Get started

Ictbreaker

$SPX Repost - Finally Hit Entry 3595 (Original Idea Linked)I'm going to point to the original breakdown of the this idea to my related ideas. The continued added comments in the linked idea were just price reading along the way from the time I called this price until now. Now that we've finally entered the trade at 3595, I'll continue the rest on this of the analysis on this idea as it slides down and what I plan to do and distribution of lots. The differences between this idea and the original idea is that I replaced the fib, This ideas fib is that the 100% is now the old 62%. And that I've also added a second, riskier entry at 3602 with a tighter stop loss at 3614. The original Idea has the entry at 3595 which we hit just before close, stop loss at 3630.8. Both have expected sells to 3439.5. However, on this idea, I'll be sharing percentages of lot sizes I'll be shaving off as profit at different parts of the trade on the way down, as well as trying to add more positions or find scalps within this trade. I still think there's a strong possibility that it could reach 3602 and the explanation is in the linked idea. I found a stand alone Breaker in the price action at that point that could prove to be the real fake out price since 3595 seems a bit too obvious and I don't think Smart Money is going to play that game. There's also a possibility it could find itself at 3655 or 3669 in which if I get my S/L hit early in this Trade then that's where I will be looking for price to go next before I plan to make a long term sell. But then again what do I know, I'm just some dude that likes sharing his Ideas. I could be COMPLETELY WRONG. But that's how we all learn isn't it? OANDA:SPX500USD
OANDA:SPX500USDShort
by BodiesXWix
$GBPUSD - Daily Bias Long - Pull Back to 1.30500 (SMT)SMT = Smart Money Theory. A lot of this can be explained in my EU Idea since both move in concert together (usually) Just GBP happens to make bigger moves. So that's why this chart is on the hour chart and the EU is on the 15 min chart. GU is looking to break the next daily low. There's a far reach for the next daily low. Price will reach the GU daily order block which looks like a breaker on the one hour chart, before then moving higher. When moving high it will reach for the next daily highs which two are almost equal. And price loves to break equal highs. (GU DAILY CHART) Additionally it looks as if the dollar will rise clearing highs before, hitting a bearish order block before moving lower which the opposite will occur with GU. (DOLLAR CHART) I've tried to look at this from a selling perspective and the only thing that makes sense is the equal lows notated in the chart with the green trend line and that's around 1.29140. But I expected that to happen a long time ago and it still hasn't happened. And as I always state, I COULD BE COMPLETELY WRONG. What do I know, I'm just some guy that likes to post his ideas. Good Luck and Good Trading ;) FX:GBPUSD
Long
by BodiesXWix
$SPX Fake Out - Has Yet To Reach Full Extension On SellOnce price creates a new low that extends past the 0% fib extension, you would expect it the have a mirror of price reach, not necessarily price action. The original trade set forth was the new high as being the bottom and the beginning of the explosion being the full length of the trade. I has reached that and has barely made any moves under it. It was a very slow day. I personally see a fake out coming. As the price reaches upwards into the breaker, maybe near the 50% of the original fib is when we'll see the down shift and probably toward the full 200%, Asymmetrical, extension. The full extension would also cross equal lows that create a façade of support but into another bullish breaker that it may not push below the next low. Probably land somewhere in the middle maybe? I've taken a look at all time frames and I believe the rise up into the sell will happen rapidly leaving the body of candle below somewhat current conditions to create a strong resistance point. You also have to take into consideration of the CRB index which seems to be turning as well. If the commodities start going lower with a higher dollar value, stocks are likely to decrease with bonds. And that's what I feel like I'm seeing. The banks want your money and they'll take it any way they can. So beware if your thinking "New High!" ... That's not something I'd be comfortable putting my money on. Watch the Asian session closely and see what kind of reaction London session makes. It could be a quick strike in the middle of the night or one that happens at the open of market. But I see a lot of posts with analysis suggesting a new high. And I just don't see it. But those are my thoughts and that's just me. I'm just some dude.
