Fair Value Gap strategyvsPremium/Discount Zones strategy
Fair Value Gap strategy: Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills. · Premium/Discount Zones strategy: Buy the discount extreme, fade the premium extreme, exit at equilibrium.
Fair Value Gap strategy
Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.
Premium/Discount Zones strategy
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
Indicators
- Fair Value Gap (min gap 0.1%)
- Premium/Discount Zones (lookback 200)
Timeframes
Bias
Long & short
Long & short
Market fit
Range-bound
Range-bound
Entry rules
- Long on the bar a bullish FVG opens (bull_signal > 0).
- Short on a bearish FVG.
- Long when price is inside the discount zone (current_zone = +1).
- Short when price is inside the premium zone (current_zone = -1).
Exit rules
- Position closes the bar the gap is filled (rebalanced).
- 4% trailing stop, 3-bar cooldown.
- Position closes when price returns to equilibrium.
- 4% trailing stop, 5-bar cooldown.
Expected behavior
Momentum-into-imbalance — fires on explosive bars, exits when the imbalance reverts. Equity curve is choppy with frequent small trades; works best when price respects imbalances and gives the bot a chance to ride the displacement.
Range trader — fits balanced markets where extremes get bought / faded back to mid. Stacks losses in strong trends that camp at one extreme for many bars.
Complexity
Which one is right for you?
Derived from the bias, timeframe and indicator profile of each strategy — not a back-test forecast.
When to pick Fair Value Gap strategy
- You expect range-bound — the thesis is "Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills."
- You want a long & short bot on 5m–4h candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Fair Value Gap (min gap 0.1%)).
Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.
When to pick Premium/Discount Zones strategy
- You expect range-bound — the thesis is "Buy the discount extreme, fade the premium extreme, exit at equilibrium."
- You want a long & short bot on 1h–1d candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Premium/Discount Zones (lookback 200)).
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
Fair Value Gap strategy
Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.
Premium/Discount Zones strategy
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
Related comparisons
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