Strategy Playbooks

These are not generic tips. Each playbook below gives you the exact V5 settings, entry checklist, management rules, exit plan and backtest instructions for one specific way to trade the indicator. Pick one, trade it exactly as written for 30 trades, then adjust.

Not financial advice

SimpleAlgo is a technical analysis tool. No playbook guarantees profit. Always use a stop, risk only what you can afford to lose, and backtest any setup on your specific market before trading live capital.

Pick a playbook#

V5 Default Swing Setup

The simplest way to trade V5: wait for a high-conviction signal, take the plan, and scale out.

1H - 4H

Trend Rider

Ignore the static targets. Ride the trend until momentum flips or the trailing stop takes you out.

4H - Daily

Level Trader

Only take signals at high-probability Smart Money or S&R zones. Fewer trades, cleaner entries.

15m - 1H

Scalper's Playbook

Fast, frequent signals with tight stops. Only for traders who can watch the chart and act immediately.

1m - 5m

Intraday Forex & Crypto

Trade the active sessions with Day Trader sensitivity and a faster Trend Cloud.

15m - 1H

Swing Stocks & Indices

Capture multi-day moves in equities and futures with wider stops and patience.

1H - Daily

Metals & Commodities

Trade strong trend phases in gold, silver and oil with wider ATR stops and smaller size.

1H - 4H

V5 Default Swing Setup#

The simplest way to trade V5: wait for a high-conviction signal, take the plan, and scale out.

Best for

Forex majors, indices, stocks and commodities on 1H - 4H.

Timeframes

1H - 4H

BTCUSDT4h · Binance

bar 33/78

A 75%+ BUY signal on EUR/USD 1H with Entry · SL · TP labels and the 4H Trend Cloud in agreement.

Recommended settings#

Setting	What it does	Default	Range	When to change it
Sensitivity	Fewer, higher-quality signals with wider trend bands.	Swing Trader	Swing / Day / Scalper	Keep on Swing unless you are scalping.
Chop Filter	Blocks directionless markets using ADX(14).	On	On / Off	Always on for this style.
Chop threshold	Minimum ADX needed for a signal to print.	15	5 - 40	Raise to 20-25 during low-volatility weeks.
Conviction Score	Rates every signal 0-100% from trend, volume, momentum and structure.	On	—	Only trade 75%+ signals as a beginner.
Entry · SL · TP	Static entry, stop and 1:1 / 2:1 / 3:1 targets with position size.	On	—	Essential for this playbook.
Stop Distance	How far the stop sits from entry (ATR multiple).	Day Trader	Scalper / Day / Swing	Use Swing for wider 4H stops; Day for 1H.
Account Size	Your trading balance used with Risk % for sizing.	Your real balance	—	Update it before every session.
Risk per Trade %	Capital risked if the stop is hit.	1.0%	0.05 - 100	1-2% is the professional range.

Entry checklist#

1
Confirm the higher timeframe trend
Open the 4H chart. The Trend Cloud should agree with the direction of the 1H signal you are about to take. A long against a red cloud is a lower-probability setup.
2
Wait for a closed-bar 75%+ signal
V5 signals only print on confirmed bars. A label that appears mid-candle can disappear — do not front-run it. Look for the + mark (75% conviction or higher).
3
Read the position size label
The Entry · SL · TP tool prints a position size based on your Account Size and Risk %. Use that exact number of units/lots/shares.
4
Place entry, stop and all three targets
Enter at the labelled entry price, stop at the labelled SL, and set TP1, TP2 and TP3 at the 1:1, 2:1 and 3:1 levels. Do not skip the stop.

Trade management#

Scale out mechanically. Close one-third at TP1, another third at TP2, and let the final third run to TP3 or an Exit Flag. Once TP1 hits, move the stop on the remaining position to breakeven.

If an Exit Flag (✖) prints while you are still in the trade, treat it as a momentum warning. Most traders close the remainder or tighten the stop aggressively; only hold to TP3 if the higher timeframe trend is still strongly with you.