OANDA:SPX500USDShort
by BodiesXWix
USDCHF (4H) Backtest : 68% win rate (net 17 R)Detailed backtest results - prnt.sc - Win/Loss ratio : 300% - Non losers : 78% - Net R : 17 R across 18 trades - Avg R / winner = 1.42 - Avg R / trade = 0.94 Icons on the chart - Thumbs up : Trade was a win - Thumbs down : Trade was a loss - Circle with a cross : Trade was breakeven - Cross : Did not take the trade due to one or more trade qualifiers - Bug : I could not understand how to trade, so avoided trading Trade qualifiers - $ icon : DXY was either supporting the trade direction (and we took the trade as win/loss/BE), or DXY was not supporting the trade direction (and trade was not taken) - Dollar bill icon : Liquidity was present behind the stop loss How to read icons on chart? - Thumbs up + $ icon => Winner trade, direction was supported by DXY - Thumbs down + $ icon => Loser trade, direction was supported by DXY - Cross + $ icon => Trade skipped because DXY didn't support trade direction (though a liquidity hunt wasn't an issue) - Cross + $ icon + Dollar bill => Trade skipped because DXY didn't support trade direction & a potential liquidity hunt was due near the stop loss - Cross + Dollar bill => Trade skipped because a potential liquidity hunt was due near the stop loss (though DXY did support trade direction) Indicators at bottom of chart 1) Count of HH/LL for the pair - shows when market structure is broken => Also generates a signal on the main chart (highlighted vertical lines) 2) Count of HH/LL for DXY - shows how the pair is moving in correlation to DXY 3) Correlation of the pair with DXY - just to give an idea about how the correlation is moving Strategy Pickup a pair which is highly correlated to DXY (or ignore the DXY correlation) AND Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders AND Liquidity in form of equal highs/lows should not be present behind the stop loss AND Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation How to draw the zones? Check this tutorial : Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R Variables Avg winner = 1.75R PS1 : Please excuse the busy chart! PS2 : This backtest was performed right to left, so could include visibility bias. However, I tried to follow the strategy rules in all trades.
by makuchaku
$XAUUSD - On Pullback to Entry 1949 (Smart Money Concept)The only thing I am worried about with this call is that it could hit that Buy-side breaker and not reach my entry. But I've mapped out all key levels. and I believe this is what is possible. The previous fib it reached between the 70 .5% level and 79% level before breaking a new high. (Previous fib chart) Should it retrace from the current high, or the projected high that I have in place before retracement it should do the same. At the 70.5% level happens to be an order block/breaker depending on the time frame you look at. This should propel it to a new high which I have mapped out in 3 Take Profit zones. The first being the current high. The second being the possible new high before retracement, the third being the next swing high which is also 127% extension of the proposed new high. We shall see.
OANDA:XAUUSDLong
by BodiesXWix
$SPX All Time High? - Not Before A Drop (Smart Money Concept)As a student of ICT, retail theory is not our thing. What I see that creates the current All time high is a liquidity run. It dips, creating a breaker, comes back up but doesn't get higher than the All time high. This is a signal for price to drop below a previous low. Which low is that? Depends on where the strongest breaker/order block is. Anyway, I was looking at this yesterday and noticed that the daily highs were all closer currently than previous days lows. So I had a feeling it would gravitate toward and break those current highs. It has done so. Next is the breaker. There are two. I believe it will actually hit the higher one but I'm placing the entry on the lower on just to be safe. To understand what I'm referring to, please see the chart here of the all time high price action here. So, one of the breakers will be hit, and it will then drop to where I've placed my box. Why did I draw the fib at that point? Because the low of my fib is what creates the price action that breaks a daily and swing high. See chart here After reaching a current high which should be near the breaker, price should retrace back to near the 70.5% level possibly the 79% level. So I have three take profit zones, one at 50% just in case it does only go 50% and turns around. At this point, you should have your stop loss at break even. It's also a bullish order block, shown here. The second at the 62% retracement level. Which I think is a good level to shave off more profits. And the 3rd near the 70.5% level which happens to break somewhat equal lows, and if you know smart money theory, you know that's what price is attracted to, and also be at a buy-side breaker since the liquidity run is on the left side of the breaker and doesn't create a lower low forcing price higher. Which should then be the buy that could possibly break the high. It could possibly go lower too, in that case, I would probably take 95% of my pips off by TP 3 and leave a 5% trailer just to see what happens. With it being the weekend of the presidential election being called. anything could happen. But just by going by smart money theory, this is what is likely to happen. We shall see.
