If you prefer not to use ADX, MACD, RSI, or ATR, we can build the strategy using other signals from your available list in SQX. Below is an alternative setup using simpler, yet effective indicators:

"Momentum-Based Price Action Grid Strategy"

Indicators Used:

  • Candle Patterns: For price action and reversal detection.
  • Bollinger Bands: To capture volatility and breakout opportunities.
  • Moving Averages: For trend direction and entry triggers.
  • Fractals: To identify local highs/lows for breakouts or retracements.

Strategy Setup in SQX:

1. Entry Signals

  • Candle Pattern: Use bullish or bearish reversal candle patterns (like engulfing, hammer, or doji) as entry triggers.
  • Moving Average Crossover:
    • Buy when a faster-moving average (e.g., 10-period) crosses above a slower-moving average (e.g., 50-period).
    • Sell when the faster MA crosses below the slower MA.
  • Bollinger Bands: If the price closes above the upper band, consider a buy (bullish breakout). If it closes below the lower band, consider a sell (bearish breakout).

How to Set It Up:

  • In Entry Conditions, use the Candle Pattern indicator for reversal patterns.
  • Add Moving Average Crossover as a trend confirmation filter.
  • Include a condition using Bollinger Bands to detect breakouts and confirm volatility.

2. Exit Strategy

  • Fractal Exit: Exit positions when the price hits a recent fractal high (for buy trades) or a fractal low (for sell trades).
  • Bollinger Bands Reversal: Close the position if the price reverses and closes inside the Bollinger Bands after breaking out.
  • Time-based Exit: Close all positions after 5 days to limit the holding period.
  • Friday Close: Automatically close all trades at 23:30 on Fridays to avoid weekend risk.

How to Set It Up:

  • In Exit Conditions, use the Fractal Indicator to detect recent highs and lows for exit points.
  • Set up a rule to exit when the price re-enters the Bollinger Bands after a breakout.
  • Define a Time-based Exit rule to close trades after 5 days or on Friday.

3. Risk Management

  • Fixed Lot Size: Trade with 0.01 lots per $100 of the account balance.
  • Risk Management: Set a fixed percentage of risk per trade (e.g., 1% of the total account).
  • Grid Layer (Optional): Place pending buy/sell orders at intervals (e.g., 10 pips) from the current price to capture retracements or price movements.

How to Set It Up:

  • In Money Management, set your fixed lot size and risk percentage.
  • If you want a grid, use the Pending Orders functionality to create a grid around the current price.

Additional Layers:

  1. Duplicate Trades: Enable multiple trades to open in the same direction.
  2. Break-Even: Move the stop loss to break-even once the trade has moved in your favor by a certain distance (e.g., a fixed pip value or after hitting a fractal level).

Final Steps:

  1. Backtest: Run your backtests using M1 data over 20 years.
  2. Optimize: Adjust moving average periods, Bollinger Band deviations, and fractal periods to find the best combination.
  3. OOS Testing: Validate the strategy's performance on out-of-sample data.

By removing ADX, MACD, RSI, and ATR, this setup focuses more on price action with simple indicators that track volatility and trend strength.

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