Dragon

Dragon is a four pivot reversal strategy from @tradejs/strategy-dragon. It confirms the pattern against a projected trendline from head to hump before it creates an entry.

Visual overview

The illustrations are schematic and are not market data. The active strategy config supplies the exact geometry, confirmation, and risk thresholds.

Decision flow

1. Confirm four alternating wick pivots with DRAGON_PIVOT_LENGTH.
2. Match a bullish sequence of high, low, lower high, and higher low, or its bearish mirror.
3. Check the hump retracement, rear foot offset, pattern size, age, leg length, and projected trendline slope.
4. Require a close through the trendline and apply the selected DRAGON_ENTRY_MODE: immediate breakout, later close acceptance, or retest.
5. Build the target and stop from pattern height, then reject an invalid stop, a passed target, or insufficient risk ratio.
6. Size the order from MAX_LOSS_VALUE and the calculated loss per unit.

Entry codes start with DRAGON_BULLISH_ or DRAGON_BEARISH_ and include the entry stage. When DRAGON_EXIT_ON_OPPOSITE_PATTERN=true, a confirmed opposite pattern can close an open position with DRAGON_OPPOSITE_PATTERN_EXIT.

Configuration keys

The keys are grouped by purpose. Common runtime, AI, ML, shared indicator, and position-sizing keys keep the same meaning across the built-in strategies.

Group	Keys	Purpose
Fees	FEE_PERCENT	Include the configured trading fee in position and reward-to-risk calculations.
Runtime and decision services	ENV, INTERVAL, MAKE_ORDERS, CLOSE_OPPOSITE_POSITIONS, BACKTEST_PRICE_MODE, AI_ENABLED, AI_MODE, MIN_AI_QUALITY, ML_ENABLED, ML_THRESHOLD	Select the runtime mode and candle interval, control order placement, and enable optional AI or ML decisions.
Shared indicators	MA_FAST, MA_MEDIUM, MA_SLOW, OBV_SMA, ATR, ATR_PCT_SHORT, ATR_PCT_LONG, BB, BB_STD, MACD_FAST, MACD_SLOW, MACD_SIGNAL	Set the periods used to build the shared market context.
Pivot shape	DRAGON_PIVOT_LENGTH, DRAGON_MIN_REAR_FOOT_OFFSET_PCT, DRAGON_MAX_REAR_FOOT_OFFSET_PCT, DRAGON_MIN_HUMP_RETRACEMENT_PCT, DRAGON_MAX_HUMP_RETRACEMENT_PCT	Define pivot confirmation and the allowed rear-foot and hump geometry.
Size and age	DRAGON_MIN_PATTERN_HEIGHT_PCT, DRAGON_MIN_PATTERN_HEIGHT_ATR, DRAGON_ATR_PERIOD, DRAGON_MIN_LEG_BARS, DRAGON_MAX_PATTERN_AGE_BARS, DRAGON_MAX_BREAKOUT_AFTER_REAR_FOOT_BARS	Set the minimum pattern size and reject short legs, old patterns, or late breakouts.
Breakout quality	DRAGON_MIN_TRENDLINE_SLOPE_PCT_PER_BAR, DRAGON_MIN_BREAKOUT_DISTANCE_ATR, DRAGON_MAX_BREAKOUT_DISTANCE_HEIGHT_RATIO	Limit the trendline slope and the minimum and maximum valid breakout distance.
Entry timing	DRAGON_ENTRY_MODE, DRAGON_CONFIRMATION_MAX_BARS, DRAGON_RETEST_MAX_BARS, DRAGON_RETEST_TOLERANCE_ATR	Choose breakout, close acceptance, or retest entry and bound the confirmation window.
Target, stop, and exit	DRAGON_TARGET_FIB_PCT, DRAGON_STOP_FIB_PCT, DRAGON_EXIT_ON_OPPOSITE_PATTERN	Set target and stop distances from pattern height and allow an opposite pattern to exit.
Risk and side policy	MAX_LOSS_VALUE, LONG.enable, LONG.direction, LONG.minRiskRatio, SHORT.enable, SHORT.direction, SHORT.minRiskRatio	Set the loss budget and enable each direction with its minimum reward-to-risk ratio.

Signal payload

An entry includes additionalIndicators.dragonContext, pattern and order figures, and one take profit order. The context records the four pivots, trendline, entry stage, pattern measurements, target, stop, and calculated trade economics.

Common skip reasons

• NO_PATTERN
• POSITION_EXISTS
• DEV_TRADE_COOLDOWN
• STRATEGY_DISABLED
• INVALID_STOP
• TARGET_ALREADY_PASSED
• INVALID_QTY
• RISK_RATIO:<value>

Validation notes

Test both directions separately and inspect the pattern figures. Small changes to pivot confirmation, pattern age, or breakout distance can change signal timing and trade count. Validate each entry mode on data that was not used to choose its parameters.