Eurusd EmaSma Reversal Breakout Strategy
- Эксперты
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Tomas Vanek
I am a algotrader uses genetic algorithms to search for new strategies. - Версия: 1.0
EURUSD EMA–SMA Reversal Breakout (H1) is a fully automated MetaTrader 4 strategy designed to capture **confirmed reversal breakouts** on EURUSD using a simple trend + position filter with rule-based **pending STOP execution** beyond recent structure. The EA was backtested on **EURUSD on the H1 timeframe** from **April 1, 2004 to April 24, 2024** using a MetaTrader 4 backtest engine (base data: EURUSD_M1_UTC2). No parameter setup is required — the system is delivered with optimized and fine-tuned settings.
Recommended broker: Any MT4 broker with stable EURUSD execution (ideally low spread) and consistent server time.
StrategyQuant source code: https://quantmonitor.net/eurusd-emasma-reversal-breakout-strategy/↗
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MAIN SETTINGS
Symbol / Timeframe: EURUSD / H1
Trading options:
- Daily Exit: Disabled
- Friday Exit: Enabled (20:00)
- Max trades per day: No limit (duplicate trades disabled)
- Weekend trading: Enabled
- Pending orders: Used (STOP orders)
- Pending order replacement: Allowed
- Pending order validity: 1 bar
Risk management:
- Stop Loss: 30 pips (fixed)
- Profit Target: 100 pips (fixed)
- Trailing Stop: 50 pips (fixed)
- Time exit: Close after 24 bars
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ENTRY LOGIC (EMA/SMA CONTEXT + STRUCTURE BREAKOUT + VOLATILITY BUFFER)
This EA confirms context first and executes only if a breakout actually happens.
It combines a **directional context filter** (EMA slope + price position vs SMA) with a **structure-based breakout trigger** using pending STOP orders placed beyond recent market structure, buffered by recent micro-volatility.
Setup conditions (context filter):
- Long setup:
- EMA(20) is falling
- AND price closes below SMA(30)
- Short setup:
- EMA(20) is rising
- AND price closes above SMA(30)
Entry rules (pending STOP orders beyond structure):
Breakout execution uses recent structural levels defined by the **highest/lowest OPEN** over the last 30 bars, with an adaptive buffer based on SmallestRange:
- LONG: place a Buy Stop at
Highest(Open, 30)[2] + 0.5 × SmallestRange(25)[3]
- SHORT: place a Sell Stop at
Lowest(Open, 30)[2] − 0.5 × SmallestRange(25)[3]
Pending orders:
- Validity: 1 bar
- Replacing existing pending orders: Allowed
- Duplicate trades: Disabled
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EXIT RULES
- Fixed Profit Target: 100 pips
- Fixed Stop Loss: 30 pips
- Fixed Trailing Stop: 50 pips
- Time-based exit: forced exit after 24 bars (≈ 24 hours on H1)
- Friday risk control: forced exit on Friday at 20:00 to reduce weekend gap exposure
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VALIDATION
Recommended: validate the build with out-of-sample (OOS) windows, robustness tests, and a dedicated TRUE OOS segment (tick retest if available) to reduce overfitting risk and confirm stability beyond the development sample.
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RISK DISCLAIMER
Trading involves significant risk. Past performance is not necessarily indicative of future results. Always forward-test on a demo account before trading live and use appropriate risk management.
