SMA breakout (Donchian-style) strategyvsLiquidity sweep reversal strategy
SMA breakout (Donchian-style) strategy: Buy a fresh push above the 20-bar mean and trail the winner until it folds. · Liquidity sweep reversal strategy: Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed.
SMA breakout (Donchian-style) strategy
Buy a fresh push above the 20-bar mean and trail the winner until it folds.
Liquidity sweep reversal strategy
Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed.
Indicators
- SMA (period 20)
- Equal Highs/Lows (swing 3)
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 — buy-side stops grabbed, sellers step in.
- Long on an EQL sweep — sell-side stops grabbed, buyers reload.
Exit rules
- Close on a cross back below the SMA.
- Trailing 5% stop catches deeper retracements before the SMA flips.
- Opposite-side sweep closes the trade — that's the next liquidity event and the reversal leg is done.
- 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.
Advanced — sweep recognition is fast and noisy on short timeframes. Lots of small trades, occasional clean reversals when the sweep is the real local extreme. Pair with risk management; the entry triggers right into the wick.
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 Liquidity sweep reversal strategy
- You expect range-bound — the thesis is "Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed."
- You want a long & short bot on 5m–4h candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Equal Highs/Lows (swing 3)).
Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed.
SMA breakout (Donchian-style) strategy
Buy a fresh push above the 20-bar mean and trail the winner until it folds.
Liquidity sweep reversal strategy
Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed.
Related comparisons
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