Session Liquidity Sweep + Trend Confirmation — Strategy by AIScripts
By AIScripts
Performance Metrics
- Author: AIScripts
- Symbol: NASDAQ:NFLX
- Timeframe: 3 minutes
- Net P&L: +81.01 USD (+0.08%)
- Win Rate: 42.1%
- Profit Factor: 1.308
- Max Drawdown: 116.69 USD (0.12%)
- Total Trades: 19
Description
This strategy aims to capture high-probability intraday trades by combining liquidity sweeps with a trend confirmation filter. It is designed for traders who want a systematic approach to trade breakouts during specific market sessions while controlling risk with ATR-based stops.How it Works:Session Filter: Trades are only considered during a defined session (default 9:30 - 11:00). This helps avoid low-volume periods that can lead to false signals.Trend Confirmation: The strategy uses a 50-period EMA to identify the market trend. Long trades are only taken in an uptrend, and short trades in a downtrend.Liquidity Sweep Detection: A long entry occurs when price dips below the prior N-bar low but closes back above it, indicating a potential liquidity sweep that stops being triggered before the trend continues upward.A short entry occurs when price spikes above the prior N-bar high but closes below it, signaling a potential sweep of stops before the downward trend resumes.ATR-Based Risk Management:Stop loss is calculated using the Average True Range (ATR) multiplied by a configurable factor (default 1.5).Take profit is set based on a risk-reward ratio (default 2.5x).Position Sizing: Default position size is 5% of equity per trade, making it suitable for risk-conscious trading.Inputs:Session Start/End (HHMM)Liquidity Lookback Period (number of bars to define prior high/low)ATR Length for stop calculationATR Stop MultiplierRisk-Reward RatioEMA Trend Filter LengthVisuals:Prior Liquidity High (red)Prior Liquidity Low (green)EMA Trend (blue)Why Use This Strategy:Captures stop-hunt moves often triggered by larger market participants.Only trades with trend confirmation, reducing false signals.Provides automatic ATR-based stop loss and take profit for consistent risk management.Easy to adjust session time, ATR, EMA length, and risk-reward to suit your trading style.Important Notes:Assumes 0.05% commission and 1-pip slippage. Adjust according to your broker.Not financial advice; intended for educational, backtesting, or paper trading purposes.Always test strategies thoroughly before applying to live accounts.