EA Sideways and Jump

EA SMA Sideways and Jump is an automated trading strategy designed to capture trend explosive jumps immediately following a price consolidation around a Simple Moving Average (SMA).

Overview

EA SMA Sideways and Jump is built to exploit one of the most reliable market behaviors: the transition from low-volatility consolidation (sideways) to high-momentum expansion (jump).

The strategy uses a Simple Moving Average (SMA) as an equilibrium baseline. It first detects a period of market compression where price hugs the moving average (Shift 2), followed by an immediate price rejection and jump away from the SMA (Shift 1) to trigger precise market entries.

Trading Logic

The EA evaluates a strict 2-candle sequence relative to the SMA baseline:

1. BUY Signal Logic

• Consolidation Phase (Shift 2): The SMA line on Shift 2 must be positioned inside the candle shift 2 range . Signaling that the market is consolidating right at the average price.

• Jump/Expansion Phase (Shift 1): The Low of Shift 1 must be strictly above the SMA line on Shift 1 , confirming an aggressive upward jump away from the moving average.

2. SELL Signal Logic

• Consolidation Phase (Shift 2): The SMA line on Shift 2 must be positioned inside the candle range, signaling market consolidation.

• Jump/Expansion Phase (Shift 1): The High of Shift 1 must be strictly below the SMA line on Shift 1, confirming an aggressive downward jump away from the moving average.

Key Features & Customizable Parameters

• SMA Period: Fully customizable moving average period to adapt to short-term scalping or long-term swing setups.

• Lot Size: Precise position sizing aligned with your capital allocation plan.

• Take Profit (TP in Pips): Fixed profit target per trade.

• Stop Loss (SL in Pips): Risk management boundary per trade.

• Max Orders: Cap the maximum number of concurrent open trades to protect equity from over-exposure.

Risk Management & Optimization Best Practices

• Recommended Risk-to-Reward Ratio (RRR): For optimal long-term statistical edge, it is highly recommended to configure Stop Loss and Take Profit levels to maintain a minimum Risk-to-Reward Ratio of 1:2 (e.g., SL 20 pips / TP 40 pips).

• Instrument & Timeframe Sensitivity: SL and TP distance MUST be adjusted based on the specific asset (e.g., XAUUSD vs. EURUSD) and the chosen Timeframe (e.g., M15 vs. H1) to account for varying average true ranges (ATR).

⚠️ Important Risk Warning & Optimization Notice

Important Notice: Do not trade live accounts using default input parameters! The default settings are pre-configured strictly to comply with MQL5 Market automated validation testing requirements. Because market dynamics, volatility, and candle ranges vary dramatically across different pairs and timeframes, traders must backtest, optimize SL/TP and SMA periods for their chosen pair, and validate execution on a demo account before live deployment.