TradingEdge.Pro
Systematic Trading
OUR STRATEGIES
The strategies developed by TradingEdge.Pro can be divided into three categories:
Trend Following, Swing Trading, and Trend Reversal.
Trend Following strategies focus on capturing long-term price trends, at the
cost of lower win rates and quick realization of losses.
Swing Trading strategies aim to capture short-term price movements resulting
from market imbalances, low volatility, or emotional decisions made by
other market participants.
Trend Reversal strategies are centered around identifying market turning
points and opening positions counter to the prevailing trend. While they carry
higher risk, they can significantly improve the overall risk-return profile of
an investment portfolio.
The strategy backtest results shown below are based on a well-defined
methodology. Understanding this methodology is essential for properly
interpreting the results and making informed decisions about which strategies
are worth applying in practice.
Each strategy includes a summary table of the tests conducted, assessing
how effective the strategy may be under real market conditions.
Only those strategies that have passed all three types of tests—Preliminary,
Stability, and Walk-Forward Analysis (WFA)—are considered to have real potential
for success in live trading. At present, the following strategies meet that standard:
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#1 Bollinger Breakout v.1 [Download EN]
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#2 Donchian Breakout v.1 [Download EN]
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#6 RSI PowerZone v.3 [Download EN]
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#21 ATR Ignition v.2 [Download EN]
The remaining strategies should be treated as sources
of inspiration for building your own systems, or, if already used in trading,
as a warning that they may prove unstable under real-world conditions.
Our goal is not to create the most highly optimized strategies, but to develop
those with the greatest potential for real-world effectiveness.
The results of our strategy tests have been, are, and always will be
available for free download!
Trend Following
#1 Bollinger Breakout v.1
Description: The Bollinger Breakout strategy is a trend following trading technique that uses Bollinger Bands to identify price breakouts from the range defined by the bands, suggesting the start of a new trend or a continuation of a current up or down trend.
Signals: We open a long position when the closing price of the instrument falls above the upper Bollinger band. The long position is maintained until the closing price falls below the middle Bollinger band. Similarly for short positions, with the difference that we use the lower band.
Preliminary | Stability | WFA |
|---|---|---|
Yes | Yes | Yes |
#3 Dual MA Crossover v.1
Description: The Dual Moving Average Crossover strategy is a trend following trading technique that uses two moving averages (one faster and one slower) to identify opening and closing points. Its goal is to capture long-term market movements, both up and down.
Signals: A long position is opened when the faster simple moving average crosses the slower simple moving average from below. The position is closed when the faster simple moving average crosses the slower simple moving average from above (the strategy is symmetrical). No stop loss order. Similarly for short positions.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#21 ATR Ignition v.2
Description: The ATR Ignition strategy is a trend following investment technique based on price breakouts above historical volatility measured by the ATR indicator. The aim of the strategy is to capture strong market movements that occur after breaking key volatility levels. Compared to the ATR Ignition v.1 version of this strategy, a trend filter has been added, which is intended to eliminate trades opened in the opposite direction to the dominant trend.
Signals: We open a long position (buy stop order) when quotes are above the long-term moving average (200 days) and on a given day the price increases by at least 200% ATR compared to the previous day's closing price. We set a stop loss order one tick below the previous day's low. The position remains open until the stop loss is realized or the price drops below the moving average. Similarly for short positions.
Preliminary | Stability | WFA |
|---|---|---|
Yes | Yes | Yes |
#23 ATR Ignition v.4
Description: The ATR Ignition strategy is a trend following investment technique based on price breakouts above historical volatility measured by the ATR indicator. The aim of the strategy is to capture strong market movements that occur after breaking key volatility levels. Compared to the ATR Ignition v.2 version, this one has been extended with the Inside Day candlestick formation.
