DonchianCross

This Expert Advisor manages automated trading operations specifically on the  1-hour candle timeframe by monitoring structural price boundaries and historical extremes.

1. Core Price Level Calculations

On the arrival of each new  1-hour candle, the system calculates three structural price zones based on the historical high and low values over a specific lookback period of previous  1-hour candles:

• Upper Boundary: The highest price recorded over the specified period of 1-hour candles.

• Lower Boundary: The lowest price recorded over the specified period of 1-hour candles.

• Median Level: The exact mathematical midpoint between the upper and lower boundaries.

2. Entry Conditions

Trade setups are evaluated immediately upon the completion and close of each  1-hour candle. The system employs two trigger styles, which can be enabled independently or combined:

• Wick Entry: Designed to detect temporary price deviations during the 1-hour interval.

  • A  Buy signal is triggered if the low of the completed 1-hour candle reached or fell below the median level, but the candle closed back above that median level.

  • A  Sell signal is triggered if the high of the completed 1-hour candle reached or exceeded the median level, but the candle closed back below the median level.

• Breakout Entry: Capitalizes on clear trend expansions at the hourly close.

  • A  Buy signal triggers when the close of the completed 1-hour candle settles above the older upper boundary.

  • A  Sell signal triggers when the close of the completed 1-hour candle settles below the older lower boundary.

3. Filters and Protection Rules

• Momentum Filter: To align entries with the short-term trend, the system compares the closing price of the most recent  1-hour candle with the closing price of a candle from a set number of periods back. Buying is only permitted if the price has risen over this hourly lookback, and selling is only allowed if it has fallen.

• Directional Locking: To manage risk after a trade exits, consecutive trades in that same direction are temporarily blocked. The lock resets only when a valid trigger in the opposite direction occurs on a subsequent  1-hour candle.

4. Exit and Trade Management

• Trailing Stop: The protective stop-loss is updated dynamically as each new  1-hour candle opens. For breakout trades, it trails using a tight offset from current market prices. For wick entries, it trails relative to the open price of the active  1-hour candle.

• Time-Based Exit: To minimize exposure during periods of low volatility, any trade that remains open for more than the specified number of hours is automatically closed.

• Position Sizing: The trade volume is calculated dynamically based on a defined percentage of account equity or a fixed money value, factoring in the distance from the entry price to the low or high of the triggering  1-hour candle.