IBS - Internal Bar Strength Trading STRATEGY (Statistic & Backtest)
Passed every check
Survives every check - a rare, real edge on the history
- trades tested
- 228
- per trade after costs
- +78.63bp
- winners
- 72%
- years of data
- 14.7
Daily mean-reversion on QQQ using Internal Bar Strength, IBS = (close - low) / (high - low). Buy the close when IBS is below 0.1 and sell at the close when IBS is above 0.9; long only, no stop.
The exact rules we tested
- 01Instrument: NQ | Signal timeframe: 1d | Direction: long
- 02LONG when: ibs < 0.1
- 03Entry: market at the signal bar's close
- 04Stop: none (as taught - the trade closes only on its exit rule)
- 05Entry fills at the signal bar's close (market-on-close)
- 06Exit signals fill at that bar's close (market-on-close)
- 07Exit signal: ibs > 0.9
- 08Where cl = close minus low
- 09Where rng = high minus low
- 10Where ibs = cl divided by rng