Smart Money Concepts Strategy with Structure, Gaps, and Risk Controls

Summary

The visible portion of this strategy script sets up a Smart Money Concepts trading framework around market structure signals such as breaks of structure and changes of character. Its inputs allow internal or swing structure analysis, long or short direction, and configurable lookback periods. It can require fair value gap presence and restrict buys to discount zones and sells to premium zones. Optional filters include reversal divergence and Bollinger Bands, while volume momentum and a long-term EMA contribute to signal ranking.

Risk controls include dynamic risk-reward or structural profit targets, an ATR-based stop buffer, a hard stop cap, and signal decay settings. The script also exposes an optional self-optimization setting based on a recent trade lookback. However, the supplied document ends in the input declarations: it does not show how signals are calculated, how trades are executed, or any backtest results. These settings describe intended components, not evidence that the strategy works. The source excerpt is therefore insufficient to evaluate the signal definitions, optimization method, or performance risks in practice.

Key ideas

• The visible settings configure market structure signals using internal and swing lookbacks.
• The strategy can require fair value gaps and premium or discount zone alignment as trade filters.
• Optional confirmation inputs include divergence, Bollinger Bands, volume momentum, and an EMA ranking measure.
• Risk settings include ATR buffers, structural or risk-reward targets, a hard stop cap, and signal decay.
• The excerpt contains configuration inputs but no visible signal logic or backtest evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.