Linda Bradford Raschke's 80-20 Momentum Candlestick Strategy by uzair2join
By uzair2join
Performance Metrics
- Author: uzair2join
- Symbol: ICMARKETS:XAUUSD
- Timeframe: 4 hours
- Net P&L: +0.91 USD (+0.01%)
- Win Rate: 100.0%
- Max Drawdown: 0.06 USD (0.00%)
- Total Trades: 1
Description
Linda Bradford Raschke's "80-20" strategy from "Street Smarts: High Probability Short-Term Trading Strategies" (co-authored with Laurence Connors).Core idea: Identify a strong "momentum candlestick" on daily (body ≥80% of range, shadows ≤20%) signaling potential reversal. Then on intraday TF, trade false breakouts: price breaks close ± threshold (e.g. 20 points), reverses back to close → enter counter-direction.- LONG: False downside break → revert up → buy at momentum close.- SHORT: False upside break → revert down → sell at momentum close.- Target: ~50% of momentum body (center).- SL: ATR-based or beyond momentum extremes.- Valid for 1-3 days post-momentum candle.Best for indices (S&P, Nasdaq), forex majors, volatile stocks. Use daily for detection, H1/M15 for entries.Not financial advice — Backtest thoroughly, use with discretion and proper risk management.Original concept: Street Smarts book + discussions (e.g., RoboForex blog, MQL5 articles).Open-source v6 — suggestions welcome!