Signals: We open a long position (buy stop order) when quotes are above the long-term moving average (200 days) and on a given day the price increases by at least 200% ATR compared to the previous day's closing price. In addition, the price range of the candle preceding the breakout was within the price range of the previous day (Inside Day). We set a stop loss order one tick below the previous day's low. The position remains open until the stop loss is realized or the moving average is breached. Similarly for short positions.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#25 Tri-Zone Reversal v.1
Description: The Tri-Zone Reversal Strategy is a trend-following trading technique with a mean-reversion element, developed by Art Collins. It uses the occurrence of several (3) closely grouped lows or highs as a signal of the formation of a support or resistance zone. The goal of the strategy is to capture a reversal of the dominant trend (defined by the moving average), which often occurs after a series of failed attempts to break out of a given support or resistance zone.
Signals: We open a long position when the distance between the extreme lows of the last three sessions (days) does not exceed 20% of the total range of these three days, i.e. the last three price lows fall in a narrow price range, creating a local "triple bottom". We open a long position at the opening of the next session, but only when quotes are above the 200-day moving average. Initial stop loss and trailing stop at the level of the moving average. Similarly for short positions.
Preliminary | Stability | WFA |
|---|---|---|
Yes | Yes | Yes |
#2 Donchian Breakout v.1
Description: The Donchian Breakout Strategy is a classic trend following technique that is based on identifying a price breakout outside the range defined by the Donchian channel. This breakout can signal the start of a new trend or a continuation of an existing price movement.
Signals: We open a long position when the maximum price falls above the upper Donchian channel. The stop loss order for the position is set based on market volatility (ATR). The exit order for a long position is the lower range of the Donchian channel. Similarly for short positions.
Preliminary | Stability | WFA |
|---|---|---|
Yes | Yes | Yes |
#20 ATR Ignition v.1
Description: The ATR Ignition strategy is a trend following investment technique based on price breakouts above historical volatility as measured by the ATR indicator. The aim of the strategy is to capture strong market moves that occur after a significant increase in volatility.
Signals: We open a position (buy stop/sell stop) when the price increases or decreases by at least 200% ATR on a given day compared to the previous day's closing price. We set a stop loss order one tick above/below the previous day's high/low (short/long position). The position remains open until the stop loss is realized or a signal is generated to open the opposite position.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#22 ATR Ignition v.3
Description: The ATR Ignition strategy is a trend following investment technique based on price breakouts above historical volatility measured by the ATR indicator. The aim of the strategy is to capture strong market movements that occur after breaking key volatility levels. Compared to the ATR Ignition v.2 version, this one has been extended with a Narrow Range candlestick formation (the smallest candle in several days).
Signals: We open a long position (buy stop order) when quotes are above the long-term moving average (200 days) and on a given day the price increases by at least 200% ATR compared to the previous day's closing price. In addition, the last candle must be the lowest compared to the candles from the last few (3) days. We set a stop loss order one tick below the previous day's low. The position remains open until the stop loss is realized or the moving average is breached. Similarly for short positions.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#24 ATR Ignition v.5
Description: The ATR Ignition strategy is a trend following investment technique based on price breakouts above historical volatility measured by the ATR indicator. The aim of the strategy is to capture strong market movements that occur after breaking key volatility levels. Compared to the ATR Ignition v.2 version, this one has been extended with the Cumulative Narrow Range (NDayRange) candlestick formation.
Signals: We open a long position (buy stop order) when quotes are above the long-term moving average (200 days) and on a given day the price increases by at least 200% ATR compared to the previous day's closing price. In addition, the breakout must be preceded by the NDayRange formation, which requires that the price range of the last few (3) days be the smallest in a dozen or so days. We set a stop loss order one tick below the previous day's minimum. The position remains open until the stop loss is realized or the average is breached. Similarly for short positions.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
Swing Trading
#4 RSI PowerZone v.1
Description: The RSI PowerZone strategy is a swing trading investment technique developed by Larry Connors. It uses the RSI indicator and a downward correction of an instrument that is in an uptrend. The key assumption of the strategy is to open long positions during a correction and possibly pyramid it when the price continues to fall, and then close after the price increases.
