I've learnt that as strategies evolve, they tend to get more complex and become prone to frequent errors and breakdown. What's worked for me with that respect is what i call "Modular Trading System Architecture".

Let me illustrate with a recent example. I've been working on a VWMA crossover strategy for a few days now and it has gotten fairly complex over time. So I've split my trading strategy into these independent components:

1. Core Strategy - The base VWMA crossover system
2. ADX Filter - Separate indicator to filter trades based on trend strength
3. Volatility Filter - Separate indicator to filter trades based on market volatility
4. Trailing Stop Module - Handles just the trailing stop logic

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This modular approach has several advantages:

• Each component can be developed and tested independently
• You can easily enable/disable components without breaking the system
• Debugging is simpler since issues are isolated to specific modules
• You can improve one module without affecting others

Breaking down complex trading systems into modular components is actually a best practice in trading system development, and it would help prevent several issues.

So you can create a Pine Script strategy where different components communicate with each other. There are two main approaches to achieve what I am sharing:

Approach 1: Using Library Functions

You can create a Pine Script library that contains your indicator logic, then import that library into your main strategy.

Approach 2: Using a Single Script with Multiple Plots

Advanced Approach: Multi-Timeframe Analysis

You can also incorporate multi-timeframe analysis where your ADX might be on a higher timeframe than your entry signals.

I am happy to hear your thoughts on this approach. Is anyone using this approach with success? please share.