Hi everyone,
I've built an automated crypto trading system based on Smart Money Concepts (SMC) and I'm looking for feedback on the strategy logic and improvements for handling sideways markets.
System Overview:
The core strategy follows these rules:
Entry: Trade when SFP signals are detected
Position Management: Increase trade size if there's a BOS (Break of Structure) in the trade direction (only valid once per trade)
Reversals: Reverse the trade if there's an opposite SFP signal OR an opposite BOS/CHoCH at the same level as the original SFP signal (using original position size)
Risk Management: Percentage-based stop loss with trailing stops, no fixed take profit
Current Performance & Challenges:
My backtests look fine and after a few weeks of live trading, the system performed well during strong trending markets, but has been scrambling in the weeks since as market conditions changed. The biggest problem I'm facing is sideways markets - they're full of fake breakouts that create "reverse streaks" which eat my profits quickly. I've tried to define sideways market conditions to avoid trading during these periods, but haven't had success so far.
I'm also looking for ways to add more context to SFP signals to filter out the "noise," but haven't found an effective filter yet.
What I'm Seeking:
I'd appreciate hearing opinions on my system design and learning from others' experiences with similar SMC-based approaches. Specifically:
How do you effectively detect and avoid sideways market conditions?
What filters have you found useful for improving SFP signal quality?
Any suggestions for preventing the reverse streak problem in choppy markets?
Thanks for any insights you can share!
I've built an automated crypto trading system based on Smart Money Concepts (SMC) and I'm looking for feedback on the strategy logic and improvements for handling sideways markets.
System Overview:
The core strategy follows these rules:
Entry: Trade when SFP signals are detected
Position Management: Increase trade size if there's a BOS (Break of Structure) in the trade direction (only valid once per trade)
Reversals: Reverse the trade if there's an opposite SFP signal OR an opposite BOS/CHoCH at the same level as the original SFP signal (using original position size)
Risk Management: Percentage-based stop loss with trailing stops, no fixed take profit
Current Performance & Challenges:
My backtests look fine and after a few weeks of live trading, the system performed well during strong trending markets, but has been scrambling in the weeks since as market conditions changed. The biggest problem I'm facing is sideways markets - they're full of fake breakouts that create "reverse streaks" which eat my profits quickly. I've tried to define sideways market conditions to avoid trading during these periods, but haven't had success so far.
I'm also looking for ways to add more context to SFP signals to filter out the "noise," but haven't found an effective filter yet.
What I'm Seeking:
I'd appreciate hearing opinions on my system design and learning from others' experiences with similar SMC-based approaches. Specifically:
How do you effectively detect and avoid sideways market conditions?
What filters have you found useful for improving SFP signal quality?
Any suggestions for preventing the reverse streak problem in choppy markets?
Thanks for any insights you can share!
