Trend-Filtered Liquidity Sweeps with Progressive Scale-Ins

Summary

This strategy uses the relationship between 100-period and 200-period exponential moving averages to set a directional bias. In an uptrend, it looks for price to dip below the prior low over a configurable lookback period and then close back above that level on an up candle; the inverse pattern can initiate a short in a downtrend. If a position is already open, later qualifying sweeps can add up to four more entries, with configurable quantities that increase across the sequence.

The only stated exit is a take-profit limit based on the position’s average price plus or minus a multiple of average true range. The page describes the method as avoiding tight stops, but provides no backtest settings or performance evidence in the excerpt. Without a stop-loss rule, adverse moves can leave positions exposed, and the increasing scale-in amounts can magnify losses. Results would also depend on the sweep lookback, entry sizes, trend filter, ATR settings, execution, and market conditions; the document’s general claims about forward testing do not include measurable supporting results.

Key ideas

• The strategy takes long or short signals only in the direction indicated by two exponential moving averages.
• A liquidity sweep requires price to pierce a recent extreme and close back across it in the trend direction.
• Repeated qualifying signals add entries, with larger configurable quantities at later stages.
• Take-profit levels are set using average position price and an ATR multiple.
• The excerpt reports no performance results and defines no stop-loss exit.

Tags

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