Signals: A long position is opened when the market is in an upward trend (above the 200-day moving average) and is making a downward correction. A buy signal is generated when the short-term RSI (4-day) falls to 30. If after opening the position, the RSI continues to fall (25), a second unit is opened. The position is closed after the RSI indicator increases to 55. No stop loss order. Only long positions are opened.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#6 RSI PowerZone v.3
Description: The RSI PowerZone strategy is a swing trading investment technique developed by Larry Connors. It uses the RSI indicator and a downward correction of an instrument in an upward trend. The key assumption of the strategy is to open long positions during a correction and possibly pyramid it. Compared to version v.2, an exit element has been added to protect against excessive losses.
Signals: A long position is opened when the market is in an upward trend (above the 300-day moving average) and makes a downward correction. A buy signal is generated when the short-term RSI (3 days) falls to 20. If after opening the position, the RSI is still low (20) and the closing price falls below the opening price of the first unit, the second unit is opened. The position is closed after the RSI indicator increases to 53. Stop loss at the level of the moving average. Only long positions are opened.
Preliminary | Stability | WFA |
|---|---|---|
Yes | Yes | Yes |
#11 Terror Gaps v.2
Description: The Terror Gaps strategy is a swing trading investment technique. It uses the RSI indicator and a downward correction (taking into account price gaps) of an instrument that is in an upward trend (quotes above the 100-day average). The key assumption of the strategy is to open long positions during a correction, and then close them after the price increases. A stop loss element has been added to version v.1.
Signals: We open a long position when the market is in an upward trend (quotes above average) and is making a correction. A buy signal is activated when the RSI (2-day) falls to low levels (25), and the accompanying candle opens with a downward gap and closes below the opening. The next day we buy at the opening. If after opening the position the RSI is still low (25) and the closing price falls below the opening price of the first unit, the second unit is opened. Positions are closed after the RSI indicator rises to high levels (75). Stop loss at the level of the simple moving average. We open only long positions.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#13 180s v.2
Description: The 180's strategy is a short-term swing trading technique developed by Jeff Cooper. It uses a two-day reversal pattern within an ongoing trend, and its goal is to identify moments when a short-term pullback presents an opportunity to open a long position. This is an approach that is in line with the prevailing trend, but uses short-term corrections to enter a position at a more favorable price. Compared to version v.1, the parameters have been optimized, as well as the range of financial instruments has been expanded.
Signals: We open a long position when the market is in an upward trend (price above the short-term and long-term moving average) and makes a downward correction. The downward correction is in the form of a two-candle formation - the first downward candle with a low close, and the second upward with a high close. After such a day, a buy stop order is set one tick above the high candle formation. Stop loss one tick below the low candle formation. Trailing stop at the level of the long-term moving average. Only long positions are opened.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#15 Trading New Highs v.1
Description: The Trading New Highs strategy is a swing trading investment technique that uses the Donchian channel (52-week) and the ConnorsRSI (Relative Strength Index) indicator to open positions in line with the trend after a correction has formed. The key assumption of the strategy is research that indicates that after the instrument reaches a new, 52-week high, the market enters a correction and then continues to grow.
Signals: We open a long position when the market is in an upward trend (quotations were the highest in 250 days in the last 20 days) and makes a downward correction. A buy signal is activated when the short-term Connors RSI (3 days) falls to low levels (15). Then a buy limit order is set at a distance of 0.5 x ATR from the last closing price. The position is closed after the Connors RSI indicator increases to high levels (70). No stop loss order. We use only for long positions on all instruments.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#17 Time Price Scale-In v.1
Description: The Time Price Scale-In (TPS) strategy is a swing trading investment technique that uses the 2-period RSI (Relative Strength Index) indicator and a correction of an instrument in a trend (quotes above/below the 200-day moving average). The key assumption of the strategy is to open long positions during a downward correction and possibly pyramid it when the price continues to fall, and then close it after the price increases. By scaling the position, the strategy allows for improving the average entry price.
