SMA breakout (Donchian-style) strategyvsMulti-period trend confluence strategy
SMA breakout (Donchian-style) strategy: Buy a fresh push above the 20-bar mean and trail the winner until it folds. · Multi-period trend confluence strategy: Fast and slow trend regimes must agree before opening — long or short.
SMA breakout (Donchian-style) strategy
Buy a fresh push above the 20-bar mean and trail the winner until it folds.
Multi-period trend confluence strategy
Fast and slow trend regimes must agree before opening — long or short.
Indicators
- SMA (period 20)
- Trend regime (period 20, slope 3)
- Trend regime (period 100, slope 8)
Timeframes
Bias
Long only
Long & short
Market fit
Volatility expansion
Strong directional trends
Entry rules
- Enter long when close crosses above the 20-bar SMA.
- 4-bar cooldown after exit reduces back-to-back whipsaws.
- Long when BOTH trend20 = +1 AND trend100 = +1.
- Short when BOTH trend20 = -1 AND trend100 = -1.
- 8-bar cooldown after exit.
Exit rules
- Close on a cross back below the SMA.
- Trailing 5% stop catches deeper retracements before the SMA flips.
- Exit immediately when the slower trend100 regime flips to 0 (chop).
- 7% trailing stop on the runner.
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.
Trend follower with patience. Long flat periods when the two timeframes disagree, then steady runs when the slow regime turns and the fast one confirms. Drawdowns are deeper because exits wait for chop, not a clean flip.
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 Multi-period trend confluence strategy
- You expect strong directional trends — the thesis is "Fast and slow trend regimes must agree before opening — long or short."
- You want a long & short bot on 4h–1d candles with a balanced rule-set.
- You're comfortable monitoring 2 indicators (Trend regime (period 20, slope 3), Trend regime (period 100, slope 8)).
Fast and slow trend regimes must agree before opening — long or short.
SMA breakout (Donchian-style) strategy
Buy a fresh push above the 20-bar mean and trail the winner until it folds.
Multi-period trend confluence strategy
Fast and slow trend regimes must agree before opening — long or short.
Related comparisons
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