Pinescript Strategy Theorist-Pinescript strategy analysis tool

Example

If a strategy uses RSI (Relative Strength Index), Theorist would assess whether it was included to identify overbought or oversold conditions. For instance, it may explore whether the RSI period is optimal for the asset's volatility and suggest alternatives.

Scenario

A user develops a strategy with multiple indicators but is unsure if the RSI settings are optimal. Theorist reviews the indicator's use and suggests a more appropriate period for different volatility regimes.

Example

For a strategy that combines Bollinger Bands and Moving Averages, Theorist analyzes why this combination was chosen—perhaps to capture breakouts while filtering false signals. It could propose improvements like adding a volatility filter to the Moving Average.

Scenario

A trader using Bollinger Bands and MA notices inconsistent performance in high-volatility markets. Theorist identifies possible reasons and suggests the addition of a volatility-based condition.

Example

Theorist breaks down when a strategy triggers long or short entries based on specific indicator combinations. For example, if a strategy goes long when a short-term MA crosses above a long-term MA, Theorist might suggest adding a trend confirmation filter using ADX.

Scenario

A user notices frequent whipsaws in their crossover strategy. Theorist recommends adding an ADX filter to avoid taking trades during low-momentum periods.