Round Hour Moving Average Cross Strategy

Taking inspiration from the successful results of noteworthy digital strategies, I decided to develop another blueprint/analysis to explore the potential of seemingly "original" trading strategies.

Strategy overview:

1. Time range: Daily
2. Indicator: Simple Moving Average based on "Median Price"
3. Strategy Type: Pullback or Breakout

When price moves above the simple moving average (SMA), we are faced with two choices: expect the current trend to continue or expect a reversal.

Entry settings 1:

1. The day's opening price was below the median price of the simple moving average (SMA)
2. Price crosses SMA from below
3. The previous X days' high/low prices were below the SMA (this is an optional condition to determine how strong the previous trend was)
4. Enter sell to reverse
5. Enter buy on breakout

Entry settings 2:

1. The opening price of the day is above the SMA mid price
2. Price crosses the moving average from above
3. The previous X days' high/low prices were above the SMA (this is an optional condition to determine how strong the previous trend was)
4. Enter buy to reverse
5. Enter sell for breakout

Admission time:

1. Depending on the specific time span (hours and days), the time to enter a trade will vary for different symbols. However, transactions will only be initiated every hour.

Exit strategy:

1. Fixed "soft" Stop Loss (SL) and Take Profit (TP) targets will be established as a percentage for each symbol.
2. Exit times may also vary based on hourly intervals. An additional floating safety stop of 30 pips will be used.
3. Here's how it works: For example, if the calculated stop loss is 60 pips, the hard stop will be set to 90 pips from the entry point. Prices will be monitored at hourly intervals (e.g. 16:00, 17:00, etc.). If the price exceeds the soft stop of 60 pips, the position will be closed.

Reasons for this approach:

1. Since there is no fixed price target, the price could continue to rise sharply over the course of the hour, leading to potential gains.
2. By including a breakout on the stop-loss side and letting the price run on the take-profit side for an hour, we aim to capture long-term price movement.

Here is an example of TP for this method - 0.2% for soft SL and 0.3% for TP (monitored by time period):

In the following articles, I will analyze multiple symbols to determine the best trading conditions for each symbol. Ultimately, my goal is to create a portfolio with a tradeable setup based on this strategy. While this approach can be performed manually, I plan to utilize an Expert Advisor (EA) to analyze the data and forward test to ensure the feasibility of the strategy.

However, it is worth noting that this strategy can also be traded manually, regardless of exit round time. You can still implement this strategy effectively by setting fixed stop loss (SL) and take profit (TP) levels. The turn time portion of the exit is optional and can be ignored if desired.