Stochastic %K/%D reversion strategyvsTrend Magic strategy
Stochastic %K/%D reversion strategy: Buy a slow stochastic %K cross above %D inside the oversold zone, exit on the mirror. · Trend Magic strategy: CCI-gated ATR ratchet — long on a bullish wick break of the trail, short on the mirror.
Stochastic %K/%D reversion strategy
Buy a slow stochastic %K cross above %D inside the oversold zone, exit on the mirror.
Trend Magic strategy
CCI-gated ATR ratchet — long on a bullish wick break of the trail, short on the mirror.
Indicators
- Slow Stochastic (period 14, smooth 3)
- Trend Magic (period 20, ATR 5, coeff 1.0)
- SMA(1) wick wrappers (low / high)
Timeframes
Bias
Long only
Long & short
Market fit
Range-bound
Strong directional trends
Entry rules
- %K crosses above %D AND
- Both lines are inside the oversold zone (%K < 30).
- Long when the bar's low wick crosses up through the Trend Magic trail line.
- Short when the high wick crosses down through the trail line.
Exit rules
- %K crosses back below %D, OR %K pushes above 80 (overbought).
- Hard 2.5% stop; 4% take-profit.
- CCI regime flip through zero closes the active position.
- 4% trailing stop, 2-bar cooldown.
Expected behavior
Higher trade frequency than RSI mean reversion and louder noise. Fits range-bound regimes; produces fast small wins and small losses. Trend regimes can be expensive — the oscillator stays pinned for many bars.
Selective entries — the wick-cross condition is strict, so trades fire only when momentum really pushes through. Strong in trending regimes, quiet during 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 Stochastic %K/%D reversion strategy
- You expect range-bound — the thesis is "Buy a slow stochastic %K cross above %D inside the oversold zone, exit on the mirror."
- You want a long-only bot on 5m–1h candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Slow Stochastic (period 14, smooth 3)).
Buy a slow stochastic %K cross above %D inside the oversold zone, exit on the mirror.
When to pick Trend Magic strategy
- You expect strong directional trends — the thesis is "CCI-gated ATR ratchet — long on a bullish wick break of the trail, short on the mirror."
- You want a long & short bot on 15m–1d candles with a balanced rule-set.
- You're comfortable monitoring 2 indicators (Trend Magic (period 20, ATR 5, coeff 1.0), SMA(1) wick wrappers (low / high)).
CCI-gated ATR ratchet — long on a bullish wick break of the trail, short on the mirror.
Stochastic %K/%D reversion strategy
Buy a slow stochastic %K cross above %D inside the oversold zone, exit on the mirror.
Trend Magic strategy
CCI-gated ATR ratchet — long on a bullish wick break of the trail, short on the mirror.
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