Day Trading Price Action Strategy — Overview and Backtest Analysis

A day trading price action strategy refers to the pattern of price movement of an asset. Thus, a day trading price action trading strategy is using patterns of price movements to determine when to enter and exit a trade.

We backtest the following trading rules:

1. We use hourly bars.

2. We enter at the close when the bar is the third lower low and third lower high in a row.

3. We enter a position only at 1030 local NY time.

4. We sell at the close of 1600 NY time.

We backtest the WTI crude oil futures contract that is traded on NYMEX. The equity curve (2000–2021) looks like the below image.

You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/day-trading-price-action-strategy/