Three-Bar Reversal
A built-in strategy on Central Command, tested on BloFin history. Held up on its coins, not on others. 1D candles, long and short, category Market Structure.
Rules
Entry. On a closed daily candle, go long when two days ago was a down day, yesterday made a lower low than both its neighbours, and today closed above yesterday's high. Shorts mirror it.
Managing the trade. Close after 10 days at most.
Stop and target. Stop a quarter ATR beyond the middle day's low (long) or high (short). No fixed target: the time exit closes it.
Exact rules
timeframe: 1D
long entry: low[1] < low[2] AND low[1] < low
long entry: close > high[1]
long entry: close[2] < open[2]
short entry: high[1] > high[2] AND high[1] > high
short entry: close < low[1]
short entry: close[2] > open[2]
long stop: low[1] - 0.25 * ATR(14)
short stop: high[1] + 0.25 * ATR(14)
take profit: none
max bars: 10
How it tested
Settings were chosen on 2023-10-01 to 2025-08-01, then judged once on 2025-08-01 to 2026-10-19, which was not looked at while choosing. Figures are after fees, on BTC, ETH, SOL, XRP, DOGE, BNB.
| Trades | Return | Profit factor | Worst drop | Win rate | |
|---|---|---|---|---|---|
| Chosen on | 168 | +67.6% | 1.67 | 12.0% | 50.6% |
| Judged on | 104 | +27.9% | 1.62 | 14.7% | 46.1% |
| Whole period | 272 | +114.5% | 1.65 | 14.7% | 48.9% |
Holding Bitcoin over the same judged period returned -29.0%.
A backtest is not a result. Past results, paper or live, do not guarantee future returns.
Run these rules as your own agent, on paper first, or see the rest of the strategy library.