123 Reversal with Smart Money Index

Submit by Dimitri

123 Reversal with Smart Money Index is a trading system written by  HPotter  an active programmer of the TradingView community. The strategy is free, This algorithm for TradingView is a combo strategies for get a cumulative signal.

First Strategy

This System was created from the Book "How I Tripled My Money In The Futures Market" by Ulf Jensen, Page 183. This is reverse type of strategies.
The strategy buys at market, if close price is higher than the previous close during 2 days and the meaning of 9-days Stochastic Slow Oscillator is lower than 50.
The strategy sells at market, if close price is lower than the previous close price during 2 days and the meaning of 9-days Stochastic Fast Oscillator is higher than 50.

Second Stratgy

Smart money index (SMI) or smart money flow index is a technical analysis indicator demonstrating investors sentiment.
The index was invented and popularized by money manager Don Hays. The indicator is based on intra-day price patterns.
The main idea is that the majority of traders (emotional, news-driven) overreact at the beginning of the trading day
because of the overnight news and economic data. There is also a lot of buying on market orders and short covering at the opening.
Smart, experienced investors start trading closer to the end of the day having the opportunity to evaluate market performance.
Therefore, the basic strategy is to bet against the morning price trend and bet with the evening price trend. 

Example of trades

Simple filter ideas of this strategy with
Parabolic SAR setting (0.011-0.011-0.15).
Buy and Sell are generated when the two indicators agree    

Pivot Supertrend
Buy and Sell are generated when the two indicators agree

With filters this strategy becomes very successful.

See video for back test original strategy.

Link Strategy: https://www.tradingview.com/script/NudssmJx-Combo-Backtest-123-Reversal-Smart-Money-Index-SMI/