Keeping it Simple

Currently I'm in back-test mode to test overall performance of different strategies. One strategy is very simple, and just involves identifying pull-back opportunities (i.e. when price fails to make a new high or low) then setting an order at 61.8% retracement level with a stop at 100%, and setting a target with a 2.6 to 1 reward to risk ratio. The key aspect of this strategy is to draw the retracement to the nearest swing low or swing high, even if it appears insignificant, and even if there is ambiguity in the trend.

In the chart below, entry levels are in green with stop in red and targets in blue. Obviously the ordering of the levels indicates if the position is long or short. There are some other trade setups in the same time period, but they didn't trigger so are not shown.