", shape.triangleup, 
          location.belowbar, color.purple, size=size.normal)
\end{lstlisting}

\subsubsection{Information Table}

Real-time status display:

\begin{lstlisting}[style=pinescriptstyle]
var table info_table = table.new(position.top_right, 2, 16, 
                                  bgcolor=color.white, border_width=1)
if barstate.islast
    table.cell(info_table, 0, 0, "Indicator", bgcolor=color.gray)
    table.cell(info_table, 1, 0, "Value", bgcolor=color.gray)
    table.cell(info_table, 0, 1, "Daily RSI", bgcolor=color.white)
    table.cell(info_table, 1, 1, str.tostring(rsi_daily, "#.##"), 
               bgcolor=color.white)
    // ... additional cells
\end{lstlisting}

\subsection{Key Differences: Pine Script vs MQL5}

\begin{table}[H]
\centering
\caption{Pine Script vs MQL5 Comparison}
\label{tab:pinescript_vs_mql5}
\begin{tabular}{lll}
\toprule
\textbf{Feature} & \textbf{Pine Script} & \textbf{MQL5} \\
\midrule
Platform & TradingView (Cloud) & MetaTrader 5 (Desktop) \\
Execution & Backtesting/Paper Trading & Live Trading \\
Multi-Timeframe & \texttt{request.security()} & Manual timeframe switching \\
Position Management & Built-in strategy functions & Manual CTrade class \\
Visualization & Built-in plotting & Manual object creation \\
Real-time Data & Cloud-based & Broker connection required \\
\bottomrule
\end{tabular}
\end{table}

\subsection{Strategy Rationale}

\textbf{Why This Strategy Works:}

\begin{enumerate}
    \item \textbf{Multi-Timeframe Confirmation}: Weekly signals provide major trend direction, daily signals capture short-term opportunities
    \item \textbf{RSI Mean Reversion}: Oversold bounces in equity markets often lead to profitable reversals
    \item \textbf{EMA Distance Trading}: Extreme price deviations from EMA tend to revert, creating profit opportunities
    \item \textbf{Partial Profit Taking}: Scaling out positions at overbought levels locks in profits while allowing for continued upside
    \item \textbf{EMA Exit Protection}: Crossover exits protect capital during major trend reversals
\end{enumerate}

\subsection{Market-Specific Optimization}

The strategy is optimized for Chinese equity markets:

\begin{itemize}
    \item \textbf{Volatility Characteristics}: Chinese markets exhibit high volatility, making RSI bounces more frequent
    \item \textbf{Emotion-Driven Moves}: Retail-driven markets create more extreme RSI readings
    \item \textbf{Session Patterns}: Trading during specific hours captures optimal market conditions
    \item \textbf{Position Sizing}: Larger position sizes (up to 53\%) capitalize on high-probability setups
\end{itemize}

\subsection{Performance Considerations}

\textbf{Advantages of Pine Script:}
\begin{itemize}
    \item Easy backtesting with historical data
    \item Cloud-based execution (no local resources required)
    \item Built-in visualization and debugging tools
    \item Community sharing and strategy marketplace
\end{itemize}

\textbf{Limitations:}
\begin{itemize}
    \item Limited to TradingView platform
    \item No direct broker integration (requires manual execution or TradingView broker)
    \item Less control over execution details compared to MQL5
    \item Cloud dependency (requires internet connection)
\end{itemize}

The TradingView strategy demonstrates how modern cloud-based platforms enable sophisticated multi-timeframe strategies with comprehensive risk management and visual feedback, complementing the MQL5 implementations for different trading needs and preferences.