Exit rules#

TP3 hit — full position closed, record the trade.
Exit Flag + higher-TF disagreement — close the remainder.
Original stop hit — the trade is wrong, exit fully. Do not widen the stop.

Common mistakes

The most common mistake is moving the stop to breakeven before TP1 hits. This turns a positive-expectancy system into a coin-flip because you get stopped out on normal noise. Let the stop do its job.

Another error is taking 50-74% conviction signals just because you are bored. Those are mixed setups. Trade them only when the Dashboard reads Trending and the higher timeframe agrees.

Backtest checklist#

1Scroll back 100 closed-bar signals on your chosen market/timeframe.
2Only count 75%+ conviction signals taken in the direction of the 4H Trend Cloud.
3Record TP1, TP2, TP3 and stop outcomes for each signal exactly as V5 labels them.
4Calculate win rate and average R-multiple. If the R-multiple is negative, the settings do not fit that market.

Trend Rider#

Ignore the static targets. Ride the trend until momentum flips or the trailing stop takes you out.

Best for

Strong-trending markets: crypto, indices, metals and forex trends on 4H - Daily.

Timeframes

4H - Daily

BTCUSDT4h · Binance

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A 4H crypto trend with Active Trend ribbon, green Trend Cloud, and a trailing stop that rides the move.

Recommended settings#

Setting	What it does	Default	Range	When to change it
Sensitivity	Wider bands keep you in trends longer.	Swing Trader	Swing / Day / Scalper	Use Day Trader only on very clean 1H-4H trends.
Trend Cloud	Big-picture dominant direction cloud.	On	—	Only take signals in the cloud's direction.
Trend Cloud speed	Standard reacts slowly; Fast is quicker.	Standard	Standard / Fast	Use Fast on intraday trends; Standard on Daily.
Active Trend	Shaded trend ribbon — stay in while price holds its side.	On	—	Essential for this playbook.
Trailing Stop-Loss	A stop that follows price at 2.2 × ATR.	On	—	Use instead of static SL for trend riding.
Dynamic TPs	Prints TP 1/2/3 as momentum peaks after entry.	On	—	Optional; many riders ignore these.
Exit Flags	Prints ✖ when momentum turns against your trade.	On	—	Use as an early warning.

Entry checklist#

1
Confirm a trending market
The Dashboard should read Trending with ADX comfortably above the Chop threshold. The Trend Cloud should be clearly green (longs) or red (shorts).
2
Wait for a signal in the cloud's direction
A BUY ▲ in a green cloud or a SELL ▼ in a red cloud. The conviction score should be 75%+. Counter-trend signals are ignored completely.
3
Enter on the close of the signal bar
Use the signal bar close as your entry. Set the trailing stop immediately; do not use the static Entry · SL · TP stop for this playbook.

Trade management#

Once in, your only job is to let the trailing stop breathe. The stop follows at 2.2 × ATR, so it widens in volatility and tightens in calm conditions. Do not manually tighten it unless an Exit Flag prints.

If price pulls back to the Active Trend ribbon and bounces, that is often a chance to add to the position. Only add once per trend leg, and only while the higher timeframe cloud still agrees.

Exit rules#

Trailing stop hit — close the full position.
Exit Flag + close below/above Active Trend — close half, trail the rest tightly.
Trend Cloud flips color — the trend is over; close on the next pullback.

Common mistakes

Crypto traders often set the trailing stop too tight because they are used to smaller percentage moves. On a 4H/Daily trend, a 2.2 ATR stop can look painfully wide, but that width is what keeps you in the move.

Do not take counter-trend signals to "catch a pullback." The Trend Rider lives on one side of the market until the cloud tells you otherwise.

Backtest checklist#

1Identify 5-10 clear trending periods on your chosen asset (green or red cloud lasting 20+ bars).
2Record every signal in the trend direction and how far price ran before the trailing stop was hit.
3Compare the trailing-stop exit to the static 3:1 target. Trend riding wins when moves extend past 3R.
4Note: this style has lower win rate but larger average wins. Expect 35-45% win rate with positive expectancy.

