Entry model · v1.0
SMT Divergence Reversal
When two correlated markets disagree at the highs/lows (one sweeps, the other fails to), smart money is showing its hand. Trade the reversal at a HTF PD array.
- LONDON
- NY AM
- MIN R:R 3:1
- RISK 0.5%
Required
Every box checks or there is no trade
- Correlated pair chosen (ES/NQ, EU/GU, BTC/ETH)
- SMT: one side makes a new extreme, the other fails
- Divergence forms at a HTF PD array (OB/FVG/old high-low)
- LTF MSS confirms before entry
- Entry on retrace, stop beyond the divergence extreme
Optional confluence
Not mandatory — each one adds weight
- DXY agrees (for FX pairs)
Warnings
If one of these fires, stand down
- SMT alone is context, not a trigger — skipping the MSS
This checklist ships inside the workstation: the Decision Cockpit scores every rule against the live chart and holds the plan at “needs confirmation” until the required boxes check. Where the model is automated, the backtester replays the same rules over years of history — no lookahead, stop-first fills.
Run this model on live data
SMT Divergence Reversal is loaded in the playbook. Free in open beta — no account.
Discipline
The model is half the trade.
Risk a fixed fraction (0.25–1%)
Small fixed risk per trade makes losing streaks survivable and keeps your judgement clean. Ten losses at 0.5% is a bruise; at 5% it's the account.
Judge over samples, not single trades
A good trade can lose and a bad trade can win. Evaluate your model over 20+ executions before changing anything — otherwise you're steering by noise.
No revenge trading
After a stop-out, the next trade must qualify on its own merits. If you feel the urge to "get it back", the session is over — close the platform.