Risk/RewardVaries (high expectancy due to precision exits)
Best InstrumentsAll futures
FrequencyUsed on every trade (exit tool)
ProbabilityStatistically-Driven Exits
The Philosophy (The Why)
This strategy removes emotion from exits. Institutions take profits at statistically extreme prices. Standard deviations measure how far price has extended from its mean, providing objective exit targets.
Mechanical Signature (The Setup)
Measure extensions using standard deviation or fib projections. Entries align with momentum; exits are statistically defined. This is primarily an EXIT strategy, not an entry method.
Step-by-Step Execution (The How)
Identify Manipulation Leg: Find the initial sweep or fake-out move (the "Judas Swing").
Apply Measurement Tool: Use Fib extension tool from high to low of the manipulation leg.
Set Deviation Levels: Configure levels at: 0, 1, -2, -2.5, -4 (or standard deviation bands).
Target Zones: -2.0 to -2.5 = Profit Zone (80% of trades hit here). -4.0 = Total Exhaustion.
Exit Strategy: Take partials at -2, runner at -2.5, exit everything at -4.
Risk & Management (The Math)
RR varies but expectancy is high due to precision exits. Prevents over-holding winners and under-holding losers.
Master This Strategy
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Firm's Note: Institutions use algorithmic targets. When they sell, price stalls. Exit with them, not after them.
Prop Firm Angle
Protects gains and prevents over-holding winners. Critical for maintaining consistent profit factor in evaluations.