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FXSnipers Quantitative Desk Series

Power of 3 (AMD) Intraday Cycle Strategy

Forex • EURUSD, GBPUSD, XAUUSD • M5 • Liquidity Sweep
London Open / European Pre-Market
00:00 - 12:00 UTC
Complexity: Advanced
Max Risk 0.5% - 1.0% maximum equity exposure per setup.
Target R:R Multi-tier staged target: 40% at Midpoint, 30% at Opposite Extreme, 30% structural M5 swing trail.
Break-Even Trigger Move protective stop-loss to Breakeven (+0.5 pip to cover commissions) immediately upon TP1 (Range Midpoint) fill.
Automation Semi-automated

Pre-Trade Verification Checklist

H4 Bias Verification: Verify H4 price relative to 50 EMA. Only consider Longs if Price > 50 EMA and slope > 0; only consider Shorts if Price < 50 EMA and slope < 0.
Asian Range Lockout: At 06:00 UTC, capture the absolute High and Low established between 00:00 and 06:00 UTC. Calculate Midpoint and verify Asian range is within standard volatility bounds.
Manipulation Delta Check: Between 07:00 and 10:00 UTC, verify breach of range boundary exceeds 0.25x H1 ATR(14) in the counter-trend direction (e.g. low swept for long bias).
M5 Shift & Re-Entry Trigger: Ensure M5 bar closes back inside the Asian range while simultaneously breaking the prior M5 structural swing high/low.
Order Execution & Limit Placement: Execute position at market on M5 close, set hard Stop Loss at manipulation wick extreme, place limit TP1 at midpoint and limit TP2 at opposite boundary.

Entry Execution Criteria

  1. Step 1 (Macro Filter): Confirm directional alignment using H4 50-period EMA slope. Bullish if H4 Close > 50 EMA and slope is positive; Bearish if H4 Close < 50 EMA and slope is negative.
  2. Step 2 (Accumulation Phase): Define the reference range between 00:00 and 06:00 UTC, recording Asian High, Asian Low, and Asian Midpoint.
  3. Step 3 (Manipulation Phase): Between 07:00 and 10:00 UTC, price must breach either boundary by a minimum threshold of 0.25 * H1 ATR(14). For long setups (following bullish H4 bias), price must sweep below the Asian Low. For short setups (following bearish H4 bias), price must sweep above the Asian High.
  4. Step 4 (Distribution Confirmation & Entry Trigger): Enter on the close of the first M5 bar closing completely back inside the 00:00-06:00 UTC boundary, provided it simultaneously executes a Market Structure Shift (MSS) breaking the most recent M5 swing high (for longs) or M5 swing low (for shorts). Strictly 1 execution per instrument per day.

Take-Profit & Target Exit

  • Take Profit 1: Close 40% of position volume at the Asian Range Midpoint (50% Fibonacci level).
  • Take Profit 2: Close 30% of position volume at the opposite Asian Range Boundary (Asian High for longs, Asian Low for shorts).
  • Take Profit 3 / Runner: Allow remaining 30% to trail behind the most recent confirmed M5 structural swing points until stopped out or 16:00 UTC hard session close.

Invalidation & Emergency Exit

  • Pre-Entry Invalidation: Setup is immediately void if manipulation excursion exceeds 1.50x H1 ATR(14), designating a sovereign breakout trend rather than liquidity absorption.
  • Pre-Entry Invalidation: Setup is void if price breaches the opposite boundary first prior to sweeping the setup side.
  • Pre-Entry Invalidation: Window expiration at 10:00 UTC. If no valid M5 MSS occurs prior to 10:00 UTC, all working triggers are canceled.
  • Post-Entry Invalidation / Hard Stop: Immediate exit if price penetrates the extreme price point of the manipulation wick (Manipulation Low for longs, Manipulation High for shorts).
Stop-Loss Positioning

Placed 2 pips (or 30 cents on XAUUSD) beyond the absolute manipulation sweep extreme wick.

Documented & Formatted by FXSnipers Strategy Lab • fxsnipers.com/strategy-lab/power-of-3-amd-daily-cycle-strategy
Desk Cheat Sheet Specification v1.0