Level Trader#

Only take signals at high-probability Smart Money or S&R zones. Fewer trades, cleaner entries.

Best for

Forex, indices and stocks where structure matters, on 15m - 1H.

Timeframes

15m - 1H

BTCUSDT4h · Binance

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A 15m GBP/USD signal bouncing from a bullish order block with a tight stop below the block.

Recommended settings#

Setting	What it does	Default	Range	When to change it
Sensitivity	Balanced frequency for intraday structure trading.	Day Trader	Swing / Day / Scalper	Use Swing on 1H; Day on 15m.
Smart Money	Order blocks, fair value gaps and BOS / CHoCH structure breaks.	On	—	Essential for this playbook.
S&R Zones	Auto support/resistance zones that delete once broken.	On	—	Use with Smart Money for confluence.
Chop threshold	Minimum ADX required for a signal.	20	5 - 40	Raise to avoid structure noise in ranges.
Conviction Score	Structure bias is one of the four checks.	On	—	Only trade 75%+ signals.
Entry · SL · TP	Static plan with position size.	On	—	Use for precise risk inside the zone.
Stop Distance	Tighter stop inside a clean zone.	Day Trader	Scalper / Day / Swing	Use Scalper only if the zone is very tight.

Entry checklist#

1
Mark the key zone first
Wait for Smart Money to draw an order block, fair value gap or S&R zone. Do not look for signals in empty space.
2
Confirm the last structure break agrees
For a long, you want the last BOS/CHoCH to be bullish. For a short, bearish. The Conviction Score's Structure bias check does this for you.
3
Wait for price to re-test the zone
The best entries happen when price comes back into the zone and V5 prints a signal. Enter on the close of that signal bar.
4
Place the stop beyond the zone
If the zone is valid, price should not close through it. Put the stop a few pips/points beyond the far side of the block/zone.

Trade management#

Because your stop is tight and justified by structure, you can size normally for the tighter stop. As price moves in your favour, scale at 1:1 and 2:1, then trail the remainder using the Active Trend ribbon or the trailing stop.

If price stalls inside the zone for more than 3-5 bars, exit early. A clean structural entry should move quickly; hesitation usually means the zone is not as strong as it looked.

Exit rules#

TP1 / TP2 / TP3 hit — scale as planned.
Close beyond the zone — the setup is invalidated; exit immediately.
New opposing structure break — close the remainder, even if the stop is not hit.

Common mistakes

The biggest error is trading a "zone" that price has already sliced through. S&R Zones delete themselves once broken for exactly this reason. If the zone is still on the chart but looks violated, trust the deletion logic, not your eyes.

Do not lower the Chop threshold just to get more signals near levels. A signal in a choppy market is still a low-probability signal, even if it looks like a perfect level.

Backtest checklist#

1Scroll back and identify 30+ instances where price re-tested a Smart Money or S&R zone.
2Only count V5 signals that printed inside or directly at the zone edge.
3Measure how often a clean 75%+ signal produced at least a 1:1 move before the stop was hit.
4Discard zones that were already broken when the signal fired.

Scalper's Playbook#

Fast, frequent signals with tight stops. Only for traders who can watch the chart and act immediately.

Best for

Liquid forex majors (EUR/USD, GBP/USD, USD/JPY) and index futures on 1m - 5m.

Timeframes

1m - 5m

BTCUSDT4h · Binance

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A 5m EUR/USD scalp entry at the lower Reversal Band with a tight stop and quick 1:1 exit.

