Been backtesting a simple approach using only key S/R levels for entries and exits. Works decent on shorter timeframes but wondering if anyone has data on how this holds up over months or years.
Seems too straightforward to be consistently profitable long-term.
S/R strategies work, but you need strict rules on which levels to trade. Weekly and monthly levels hold way better than daily ones. Wait for multiple retests before entering. Fresh levels break constantly while established ones don’t. I’ve seen traders succeed by only hitting major levels that align with higher timeframe trends. Ignore minor levels completely. Your win rate drops but the risk/reward gets much better when you catch the big moves.
Been using just S/R for three years now. Still profitable.
S&R works long-term if you treat it like any edge. Be picky about which levels you trade and don’t force setups that aren’t there.
I use it as my base but watch how price hits those levels. Clean bounces? I’m interested. Sloppy action around support? It’s probably breaking.
Your backtesting shows it works because it’s solid. Just don’t expect the same results in every market condition.
Pure S/R worked great my first two years, but started failing way more when markets shifted around 2020.
The strategy’s fine - problem is everyone sees the same levels. Retail piles in at obvious support, smart money fades them every time.
Tracked pure S/R trades for 18 months. 58% win rate but losses kept getting bigger. Market makers hunt stops below major support way more now.
I still use S/R but add price action context. Rejection candle at support with momentum divergence? That’s a trade. Just buying because price hit a line? Nah.
Still size positions around those levels though. Risk way less trading into strong S/R since they break hard when they go.
S/R can work, but it’s better with volume confirmation. Relying on just support and resistance may lead to false signals.
Your backtesting proves S/R works, but execution makes or breaks you. Most traders see support and jump in way too early. Wait for the level to actually hold first. You need to see price get rejected before putting money on the line. I’ve tracked straight S/R trades across different market cycles - performance stays solid when you stick to levels the big players respect. Don’t trade every tiny level you see. Hit the obvious setups and your results will stay consistent. Keep it simple, stay disciplined.
Market conditions make a huge difference. S/R works way better when there’s a clear trend vs when it’s just chopping around sideways.