Focused STRAT + Volume Strategy v3 by BuzzRight
By BuzzRight
Performance Metrics
- Author: BuzzRight
- Symbol: NASDAQ:QQQ
- Timeframe: 5 minutes
- Profit Factor: 0.617
Description
Experimental research strategy for standard 5-minute US equity/ETF charts with real volume. This is an original implementation of common STRAT candle classifications, not a proprietary indicator or a proven profitable trading system. The STRAT methodology is associated with Rob Smith.SETUPSDefault 3-1-2: outside bar, inside bar, then a directional bar closing beyond the inside range. A trigger taking both sides of the inside bar is excluded. Optional 2-1-2 is disabled by default. R/C labels classify the break relative to the first candle: for 3-1-2, its candle body; for 2-1-2, its directional break. They do not predict the wider trend.VOLUME AND RSIDefault relative volume threshold is 1.2 times the same five-minute slot in the prior 20 observed sessions, excluding today, with at least five valid observations. This tests participation without comparing the market open to a quieter midday bar. Optional regular RSI(14) divergence uses confirmed price pivots with three bars on each side. Divergence expires after 12 bars from confirmation or a breach of its price pivot. Compare Pattern only, Pattern + volume, and Pattern + volume + divergence using the same dates.LEVEL MAPPrevious regular-session high/low, completed 09:30-10:00 New York opening range, and confirmed intraday swing highs/lows are displayed. The nearest mapped obstacle at each signal is marked; its distance in planned R is available in the Data Window. These levels provide context and do not filter entries or change targets.TIMINGSignals use completed bars only. Divergence and swing levels appear when confirmed, never backdated to the pivot. The engine uses no higher-timeframe requests or future-bar entry information. Full Bar Replay/reload verification remains pending. Changed inputs, loaded history, session settings or vendor data corrections can change recalculated results. Use regular-session, standard 5-minute candles. Signal bars begin 09:45 through 15:25 New York time.EXECUTIONDefault simulated capital $100,000; 10% equity notional per entry, not 10% capital at risk; no pyramiding. Commission 0.01% per fill and one tick slippage. Market entries fill next bar open. Structural stop is one tick beyond the opposite inside-bar edge; reject risk distances above 2 ATR(14). Full exit at 1.5 planned R, stop, or six holding bars. Stops/targets are frozen from signal close, so gaps change actual R. Session/date exits can be delayed on missing bars or early closes. Historical fills depend on broker-emulator assumptions; Bar Magnifier and ambiguous same-bar fills need further inspection. This simulates the underlying, not option premiums.INITIAL RESULT AND LIMITSThe initial available QQQ 5-minute chart window, April 13 through October 16, 2026, with default Pattern + volume settings showed 16 trades, net -$53.50, 31.25% profitable trades, profit factor 0.617, and maximum drawdown $74.93. This is a negative development result, not evidence of profitability. No parameters were selected to turn this result positive. Independent periods, other symbols, filter comparisons and live forward testing are still required.