Weekly Dip-Buying With a One Percent Target and Break-Even Exit

Summary

This rule-based swing system uses Monday’s first session open as the weekly reference. It places a limit buy one percent below that level and, after entry, sets a one percent profit target beginning on the next day. If price falls half a percent below entry, the target moves to break-even and stays there. Any remaining position is closed at Friday’s session end, with a Monday exit as a fallback after a holiday or early close. The system allows at most one position per week and sizes exposure as a share of equity.

The strategy was designed for a leveraged Nasdaq-100 ETF and is also discussed for Micro Gold futures and other markets. The document provides configuration guidance and an implementation, but no backtest results or evidence that the rules are profitable. Instrument, session, contract value, and chart settings affect how the rules should be applied; the suggested markets are examples for testing, not validated recommendations.

Key ideas

• The weekly reference is the opening price of Monday’s first session candle.
• A limit buy is placed below the weekly open, with a fixed profit target above the eventual entry.
• A specified drawdown moves the exit to the entry price to protect against a deeper decline.
• Open positions are closed at the end of Friday’s session, with a Monday fallback for shortened or missed sessions.
• Position sizing and session settings need adjustment for futures and other instruments.
• The document supplies implementation details but no performance results establishing an edge.

Tags

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