Madstrat 2.0 Strategy

Madstrat 2.0 Strategy Overview

A multi-timeframe trading strategy implementing the Madstrat methodology with dual timeframe systems (15m/1hr and 30m/2hr), sophisticated day classification, and exhaustion-based exits.

---

Signal Types (Priority Order)

1. **Day 3 Signals** - GSD/RSD Day 3 with full confluence
2. **Day 2 Signals** - GSD/RSD Day 2 with full confluence
3. **M3 EQ Entry** - HTF 50 EMA rejection at equilibrium + LTF 50 SMA touch + 9/50 cross
4. **Pure Madstrat** - All confluence requirements except day count

---

Function Reference

Instrument & Tolerance
| Function | Purpose |
|----------|---------|
| `f_get_baseline_tolerance()` | Returns adaptive pip tolerance—wider for gold (~150 ticks), tighter for forex (~80 pips) |
| `f_get_breakout_points()` | Returns breakout threshold by instrument type |

Day Classification Engine (5m Authoritative)
| Function | Purpose |
|----------|---------|
| `f_day_state_5m()` | **Core engine**: handles rollover detection, daily/weekly OHLC, GSD/RSD counting, inside days, FBR, clean breakouts |
| `f_get_power_of_3_count()` | Maps DOW to Power of 3 (Mon=1, Tue=2, Wed=3, Thu=2, Fri=3) |

Touch & Alignment Detection
| Function | Purpose |
|----------|---------|
| `f_baseline_touch_buy/sell()` | Detects 50 EMA touch with directional close |
| `f_touch_buy/sell()` | Generic level touch detection |
| `f_update_touch_counter()` | Increments/resets touch bar counters |
| `f_stack_buy/sell()` | Full stack check: `close > 9 > 18 > 50 EMA > 50 SMA` |
| `f_ema_alignment_buy/sell()` | Basic 9/18 EMA alignment |
| `f_ema_slope_bullish/bearish()` | All EMAs sloping same direction |
| `f_candle_closed_above/below_emas()` | Candle position vs 9/18 EMAs |

Setup Grading & HTF Confirmation
| Function | Purpose |
|----------|---------|
| `f_grade_setup()` | Grades A/B setup based on multi-TF alignment + candle direction |
| `f_htf_rejection_bearish/bullish()` | Detects HTF 50 EMA rejection patterns |

Confluence Scoring
| Function | Purpose |
|----------|---------|
| `f_get_required_confluence()` | Dynamic score requirement by day count (Day 1→5, Day 2→4, Day 3+→3) |
| `f_confluence_score_day3()` | Scores Day 2/3 signals (max 10 factors) |
| `f_confluence_score_pure()` | Scores Pure signals (max 9 factors) |

Position & Risk Management
| Function | Purpose |
|----------|---------|
| `f_position_size()` | Calculates qty from entry, SL, and risk % |
| `f_calculate_rr()` | Computes risk-reward ratio |
| `f_find_swing_high/low()` | Locates historical swings for TP3 |
| `f_partial_close_longs/shorts()` | Closes % of all long/short entries |
| `f_close_all_longs/shorts()` | Full position close |

Exhaustion Areas (M1/M2)
| Function | Purpose |
|----------|---------|
| `f_is_bullish/bearish_candle()` | Candle direction check |
| `f_create_exhaustion_box()` | Draws exhaustion zone visualization |

Session & Utilities
| Function | Purpose |
|----------|---------|
| `f_session_string()` | Formats session time range |
| `f_get_label_size()` | Converts string to `size.*` constant |
| `f_chart_tf_minutes()` | Current chart TF in minutes |

UI Tables
| Function | Purpose |
|----------|---------|
| `f_auto_system()` / `f_selected_system()` | Auto-selects 15m or 30m system based on chart TF |
| `f_draw_confluence_table()` | Renders confluence scoring panel |
| `f_draw_status_table()` | Renders status/signal panel |
| `f_status_row/header()`, `f_touch_status_text()` | Table cell helpers |

---

Exit System

| Exit | Trigger | Action |
|------|---------|--------|
| **TP1** | Price hits PDH (longs) / PDL (shorts) | Close 50% |
| **TP2** | Price hits PWH / PWL | Close 30% (60% of remaining) |
| **TP3** | Price hits next swing level | Close remaining 20% |
| **M1-R1** | Test exhaustion zone + reject | Close 50% |
| **M1-R2** | Break exhaustion + return | Close 50% |
| **Stop Loss** | EMAs reverse + break entry candle | Full close |

---

Key Entry Requirements

- **All levels touched** (9/18/50 EMA + 50 SMA)
- **Full stack alignment**
- **5m EMA confirmation**
- **HTF baseline + EQ touch** (within lookback)
- **EQ rejection** (optional)
- **Minimum RR threshold**
- **Session filter** (optional)
- **No inside day**