Been looking into harmonic patterns lately but not sure if they’re solid enough for client accounts.
The backtests look decent on paper but wondering how they perform when you’re actually responsible for other people’s money.
Used Gartley and Butterfly patterns for 3 years running a small fund. They work, but you need tight risk management.
Harmonics fail way more than traders want to admit. I hit maybe 60% on good days. Keep positions small and always use stops.
With client money, I only used them to confirm other signals. Never as the main entry trigger - too risky with someone else’s cash.
When they work, you catch some killer reversals. But try explaining a harmonic loss to investors. Not worth the headache. Stick to simple setups they actually get.
Skip harmonics with client funds. Too subjective to defend.
Harmonics are hit or miss from what I’ve seen. This video explains why they’re unreliable for consistent trading.
I wouldn’t use them with client money.
I’ve been testing harmonics for two years - results are all over the place. Biggest issue? Timing’s brutal. You’ll spot a textbook Bat pattern and still get stopped out waiting for it to complete. With client money, explaining losses is the real nightmare. Try telling someone you lost their cash because ‘the AB=CD leg didn’t respect Fibonacci ratios.’ They’ll look at you like you’ve lost your mind. Here’s what works: use harmonics as filters, not trading signals. Got solid support/resistance already? A harmonic pattern can boost your confidence. But don’t ever put client trades on harmonics alone.
Harmonic patterns can be effective but they shouldn’t be the core of your fund strategy.
Their subjective nature makes it difficult to justify trades based on patterns clients might not recognize.
I prefer using them alongside price action and key levels. When the patterns line up with other confirmations, your probability improves.
Stick to clear and simple strategies for client accounts.