Harmonic Grid Momentum Breakout !

To set up the "Harmonic Grid Momentum Breakout" strategy in StrategyQuant X (SQX), you'll need to configure several components to match the elements of the strategy. Here’s a step-by-step guide to implement the various aspects of this strategy:

1. Grid Trading Layer Setup

This layer will require you to define the grid of buy and sell orders at set intervals from the current price.

Steps:

  • Entry:
    • Use the Entry Logic in SQX to place multiple pending orders (both buy and sell) at fixed intervals (e.g., every 10 pips).
    • ATR-based grid adjustment: You can create a condition where the grid spacing dynamically adjusts based on the ATR value to match market volatility. The higher the ATR, the larger the grid intervals.
    • For example:
    • If ATR(14) > X, set a larger grid (e.g., 20 pips).
    • If ATR(14) < Y, set a smaller grid (e.g., 5 pips).

How to do it:

  • Use Pending Orders (Grid) in SQX.
  • Set the grid size as a parameter based on market volatility or fixed pip values.

2. Harmonic Pattern Recognition

You'll need a custom indicator for Harmonic patterns. SQX doesn’t have this built-in, but you can code or import a custom indicator that identifies Gartley, Bat, or Butterfly patterns.

Steps:

  • Custom Indicator:
    • Add a Fibonacci Retracement tool to identify key levels (e.g., 61.8%, 78.6%) to form harmonic patterns.
    • Add conditions to check for pattern completion (e.g., price hitting Fibonacci levels after forming the right structure).

How to do it:

  • Custom Code: Import a harmonic pattern indicator from the community or write one using SQX’s Custom Blocks or coding feature. These custom indicators can then be used in the strategy’s entry conditions.

3. Momentum Confirmation (RSI and MACD)

For confirming breakouts and momentum direction, use RSI and MACD.

Steps:

  • RSI:
    • Add a condition where if RSI > 70, the system prepares for short orders, and if RSI < 30, it prepares for long orders.
  • MACD Crossover:
    • Add a condition to check for MACD crossovers. For example:
    • If the MACD line crosses above the Signal line, confirm a long trade.
    • If the MACD line crosses below the Signal line, confirm a short trade.

How to do it:

  • In the Entry Conditions, add the RSI and MACD indicators as filters.
  • Use a logical AND to ensure both momentum signals agree with the grid entries.

4. Dynamic Risk Management (Trailing Stop + Break Even)

Risk management with Trailing Stops and Break-Even will secure profits once price moves in your favor.

Steps:

  • Break-Even:
    • After the price has moved halfway towards the profit target, move the stop loss to breakeven.
  • Trailing Stop:
    • Set up a Trailing Stop that trails the price based on ATR or fixed pip value, allowing the trade to capture more profits in trending conditions.

How to do it:

  • Use Trailing Stop and Move Stop Loss to Break-Even functions in SQX.
  • Set up the trailing stop activation based on market volatility (ATR).

5. Weekly Market Reset (Closing All Trades Before Friday Close)

Close all open trades before the market closes every Friday to avoid weekend gaps.

Steps:

  • Close Trades on Friday:
    • In the Exit Conditions, set up a rule that closes all open trades at a specific time on Friday (e.g., 23:00 or 23:30), ensuring no trades are left open over the weekend.

How to do it:

  • In the Exit Conditions, use the Day of the Week and Time of the Day conditions to trigger an exit for all open trades.

6. Risk/Reward Ratio (RRR) > 1:3

To ensure your strategy maintains a high RRR, configure your stop loss and take profit levels accordingly.

Steps:

  • Stop Loss and Take Profit:
    • Set the Stop Loss at a distance that supports at least a 1:3 RRR. For example, if you risk 50 pips, your take profit should be at least 150 pips.

How to do it:

  • Use Stop Loss and Take Profit conditions in SQX, setting them based on your desired RRR.

7. Consecutive Wins/Losses > 2

To refine the strategy further, you can include a condition that checks for streaks of wins or losses.

Steps:

  • Consecutive Win/Loss Condition:
    • Add logic that monitors the number of consecutive wins or losses. For example, if there are more than 2 consecutive losses, pause trading or adjust position sizing.

How to do it:

  • Use a custom logic block or modify the Trade Statistics section to count consecutive wins/losses and make adjustments accordingly.

Final Steps:

Once you’ve set up all of these layers, you can: 1. Run Backtesting: Test the strategy using your 20-year M1 data to evaluate performance across various market conditions. 2. Optimize: Use Sequential Optimization to adjust the parameters (grid spacing, trailing stop, RRR) and test for the best-performing settings across multiple timeframes (H1, H4, M30, M15, M5). 3. Run OOS Testing: Ensure that the strategy performs well during out-of-sample testing to validate robustness.

This setup should give you a unique, adaptable system that can handle both trending and ranging markets. Let me know if you need more detailed instructions or custom blocks to be created in SQX!

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