Let’s simplify things by using the signals you already have in your system. Here’s a strategy you can set up with your available indicators:

"Simple Trend Momentum Grid Strategy"

Objective:

This strategy will capture both trend-following and breakout moves with simple signals, using indicators already present in SQX.

Key Components:

  1. Primary Indicators:
    • ADX: For confirming strong trends.
    • MACD: For detecting momentum and direction.
    • RSI: To help with overbought/oversold levels.
    • ATR: For volatility-based risk management.

Strategy Setup in SQX:

1. Entry Signals

  • MACD Crossover: Enter a buy when the MACD line crosses above the signal line, and enter a sell when the MACD line crosses below the signal line.
  • ADX > 25: Confirm that the market is trending before allowing an entry.
  • RSI Confirmation:
    • If RSI > 70, avoid buying (overbought signal).
    • If RSI < 30, avoid selling (oversold signal).

How to Set It Up:

  • In SQX, use Entry Conditions with MACD crossover as the trigger.
  • Add an additional filter where ADX > 25 to confirm trend strength.
  • Add RSI as a filter to avoid extreme market conditions.

2. Exit Strategy

  • Take Profit and Stop Loss: Use ATR-based levels. For example:
    • Take Profit: 2x ATR(14).
    • Stop Loss: 1x ATR(14).
  • Trailing Stop: Trail the stop loss based on ATR, moving the stop higher/lower as the trend progresses.
  • Exit by Time: Close all positions every Friday at 23:30 to avoid weekend gaps.

How to Set It Up:

  • In Exit Conditions, define take profit and stop loss levels based on ATR values.
  • Use the Trailing Stop function with ATR.
  • Set a rule in Exit Conditions to close all trades at a specific time on Friday.

3. Risk Management

  • Use Lot Size: 0.01 lots per $100 of the account balance.
  • Risk %: Define risk management to ensure that no more than a specific percentage (e.g., 1%) of the total capital is risked on each trade.

How to Set It Up:

  • In SQX, use the Money Management tab to set the lot size and risk percentage.

4. Grid Layer (Optional)

  • If you want a grid layer to capture additional profits, set up pending orders at regular intervals around the current price (e.g., every 10 pips) with small lot sizes.
  • You can also adjust the grid based on market volatility using ATR.

Final Setup Steps:

  1. Backtest: Use your M1 data over the 20-year range to evaluate how the strategy performs.
  2. Optimize: Fine-tune the parameters like ATR multiples, grid intervals, and trailing stops for the best results.
  3. Out-of-Sample Testing: Ensure that your strategy performs well in unseen data to confirm robustness.

This simpler approach will help you use the signals you're familiar with while maintaining solid trend-following and risk management.

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