# Strategies

#### 🧠 **NN – Neural Network**

> Uses an AI-powered model trained on historical price behavior to detect high-probability trend patterns. Ideal for identifying medium- to long-term directional moves based on complex data patterns.

#### 📏 **SR – Support & Resistance**

> Identifies key price levels where the market has historically shown tendencies to reverse or consolidate. By monitoring these critical zones, the EA aims to capitalize on potential price reactions, making it particularly effective for range-bound markets or bounce setups.

{% hint style="info" %}
This approach leverages the psychological aspects of trading, recognizing that traders often make decisions at these critical levels, leading to predictable market behaviors.

Initiating trades when the price approaches and reacts to these support or resistance zones, based on predefined criteria.
{% endhint %}

#### 🕯️ **CD – Candlestick Pattern**

> Analyzes candlestick formations (like pin bars, engulfing candles, and dojis) to detect potential reversals or continuation signals. A traditional yet powerful strategy often used by price action traders.

{% hint style="info" %}
Candlestick patterns are visual representations of price movements on a chart, typically over a specific time period like 1 minute, 5 minutes, or 1 hour. 

They form recognizable shapes or "patterns" that traders often use to **predict market direction like Doji, Hammer, Engulfing, Shooting Star...** 
{% endhint %}

💰 **PL – Price Level**

> This strategy is designed to look for **price patterns** on your chart and provide trading signals based on how the market behaves.
>
> The goal of this strategy is to **catch a possible reversal**. It’s a simple pattern recognition system that tries to avoid buying into a falling market and instead waits for a sign of recovery.

{% hint style="warning" %}

#### ⏱️ Timeframe Sensitivity – What You Need to Know

This strategy is **highly dependent on the timeframe you use**:

* On **lower timeframes** (like 1-minute or 5-minute charts), these patterns appear **much more frequently**. This means:
  * **More potential trades**
  * **Higher exposure** (you're more often in the market)
  * **More sensitivity** to short-term price noise and volatility
  * Greater risk of **false signals** due to short-term fluctuations
* On **higher timeframes** (like 1-hour or daily charts), signals appear **less frequently**. However:
  * The signals tend to be **stronger and more reliable**
  * You get **fewer trades**, but each is based on more significant price movement
  * **Lower exposure** overall, which may be better for risk control

📌 **Your choice of timeframe affects Trade frequency, Risk, Profit potential, Drawdown**
{% endhint %}

#### 📈 **TR – Trend Signal**

> Utilizes fast trend recognition techniques to capture momentum-based opportunities. Ideal in volatile or trending markets where speed and direction matter most.

#### ♻️ [**R – Recovery**](/smartchoise-manual/overview/recovery-strategy.md)

> Not a entry strategy, but an automatic system that activates when a position is in drawdown. It opens smartly timed recovery trades, using adaptive lot sizing and spacing to help return the position to profit without martingale. Can be [configured ](/smartchoise-manual/options/recovery/min-price-distance-between-recovery-trades.md)or disabled using[ Max Recovery Trades](/smartchoise-manual/options/recovery/max-recovery-trades.md) option in [Risk Management](broken://pages/omGS3uK3JmbMJ8cuPmAk).

{% hint style="success" %}

#### Best Practices:

* Use **Extra strategies** *only* if you're comfortable with the **increased risk and trade frequency**.
* **Start with demo testing** before going live.
* Always set a **Hard Stop** and match your **Risk Level** to your comfort.
  {% endhint %}

{% hint style="danger" %}
**Enabling extra strategies** significantly increases the number of trades and overall exposure. These strategies were added based on user requests for more frequent trading, but they are **basic pattern-based methods** and not as adaptive or reliable as the **Neural Network core strategy**.

If you choose to enable them, please understand:

🔸 **More trades = more risk**\
🔸 These strategies can open positions under weaker signals\
🔸 They **should not be used alone** — you need extra risk protection

**✅ Strongly Recommended Risk Management:**

* Enable a **Stop Loss** to limit individual trade losses
* Set a **Hard Stop %** to protect your account from daily overexposure
* Use **small lot sizes** if testing these on live accounts
* Always test changes on a **demo account first**

For safe, consistent performance, it’s best to **stick with only the Neural Network strategy**, which adjusts to market behavior dynamically.
{% endhint %}

{% hint style="danger" %}

#### Dangers of Using Extra strategies: 

1. **False Signals**:\
   Candlestick patterns can **appear frequently**, especially on small timeframes like M1. But not every pattern leads to a real market move — many are **false breakouts** or just noise.
2. **Overfitting to Market Conditions**:\
   What worked in one period or market (e.g., gold during strong trends) may **not work well in choppy or ranging markets**.
   {% endhint %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://smartchoise.gitbook.io/smartchoise-manual/options/strategies.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.