Recommended settings#

Setting	What it does	Default	Range	When to change it
Sensitivity	Tightest bands plus a faster internal centerline.	Scalper	Swing / Day / Scalper	Only on 1m-5m.
Chop threshold	Lower threshold because scalps need more signals.	10-15	5 - 40	Raise to 15+ during slow sessions.
Reversal Bands	Glowing zones where price is overstretched.	On	—	Use for entry timing at extremes.
Signal Line	Glowing centerline colored by momentum.	On	—	Essential for Exit Flags on fast charts.
Exit Flags	Momentum-turn warning.	On	—	Use to exit quickly.
Stop Distance	Tightest stop distance.	Scalper	Scalper / Day / Swing	Never wider on these timeframes.
Account Size / Risk %	Keep risk small because frequency is high.	0.5%	—	Many small losses should not hurt the account.

Entry checklist#

1
Confirm the 15m direction
The 1m-5m should not fight the 15m. A 5m BUY signal is much safer when the 15m Trend Cloud or Active Trend is bullish.
2
Look for a band touch or extreme
The best scalps often come when price tags the lower Reversal Band (long) or upper band (short) and a signal fires in the higher-TF direction.
3
Enter on the close of the signal bar
Slippage matters. Use limit orders at the signal bar close or one tick beyond. Market orders are acceptable only in very liquid pairs.
4
Set a hard time stop
If the trade has not moved in your favour within 3-5 bars, exit. Scalps that stall usually reverse.

Trade management#

Take profit aggressively. Close half at 1:1 and move the stop to breakeven immediately. The second half is optional; many scalpers close the full position at 1:1 or 2:1.

Never hold a scalp through a major news release or session close. The edge comes from clean, fast moves, not from hoping.

Exit rules#

1:1 or 2:1 target hit — close most or all of the position.
Exit Flag prints — close immediately; momentum has turned.
Time stop expires — exit even if at breakeven.
Original stop hit — full exit, no revenge trades.

Common mistakes

Scalping low-volume assets is the fastest way to give back money. Spreads eat the edge, and signals lag. Stick to the most liquid sessions and pairs.

Do not scalp against a strong higher-timeframe trend. A 1m signal against a bearish 15m cloud is a trap more often than a reversal.

Backtest checklist#

1Record 50+ 5m signals over one week, noting the session (London/NY/Asian).
2Only count signals in the direction of the 15m trend and at band extremes.
3Measure spread-to-target ratio: the 1:1 target should be at least 2× the spread.
4If win rate is below 50% with 1:1 R, the settings or session choice is wrong.

Intraday Forex & Crypto#

Trade the active sessions with Day Trader sensitivity and a faster Trend Cloud.

Best for

Forex majors during London/NY and crypto during high-volume windows on 15m - 1H.

Timeframes

15m - 1H

BTCUSDT4h · Binance

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A 15m USD/JPY signal during the London/NY overlap with the 1H Fast Trend Cloud in agreement.

Recommended settings#

Setting	What it does	Default	Range	When to change it
Sensitivity	Balanced frequency for intraday moves.	Day Trader	Swing / Day / Scalper	Use Scalper only on 5m.
Trend Cloud speed	Faster reaction for intraday direction.	Fast	Standard / Fast	Use Fast on 15m-1H.
Reversal Bands	Glowing zones for overstretched price.	On	—	Use to time entries within the trend.
Chop threshold	Minimum ADX for a signal.	15-20	5 - 40	Raise to 20 during the Asian session.
Stop Distance	Day Trader stop fits 15m-1H holding times.	Day Trader	Scalper / Day / Swing	Use Swing only on 4H.
Dynamic TPs	Prints TP 1/2/3 as momentum peaks.	On	—	Leave on for partial exits.

Entry checklist#

1
Check the session
For forex, trade London (08:00-12:00 UTC) and New York (13:00-17:00 UTC) overlap for best liquidity. For crypto, avoid the dead hours after 22:00 UTC unless there is a clear catalyst.
2
Confirm the 1H cloud direction
Use the 1H Trend Cloud (Fast) as your filter. Only take 15m signals in the same direction.
3
Wait for a 75%+ signal at a band or zone
The best intraday entries combine a V5 signal with a Reversal Band touch or S&R Zone.
4
Set the stop and scale targets
Use the Day Trader stop distance. Take 1:1 and 2:1, then trail the remainder to session end.

