[Mustang Algo] Channel Strategy

[Mustang Algo] Channel Strategy at a glance

Kind of rule	Breakout
Buys or sells	It can buy, and it can bet on falling prices.
Built on	RSI, WMA
Where it was published	TradingView, by its author, as a Pine Script strategy
Tested on	9 cells: 9 coins, October 2021 to June 2026, no fee
Trades placed	none
Page updated	2026-11-08

[Mustang Algo] Channel Strategy backtest results, every cell

There is no cloud of cells to draw. The frame below says why.

How [Mustang Algo] Channel Strategy works

Rules in this group usually work like this. It buys when price pokes above a recent high, and it bets on a fall when price pokes under a recent low. It is wrong often. It pays for those false starts with the few times price keeps going. How far back it looks decides how many pokes it takes. The next paragraph is this particular rule, which can be narrower than the group.

It can buy, and it can bet on falling prices. It acts only when several checks agree at once. It leans on RSI, WMA; those names are explained on their own pages, further down. The exact line is in the list below, in the author's names, and you can skip that list. When it enters, it also sets a stop or a target, so a trade can close without a new signal.

Each trade uses 10 percent of the account. It holds one trade at a time.

The exact condition, from the code

Same rule, translated from the code, in the author's names. You can skip this list if the paragraph above was enough.

• Enters long when long enabled and long entry signal and no position is open.
• Enters short when short enabled and short entry signal and no position is open.
• Places a stop at (trade stop l when use stop, else undefined), a target at (trade take l when use target, else undefined) when a long position is open and (use stop or use target).
• Closes the position when a long position is open and not (use stop) and not (use target) and long enabled and long exit signal.
• Places a stop at (trade stop s when use stop, else undefined), a target at (trade take s when use target, else undefined) when a short position is open and (use stop or use target).
• Closes the position when a short position is open and not (use stop) and not (use target) and short enabled and short exit signal.

Buys or sells	It can buy, and it can bet on falling prices.
Tools it calculates	RSI, WMA
A second chart speed	Yes. It also looks at a second chart speed.
Only at certain hours	Yes. It only acts during set hours.
Adding to a trade	It holds one trade at a time.
How much it trades	Each trade uses 10 percent of the account.
Cost the author assumed	The author assumed a trading cost of 0.1 percent per side.

Default settings

The test used the defaults in the middle column. Nothing was turned to help a coin.

Setting	Default	Group
Test Start Date	a date
Test End Date	a date
Timeframe	D
RSI Period	14
WMA Smoothing	20
Moving Median	25
Upper Bound	55
Lower Bound	48
Trading Direction	Long & Short
SL/TP Mode	Percentage
Stop Loss (%)	4
Stop Loss (Ticks)	50
Stop Loss (Pips)	50
Take Profit (%)	12
Take Profit (Ticks)	150
Take Profit (Pips)	150

How the backtest was run

Every strategy was tried the same way, on the settings the author published.

The years are October 2021 to June 2026. The prices are from Bybit, for 13 widely traded coins, mostly on hourly, 4-hour and daily charts, with some faster charts. That was 47,242 tries. The window stored in the files is 2021-09..2026-06.

599 rules produced a finished try. A rule that finished above zero on at least 12 cells, before any fee, was tried again with a fee of 0.12 percent per side. Only buys are counted in that second try. 273 rules got it.

The method, the aggregate results and a downloadable table are on the study page. What the desk does with the results beyond these pages is its own.

Before any fee, it was tried on 9 cells, and it placed no trades.

It was not run a second time with a fee. That second pass happens only when at least 12 cells finished above zero before fees. 273 rules got that pass.

Cells tried	9
Cells that placed a trade	0
Finished above zero	0

Label: backtest · old prices, zero commission · Oct 2021 – Jun 2026. Hypothetical results; see the risk disclosure.

How to read the result

How to read the number

No cell took a trade, so there is no return to read. The rule above is the whole note.

What this does not show

The useful question is what the false starts cost. Count the trades, not the one that kept going.

There is no cell to single out, and this note does not invent one. Other years, another exchange, or another fee would be a different measurement.

Questions about [Mustang Algo] Channel Strategy

Words used on this page

Backtest

The rule was tried on old prices. No real money moved.

Cell

One coin on one chart speed. Bitcoin every 4 hours is one cell. Bitcoin once a day is another.

Chart speed

How often a new price bar is drawn. 15m means every 15 minutes, 1h means hourly, 4h means every 4 hours, 1D means once a day.

Fee, per side

A cost taken each time the rule trades. Per side means once on the way in and once on the way out.

Median

Line the cells up from the biggest loss to the biggest gain. The median is the middle one. Half the cells did better and half did worse.

Drawdown

The deepest fall from a high point along the way, as a percent of the account at that high.

Above zero

The account finished with more than it started.

The indicators [Mustang Algo] Channel Strategy uses

Each has its own page: what it measures, how it is read, where it misleads.

• RSI (relative strength index): the formula, the 70/30 rule, and why it misleads in trends
• Weighted moving average (WMA): linear weights, less lag, and the price of it

"[Mustang Algo] Channel Strategy" was published on TradingView by its author, under the author's own license. This page is an independent reading of those rules and of what they did on these old prices. It is not written with the author, and it is not a recommendation. Not every detail survives the translation onto this page, so read the original before you rely on it.