VWAP Fade
The mirror image: fades the stretch back to session VWAP, and only while the regime reads compression. Same engine as Trend Continuation, opposite half of the day.
What it does
The mirror image of Trend Continuation: fades the stretch back toward session VWAP, and only while the regime engine reads compression.
How it works
Bands are standard deviations around the session-anchored VWAP. The default trigger waits for the bar that closes back inside the band rather than catching the touch. The target is VWAP itself (re-read every bar, because VWAP moves), the opposite 1σ band, or an R multiple.
The stop sits beyond the band by a fraction of σ, or an ATR multiple, with a tick floor. A time stop closes a fade that hasn’t worked, and leaving compression closes it immediately. Entries are blocked in the opening minutes, when σ is barely estimated and the opening drive is the worst thing to fade.
Account guardrails
The same guardrail layer as the rest of the suite: position size from the stop distance and your risk budget, a daily loss limit, a daily profit lock, an entry cap and a drawdown model. Set them to your own account’s rules; the strategy is built to stand down before those limits, but gaps and slippage can still carry a loss past them, and your firm’s own calculation is the one that counts.
Settings
Session · VWAP · Regime engine · Account guardrails · Entry · Exit
Limits
Mean reversion is the strategy that looks best in a backtest and hurts most when the regime read is wrong.
Backtest properties
$100,000 initial capital, 1 contract, $2.25 per contract per side commission, 2 ticks of slippage, 10% margin, no pyramiding, orders filled on the close of the signal bar. Set commission and slippage to your own broker’s terms before drawing any conclusion.
Hypothetical performance. We publish no win rates, profit figures or backtest results. Anything a strategy shows in TradingView’s Strategy Tester is a hypothetical backtest, not a record of trading.
CFTC Rule 4.41Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
The rest of the suite
6 scripts, one system: the same regime engine, panel and alert payload in each.