Concept I am seeking to create a Trading View strategy utilizing the Lux Algo Fair Value Gaps on NAS100 (NASDAQ CFD) on a 3 minute chart, ultimately automating the execution at speed to precision with regards to lot size and risk, yet still manually managing the trades on C Trader. Thus ensuring I do not miss entries for which I am not in front of the computer to execute on or incorrectly calculate risk via position size due to the speed of execution required. The strategy has also proven to be successful on several other markets for which I will further add this on in due course, with some minor adjustments. Entry Criteria Focusing on the 3 minute chart for NAS100 and the use of the Fair Value Gaps indicator by Lux Algo, an entry set up will occur after the formation of an FVG Box. To be precise here, we are only concerned with the origin of the move (the first box that forms). That is to say, the first box on a swing high or the first box on a swing low. There will however be some exceptions which will be noted later on. Following the printing of an FVG box on the buy side, an immediate market order will be taken on the next candle and likewise for a sell set up. It is important to only consider trade set ups between 02:00-04:00 London and 09:25-15:00 New York. Only a single trade can be taken at anyone one time, risking 0.5% of the account and for further set ups in the same direction, there should be a consolidation of at least three candles or a pullback of 30% or more to allow further continuation entries following on from the initial “first move” (note these entries will occur off the back of a new FVG printing). If either of these criteria are not met, no further trades should be taken, unless it is a set up in the opposite direction. A trade in the opposing direction is forbidden to be taken on the same candle for which a trade has just been closed. Therefore the entry will need to wait until the next candle, providing it is still valid and within the zone area. In addition, if the market is already within and FVG box and another FVG box in the opposing direction forms within this existing zone, then this trade should be avoided. It is also important to note based on the aforementioned additional set ups that a pull back into an existing FVG can be taken, providing this is the first retest of the zone. If price has wicked it or tested it previously (price has to have been within the zone, outside wicks do not count), then no entry. In a context where a retracement is creating a potential for another set up, but there are two fair value gaps in close proximity of each other, then there should be a limit order to enter at the second FVG as opposed to the first. This is based on assumed market behaviour to take the liquidity of the first FVG and trigger stop losses. The limit order should be cancelled once price moves on to make a higher high or lower low (for shorts) from the zone. It can be placed again if price starts to retrace back to the FVG box, but cancelled indefinitely if price then reverses to make a higher high/lower low. The size of the FVG is also a factor that will determine how the entry is taken. If the FVG is smaller than 5 points in range, then the stop loss must always cover at least 5 points. If the FVG box, together with the distance required to place the stop loss is greater than 25 points in range, that is to say from 25,550 to 25,576 for example, the trade set up should be avoided. This is due to the distance the market would need to travel to hit a TP in such instances and in most cases, there simply isn’t that much volatility pushing the market for those types of moves to have a high probability of working out on a 3.2/1 RR. Overlapping FVGs should be ignored completely unless there has been a significant move in one direction (please see below). This occurs when the market prints an FVG whilst there is already existing FVG in the opposing direction immediately below/above or within that of what has just been printed. No trade should be taken in either direction. Instead, it is necessary to wait for one to be absorbed by price and then reassess if an entry is still present. However, a trade can be taken if a buy signal overlaps another buy or sell overlaps another sell. In the context where a bottom or top forms in the market and an FVG is printed in the opposing direction, generating an entry, but price pulls back to eliminate the FVG and cause a stop out, yet subsequently forms another FVG in the next candle, this would also be an entry. The new FVG in this case is now the first one in the opposite direction and can still be taken as a trade. If the market has seen a sizable sell off with no significant pull back which retests into any of the multiple FVGs on the sell side (thus triggering that second FVG entry model) and a buy FVG has formed inside of a sell, then this trade can be taken and vice versa for the buy side. In this context, we would look to see a minimum of at least 5 FVG boxes on the sell side or buy side, before the signal is generated. Please see all attached illustrations for entry models. Re-Entry NAS100 is always subjected to manipulation and liquidity grabs that can lead to stop outs, followed by price then moving back in the direction it should have gone. In the event this happens, but the FVG is still printed, then an immediate market order re-entry can be taken if price rallies back above the FVG (for a buy position) or falls back below the FVG (for a sell position). In these circumstances, the stop loss will be positioned above the wick for a sell and below the wick for a buy of the candle taking the liquidity and therefore printing the new low or high. Only one re-entry can be taken per trade set up to reduce loss exposure. Namely, a short set up materializes, price wicks higher, triggering the stop loss, only to then slam down and continue lower below the bottom of the FVG. This would trigger a re-entry with the new stop loss covering the wick and will be the only re-entry for this trade. Should this then happen again or another trade which presents itself, this time, a buy. Price again comes back and triggers the stop loss with a large wick, only to retrace higher. In this instance a re-entry trade can be taken. Take Profit The take profit for every single trade will always be 3.2/1RR (a $1,000 risk equals to a $3,200 gain). The additional 0.2 factors in spread/commission for entries and a buffer for slippage on stop loss triggers which often result in greater realized losses than intended due to large position sizes when tight stop losses are being used. This is particularly the case on positions where the stop loss is less a 10 points. As acknowledged in the strategy limitations, the 3.2/1 concept is not as successful when volatility is low. Therefore there is a need to make the adjustment of targeting 2.5/1 or 2.2/1 in low volatility. Something to which I can manually do or perhaps a setting can be included to reduce the TP, with the same automatic trade management rules. Stop Loss Placement For this strategy, stop loss placements will be in one of two configurations, at the bottom or top of the FVG box or at the origin of the formation of the body for the candle in which the FVG was formed from. That is to say, for a buy position, the stop loss will be placed at the opening price of the candle and vice versa for a sell position. In the first instance, there are some contexts in which the FVG will not cover the greater percentage of the candle’s body. Namely, a buy set up will show an FVG in the top 10-50% of the body for a fairly large engulfing candle. In these type of set ups, the stop loss should be positioned below the FVG or above for a sell set up, plus 10% buffer or 2.5 points (whichever is greater) to account for retracement and of course vice versa for a sell set up. In cases where the FVG box is fairly close to the opening price of the candle it formed on (within 5%), then the stop loss must extend to cover the opening price of the candle. There is no need to add the 10% buffer here. As mentioned in the entry criteria, there are some FVGs where the size of the box is less than 5 points in range. The stop loss placement here will be at least 5 points from entry to the top/bottom of the box and covering at least 2.5 points for the buffer. This reduces the need to take very large lot sizes that can result in extreme slippage if the stop loss is ever triggered, causing much larger losses. For trade set ups between 02:00 – 04:00 and from 09:25-09:30 a 2.5 points butter or 10% whichever is greater should be applied and for trades taken after 09:30 until 15:00, a one point butter can be used due to better spread. Please see illustrations of stop loss placement. Trade Management There should be a three straight loss cut off per session (02:00-04:00 – 09:25-15:00) and a maximum of four straight losses, whereby four losses in a row leads to a halt of trading for the day. There is only one exception to this rule and that is if the fourth losing trade presented a re-entry opportunity. This should be taken, but trading should be halted if the trade is lost and may continue if a full TP has been hit. Trading View further miscalculates winning trades and fails to factor in the actual spread, rather than its made up number. Therefore, any complete winning trade in the 02:00-04:00 session means price must go through the target by 2.5 points and that includes the first 5 minutes of the 09:25-15:00. Then at 09:30, price must go 1 point beyond the target to count as a realised gain. PLEASE NOTE, THIS IS NOT THE FULL STRATEGY BRIEFING DUE TO MAX CHARACTER LIMITS