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https://www.tradingview.com/script/TkhKjlEA-THT-Monthly-BX-Trender-Scale-Out-Strategy/

I don't personally follow this strategy, but I wanted to share this for anyone looking to build a longer term strategy they can follow simply.

One of our long-standing goals has been to hand over an indicator or strategy that is extremely easy to follow and simple to execute. The challenge is that any coded-based strategy will always have flaws. I truly believe that manual trading will outperform any coded strategy because indicators can’t fully account for the most important aspects of the market — such as Smart Money Zones, Institutional Buy Levels, and Volume Profile.

That said, if you want to follow a very strong long-term framework that provides exact entries and exact exits, this is by far the best strategy I’ve found. I will still be trading mainly manually using these principles, but this framework alone will get you further than 99% of traders in the market.

1. Core Principles

• Big Money is Made in Big Expansions: Monthly chart breakouts can run for months or years.
• Less is More: Over-trading on smaller timeframes (daily/weekly) often hurts returns.
• Scaling Out Slowly Wins: Backtests show that the slower we scale out, the better our overall results.
• SMZ Still Drives Entries: Institutional buy zones and Smart Money Zones remain the backbone of our strategy.

2. Monthly BX Trend Setup

• Entry Trigger: Monthly BX histogram stops making lower lows and closes with a Higher Low (HL).
• Exit Trigger: Monthly BX closes with a Lower Low (LL) or turns dark red.
• Deviation Rule: Only drop to weekly BX if we are inside a macro Monthly SMZ.
  • Weekly HL inside macro SMZ = entry
  • Hard stop-loss = close below SMZ level
  • Once monthly HL prints, ignore weekly BX until next macro pullback.

3. Scaling Out Rules

• Profit Interval %: 50%
• Scale Out %: 5% of position
• Every 50% move from initial entry = scale out 5%, repeat until exit criteria hit.
• Do NOT over-scale:
  • 20%+ per interval → worse returns
  • 50% per interval → massive underperformance
• This applies to volatile stocks like PLTR, AMD, TSLA.
• For low-volatility assets (e.g., S&P 500), consider smaller intervals (10–20%).

4. Smart Money Zone Integration

• Default: Enter on monthly BX HL.
• Exception: If in macro Monthly SMZ, use weekly BX HL to time entry.
• Always place stop-loss just below SMZ; if price closes below, exit and wait for bounce confirmation.
• Once monthly HL prints, ignore weekly BX and follow monthly signal.

5. Why This Works

• Monthly timeframe avoids noise and false signals from smaller timeframes.
• Parabolic moves generate the bulk of returns — scaling too early kills compounding.
• Slow scaling allows us to ride full expansions while taking partial profits for risk reduction.
• Backtests:
  • AMD, 20 years: ~66% win rate, 3:1 profit factor
  • PLTR, 700 days: 683% return with 5% scale-outs vs. 112% with 50% scale-outs

6. Execution Workflow

Before Entry:

• [ ] Identify macro SMZ or monthly BX HL signal
• [ ] Confirm alignment with institutional buy zone
• [ ] Set stop-loss (below SMZ or structure low)

During Trade:

• [ ] Scale out 5% every +50% from entry
• [ ] Ignore smaller timeframe noise once monthly HL is confirmed
• [ ] Only drop to weekly BX for re-entry/add inside macro SMZ

After Trade:

• [ ] Review scale-out performance vs. holding longer
• [ ] Adjust intervals for volatility if needed

7. Key Edge

Holding through macro expansions and scaling out slowly compounds account growth far more effectively than trying to time every swing. The Monthly BX Trend keeps us in the big moves, while the SMZ framework ensures we enter at institutional prices and manage risk intelligently.