ISD Narrative Creation

Shared by a BacktestingMax trader on 3 Sept 2026, updated 13 Sept 2026

Imbalance, Supply and Demand: A Narrative Creation Trading Concept

If This => Then That: Scenario

Created By: Park Se Wan

Warning!!

I create this trading system for my own, means it will work properly on me but to others it may not, because it is based on the concepts i studied which is the:

Logic Based Concept.
1. Market Structure.
2. Supply and Demand.
3. Market Efficiency.
4. Momentum.
5. Liquidity.
6. Inducements
7. Accumulations and Distributions.

You may find it very hard to understand and confusing, because this trading system is the combinations of all the concepts i learn. Some of them maybe familiar to you and some of them are not.

This Trading System is exclusively for swing traders, but it works on every timeframe.

I recommend using $1000 as your capital, to simulate real money and to have a proper mental training, this is very important and you just need to practice consistently to be familiarize with the market patterns. Be patient, don't be too greedy, and more importantly follow the system.

Entry rules

  1. Market structure identified as bullish or bearish before searching for setups
  2. Imbalance / supply-demand zone is in line with the trend (not counter-trend)
  3. Zone formed from an impulsive move, not choppy/overlapping candles
  4. Inducement (liquidity grab) occurred before price reaches the zone
  5. Narrative confirmed: Technical Analysis (commodities) or Fundamental Analysis (forex)

Invalidation

  1. Opposing EQH's/EQL's that are close to the zone are taken out before entry confirms, structure shifting against bias
  2. If the price traded to the zone then slightly pushes towards your direction and then came back to the zone for the second or even third time this is not valid, means the zone is weak and don't have enough strength to go towards the direction you expected to, and the opposing team is slowly accumulating strength to take the market direction.
  3. If you have an active trade or a set-up, be aware of red folder news that is about to trigger, specially if it is against the direction of the market you expected, because once it is trigger you are highly likely to be taken out by the market.

Stop loss and take profit

  1. 1:3 Risk Reward Ratio minimum
  2. Stop loss placed beyond the imbalance/zone (not just beyond the entry candle)
  3. Risk per trade capped at 1% of account
  4. Take profit targets next relevant liquidity (opposing EQH/EQL or prior structure point)

Author's checklist

  1. Confirm correct narrative type is being used for the instrument (TA for commodities, FA for forex)
  2. Stop trading if achieve 5%+ profits. If you have $1000 account balance as your equity and you are planning to trade for a whole month, for example you start in January 1 and end it in January 30 but in the first week or second week you already achieve a 5%+ ($50) profits, you should stop trading and not be too greedy, lay low for a while, enjoy your profits, back test your winning and losing trades and come back to the next month.

Inside the app

Opening this strategy in BacktestingMax shows the full record behind the numbers above, on a free account: every trade with entry, exit, size and P&L plus CSV and Excel export; a bar-by-bar replay of the author's own session on 1-minute history; Monte Carlo projections that reshuffle the trade sequence; the equity curve against buy-and-hold; advanced statistics including Sharpe and Sortino ratios, expectancy, payoff ratio, recovery factor, maximum drawdown and longest time underwater; a day-by-day P&L calendar; and behavioural analysis covering revenge trading, position-size chasing, long/short bias and the hours and days it actually made money.

Open this strategy in BacktestingMax (free account required)

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Figures come from backtests run by the author inside BacktestingMax. Past performance is not indicative of future results, and nothing here is financial advice.