Signal: We open a long position when the market is in an upward trend (above the 200-day moving average) and makes a downward correction. A buy signal is generated when the short-term RSI (2-day) falls to low levels (25) and stays there for several days (2). If after opening a position, the closing price falls below the opening price of the previous unit, further units are opened (maximum 4). Positions are closed after the RSI indicator rises to high levels (70). Stop loss set at the level of the moving average. We use only on stock indices, bonds, gold and the dollar index.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#19 Time Price Scale-In v.3
Description: The Time Price Scale-In (TPS) strategy is a swing trading investment technique that uses the short-term RSI (Relative Strength Index) indicator and a correction of an instrument in a trend (quotes above/below the 200-day moving average). The key assumption of the strategy is to open long positions during a downward correction and possibly pyramid it when the price continues to fall, and then close after the price increases.
Compared to version v.1 of this strategy, parameters have been optimized using The Grid Search technique and only long positions on the market have been focused on.
Signal: We open a long position when the market is in an upward trend (above the 240-day moving average) and makes a downward correction. A buy signal is generated when the short-term RSI (3-day) falls to low levels (25) and stays there for several days (2). If after opening a position, the closing price falls below the opening price of the previous unit, further units are opened (maximum 4). Positions are closed after the RSI indicator rises to high levels (62.5). Stop loss set at the level of the moving average. We use only for long positions on stock indices, bonds, gold and the dollar index.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#5 RSI PowerZone v.2
Description: The RSI PowerZone strategy is a swing trading investment technique developed by Larry Connors. It uses the RSI indicator and a downward correction of an instrument in an upward trend. The key assumption of the strategy is to open long positions during a correction and possibly pyramid it. The strategy parameters have been optimized in relation to version v.1.
Signals: A long position is opened when the market is in an upward trend (above the 100-day moving average) and makes a downward correction. A buy signal is generated when the short-term RSI (5-day) falls to 28. If after opening the position, the RSI remains low, a second unit is opened. The position is closed after the RSI indicator increases to 50. No stop loss order. Only long positions are opened.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#10 Terror Gaps v.1
Description: The Terror Gaps strategy is a swing trading investment technique developed by Larry Connors. It uses the ConnorsRSI (Relative Strength Index) indicator and a downward correction (taking into account price gaps) of an instrument that is in an uptrend (quotes above the 100-day average). The key assumption of the strategy is to open long positions during a correction and then close after the price increases.
Signals: We open a long position when the market is in an upward trend (quotes above the 100-day average) and makes a downward correction. A buy signal is activated when the short-term Connors RSI (3-day) falls to low levels (20), and the accompanying candle opens with a downward gap and closes below the opening. The next day we buy at the opening. The position is closed after the Connors RSI indicator increases to high levels (70). No stop loss order. Only long positions are opened.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#12 180s v.1
Description: The 180's strategy is a short-term swing trading technique developed by Jeff Cooper. It uses a two-day reversal pattern within an ongoing trend, and its goal is to identify when a short-term pullback presents an opportunity to open a long position. It is an approach that follows the prevailing trend but uses short-term pullbacks to enter a position at a more favorable price.
Signals: We open a long position when the market is in an upward trend (price above the short-term and long-term moving average) and makes a downward correction. The downward correction is in the form of a two-candle formation - the first downward candle with a low close, and the second upward with a high close. After such a day, a buy stop order is set one tick above the high candle formation. Stop loss one tick below the low candle formation. Trailing stop at the level of the long-term moving average. Only long positions are opened in accordance with the dominant trend.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#14 180s Pivots v.1
Description: The 180's Pivots strategy is a short-term swing trading technique based on Jeff Cooper's 180's strategy. It uses a two-day reversal pattern within an ongoing trend and its goal is to identify when a short-term pullback presents an opportunity to open a long position. This is an approach that follows the prevailing trend but uses short-term corrections to enter a position at a more favorable price.
Signals: We open a long position when the market is in an upward trend (price above the short-term and long-term moving average) and makes a downward correction that violates the short-term moving average. The downward correction is in the form of a two-candle formation - the first downward candle with a low close, and the second upward candle with a high close and additionally the largest in several days. After such a day, a buy stop order is set one tick above the high candle formation. Stop loss one tick below the low candle formation. Trailing stop at the level of the long-term moving average. Only long positions are opened.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#16 Trading New Highs v.2
Description: The Trading New Highs strategy is a swing trading investment technique that uses the Donchian channel (52-week) and the RSI (Relative Strength Index) indicator to open positions in line with the trend after a correction has formed. The key assumption of the strategy is research that indicates that after an instrument reaches a new, 52-week high, the market enters a correction and then continues to grow.
