Iron Bot Statistical Trend Filter

📌 Iron Bot Statistical Trend Filter
📌 Overview
Iron Bot Statistical Trend Filter is an advanced trend filtering strategy that combines statistical methods with technical analysis.
By leveraging Z-score and Fibonacci levels, this strategy quantitatively analyzes market trends to provide high-precision entry signals.
Additionally, it includes an optional EMA filter to enhance trend reliability.
Risk management is reinforced with Stop Loss (SL) and four Take Profit (TP) levels, ensuring a balanced approach to risk and reward.

📌 Key Features
🔹 1. Statistical Trend Filtering with Z-Score
This strategy calculates the Z-score to measure how much the price deviates from its historical mean.

Positive Z-score: Indicates a statistically high price, suggesting a strong uptrend.
Negative Z-score: Indicates a statistically low price, signaling a potential downtrend.
Z-score near zero: Suggests a ranging market with no strong trend.
By using the Z-score as a filter, market noise is reduced, leading to more reliable entry signals.

🔹 2. Fibonacci Levels for Trend Reversal Detection
The strategy integrates Fibonacci retracement levels to identify potential reversal points in the market.

High Trend Level (Fibo 23.6%): When the price surpasses this level, an uptrend is likely.
Low Trend Level (Fibo 78.6%): When the price falls below this level, a downtrend is expected.
Trend Line (Fibo 50%): Acts as a midpoint, helping to assess market balance.
This allows traders to visually confirm trend strength and turning points, improving entry accuracy.

🔹 3. EMA Filter for Trend Confirmation (Optional)
The strategy includes an optional 200 EMA (Exponential Moving Average) filter for trend validation.

Price above 200 EMA: Indicates a bullish trend (long entries preferred).
Price below 200 EMA: Indicates a bearish trend (short entries preferred).
Enabling this filter reduces false signals and improves trend-following accuracy.

🔹 4. Multi-Level Take Profit (TP) and Stop Loss (SL) Management
To ensure effective risk management, the strategy includes four Take Profit levels and a Stop Loss:

Stop Loss (SL): Automatically closes trades when the price moves against the position by a certain percentage.
TP1 (+0.75%): First profit-taking level.
TP2 (+1.1%): A higher probability profit target.
TP3 (+1.5%): Aiming for a stronger trend move.
TP4 (+2.0%): Maximum profit target.
This system secures profits at different stages and optimizes risk-reward balance.

🔹 5. Automated Long & Short Trading Logic
The strategy is built using Pine Script®’s strategy.entry() and strategy.exit(), allowing fully automated trading.

Long Entry:
Price is above the trend line & high trend level.
Z-score is positive (indicating an uptrend).
(Optional) Price is also above the EMA for stronger confirmation.
Short Entry:
Price is below the trend line & low trend level.
Z-score is negative (indicating a downtrend).
(Optional) Price is also below the EMA for stronger confirmation.
This logic helps filter out unnecessary trades and focus only on high-probability entries.

📌 Trading Parameters
This strategy is designed for flexible capital management and risk control.

💰 Account Size: $5000
📉 Commissions and Slippage: Assumes 94 pips commission per trade and 1 pip slippage.
⚖️ Risk per Trade: Adjustable, with a default setting of 1% of equity.

These parameters help preserve capital while optimizing the risk-reward balance.

📌 Visual Aids for Clarity
To enhance usability, the strategy includes clear visual elements for easy market analysis.

✅ Trend Line (Blue): Indicates market midpoint and helps with entry decisions.
✅ Fibonacci Levels (Yellow): Highlights high and low trend levels.
✅ EMA Line (Green, Optional): Confirms long-term trend direction.
✅ Entry Signals (Green for Long, Red for Short): Clearly marked buy and sell signals.

These features allow traders to quickly interpret market conditions, even without advanced technical analysis skills.

📌 Originality & Enhancements
This strategy is developed based on the IronXtreme and BigBeluga indicators,
combining a unique Z-score statistical method with Fibonacci trend analysis.

Compared to conventional trend-following strategies, it leverages statistical techniques
to provide higher-precision entry signals, reducing false trades and improving overall reliability.

📌 Summary
Iron Bot Statistical Trend Filter is a statistically-driven trend strategy that utilizes Z-score and Fibonacci levels.

High-precision trend analysis
Enhanced accuracy with an optional EMA filter
Optimized risk management with multiple TP & SL levels
Visually intuitive chart design
Fully customizable parameters & leverage support
This strategy reduces false signals and helps traders ride the trend with confidence.
Try it out and take your trading to the next level! 🚀