Entry Rules
Backtesting System (SMC) allows users to try specific conditions in a specific order to see how they perform in the market, using also external sources like the Relative Strength Index to give more precise and more customizable entry to the user.
Entry
Condition 1, 2, and 3 are built-in concepts in the Smart Money Concept toolkit: Market Structure, Orderblocks, Imbalance, Liquidity Swing Failure Patterns.
The first input is a boolean one, and to start logging the events you will need to enable it.
The first dropdown is an option that includes Bullish or Bearish events, the user will have the choice to log the specific direction event that he wants
The second dropdown is the event to trigger, and the user can see all the possible events below.
The last dropdown is the step condition or the specific position in which it occurred. For example, Step 1 is the first event that needs to succeed before moving to the other event
| Condition | Description |
|---|---|
CHoCH or BOS | Trigger on any CHoCH or BOS |
CHoCH or BOS Sweep | Trigger on any CHoCH or BOS Sweep |
CHoCH | Trigger only on a CHoCH |
BOS | Trigger only on a BOS |
CHoCH Sweep | Trigger only on a CHoCH Sweep |
BOS Sweep | Trigger only on a BOS Sweep |
OB Mitigated | Trigger only on an Orderblock mitigated |
Price Inside OB | Trigger when the price is inside an order block |
FVG Mitigated | Trigger only on a FVG mitigated |
Raid Found | Trigger when a Raid is found |
Price Inside FVG | Trigger when the price is inside an FVG |
SFP Created | Trigger only on a Swing Failure Pattern |
Liquidity Print | Trigger only on a Liquidity Print formation |
Sweep Area | Trigger only on a Sweep Area |
Here is an example if the user wants to go LONG when price did a Bullish CHoCH after a Bullish Liquidity Print
Breakdown of the event settings
Condition 1 wants a Bullish CHoCH to be created as Step 1
Condition 2 wants a Bullish Liquidity Print to be created after Step 1 is completed
The strategy can be improved by adding a stop-loss condition and take-profit condition, as the one shown in the example does not use them.
External Condition
External conditions work the same way as the built-in ones. The difference is just that you use external sources as triggers.
The External Input dropdown menu offers the following conditions as triggers:
Greater Than
Less Than
Equal
Crossing Over
Crossing Under
Crossing
If the user wants to LONG with the settings as before while the price was above a Moving Average can set the conditions as the following one.
Session Condition
Session conditions work in the same way as the other and the price needs to be within the session period time to be counted as an event
Delay until the Position Closes / Invalidate On the Opposite Condition
If the user wants to let the position run until it hits either a take-profit or a stop-loss or when is fully closed before opening any other new one can use the "Delay entry until the position closes"
opens
For example, if the user wants to long on a Bullish CHoCH after a Liquidity Print the strategy will still open the position even if there is a bearish Liquidity Print in the middle.
If the opposite condition should reset or make the position not valid can enable the "Invalidate sequence on opposing condition" input
Backtesting Window
Users can allow trading only from/to a specific time or period of the market, this can be useful to test the strategy in a specific period of the market.
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