Signal: We open a long position when the market is in an upward trend (quotations were the highest in 250 days in the last 20 days) and makes a downward correction. A buy signal is activated when the short-term RSI (4-day) falls to low levels (25). The position is opened the next day at the opening, and closed after the RSI indicator increases to high levels (75). Stop loss orders are set at the minimum level of 250 days. We use only for long positions on all instruments.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
#18 Time Price Scale-In v.2
Description: The Time Price Scale-In (TPS) strategy is a swing trading investment technique that uses the short-term RSI indicator and a correction of an instrument in a trend (quotes above/below the 200-day moving average). The key assumption of the strategy is to open long positions during a downward correction and possibly pyramid it when the price continues to fall, and then close it after the price increases. Compared to version v.1 of this strategy, the parameters have been optimized.
Signal: We open a long position when the market is in an upward trend (above the 240-day moving average) and makes a downward correction. A buy signal is generated when the short-term RSI (3-day) falls to low levels (25) and stays there for several days (2). If after opening a position, the closing price falls below the opening price of the previous unit, further units are opened (maximum 4). Positions are closed after the RSI indicator rises to high levels (62.5). Stop loss set at the level of the moving average. We use only on stock indices, bonds, gold and the dollar index.
Preliminary | Stability | WFA |
|---|---|---|
Yes | No | No |
Trend Reversal
#7 Crash v.1
Description: The Crash Strategy is a trend reversal trading technique developed by Larry Connors. It uses Connors RSI (Relative Strength Index) and historical volatility to identify a market situation where prices are rising very strongly in a short period of time, causing a cattle drive among many market participants. Despite the prevailing bullish trend in the market, this strategy identifies moments when the price is driven by irrational investor enthusiasm, which can often lead to rapid price declines and panic in the market, creating opportunities for shorts.
Signals: The market is in an upward trend. A short order is triggered when historical volatility increases significantly (100%) and Connors RSI reaches high values (90). A sell limit order is then set at 1 x ATR (Average True Range) from the last closing price. The position is closed when Connors RSI drops to 30. No stop loss order. Only short positions are opened, in a strongly overbought phase.
Preliminary | Stability | WFA |
|---|---|---|
No | No | No |
#9 Donchian Counter Trend v.1
Description: The Donchian Counter Trend strategy is a trend reversal trading technique that uses the breakout of the Donchian channel to identify turning points relative to prevailing trends. This strategy uses a contrarian approach, meaning it works against the prevailing trend. This means that we try to take advantage of moments when the market may change direction after a strong move in one direction. Its principles can be summed up as “Buy low and sell high.”
Signals: The market is in an uptrend. A short order is activated when the price rises above the upper limit of the Donchian channel (100). A sell stop order is then set one tick below the price low of this candle. The position is closed after a specified number of days (3). A defensive stop loss order is set one tick above the upper limit of the Donchian channel. Similarly for a long position.
Preliminary | Stability | WFA |
|---|---|---|
No | No | No |
#8 Crash v.2
Description: The Crash Strategy is a trend reversal investment technique. It uses the RSI indicator and historical volatility (ATR) to identify a market situation where prices are rising very strongly in a short period of time, causing a herd rush among many market participants. Despite the prevailing uptrend in the market, this strategy aims to identify the moment when the price is driven by irrational investor enthusiasm, which often leads to rapid price declines.
Signals: The market is in an upward trend. A short order is triggered when short-term volatility, measured by ATR(10), increases significantly (130%) compared to long-term volatility, measured by ATR(50). Additionally, the RSI indicator reaches high values (70). A position is opened the next day at the opening price. If the price continues to rise and the above conditions are met, a second unit is opened. The position is closed when the RSI indicator drops to 30. No stop loss order. Only short positions are opened.
Preliminary | Stability | WFA |
|---|---|---|
No | No | No |