Have you ever wondered whether there’s a way to trade more consistently — not just riding random price swings but using a system that’s designed to manage your risk and spot good entries? That’s where the Ghost Trading strategy comes in. It’s a custom-built Pine Script strategy (for TradingView) that fuses moving averages, candlestick patterns, and volatility-based risk tools like ATR, giving you a solid backbone for trading. Think of it as a ghostly trading companion: powerful, a little spooky, but committed to helping you navigate the markets smartly.
In this post, we're gonna unpack every part of the Ghost Trading strategy — what makes it tick, how to set it up, advantages and caveats, and how exactly you can use it to level up your trading game.
What Is the Ghost Trading Strategy?
Ghost Trading is a Pine Script strategy meant for the TradingView platform. It’s not just some “buy when MA crosses, sell when MA crosses back” thing — it adds real risk management and pattern recognition into the mix. Here’s what you're working with:
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Moving Averages: A fast (13-period) and slow (5-period) Simple Moving Average (SMA) cross is the basis for entries.
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Candlestick Patterns: It recognizes key patterns like engulfing bars, hammer, inverted hammer, harami, etc., and highlights them visually.
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ATR-based Risk: Uses the Average True Range (ATR) to set stop-loss and take-profit levels, dynamically tailored to market volatility.
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Position Sizing: Based on how far the stop loss is from your entry, so you don’t risk more than a set percentage of your capital.
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Risk Management: Lets you define what percent of your trading capital you're willing to risk per trade (default is 3 %).
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Visualization: Extra tools like a 22-period SMA, and labels (“T”, “TT”) help you see when entries or exits might happen.
Key Components of Ghost Trading Strategy
Risk Management
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You set a risk-per-trade percentage — by default, 3 % of your total capital.
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The strategy uses a risk-reward ratio (default is 1:3), meaning for every unit you risk, you’re aiming for three units in reward.
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Position size is calculated dynamically: based on how big the stop-loss is (which is based on ATR), the script figures out how many shares / contracts you'd buy so that your potential loss equals your risk budget.
You set a risk-per-trade percentage — by default, 3 % of your total capital.
The strategy uses a risk-reward ratio (default is 1:3), meaning for every unit you risk, you’re aiming for three units in reward.
Position size is calculated dynamically: based on how big the stop-loss is (which is based on ATR), the script figures out how many shares / contracts you'd buy so that your potential loss equals your risk budget.
Indicators & Entry Conditions
Moving Averages (MA)
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The strategy uses two SMAs — a 13-period fast MA and a 5-period slow MA.
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When the fast MA crosses above the slow MA, that’s a long entry signal.
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When it crosses below, that’s a short entry signal.
Candlestick Patterns
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It detects several classic price-action chart patterns:
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Bullish / bearish engulfing
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Hammer and inverted hammer
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Bullish / bearish harami
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These patterns are highlighted on the chart (via colored bars), making it easier for you to visually confirm or reject signals.
Volatility – ATR
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The strategy calculates stop-loss and take-profit using the ATR (Average True Range).
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There is a multiplier (default 1.5) that you can tweak — this tells how “wide” the stop and target zones are relative to volatility.
Visualization Tools
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A 22-period SMA is plotted for trend context. This helps you see the bigger trend.
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Labels like “T” and “TT” appear on the chart to flag when crossover conditions happen (for both bullish and bearish scenarios).
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The script draws the stop-loss and take-profit levels for each trade visually, so you don’t have to guess.
A 22-period SMA is plotted for trend context. This helps you see the bigger trend.
Labels like “T” and “TT” appear on the chart to flag when crossover conditions happen (for both bullish and bearish scenarios).
The script draws the stop-loss and take-profit levels for each trade visually, so you don’t have to guess.
Trade Execution
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Long Entry: happens when fast MA crosses above slow MA, plus (optionally) candlestick pattern confirmation.
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Short Entry: when fast MA crosses below slow MA, plus possibly a bearish candlestick pattern.
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Once a trade is triggered, stop-loss and take-profit are set immediately using the ATR-based distances you defined.
Long Entry: happens when fast MA crosses above slow MA, plus (optionally) candlestick pattern confirmation.
Short Entry: when fast MA crosses below slow MA, plus possibly a bearish candlestick pattern.
Once a trade is triggered, stop-loss and take-profit are set immediately using the ATR-based distances you defined.
How to Use the Strategy — Step by Step
Here’s how you, as a trader, can implement Ghost Trading on your charts and make it part of your Trading plan:
Setup
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Copy the Pine Script code for the Ghost Trading strategy into TradingView’s Pine Editor.
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Add it to your chart (make sure it’s set as a strategy, not just an indicator).
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Go into the settings / inputs and adjust:
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Risk percentage per trade
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Risk-reward ratio
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ATR multiplier
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Starting capital (for simulated backtests)
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Analyzing Signals
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Watch for the “T” / “TT” labels — these indicate when your MAs are crossing in a way that might trigger an entry.
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Look at candlestick patterns that are highlighted. If you see a hammer or engulfing at a crossover, that’s extra confirmation.
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Use the stop-loss / take-profit lines drawn by the script to help confirm whether a trade is worth taking.
Executing / Paper Trading
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If you’re testing: run the strategy in backtest mode to see how it would have performed historically.
