Sweep & Reverse | Liquidity Sweep Reversal Strategy by blitz_locked
By blitz_locked
Performance Metrics
- Author: blitz_locked
- Symbol: COINBASE:ETHUSD
- Timeframe: 2 hours
Description
This strategy trades the liquidity-sweep reversal pattern: price wicks through a prior swing high or low — clearing out the stops resting there — then closes back inside the range, suggesting the move beyond that level was a stop-hunt rather than a genuine breakout.How it works:Confirmed swing highs and lows (via pivot detection) are stored as watched levels.A sweep triggers when a bar wicks past a level but closes back on the other side.Longs enter on swept lows, shorts on swept highs. The stop sits just beyond the sweeping wick (with an ATR buffer); the target is set from your chosen reward:risk ratio.Levels expire if left untouched for too long, and new levels too close to an existing one (relative to ATR) are skipped to keep zones from cluttering.Features:Optional volume-spike filter — only counts sweeps backed by above-average volumeOptional rejection-wick filter — requires the sweeping wick to be meaningfully larger than the bar's body, filtering out weak/low-conviction sweepsOptional next-bar confirmation — waits one bar past the sweep and only enters if price actually continues in the reversal direction, reducing whipsaw entriesOptional session window filter (defaults to the London/NY overlap, the highest-liquidity window)Adjustable stop distance, minimum stop size, and reward:risk ratioBreakeven stop management once a trade moves partway to targetLong/short can be toggled independentlyEvery trade's entry/SL/TP lines persist on the chart after the trade closes (auto-expiring after a configurable number of bars), so past trades stay visible for reviewStyled performance dashboard: trade count, win rate, net profit, live position stateWarnings:This is fundamentally a mean-reversion pattern. In strongly trending markets, sweeps frequently continue rather than reverse — no combination of filters here eliminates that risk.Backtest results are sensitive to pivot length, stop distance, and which filters are enabled. A high win rate on a small number of trades is not statistically meaningful — test across multiple instruments and timeframes, and evaluate profit factor and max drawdown alongside net profit, not net profit alone.Past performance in a backtest, including this one, does not guarantee future results. This is not financial advice.