OANDA:SPX500USDShort
by BodiesXWix
2
$XAUUSD - On Pullback to SweetSpot Entry 1930As a student of ICT, you're taught to draw your fibs at specific points. Like the low of the last explosive move that broke a high is where you would place the bottom. And of course the obvious top. Fib has been drawn. There's usually a sweet spot of the 70.5% that it likes to narrowly cross for a great entry. It just so happens that there is a breaker in the 5 min chart at that exact spot. The stars align. You also must have a sell or buy bias going into a trade. The bias is to the buy-side as it just broke two previous highs and created equal highs while doing so. People see two equal highs and think resistance. Smart Money sees two equal highs and sees Liquidity which smart money wants to take. Put your sell stop there, smart money will buy through it and take your money. That's how smart money works. Additionally, there are two more previous daily highs just above that at the first TP extension of 127%. Everything ICT teaches is unfolding in this one setup. I haven't looked at gold in a while because it was getting a bit tough to see what could happen. But this one just speaks to me. So this is my call. OANDA:XAUUSD
OANDA:XAUUSDLong
by BodiesXWix
$GBPUSD - Sell Bias Setup - Sell at Breaker Clear the LowThe picture is pretty self descriptive. The next daily bias seems to be heading toward the direction of selling. There are many daily lows stacked up ready to be broken as well as an equal low setup just prior to the previous daily lows. I think during the Asian session we'll see Cable range but create equal highs and lows that it will want to break to creating a breaker that will propel it to the current breaker. I'm seeing the same Bias in EURUSD as it seems to be struggling to create a higher high. The current swing high in GU was formed from a previous breaker but the low has yet to be cleared. To be honest it could just keep going lower without pulling back for the set-up. But if it does pull back to around 1.30995 I will be looking to sell with about a 40-50 pip stop loss, but it should gain over 100 pips to break the low so well worth the risk to reward. But I like to peel off profits in case it does not get to my target so I have planned 3 TP zones and depending on price action will depend on how much I move my stop loss and where. Will be giving updates as I continue to watch this setup unfold. Edit: The S/L Depicted in the graph may be too tight. I may loosen it back to 1.31500 depending how the market is reacting. I don't want to go above the prior swing high of 1.31757 because if it breaks that, it's more than likely going higher. There could also be a lower sell at 1.30787 in which it may not get higher as that is another bearish breaker. Just another thing to watch for in this setup.
Short
by BodiesXWix
XAGUSD (4H) Backtest : 70% non-loser (net 15.75 R)Detailed backtest results - prnt.sc - Win/Loss ratio : 186% - Non losers : 70% - Net R : 15.75 R across 23 trades - Avg R / winner = 1.21 - Avg R / trade = 0.68 NOTE : DXY correlation was not used in this backtest Icons on the chart - Thumbs up : Trade was a win - Thumbs down : Trade was a loss - Circle with a cross : Trade was breakeven - Cross : Did not take the trade due to one or more trade qualifiers - Bug : I could not understand how to trade, so avoided trading Trade qualifiers - $ icon : DXY was either supporting the trade direction (and we took the trade as win/loss/BE), or DXY was not supporting the trade direction (and trade was not taken) - Dollar bill icon : Liquidity was present behind the stop loss How to read icons on chart? - Thumbs up + $ icon => Winner trade, direction was supported by DXY - Thumbs down + $ icon => Loser trade, direction was supported by DXY - Cross + $ icon => Trade skipped because DXY didn't support trade direction (though a liquidity hunt wasn't an issue) - Cross + $ icon + Dollar bill => Trade skipped because DXY didn't support trade direction & a potential liquidity hunt was due near the stop loss - Cross + Dollar bill => Trade skipped because a potential liquidity hunt was due near the stop loss (though DXY did support trade direction) Indicators at bottom of chart 1) Count of HH/LL for the pair - shows when market structure is broken => Also generates a signal on the main chart (highlighted vertical lines) 2) Count of HH/LL for DXY - shows how the pair is moving in correlation to DXY 3) Correlation of the pair with DXY - just to give an idea about how the correlation is moving Strategy Pickup a pair which is highly correlated to DXY (or ignore the DXY correlation) AND Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders AND Liquidity in form of equal highs/lows should not be present behind the stop loss AND Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation How to draw the zones? Check this tutorial : Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R Variables Avg winner = 1.75R PS1 : Please excuse the busy chart! PS2 : This backtest was performed right to left, so could include visibility bias. However, I tried to follow the strategy rules in all trades.
