SMA breakout (Donchian-style) strategyvsEqual Highs/Lows strategy
SMA breakout (Donchian-style) strategy: Buy a fresh push above the 20-bar mean and trail the winner until it folds. · Equal Highs/Lows strategy: Fade the stop-hunt — short EQH sweeps, long EQL sweeps, exit on the next liquidity event.
SMA breakout (Donchian-style) strategy
Buy a fresh push above the 20-bar mean and trail the winner until it folds.
Equal Highs/Lows strategy
Fade the stop-hunt — short EQH sweeps, long EQL sweeps, exit on the next liquidity event.
Indicators
- SMA (period 20)
- Equal Highs/Lows (swing 3, threshold 0.1)
Timeframes
Bias
Long only
Long & short
Market fit
Volatility expansion
Range-bound
Entry rules
- Enter long when close crosses above the 20-bar SMA.
- 4-bar cooldown after exit reduces back-to-back whipsaws.
- Short on an EQH sweep — the stop-hunt fades and sellers step in.
- Long on an EQL sweep.
Exit rules
- Close on a cross back below the SMA.
- Trailing 5% stop catches deeper retracements before the SMA flips.
- Opposite-direction sweep closes the trade — that's the next liquidity event.
- 4% trailing stop, 3-bar cooldown.
Expected behavior
Trendy growth in directional regimes punctuated by ugly chop when price oscillates around the SMA. Best paired with a higher-timeframe trend filter to skip the chop.
Range-friendly. Frequent small trades when price oscillates between equal-highs and equal-lows pools; can stack losses in strong trends that take out structure cleanly without reversing.
Complexity
Which one is right for you?
Derived from the bias, timeframe and indicator profile of each strategy — not a back-test forecast.
When to pick SMA breakout (Donchian-style) strategy
- You expect volatility expansion — the thesis is "Buy a fresh push above the 20-bar mean and trail the winner until it folds."
- You want a long-only bot on 1h–1d candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (SMA (period 20)).
Buy a fresh push above the 20-bar mean and trail the winner until it folds.
When to pick Equal Highs/Lows strategy
- You expect range-bound — the thesis is "Fade the stop-hunt — short EQH sweeps, long EQL sweeps, exit on the next liquidity event."
- You want a long & short bot on 15m–4h candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Equal Highs/Lows (swing 3, threshold 0.1)).
Fade the stop-hunt — short EQH sweeps, long EQL sweeps, exit on the next liquidity event.
SMA breakout (Donchian-style) strategy
Buy a fresh push above the 20-bar mean and trail the winner until it folds.
Equal Highs/Lows strategy
Fade the stop-hunt — short EQH sweeps, long EQL sweeps, exit on the next liquidity event.
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