Smart Money Index (SMI)

Smart Money Index (SMI) is a strategy written by HPotter is an active programmer in Pine script of the TradingView community. The strategy is free, This algorithm for tradingView. This strategy has been proposed because it often has a positive profit factor from the time frame h1. So I will show you the strategy, the setup, and two filters that increase the profitability and profit factor of this strategy.

First trading system

This System was created from the Book "How I Tripled My Money In The Futures Market" by Ulf Jensen, Page 183. This is reverse type of strategies.
The strategy buys at market, if close price is higher than the previous close during 2 days and the meaning of 9-days Stochastic Slow Oscillator is lower than 50.
The strategy sells at market, if close price is lower than the previous close price during 2 days and the meaning of 9-days Stochastic Fast Oscillator is higher than 50.

Second Trading System

Smart money index (SMI) or smart money flow index is a technical analysis indicator demonstrating investors sentiment.
The index was invented and popularized by money manager Don Hays. The indicator is based on intra-day price patterns.
The main idea is that the majority of traders (emotional, news-driven) overreact at the beginning of the trading day
because of the overnight news and economic data. There is also a lot of buying on market orders and short covering at the opening.
Smart, experienced investors start trading closer to the end of the day having the opportunity to evaluate market performance.
Therefore, the basic strategy is to bet against the morning price trend and bet with the evening price trend.