OANDA:XAGUSD
by makuchaku
How to draw a trade zone for false breakout / liquidity hunt?Once you spot a location to trade from (be it a liquidity hunt, or a false breakout + market structure break) - that's only half of the job. The next most important step is to draw a correct zone which gives you a safe and reliable way to enter and define your risk. I've always found that drawing zones which help you define your entry & risk is an art, more so than science. And this doesn't work for me - because if it's not driven by a process, I'm bound to make mistakes in this important step. Hence, I wanted it to be more defined - to the level that it could be given to a programmer who could code it. Primary method of drawing the zone 1) Find the candle that generated the signal 2) Draw a rectangle into left side of price on the signal candle (green rectangle) For SHORT signal => 3) Draw (yellow) zone using the highest + last UP candle which exited this rectangle For LONG signal => 3) Draw (yellow) zone using the lowest + last DOWN candle which exited this rectangle 4) If the candle right after signal candle does not test this zone, then trade this zone as a signal - ELSE - look for the secondary way of drawing the zone Secondary method of drawing the zone 1) Find the signal candle and look left of it For SHORT signal => 2) Draw zone using last UP candle which broke an HH pivot For LONG signal => 2) Draw zone using last DOWN candle which broke an LL pivot 3) Discard the zone if price revisited that zone before giving the signal There are many reasons why these zones work (if your overall trade is correct) - These will be the candles which are guaranteed to be engulfed by the signal making candle - If these are institutional trades, most likely it's here where they set the fakeout trap. Hence, when price comes back to these zones, they have no need to take prices beyond your stop loss as there's no more liquidity there - If these are those amateur folks who were trading the breakout, this is where the smartest of them bought/sold and will be the first in line to exit If you have feedback on how to improve this zone drawing process, please leave your feedback in the comments below. Cheers!
Education
by makuchaku
DXY (Dollar Index) 4H : Trapped buyers waiting to exit : SHORTTrade setup DXY (Dollar index) has trapped buyers at the top. When price comes back to this zone, they'd love an exit - giving us a short trade in the process. Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R Strategy Pickup a pair which is highly correlated to DXY (if trading DXY, ignore the correlation part) AND Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders AND Liquidity in form of equal highs/lows should not be present behind the stop loss AND Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation
ICEUS:DX1!Short
by makuchaku
$XAUUSD to Pullback - 1896 to Buy and Clear Equal HighsDon't you hate it when you set a sell limit at a high that's close to equal to another one? Well that's because there's liquidity there and the banks want to take you money so it will run through your sell limit. That's why I'm waiting for the pull back to the unmitigated order block in the 15 minute time frame chart, which happens to be sitting around the 61.8% (62%) Fib level near the 1896 level, before it propels price above the near equal highs, around 1912, as my first target. The second target would be the next high after that. Today is a volatile day and I see the metals market as the place to catch the action. Let's see what happens.
