Profit factor 1.51
Instrument: Forex
Supported platforms: MetaTrader 4, MetaTrader 5, StrategyQuant
Strategy description
This EURUSD H1 strategy is a clean, rule-based reversal breakout system designed to enter only when price confirms a directional flip after a stretched move.
It uses a simple trend/position filter (EMA slope + price vs. SMA) to detect potential exhaustion, then executes via pending STOP orders placed beyond recent structure with a volatility buffer — so it doesn’t “guess” the turn, it waits for the market to prove it.
The strategy was generated in StrategyQuant X and backtested on EURUSD / H1 over 2004-04-01 to 2024-04-24 using MetaTrader 4 (data: EURUSD_M1_UTC2).
Core logic
The system has two layers:
1) Setup filter (exhaustion context)
It looks for “stretched” conditions where a reversal breakout is more likely:
- Long setup
- EMA(20) is falling (downward pressure / bearish context)
- and price closes below SMA(30)
- Short setup
- EMA(20) is rising (upward pressure / bullish context)
- and price closes above SMA(30)
2) Entry trigger (breakout execution)
Instead of entering at market, the strategy places STOP orders beyond recent structure:
- LONG (Buy Stop)
- Above the Highest Open of the last 30 bars
- plus a buffer:
0.5 × SmallestRange(25) - SHORT (Sell Stop)
- Below the Lowest Open of the last 30 bars
- minus a buffer:
0.5 × SmallestRange(25)
Order handling rules:
- Pending orders are valid for 1 bar
- Duplicate trades disabled
- Replacing pending orders allowed
Risk management & exits
- Stop-loss: 30 pips (fixed)
- Profit target: 100 pips (fixed)
- Trailing stop: 50 pips (fixed)
- Time exit: close after 24 bars (≈ 24 hours on H1)
- Friday risk control: forced exit on Friday at 20:00
Who this strategy is for
If you want an EURUSD system that:
- identifies potential exhaustion using a minimal EMA/SMA context filter,
- waits for confirmed reversal breakout (STOP execution beyond structure),
- and manages risk with straightforward fixed SL/PT plus a trailing stop and time-based exit,
this strategy is a simple, disciplined approach aimed at capturing clean directional moves without chasing noise.
Key settings (quick recap)
- Symbol / TF: EURUSD / H1
- Backtest window: 2004-04-01 to 2024-04-24 (MT4)
- Filters: EMA(20) slope + SMA(30) position
- Entry levels: Highest/Lowest Open (30) ±
0.5 × SmallestRange(25) - Order type: STOP (pending), validity 1 bar
- SL / PT: 30 / 100 pips
- Trailing: 50 pips
- Exit after: 24 bars
- Friday exit: 20:00
