This week we present one of our community most successful strategies: Pullback trading in uptrends — enhanced by AI signals.

The Concept

Buy the pullback in an intact uptrend. The AI identifies the trend, recognizes the pullback, and generates a buy signal when price turns at support.

The Rules

Confirm trend: SMA 50 above SMA 200, both rising
Identify pullback: RSI(14) drops below 40 in uptrend
Entry: AI signal with confidence above 75% at SMA 20 or SMA 50
Stop-loss: 1.5x ATR below entry
Take-profit: Trailing stop at 2x ATR or new swing high

Community Result Last 4 Weeks

Signals: 12 pullback setups identified
Hit rate: 75% (9 of 12 profitable)
Average gain: +3.1%
Average loss: -1.4%
RRR: 2.2:1

Example Trade: Allianz

Allianz was in a clear uptrend. RSI dropped to 37 and price touched SMA 20 at 267 euros. AI signal: Long with 82% confidence. Result: +4.8% in 8 trading days.

When the Strategy Does NOT Work

Sideways markets (no clear trend)
Rising VIX (above 25)
During earnings season (unpredictable gaps)

Next week: Mean reversion in sideways markets.