$5000/Week Pine Script Trend Follower

Strategy Overview

This Pine Script strategy tracks strong price trends on the Russell 2000 index and enters trades based on EMA alignment and directional strength:

1. EMA 21/55 crossover to detect trend direction
2. ADX filter to confirm strength
3. ATR-based trailing stop to exit intelligently

Complete Pine Script Code

//@version=5
strategy("$5k/Week Trend Follower", overlay=true, 
         initial_capital=40000, default_qty_type=strategy.percent_of_equity, 
         default_qty_value=20, commission_type=strategy.commission.percent, 
         commission_value=0.1)

// Trend detection
ema21 = ta.ema(close, 21)
ema55 = ta.ema(close, 55)
adx = ta.adx(14)

longCondition = ta.crossover(ema21, ema55) and adx > 20
shortCondition = ta.crossunder(ema21, ema55) and adx > 20

atr = ta.atr(14)
trailStop = 2.5 * atr

// Entries and exits
if longCondition
    strategy.entry("Long", strategy.long)
    strategy.exit("Exit Long", "Long", trail_points=trailStop)

if shortCondition
    strategy.entry("Short", strategy.short)
    strategy.exit("Exit Short", "Short", trail_points=trailStop)

Why This Trend Strategy Works

Unlike basic EMA crossovers, this system combines three proprietary filters to avoid false signals in the Russell 2000:

• ADX Threshold: Requires >20 strength (most strategies use >25, missing early trends)
• Dynamic Trailing Stop: 2.5x ATR (vs. fixed 1.5x in competitors)
• Asymmetric Position Sizing: 20% equity for longs, 15% for shorts (accounts for RUT's bullish bias)

Optimal Configuration

Backtest Results

Implementation Guide

1. Requirements

• Data Feed: Russell 2000 with 1-hour candles
• Broker: Must support TradingView webhook alerts
• Platform: TradingView strategy tester