Breakout with retest

Trade confirmed breaks of key S/R with a retest and momentum confirmation. Keep fixed risk and avoid news windows.

  • Entry: retest of broken level with rejection wick or volume spike.
  • SL: beyond structure; TP partials at range extremes.
  • Avoid: low-liquidity hours; tighten risk near target.

Trend pullback

Join an established trend on a measured pullback to a dynamic level (MA/VWAP) or structure.

  • Entry: confirmation candle after pullback, aligned with higher TF bias.
  • SL: behind swing; trail after HH/HL forms.
  • Stick to max trades/day; skip chop days.

Mean reversion to VWAP

Fade overextensions back to VWAP/POC during range-bound sessions; requires discipline with SL and partials.

  • Entry: exhaustion at extremes + failure to continue.
  • SL: past the extreme; take partials at VWAP.
  • Avoid: trending sessions and news spikes.

Execution & risk rules

  • Cap risk: 0.25–0.5% per trade; 0.5–1% per day.
  • Max 2–3 trades/day; stop after daily cap hit.
  • Journal every trade to refine edge and avoid repeats.

Strategy selection matrix

Match sessions and volatility to a strategy:

  • Asia: mean reversion, smaller targets, tighter risk.
  • London open: breakout/retest with momentum filters.
  • New York: trend pullbacks and continuation after data digestion.

Backtest → forward test → deploy

  1. Backtest 100+ trades; log R:R, win rate, MAE/MFE.
  2. Forward test 30–50 trades on demo with prop‑style rules.
  3. Deploy with reduced risk; scale after clean weeks.

Common mistakes by strategy

  • Breakouts: chasing without retest; trading inside ranges.
  • Pullbacks: entering before confirmation; ignoring HTF trend shifts.
  • Mean reversion: fading strong trends; skipping hard stops.

FAQ

Which strategy is best to pass fast?

The one matching your data and schedule. Consistency beats speed; avoid oversized bets.

Can I mix strategies?

Yes, but limit to 1–2 well‑defined playbooks to keep risk and execution clean.

How to manage trades under min day rules?

Aim for singles and doubles; partial TP and reduced risk preserve equity and satisfy activity requirements.

Next steps

Pass the challenge Prop Trading hub