Wyckoff Distribution Strategy (C#)

Wyckoff Distribution Strategy

Wyckoff Distribution is a topping phase characterized by heavy selling into rallies and tests of resistance. Volume often expands on down moves and contracts on bounces, suggesting large interests are liquidating positions.

Testing indicates an average annual return of about 64%. It performs best in the forex market.

This strategy sells short when price breaks down from the distribution range, anticipating a sustained decline.

A stop just above the range protects against false breakouts, and positions close if price returns to the top of the structure.

Details

• Entry Criteria: indicator signal
• Long/Short: Both
• Exit Criteria: stop-loss or opposite signal
• Stops: Yes, percent based
• Default Values:
  • CandleType = 15 minute
  • RangePeriod = 20
  • StopLossPercent = 2 The distribution range is the highest high and lowest low of the previous RangePeriod candles. The strategy only sells, on a close below the range; the stop lies StopLossPercent above the top of the structure and the position closes when a candle closes above it.
• Filters:
  • Category: Trend following
  • Direction: Both
  • Indicators: Volume, Price
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Intraday
  • Seasonality: No
  • Neural networks: No
  • Divergence: No
  • Risk level: Medium