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For live-like trading: use paper trading or link with webhook-based execution / broker if that’s part of your setup.
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Use the provided risk parameters to manage your trade size so you never risk too much.
Optimizing
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Try tweaking the ATR multiplier, maybe using 1.2, 1.8, or whatever works for the asset you're trading, to see how tighter or looser stops affect performance.
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Experiment with different risk-reward ratios — maybe 1:2 or 1:4 is better for you based on how often your targets hit.
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You can also tweak the MA length — maybe 13 and 5 are good, but for some markets, 21 and 8 might feel more responsive or stable.
Key Benefits of Ghost Trading
Why would you pick this strategy for your Trading toolbox? Here are some strong reasons:
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Automated Risk Management: The position sizing + ATR-based stop-loss means you’re not just guessing risk.
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Visual Clarity: Because of the crossover labels and highlighted candlestick patterns, you get intuitive visual cues — great for decision-making.
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Adaptable to Volatility: Using ATR means your stops and targets scale with how wild or calm the market is.
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Flexible & Customizable: You can change key parameters to fit your style — whether you're conservative or aggressive.
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Good for Backtesting: Since it’s a proper strategy, you can simulate it over historical data to analyze performance.
Limitations & Risks to Be Aware Of
But hey — no strategy is perfect. Here are things that could bite you if you’re not careful:
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Lag / Whipsaw Risk: MA-based systems can generate false signals during choppy markets, leading to losing trades.
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Overfitting Danger: If you tweak parameters a lot for backtest perfection, you might end up with a system that doesn’t work live.
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Risk Settings Misuse: If you set a risk % too high or mis-calculate position size, you might blow out your trades.
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Execution Risk: In live trading, slippage or bad fills could mess with your stop-loss or take-profit levels.
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Not Foolproof: While it gives structure, you should still pair it with other analysis (market context, news, volume) — don’t treat it as the only thing.
Table: Ghost Trading Strategy Components & Their Roles
Component Role / Purpose How It Helps in Your Trading Fast SMA (13) & Slow SMA (5) Entry signal generator Helps you spot trend or momentum shifts objectively Candlestick Patterns Confirmation of entry or reversal Adds a layer of price-action context so you don’t blindly follow MA crossovers ATR (with Multiplier) Volatility-based stops / targets Makes your stop-loss and take-profit more realistic and adaptive Risk % per Trade Protects your capital Automates how much you risk on each trade to avoid big losses Dynamic Position Sizing Trade size management Ensures your risk is aligned with how far your stop is — no guesswork Visualization / Labels (“T”, “TT”) Readability Helps you visually verify entries without squinting at price action forever
| Component | Role / Purpose | How It Helps in Your Trading |
|---|---|---|
| Fast SMA (13) & Slow SMA (5) | Entry signal generator | Helps you spot trend or momentum shifts objectively |
| Candlestick Patterns | Confirmation of entry or reversal | Adds a layer of price-action context so you don’t blindly follow MA crossovers |
| ATR (with Multiplier) | Volatility-based stops / targets | Makes your stop-loss and take-profit more realistic and adaptive |
| Risk % per Trade | Protects your capital | Automates how much you risk on each trade to avoid big losses |
| Dynamic Position Sizing | Trade size management | Ensures your risk is aligned with how far your stop is — no guesswork |
| Visualization / Labels (“T”, “TT”) | Readability | Helps you visually verify entries without squinting at price action forever |
Frequently Asked Questions (FAQ)
Q: Can I actually use this strategy for real, live trading or only for backtests?
Yes, you can use it live — but with caution. Pine Script strategies on TradingView don’t execute trades on your broker by themselves. You’d typically use alerts or webhook integration (via something like 3Commas or a broker API) to translate strategy signals into real trades. Many traders run it on paper first.
Q: Is Ghost Trading good for all markets (forex, crypto, stocks)?
Pretty much, yeah. Because it's based on MAs, ATR, and candle patterns, it’s very flexible. But you’ll want to optimize input parameters (like ATR multiplier) depending on which market and timeframe you're trading.
Q: What timeframes does this strategy work best on?
There’s no one-size-fits-all. You might use it on intraday charts (5 min, 15 min) or swing charts (1 hour, 4 hour). It depends on your style and how well the strategy’s risk and MA settings align with volatility on your chosen timeframe.
Q: Should I change the default risk-reward ratio?
You can, and many people do. The 1:3 default is solid, but you might find 1:2 safer or 1:4 more profitable (with more misses). Test it out on historical data to see what works for you.
Q: What if my broker doesn’t accept alerts / webhooks?
Then you’ll have to manually place trades (not ideal, but doable), or use a third-party connector or trading bot platform that supports webhook execution + your broker.
Conclusion
Ghost Trading 💀 is more than just a cross-MA strategy. It’s a well-rounded approach to Trading that brings together moving averages, volatility, candlestick patterns, and strong risk management. If you set it up right and optimize it to your style, it can become a powerful ally in navigating markets with more discipline and structure.
But don’t fall into the trap of thinking it’s a magic bullet. Use it wisely — backtest, paper trade, tweak, and always manage your risk. That way, you turn ghostly whispers into real edge.
Contact us via the web if you want help implementing Ghost Trading on TradingView, or just want to chat strategy and trade setups.