OANDA:XAUUSDLong
by BodiesXWix
$AUDUSD - Likely Scenario (Buy at 0.70180)I could be completely off as I haven't seen a break in Market Structure as I'm trying to catch it before it happens, not with just this pair but EURUSD AND GBPUSD. I think If AUDUSD does break it before any others than we have a high probability of the rest of them breaking structure. I'm seeing a lot of equal highs and lows and breakers in price action. Which leads me to believe that at current price will break lower until it hits the bullish order block, which is where the buy takes place. that will then correct price above the current equal high's at the 0% of my fib. Additionally breaking previous days highs as that is what price likes to gravitate toward (previous days highs or lows) It will then bounce off the breaker to a lower point (not sure where, will have to wait and wsee what happens with price action when it gets there) but ultimately it will end up being twice the symmetrical range of what it currently is which will break the higher equal highs around .71600 The impression that I'mgetting that it will be changing sentiment is that price entered a daily order block but didn't make it to the halfway point, which usually indicates a reversale in price. Whether this happens today or tomorrow, or during the asian session, this is what I am anticipating.
Long
by BodiesXWix
1
EURUSD (4H) : Trapped buyers => SHORT trade!When DXY is making higher highs, why is EURUSD breaking the strong correlation and trying to go higher? ==> It's a TRAP for buyers! When price comes back to the marked zone, trapped buyers will exit - giving us a beautiful SHORT trade. Look for the monthly liquidity to get raided as a target! Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R
Short
by makuchaku
USDDKK (4H) Backtest : 76% Win rate (19.75 R), 82% non-losers!Detailed backtest results - prnt.sc - Win/Loss ratio : 433% - Non losers : 82% - Net R : 19.75 R across 17 trades - Avg R / winner = 1.52 - Avg R / trade = 1.16 Icons on the chart - Thumbs up : Trade was a win - Thumbs down : Trade was a loss - Circle with a cross : Trade was breakeven - Cross : Did not take the trade due to one or more trade qualifiers - Bug : I could not understand how to trade, so avoided trading Trade qualifiers - $ icon : DXY was either supporting the trade direction (and we took the trade as win/loss/BE), or DXY was not supporting the trade direction (and trade was not taken) - Dollar bill icon : Liquidity was present behind the stop loss How to read icons on chart? - Thumbs up + $ icon => Winner trade, direction was supported by DXY - Thumbs down + $ icon => Loser trade, direction was supported by DXY - Cross + $ icon => Trade skipped because DXY didn't support trade direction (though a liquidity hunt wasn't an issue) - Cross + $ icon + Dollar bill => Trade skipped because DXY didn't support trade direction & a potential liquidity hunt was due near the stop loss - Cross + Dollar bill => Trade skipped because a potential liquidity hunt was due near the stop loss (though DXY did support trade direction) Indicators at bottom of chart 1) Count of HH/LL for the pair - shows when market structure is broken => Also generates a signal on the main chart (highlighted vertical lines) 2) Count of HH/LL for DXY - shows how the pair is moving in correlation to DXY 3) Correlation of the pair with DXY - just to give an idea about how the correlation is moving Strategy Pickup a pair which is highly correlated to DXY AND Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders AND Liquidity in form of equal highs/lows should not be present behind the stop loss AND Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R Variables Avg winner = 1.75R PS1 : Please excuse the busy chart! PS2 : This backtest was performed right to left, so could include visibility bias. However, I tried to follow the strategy rules in all trades.
