SFP 1:2RR — Strategy by abesamisj

By abesamisj

Performance Metrics

Description

This strategy is a top-down liquidity model that combines higher timeframe swing structure with lower timeframe imbalance entries.OverviewThe model identifies confirmed swing highs and swing lows on the 1H timeframe.It waits for a liquidity sweep (SFP-style mitigation) of those swings, followed by displacement away from the level.Execution is performed on the 5-minute timeframe using Fair Value Gap (FVG) retracement entries.The strategy enforces a fixed 1:2 Risk:Reward structure.Logic FlowStep 1 – 1H Swing IdentificationConfirmed 3-candle pivot highs and lows are marked.These represent external liquidity pools.Step 2 – 1H Mitigation (SFP Condition)Bearish: Price wicks above a prior 1H swing high and closes back below it.Bullish: Price wicks below a prior 1H swing low and closes back above it.This indicates liquidity has been taken.Step 3 – Displacement ConfirmationAfter mitigation, a strong directional impulse must form.This reduces false sweeps in consolidation.Step 4 – 5M Fair Value Gap FormationAn FVG must form in the direction of displacement.This defines the retracement entry zone.Step 5 – EntryTrade is triggered when price retraces into the 5M FVG.Stop loss is placed beyond the 1H sweep wick.Take profit is fixed at 2x risk (1:2 RR).Risk ManagementFixed 1:2 Risk:Reward.One trade per mitigation event (optional).No pyramiding.Entries are executed on the next bar to avoid same-candle execution artifacts.Strategy CharacteristicsModerate win rate (typically 35–50% depending on market regime).Performs best in trending or directional environments.Avoids mid-range chop by requiring displacement after mitigation.Designed for structured continuation rather than pure scalping.Intended UseBest applied to:Major FX pairsIndicesGoldHigh-liquidity instrumentsRecommended execution timeframe: 5-minuteHigher timeframe bias: 1-hour

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