Parallax Covenant Strategy [JOAT]

Parallax Covenant Strategy [JOAT] at a glance

Kind of rule	Joining a move (trend following)
Buys or sells	It can buy, and it can bet on falling prices.
Built on	ATR, Donchian Channels, EMA, Ichimoku, Pivot points, RSI, SMA, pivot low
Where it was published	TradingView, by its author, as a Pine Script strategy
Tested on	12 cells: 12 coins, October 2021 to June 2026, no fee
Trades placed	none
Page updated	2026-11-08

Parallax Covenant Strategy [JOAT] backtest results, every cell

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

How Parallax Covenant Strategy [JOAT] works

Rules in this group usually work like this. It waits until price is already moving, then joins that move. It is wrong in small ways many times, and right in a large way a few times. The hard part is the stretch where price chops around and every entry is a fake. 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 buys when long entry signal and no long position is open. It can also enter the other way. That condition is in the list below. 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 entry signal and no long position is open.
• Enters short when short entry signal and no short position is open.
• Places a stop at undefined, a target at undefined when a long position is open.
• Places a stop at undefined, a target at undefined when a short position is open.
• Closes the position when a long position is open and Close On Regime Failure (on) and (the previous previous regime state is below 0 or the 5-period EMA of pressure composite raw is below 0 or the close is below zone mid (mapped upper, mapped lower) and mapped slope is at or below 0).
• Closes the position when a short position is open and Close On Regime Failure (on) and (the previous previous regime state is above 0 or the 5-period EMA of pressure composite raw is above 0 or the close is above zone mid (mapped upper, mapped lower) and mapped slope is at or above 0).

Buys or sells	It can buy, and it can bet on falling prices.
Tools it calculates	ATR, Donchian Channels, EMA, Ichimoku, Pivot points, RSI, SMA, pivot low
A second chart speed	Yes. It also looks at a second chart speed.
Only at certain hours	No.
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 0.04 percent per side.

Default settings

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

Setting	Default	Group
Show Dashboard	on
Show Regime Cloud	on
Show Structure Levels	on
Tint Candles	on
Show Active Stop / Target	on
Tenkan Length	9
Kijun Length	26
Span B Length	52
Body Average Length	55
Body Tolerance Multiplier	1.35
Band Length	89
Band Scale Percent	160
Compression Threshold	0.72
Expansion Threshold	1.18
Pressure Window	18
Pressure EMA	5
Pressure Signal SMA	9
Body Weight Cap	2.5
Channel Scale Percent	180
Pressure Threshold	10
RSI Length	21
RSI Smoothing	8
Price Mapping Lookback	120
Mapping Stretch	1.05

and 24 more settings, left at the author's defaults.

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 12 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	12
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, for a rule that joins a move already underway, is what it gave back in the choppy months when there was no trend to join.

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 Parallax Covenant Strategy [JOAT]

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 Parallax Covenant Strategy [JOAT] uses

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

• ATR (average true range): the volatility number behind most stops
• Donchian Channels: the highest high and lowest low, and the breakout rule they define
• Exponential moving average (EMA): what it measures and where it misleads
• Ichimoku Cloud: five lines from two midpoints, and what each one is for
• Pivot points: swing pivots and floor-trader pivots, two different things with one name
• RSI (relative strength index): the formula, the 70/30 rule, and why it misleads in trends
• Simple moving average (SMA): the plainest average, and why it still runs half the strategies

"Parallax Covenant Strategy [JOAT]" 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.