Premium/Discount Zones strategyvsPrior Period Levels strategy
Premium/Discount Zones strategy: Buy the discount extreme, fade the premium extreme, exit at equilibrium. · Prior Period Levels strategy: PDH / PDL breakouts — long above the prior day high, short below the prior day low.
Premium/Discount Zones strategy
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
Prior Period Levels strategy
PDH / PDL breakouts — long above the prior day high, short below the prior day low.
Indicators
- Premium/Discount Zones (lookback 200)
- Prior Period Levels (daily / weekly / monthly)
- SMA(1) close wrapper
Timeframes
Bias
Long & short
Long & short
Market fit
Range-bound
Strong directional trends
Entry rules
- Long when price is inside the discount zone (current_zone = +1).
- Short when price is inside the premium zone (current_zone = -1).
- Long when close crosses above the prior day's high.
- Short when close crosses below the prior day's low.
Exit rules
- Position closes when price returns to equilibrium.
- 4% trailing stop, 5-bar cooldown.
- Opposite-side breakout closes the trade.
- 4% trailing stop, 2-bar cooldown.
Expected behavior
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.
Intraday classic — fires on the first decisive break of yesterday's range. Strong in trend days, choppy when price oscillates around the PDH/PDL.
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 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.
When to pick Prior Period Levels strategy
- You expect strong directional trends — the thesis is "PDH / PDL breakouts — long above the prior day high, short below the prior day low."
- You want a long & short bot on 15m–4h candles with a balanced rule-set.
- You're comfortable monitoring 2 indicators (Prior Period Levels (daily / weekly / monthly), SMA(1) close wrapper).
PDH / PDL breakouts — long above the prior day high, short below the prior day low.
Premium/Discount Zones strategy
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
Prior Period Levels strategy
PDH / PDL breakouts — long above the prior day high, short below the prior day low.
Related comparisons
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