Premium/Discount Zones strategyvsSMC CHoCH + FVG entries strategy
Premium/Discount Zones strategy: Buy the discount extreme, fade the premium extreme, exit at equilibrium. · SMC CHoCH + FVG entries strategy: Market Structure says which way, the first Fair Value Gap in that direction says go now.
Premium/Discount Zones strategy
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
SMC CHoCH + FVG entries strategy
Market Structure says which way, the first Fair Value Gap in that direction says go now.
Indicators
- Premium/Discount Zones (lookback 200)
- Market Structure (swing 20)
- Fair Value Gap (min gap 0.1%)
Timeframes
Bias
Long & short
Long & short
Market fit
Range-bound
Range-bound
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 on a bullish FVG while market structure is in a +1 (bullish) regime.
- Short on a bearish FVG while market structure is in a -1 (bearish) regime.
Exit rules
- Position closes when price returns to equilibrium.
- 4% trailing stop, 5-bar cooldown.
- Regime flip through zero in either direction closes the trade.
- 5% trailing stop, 5-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.
Picky — both legs must agree. Long flat stretches followed by clusters of trades when a regime turns and FVGs print along the way. Stacks well in directional markets, sits out balanced ranges.
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 SMC CHoCH + FVG entries strategy
- You expect range-bound — the thesis is "Market Structure says which way, the first Fair Value Gap in that direction says go now."
- You want a long & short bot on 15m–4h candles with a balanced rule-set.
- You're comfortable monitoring 2 indicators (Market Structure (swing 20), Fair Value Gap (min gap 0.1%)).
Market Structure says which way, the first Fair Value Gap in that direction says go now.
Premium/Discount Zones strategy
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
SMC CHoCH + FVG entries strategy
Market Structure says which way, the first Fair Value Gap in that direction says go now.
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