Engulfing Reversal Strategy

Prerequisites
This strategy in based on and requires indicator
Trend Strength After Reversal to be loaded on the chart.

When Trend Strength After Reversal is loaded to the chart, you have to go to Strategy settings and set input parameter named Trend strength indicator to use the indicator (it should be last on the list).

Description
The idea of this strategy is to catch a pullback after an engulfing reversal in a protracted trend. When trend last a long time, traders what have with-trend positions will get out of a market at any sign of a reversal. They want to protect their profits. This is the ideal place to scalp. The strategy waits for trend to develop and enters on a pullback after a reversal. In case the setup fails, it opens reverse trade to catch the opposite move, which is usually very strong.

Parameters

• Indicator reach before drop This is the mandatory parameter that takes the Trend Strength After Reversal as an input for calculations.
  
• TP multiple float. Takes profit is calculated based on the reversal candle range. When this param=1, then TP is equal exactly that candle. If you want to extend the TP, increase value of this param.
  
• SL multiple float. Stop loss is calculated based on the reversal candle range. When this param=1, then SL is equal exactly that candle. If you want to extend or contract the SL, adjust value of this param.
  

Good params for some markets
This strategy woks on different timeframes and different markets but the parameters have to be adjusted. Here is a list of good parameters on 1H timeframe for some markets:

• XAUUSD: 8,1,1
  
• EURUSD: 5,2,2
  
• US100: 4, 3, 1
  
• XTIUSD: 8,1,1
  

Feel free to play with the params and adjust the numbers as suits you best.

PS. The strategy is not guaranteed to work on every market and every timeframe.