Trading Rejection Strategy- A Visual Backtest

2 days ago

💡 Overview
Here is everything you need to know about the strategy. But before you study it any further, all the visuals are at the end of this post- so don't miss that part.

This setup is built upon simple beliefs:

▶Price always remembers its key levels- Previous Day’s High (PDH), Previous Day’s Low (PDL)
▶Strong support/resistance zones often act as liquidity magnets.
▶When price revisits these areas and fails to break through, it gives us a clear rejection and that’s where the edge lies.


⚙️ Core Conditions
➡Price rejects PDH or PDL
➡Price retests a breakout / breakdown zone
➡Price rejects a tested support / resistance level
➡Timeframe: 15-Minute
➡Type of trade: Intraday only
➡Only one trade per day


🎯 Trade Plan
🔘Entry: One tick above/below the Pin Bar or reversal candle close
🔘Stop Loss: Just beyond the high/low of the rejection candle
🔘Target: Next liquidity zone (recent 15m swing or PDH/PDL)


🚫 Avoid Trading When:
➡No rejection at liquidity levels
➡Risk > 20 points


📊 October Backtest Results
(1 trade per day, tested manually)

Total trades taken= 14
Winners= 6
Losers= 8

Total points made out of winner= 263
Total points lost in losers= 75

Net points made= 188


🧠 Takeaway
Even though the backtest covers only October, the results are encouraging.
The logic is built on price behavior around institutional levels, and that tends to hold steady across time.


📈 Try extending the backtest further:
If results remain consistent, this could become a reliable rejection-based intraday setup worth adding to your toolkit.

Here is a visual to guide to all the Entries, Exits and about how it went.
Enjoy the charts and do let me know what you think about this strategy or if I missed an opportunity ;)






































📣Disclaimer:
Everything shared here is meant for education and general awareness only. It’s not financial advice, nor a recommendation to buy, sell, or hold any asset. Do your own research, manage your risk, and make sure you understand what you’re getting into.

2 days ago

Note

With the above results:

Profit factor= 3.5 ( more than 1.5 is considered good)

Avg. Win= 43 pts.
Avg. Loss= 9 pts.

Max profit in a single trade= 89 pts
Max loss in a single trade= 13 pts