Momentum Breakout Strategy — AI Tech Equities · Multi-Layer Trend Filter · ATR-Based Risk Management
AI-MOMO-V1 is a momentum breakout strategy designed for high-volatility AI technology equities (NVDA, AMD, MSFT, META, GOOGL, AMZN). It uses a four-layer entry filter to ensure all signals are aligned across macro trend, short-term trend, momentum, and breakout confirmation before entering a position.
Rather than mean reversion or fixed-time entries, AI-MOMO captures explosive directional moves that AI tech names are known for — riding the surge with ATR-based trailing stops to lock in gains while avoiding premature exits.
All four conditions must be true simultaneously for a signal to fire. This eliminates false breakouts in choppy or ranging markets.
strategy.position_size == 0. The strategy will not
add to an existing position or flip without first being flat.
All stop loss, take profit, and trailing stop distances are calculated as multiples of the Average True Range (ATR). This automatically scales risk to the instrument's current volatility — tighter stops on calm days, wider stops during earnings/news events.
| Parameter | Default | Description |
|---|---|---|
| ATR Length | 14 | Lookback period for ATR calculation |
| Stop Loss | 1.5× ATR | Distance below/above entry before position is closed at a loss |
| Take Profit | 3.0× ATR | Distance to fixed profit target — 2:1 minimum R:R |
| Trailing Stop | 2.0× ATR | Locks in gains on runners — activates after entry, trails price |
| Use Trailing Stop | true | Toggle trailing stop on/off. When off, only fixed TP/SL applies. |
trail_points in ticks calculated as atr × trail_mult / syminfo.mintick.
Verify your chart's tick size is correct before live use — an incorrect mintick will produce
a wrong trailing distance.
| Group | Parameter | Default | Notes |
|---|---|---|---|
| Trend Filter | Fast EMA | 21 | Short-term trend EMA |
| Trend Filter | Slow EMA | 50 | Medium-term trend EMA |
| Trend Filter | Macro EMA | 200 | Long-term trend bias filter — only long above, only short below |
| Momentum | RSI Length | 14 | Standard RSI lookback |
| Momentum | RSI Entry Threshold (Bull) | 55 | Minimum RSI for long entry. Bear entry threshold = 100 - this value (45) |
| Breakout | Breakout Lookback | 20 | Number of bars to look back for the prior high/low breakout level |
| Breakout | Volume Multiplier | 1.5× | Current bar volume must exceed avg × this multiplier to confirm breakout |
| Breakout | Volume Avg Length | 20 | SMA length for the volume average baseline |
| Risk Management | ATR Length | 14 | ATR calculation lookback |
| Risk Management | Stop Loss (ATR x) | 1.5 | SL distance as ATR multiple |
| Risk Management | Take Profit (ATR x) | 3.0 | TP distance as ATR multiple — 2:1 R:R at defaults |
| Risk Management | Use Trailing Stop | true | Enables ATR trailing stop on open positions |
| Risk Management | Trail Stop (ATR x) | 2.0 | Trailing stop distance as ATR multiple |
| Testing | Force Manual Trigger | false | Fires a test webhook payload — use with "Once Per Bar" alert setting |
| Element | Style | Description |
|---|---|---|
| EMA Fast (21) | Aqua line | Short-term trend direction |
| EMA Slow (50) | Yellow line | Medium-term trend direction |
| EMA Macro (200) | Gray line (semi-transparent) | Long-term macro bias — bullish above, bearish below |
| Prior High | Green step-line | N-bar lookback high (breakout trigger level) |
| Prior Low | Red step-line | N-bar lookback low (breakdown trigger level) |
| Long Entry marker | Green triangle (below bar) | Fires on confirmed long breakout signal |
| Short Entry marker | Red triangle (above bar) | Fires on confirmed short breakdown signal |
| Background tint | Green / Red (5% opacity) | Macro bias — green when price > 200 EMA, red when below |
AI-MOMO-V1 sends separate payloads for long and short entries via alert_message on strategy.entry() and standalone alertcondition() triggers.
| Field | Description |
|---|---|
secret | Shared webhook authentication key for NIGHTHAWK |
model_id | Routes the signal to the AI-MOMO-V1 handler in Sentinel |
ticker | Symbol the alert fired on — dynamic via syminfo.tickerid |
action | BUY or SELL |
price | Close price at time of signal |
metadata.tier | Strategy classification — MOMENTUM_BREAKOUT |
metadata.rsi | RSI value at signal bar — useful for downstream filtering |
metadata.atr | ATR value at signal bar — used to reconstruct SL/TP levels |
metadata.timestamp | Unix timestamp in milliseconds via timenow |
Toggle FORCE MANUAL TRIGGER in the Testing input group and set the alert to "Once Per Bar" to fire the test payload to your webhook endpoint.
| Field | Value |
|---|---|
| model_id | AI-MOMO-V1 |
| status | OBSERVATION |
| Migration | v1.4 — 2026-05-20 |
| Ticker | Name | Recommended TF | Notes |
|---|---|---|---|
| NVDA | NVIDIA | Daily / 4H | Highest volatility AI name — adjust ATR multipliers up slightly |
| AMD | Advanced Micro Devices | Daily / 4H | Strong momentum mover, good breakout follow-through |
| MSFT | Microsoft | Daily | Lower volatility — tighter ATR, reliable trend signals |
| META | Meta Platforms | Daily / 4H | High beta, responds well to momentum signals |
| GOOGL | Alphabet | Daily | Trend-following works well, lower noise than NVDA/AMD |
| AMZN | Amazon | Daily | AWS/AI exposure — breakout follow-through historically strong |
Alt+P), clear existing code, paste ai_tech_momentum_breakout.pine, click Add to chart.atr_sl_mult and break_len per ticker — NVDA may need wider stops (2.0×), MSFT can use tighter (1.2×).