by makuchaku
1
GBPUSD (4H) Backtest : 65% Win rate (14.25 R), 71% non-losers!Detailed backtest results - prnt.sc - Win/Loss ratio : 220% - Non losers : 71% - Net R : 14.25 R across 17 trades - Avg R / winner = 1.3 - Avg R / trade = 0.84 Icons on the chart - Thumbs up : Trade was a win - Thumbs down : Trade was a loss - Circle with a cross : Trade was breakeven - Cross : Did not take the trade due to one or more trade qualifiers - Bug : I could not understand how to trade, so avoided trading Trade qualifiers - $ icon : DXY was either supporting the trade direction (and we took the trade as win/loss/BE), or DXY was not supporting the trade direction (and trade was not taken) - Dollar bill icon : Liquidity was present behind the stop loss How to read icons on chart? - Thumbs up + $ icon => Winner trade, direction was supported by DXY - Thumbs down + $ icon => Loser trade, direction was supported by DXY - Cross + $ icon => Trade skipped because DXY didn't support trade direction (though a liquidity hunt wasn't an issue) - Cross + $ icon + Dollar bill => Trade skipped because DXY didn't support trade direction & a potential liquidity hunt was due near the stop loss - Cross + Dollar bill => Trade skipped because a potential liquidity hunt was due near the stop loss (though DXY did support trade direction) Indicators at bottom of chart 1) Count of HH/LL for the pair - shows when market structure is broken => Also generates a signal on the main chart (highlighted vertical lines) 2) Count of HH/LL for DXY - shows how the pair is moving in correlation to DXY 3) Correlation of the pair with DXY - just to give an idea about how the correlation is moving Strategy Pickup a pair which is highly correlated to DXY AND Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders AND Liquidity in form of equal highs/lows should not be present behind the stop loss AND Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R Variables Avg winner = 1.75R PS1 : Please excuse the busy chart! PS2 : This backtest was performed right to left, so could include visibility bias. However, I tried to follow the strategy rules in all trades.
by makuchaku
4
SPY500/Emini/ES : Daily schematic of liquidity & trapped tradersThere are a whole bunch of trapped traders on both sides of price for SPY500 / Emini futures / ES1! which will want to exit, giving us a trade in opposite direction (yellow zones) Beware of the engineered liquidity zones - which are almost like a candy land for big institutions - where orders are just sitting to be taken! Those zones WILL BE poked poked! (green zones) Good luck & good trading for the election week! Please note : the zones shown here are for reference purpose only. Actual buy & sell zones should be fine tuned with a lower timeframe reference & more detailed analysis.
CME_MINI:ES1!
by makuchaku
6
USDSGD (4H) Backtest : 62% Win rate (12 R), 85% non-losers!Detailed backtest results - prnt.sc - Win/Loss ratio : 400% - Non losers : 85% - Net R : 12 R across 13 trades - Avg R / winner = 1.5 - Avg R / trade = 0.92 Icons on the chart - Thumbs up : Trade was a win - Thumbs down : Trade was a loss - Circle with a cross : Trade was breakeven - Cross : Did not take the trade due to one or more trade qualifiers - Bug : I could not understand how to trade, so avoided trading Trade qualifiers - $ icon : DXY was either supporting the trade direction (and we took the trade as win/loss/BE), or DXY was not supporting the trade direction (and trade was not taken) - Dollar bill icon : Liquidity was present behind the stop loss How to read icons on chart? - Thumbs up + $ icon => Winner trade, direction was supported by DXY - Thumbs down + $ icon => Loser trade, direction was supported by DXY - Cross + $ icon => Trade skipped because DXY didn't support trade direction (though a liquidity hunt wasn't an issue) - Cross + $ icon + Dollar bill => Trade skipped because DXY didn't support trade direction & a potential liquidity hunt was due near the stop loss - Cross + Dollar bill => Trade skipped because a potential liquidity hunt was due near the stop loss (though DXY did support trade direction) Indicators at bottom of chart 1) Count of HH/LL for the pair - shows when market structure is broken => Also generates a signal on the main chart (highlighted vertical lines) 2) Count of HH/LL for DXY - shows how the pair is moving in correlation to DXY 3) Correlation of the pair with DXY - just to give an idea about how the correlation is moving Strategy Pickup a pair which is highly correlated to DXY AND Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders AND Liquidity in form of equal highs/lows should not be present behind the stop loss AND Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R Variables Avg winner = 1.75R PS1 : Please excuse the busy chart! PS2 : This backtest was performed right to left, so could include visibility bias. However, I tried to follow the strategy rules in all trades.
by makuchaku
2