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FXSnipers Quantitative Desk Series

Multi-Timeframe Trend Pullback Strategy

Crypto • BTCUSDT, ETHUSDT, SOLUSDT • H1 • Trend Following
Global 24/7 Crypto Session
00:00 - 23:59 UTC
Complexity: Intermediate
Max Risk 0.5% - 1.0% maximum portfolio equity risk per trade.
Target R:R Fixed 1:2 R:R model with 50% partial profit booking at 1:1 R:R.
Break-Even Trigger Move Stop Loss to entry price once the trade achieves 1:1 R:R.
Automation Rule-dependent

Pre-Trade Verification Checklist

Check 200 EMA Trend Filter: Ensure the H1 close is comfortably above the 200 EMA, confirming a bullish structural regime.
Monitor RSI Pullback: Track the 14-period RSI to ensure it dips into the 40-48 value area, signaling a healthy correction.
Identify Rejection Candlestick: Look for a bullish price action rejection (long lower wick or pin bar) at a local support level.
Calculate Position Sizing & Risk: Measure distance to swing low, place stop loss with buffer, and size position to risk exactly 1% of account equity.
Execute Order & Set Targets: Enter the long position at the close of the trigger candle, setting TP1 at 1.5R and TP2 at 2.5R.

Entry Execution Criteria

  1. Step 1: Confirm macro trend direction by checking that the current H1 close is strictly above the 200-period Exponential Moving Average (EMA).
  2. Step 2: Monitor the 14-period RSI on the H1 timeframe. Wait for the RSI value to pull back into the institutional compression zone between 40.0 and 48.0.
  3. Step 3: Trigger a long entry when a bullish rejection candle forms (defined as a lower shadow greater than 50% of the total candle range, with the close near the high) immediately following the RSI zone touch.

Take-Profit & Target Exit

  • Take Profit 1 is set at a fixed 1:1.5 Risk-to-Reward ratio, where 50% of the position is closed to lock in realized gains.
  • Take Profit 2 is managed via a trailing structure or placed at the previous major swing high resistance level.

Invalidation & Emergency Exit

  • The setup is instantly voided if the price breaks and closes below the 200 EMA before the entry trigger occurs.
  • An emergency exit is triggered if subsequent price action breaks the swing low support level established during the entry candle, violating structural integrity.
Stop-Loss Positioning

Placed strictly below the recent H1 swing low with a 0.2% buffer to account for crypto exchange wicks.

Documented & Formatted by FXSnipers Strategy Lab • fxsnipers.com/strategy-lab/multi-timeframe-trend-pullback-strategy
Desk Cheat Sheet Specification v1.0