Trade management#

Intraday trades do not need to be held overnight. If a position is open near the end of the session, close it or move the stop to breakeven. Crypto is 24/7, but liquidity still drops on weekends — avoid holding size through Sunday open.

On forex, be aware of high-impact news (NFP, CPI, FOMC). Either be flat 15 minutes before/after or accept that spreads will widen and stops may slip.

Exit rules#

TP1 / TP2 / TP3 hit — scale as planned.
Session end approaching — close or trail to breakeven.
Exit Flag on a lower timeframe — close the remainder.
Stop hit — full exit, reassess at the next session.

Common mistakes

Trading the Asian session with Day Trader settings is a common mistake. Low volatility produces weak signals and wider relative spreads. Either switch to Swing sensitivity or wait for London.

On crypto, do not widen the stop during a volatility spike. The ATR-based stop already adjusts; manually widening it turns a defined-risk trade into a lottery ticket.

Backtest checklist#

1Record 30 days of signals, tagging each with the session and the 1H cloud direction.
2Compare London/NY win rate to Asian session win rate.
3Measure the impact of Reversal Band timing: entries at band extremes vs. mid-band.
4Identify which pairs/coins produce the cleanest signals with Day Trader stops.

Swing Stocks & Indices#

Capture multi-day moves in equities and futures with wider stops and patience.

Best for

US stocks, ETFs and index futures (ES, NQ, SPX) on 1H - Daily.

Timeframes

1H - Daily

BTCUSDT4h · Binance

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A Daily SPX signal with the Trend Cloud in agreement and a wide Swing Trader stop below the recent swing low.

Recommended settings#

Setting	What it does	Default	Range	When to change it
Sensitivity	Wider bands for cleaner swing signals.	Swing Trader	Swing / Day / Scalper	Keep on Swing.
Trend Cloud speed	Standard is slower and steadier.	Standard	Standard / Fast	Use Standard on Daily/4H.
Chop threshold	Minimum ADX for a signal.	15	5 - 40	Raise to 20 during earnings season chop.
Entry · SL · TP	Full trade plan with position size.	On	—	Essential for defined swing risk.
Stop Distance	Wider stop for multi-day holds.	Swing	Scalper / Day / Swing	Use Swing on Daily; Day on 1H.
Trailing Stop-Loss	Optional for runners.	Off	—	Turn on if you plan to hold past TP3.

Entry checklist#

1
Check the earnings calendar
Avoid holding individual stocks through earnings. A gap can blow straight past your stop. Indices are less sensitive but still move on macro events.
2
Use the Daily chart for direction
The Daily Trend Cloud is your primary filter. Take 1H-4H signals only in that direction.
3
Wait for a 75%+ signal after a pullback
The best swing entries come after a pullback to the Active Trend ribbon or a key S&R zone, not after a vertical rally.
4
Size for overnight gap risk
Use 1% risk or less. Gaps happen. The position size label uses your stop distance, but overnight risk is harder to quantify, so keep size conservative.

Trade management#

Swing trading is mostly about leaving the trade alone. Scale at 1:1 and 2:1, then let the final third run. If you use the trailing stop, only enable it after TP2 so you do not get shaken out early.

For individual stocks, consider closing the day before earnings regardless of P&L. No indicator predicts a 10% earnings gap.

Exit rules#

TP1 / TP2 / TP3 hit — scale as planned.
Earnings or major macro event within 24 hours — close or reduce size.
Daily Trend Cloud flips — close on the next pullback.
Stop hit — full exit, no exceptions.

Common mistakes

The most expensive mistake in stock swing trading is ignoring the earnings calendar. A beautiful setup can be destroyed by one headline. Mark earnings dates before you enter.

Do not use Scalper or Day Trader sensitivity on Daily charts. The signals will be noisy and the stops too tight for the natural volatility of equities.

Backtest checklist#

1Pick 3-5 stocks and 1 index future.
2Record every 75%+ Daily/4H signal over the last 6 months, excluding earnings weeks.
3Measure hold time, max drawdown and final R outcome for each signal.
4Compare Swing Trader vs Day Trader sensitivity on the same data.

