Close Reversion in Bonds
Trading on strength in the bond market can work quite well! Here we present an easy logic that you may experiment further with!
A Closer Look
This edge has symmetrical conditions for the long and short entries, Its simplicity gives a lot of room for further improvements!
The edge is composed of:
- A Price Action filter
- A Custom Breakout Level
- A Time Exit
How Does It Work?
This edge works by identifying when the momentum of the market is enough to continue pushing it further in the direction of the breakout. As said previously, the logic is very simple. This means that there is a greater chance that it will work well on other markets as well!
To test this, I tested the code on some more markets. I only covered the index futures markets. This was what I found on my second attempt:
This is the same edge applied to the E-mini Russel 2000 index (RTY.D). No parameters were changed. In other words, no optimization! In fact, I only removed one of the filters, which yielded better results!
It’s clear that this logic holds great potential! Try it on different markets, add filters or reverse the logic. The possibilities are endless!