Discussing the article: "Automating Trading Strategies in MQL5 (Part 51): The Bread and Butter Judas Swing Model with Premium and Discount"
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Check out the new article: Automating Trading Strategies in MQL5 (Part 51): The Bread and Butter Judas Swing Model with Premium and Discount.
We build a session-based reversal program in MQL5 using the Bread and Butter Judas Swing model. It derives a higher-timeframe daily bias, defines New York kill zones, maps each session's premium and discount from the live range, and requires a sweep before a market structure shift confirms entry. Readers get a ready approach to arm setups only during active sessions and execute in the bias direction with clear, testable rules.
The Bread and Butter Judas Swing model rests on one idea: the first aggressive move after a session opens is often a trap, not a trend. The stops resting beyond the recent session high or low are the liquidity large participants need to fill orders, so price is driven into them and then reverses. We fade that false push rather than follow it, but only with a directional filter behind us. That filter is the daily bias read from a higher timeframe, where a confirmed close beyond the last swing high or low sets the bias bullish or bearish and decides which side of the reversal we are allowed to take.
Timing and location complete the setup. We restrict activity to defined kill zones (London, New York, and Asia), using New York time. Within each kill zone, we build a range from the running high and low and split it at the midpoint into premium (above) and discount (below). Premium favors selling; discount favors buying. A bearish bias then asks for a sweep of the session high into premium, and a bullish bias for a sweep of the session low into discount. The sweep is preparation, not the entry. We wait for a market structure shift: a close back through the last minor swing level in the bias direction. Then we enter, place the stop beyond the swept extreme, and target a fixed reward-to-risk. In a nutshell, here is a representation of our objectives.
Author: Allan Munene Mutiiria