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 image above shows the current result using the following events in the 1m INDEX: BTCUSD chart.

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.