Whipsaw fade (WHIPSAW-FADE)

How the setup is identified

Fades a rapid two-sided move that reverses through its own origin, on the reasoning that the whipsaw exhausted both sides.

Status and evidence

Zero fires in live trading.

What we learned

Zero fires in live trading. The pattern requires a specific sequence of reversals within a short window, and the definition was strict enough that gold did not produce it during the test period.

Whipsaws are also the environment in which stops are hit most often, so a strategy entering into one is entering the least forgiving conditions available. That is a design concern independent of whether it ever fired.