Automating Quasimodo Reversal Setups with Swing Pivots and Risk Controls
Summary
The document explains an automated approach to the Quasimodo reversal pattern. It identifies a sequence of confirmed swing pivots: a shoulder, a pullback leg, a more extreme head, and a break through the leg that signals a possible reversal. The program waits for price to retrace to the shoulder price, called the QM line, before entering. Structural levels define the stop beyond the head and a target based on the broken swing; a prior-trend filter and minimum reward-to-risk threshold can screen setups.
The MQL5 implementation also describes risk-based position sizing, an ATR stop floor, and optional breakeven, trailing-stop, and partial-close management. The article includes backtesting, but the supplied excerpt provides no report figures or enough information to assess robustness, execution assumptions, or out-of-sample performance. The pattern and its filters are rule-based design choices, and the article cautions that backtest performance does not guarantee live results.
Key ideas
- The Quasimodo setup uses a liquidity sweep followed by a break of the prior swing structure.
- Confirmed alternating swing pivots make pattern recognition more consistent.
- Entries are staged at the shoulder price after confirmation, with invalidation beyond the head.
- Prior-trend, reward-to-risk, and position-management options shape which setups are traded and how risk is handled.
- Backtesting alone does not establish that the method will perform reliably in live markets.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.