fakeout_level reads the extreme price of a recent fake-out wick
and places the stop a configurable buffer beyond it. The thesis:
if price returns past the failed-break level, the reversal idea is
invalidated.
Shape
"stop_loss": {
"type": "fakeout_level",
"buffer_pct": 0.2,
"fallback_multiplier": 1.5
}Params
- buffer percent - how far past the fakeout wick to place the stop (percent of entry).
- fallback multiplier - ATR multiplier used when no fakeout level is available (degrades gracefully to an ATR stop).
Usage
Pair with the fake_out or fakeout_ny conditions for reversal entries. The stop is structurally meaningful - it lives exactly at the level the fakeout failed at.
Pitfalls
- Wide-wick fakeouts produce wide stops. Position size shrinks accordingly under risk-based sizing.
- Fallback is silent. If the fakeout level isn't detected, the ATR fallback fires without warning. Watch your logs.