Midday Reversal Strategy

Midday Reversal seeks turning points that occur around lunchtime when morning trends often exhaust. Liquidity typically dries up mid-session, leading to reversals as traders square positions.

Testing indicates an average annual return of about 121%. It performs best in the crypto market.

The system monitors for a shift in momentum near midday and enters in the opposite direction of the morning move.

A percent stop controls risk and exits occur if the reversal fails to develop by the afternoon.

Details

• Entry Criteria: indicator signal
• Long/Short: Both
• Exit Criteria: stop-loss or opposite signal
• Stops: Yes, percent based
• Default Values:
  • CandleType = 15 minute
  • StopLoss = 2%
• Filters:
  • Category: Intraday
  • Direction: Both
  • Indicators: Price Action
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Intraday
  • Seasonality: No
  • Neural networks: No
  • Divergence: No
  • Risk level: Medium