Metals & Commodities#

Trade strong trend phases in gold, silver and oil with wider ATR stops and smaller size.

Best for

XAU/USD, XAG/USD, crude oil and commodity indices on 1H - 4H.

Timeframes

1H - 4H

BTCUSDT4h · Binance

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A 4H XAU/USD pullback to the Active Trend ribbon with a 75%+ BUY signal and wide ATR stop.

Recommended settings#

Setting	What it does	Default	Range	When to change it
Sensitivity	Wider bands fit commodity trend phases.	Swing Trader	Swing / Day / Scalper	Use Day Trader on 1H only in clear trends.
Chop threshold	Minimum ADX for a signal.	20	5 - 40	Gold ranges for weeks; raise this to avoid chop.
Reversal Bands	Glowing zones for overstretched price.	On	—	Use to time entries in strong trends.
Active Trend	Shaded trend ribbon.	On	—	Use to stay in gold/silver trends.
Stop Distance	Wider ATR stop for volatile metals.	Swing	Scalper / Day / Swing	Swing on 4H; Day on 1H.
Risk per Trade %	Commodities gap and spike.	0.5-1.0%	—	Use the lower end during geopolitical tension.

Entry checklist#

1
Identify the active trend phase
Gold and oil trend hard, then range for long periods. Only trade when the 4H Trend Cloud and ADX agree that a trend is active.
2
Wait for a pullback entry
The best commodity entries are pullbacks to the Active Trend ribbon or a Reversal Band touch in the direction of the higher timeframe.
3
Confirm a 75%+ signal
The signal should align with the 4H cloud. Counter-trend signals in gold are especially dangerous because trends extend.
4
Size down for volatility
Use 0.5-1% risk. ATR in gold can be large; the position size label will reflect this, but keep mental account for gap risk.

Trade management#

Commodities can move very fast. Scale at 1:1 and 2:1 quickly to bank profit, then trail the remainder with a wide trailing stop. Do not micro-manage the trade; the ATR-based stop is designed to handle the noise.

Be aware of geopolitical headlines and economic releases (NFP, CPI, central bank speeches). These can gap price past any technical stop.

Exit rules#

TP1 / TP2 / TP3 hit — scale as planned.
4H Trend Cloud flips — the trend phase is likely over.
Major geopolitical event — consider closing ahead of the headline.
Stop hit — full exit; commodity trends can reverse sharply.

Common mistakes

Overtrading range-bound gold is the classic commodity mistake. If the 4H chart is sideways and ADX is low, there is no edge — wait for the next trend phase.

Do not use tight Scalper stops on 1H gold. Normal ATR will stop you out before the move begins.

Backtest checklist#

1Identify 3-5 clear trend phases in XAU/USD over the last year.
2Record every 75%+ signal in the trend direction and the outcome using Swing stops.
3Compare results during trending weeks vs ranging weeks.
4Measure the impact of major news events on stop distance and slippage.

How to backtest any playbook#

1
Pick one market and one timeframe
Do not mix markets until you have 30+ recorded trades on the first one.
2
Load the exact settings from the playbook
Write them on a sticky note next to your chart. Changing settings mid-test invalidates the data.
3
Record every qualifying signal
Note entry, stop, target, conviction, session/time, and whether the higher timeframe agreed.
4
Calculate expectancy
Expectancy = (Win% × Avg Win) − (Loss% × Avg Loss). It must be positive before you trade live.
5
Only then adjust
If a setting clearly underperforms on your market, change one thing at a time and re-test.

Start with the Default Swing Setup

If you are unsure which playbook fits you, begin with the V5 Default Swing Setup. It uses the indicator's recommended defaults, works on the most markets, and teaches you how conviction, stops and targets work before you add complexity.

Next: read the Best Practices page for the rules that apply across every playbook, or jump to Risk Management to understand how V5 sizes your positions.

Full Settings Reference

Best Practices