Methodology: how Trading Edge Pro works (SK system v5.2)

0-A-B structure, activation, B→C and 0→C correction, trade plan and selection rule of Trading Edge Pro v5.2, with paper-test protocol.

Trading Edge Pro turns the SK system into fixed rules. It translates a price move into a plan you can write down beforehand and check afterwards: structure, activation, correction, entry, stop and management.

For every rule this page states where it comes from. We will only make a performance statement once the running paper test is complete.

v5.2 current version, on the website since 8 Oct 2026 · 4h · 1D · 1W Timeframes · 7 Oct 2026 Start of the paper test

Three kinds of statements

  • SK rule: Documented in the SK system teaching sources, for example activation by a wick or B from 50%.
  • Product rule: A decision by Trading Edge Pro, for example the selection of A setups or the trailing stop.
  • Performance statement: Would need a completed test. There is none yet, so this page makes none.

The 0-A-B structure

  • 0: Long: local starting low · Short: local starting high
  • A: Long: high of the first impulse · Short: low of the first impulse
  • B: Long: higher low, retraces ≥ 50% of 0→A · Short: lower high, retraces ≥ 50% of 0→A
  • C: Long: the new high actually reached after the A break · Short: the new low actually reached

B depth = |A − B| ÷ |A − 0|

Example: 0 = 100, A = 120, B = 108. The impulse is 20, B retraces 12, i.e. 60%: valid. B = 114 would be only 30% and therefore too shallow.

  • Activation: a wick is enough: The structure becomes active as soon as price breaks A. The break is only recorded at the candle close. (SK rule)
  • Activation is not an entry: After the A break price runs to a new extreme, the actual C. Only the pullback from C is the entry zone. Every new extreme moves C.
  • Invalid before it starts: If a candle closes beyond B before the A break, or a wick breaks through 0, the candidate is void.

Detection (product rule): pivots with 5 candles left and right, minimum impulse 2 ATR, B depth 50 to 99%.

The correction: B→C and 0→C

Correction level K(r) = C + (S − C) × r

S is the start anchor: B as long as the 1.618 target has not been touched, then 0 (total correction). The total correction then replaces the B→C zone of the same structure; there are never two plans at once.

Example long, B→C with B = 108 and C = 130:

  • 0.500: K(r): 119.00 · Role: Entry
  • 0.559: K(r): 117.70 · Role: Intermediate level
  • 0.618: K(r): 116.40 · Role: Intermediate level
  • 0.667: K(r): 115.33 · Role: End of the correction zone
  • 0.786: K(r): 112.71 · Role: Stop reference

Structure targets from 0-A-B: T(k) = B + |A − 0| × k, with k = 1.0 · 1.618 · 1.809 · 2.0. In the example 128 · 140.36 · 144.18 · 148. These are reference levels, not probabilities.

One plan per structure

  • Entry at correction level 0.500: on the pullback, not on the breakout.
  • Stop beyond 0.786, plus a small ATR buffer.
  • R is the distance from entry to stop. All further steps are counted in R.
  • +2R: What happens: Stop to break-even (price) · Type of rule: SK management
  • +3R: What happens: ⅓ of the position counts as realised, about +1R on the whole position · Type of rule: SK management
  • from +2R: What happens: The rest follows a 3-ATR trailing stop that is only ever tightened · Type of rule: Product rule v5.2

Break-even means price break-even. Fees, spread and slippage can still make the net result negative. How much you risk is your own decision.

A setup or “info only”

Not every valid structure gets a plan. Trading Edge Pro v5.2 selects with its own product rule, which is not part of the SK system:

  1. Total correction: The correction already runs from 0 (0→C).
  2. Trend agrees: The direction matches the higher-timeframe trend: the daily chart for 4h, the weekly chart for 1D. Up means close above EMA 8 and EMA 21.
  3. From 4h: The timeframe is 4h or higher.

If all three hold, it is an A setup with entry and stop. With any “no” the structure stays visible, but as “info only” without an entry. The rule is based on an exploratory analysis of historical data and is currently being checked in the paper test.

The paper test

Since 7 Oct 2026 the server has been running v5.2 in the background, without real orders. The protocol was fixed before the start and applies unchanged; any rule change ends the test.

  • Markets: all coins in the website scanner at the start (Binance spot, USDT pairs), list frozen
  • Timeframes: 4h, 1D
  • Costs: 0.1% fee per side, slippage per exit 1 tick or 0.05% (whichever is larger)
  • Main metric: net R per trade, plus stop rate, largest drawdown in R, share of positive markets
  • Duration: at least 3 months and at least 100 closed trades

Until the test is complete there is no statement about hit rate or return. Past figures say nothing certain about the future.

End, replacement and follow-through

  • B→C correction: a close beyond B ends the structure. Total correction 0→C: a close beyond 0.
  • Per direction the most recent activated, valid structure counts. A newer one in the same direction replaces the old one; its untriggered entry level expires.
  • A trade already running continues as a follow-through trade with its own stop. A replaced structure does not come back as a fresh plan.

Candles and calculation

  • Only closed candles are used. Pivots need right-side confirmation candles and are never used earlier.
  • If entry and stop meet in the same candle, the indicator conservatively assumes the stop. An A break and a pullback in the same candle give an activation, but no entry yet.
  • The website runs the same engine as the paper test, matched against the TradingView script v5.2.

The states in the market list

  • Waiting for A break: 0-A-B is in place, A not yet broken
  • Info only: valid, but not an A setup
  • Entry ready: A setup, entry level not yet reached
  • In trade: entry filled, stop active
  • Break-even secured: +2R reached, stop at break-even
  • Partial profit +3R: ⅓ counts as realised
  • Runner: the rest runs with a trailing stop
  • Follow-through trade: trade of a replaced structure
  • Ended / invalid: stop, end of structure or replacement

Limits

  • Target levels such as 1.618 and 2.0 are reference levels, not forecasts.
  • The indicator does not know your actual fill. Fees, spread and funding add to the risk.
  • Leveraged trading can lead to a total loss. The indicator is an analysis tool, not investment advice.

See for yourself

Bitcoin is free and fully visible on 4h, 1D and 1W. With Pro you see all supported Binance markets.

Open Trading Edge Pro · Learn the SK system interactively · Momentum methodology