Asset Strength Reversion project

Welcome to the Pipnotic Asset Strength Reversion (ASR) project page where you will find all you need to know about the ASR.

How it works

The ASR is a mean reversion algorithm and works in the following way

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Data analysis

The algorithm scans all assets specified in the configuration, and looks for extreme asset strength divergences.

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Quantitive analysis

The algorithm continues to scan and qualify assets on all timeframes configured, automatically.

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Trade execution

When qualified assets are identified, trades are opened according to risk options, and stop-losses and targets are set.

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Before you start

Please remember to download all historical data for all time-frames and assets you wish to trade. In order to do this effectively, please watch the video for futrther details.

Frequently Asked Questions

Here are some of the most common questions and answers people have in relation to the Asset Strength Reversion algo.

Is the ASR profitable?

This depends on how it is configured and which time-frames it is used on. Based on about 12 months of data and thousands of trades, the answer to this question is yes.

What are the best settings?

We have defined a default configuration for the ASR, which works well for most symbols, but favourites do seem to exist. We have left the configuration a little open, as we recommend that you experiment for yourself, as this will get you well acquainted will the ASR, and the different configurations.

What should I set the modifier to?

This will depend on whether the trend filter is enabled, as trending markets tend not to pull back as much as non-trending markets. When the trend filter is enabled, a modifier of about 0.8-1.5 is recommended. When the trend-filter is disabled, modifiers set to values greater than 1.5 and as much as 2.5 can be used. It should be noted that the smaller the modifier value, the more active the ASR will trade.

What are the best time-frames for the ASR?

Based on thousands of trades, the data tells us that the four-hour time-frame works well. It should at least be mentioned that the one-hour time-frame and higher, all seem to work well. Using the ASR on small time-frames, less than the one-hour, can be difficult and is thus not recommended.

What assets work best with the ASR?

Several users have invested many hours in identifying the ideal configuration of settings, and we have all reached similar conclusions. Euro and Sterling currency pairs on the four-hour chart, during the European and North American sessions, work well.

What does the EnableConfirmation setting do?

The EnableConfirmation setting forces the ASR to wait to take an entry until asset prices are quantitatively expressing a change in momentum. Not waiting for a confirmation can be compared to trying to pick tops and bottoms, which is rarely a good idea, as in highly volatile markets, asset prices may not revert to the mean. Enable Confirmation attempts to mitigate this risk.

Flexible configuration

The ASR has an extremely flexible configuration to suit the needs of any trader. Configurations can be specified to suit the needs of the short-, medium- and long-term trader.

Trade anything

Due to the flexible nature of the algorithm, it can be used to trade anything your MT4 broker has a price feed for, including Forex, stocks, cryptocurrencies, futures, commodities and more. Simply download the historical data for each asset, configure the ASR, and you’re ready to go.

Trade around the clock

Sometimes you want the algorithm to run around the clock, which can be accomplished by using a VPS server on which to host the software. Simply install MT4 on your server, download the historical data and turn on the ASR. Then you can walk away and manage trades via the MT4 app on your telephone.

"I found Pipnotic and Sarid Harper! Sarid and the Pipnotic Supply and Demand Indicator shows what's going on in the market I no longer have to trade blindly. The supply and demand indicator is not the holy grail, but together with the symposiums it’s bloody close!"

– Ove Nordkvist

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