AlphaTradeMaster

This algorithmic trading strategy is designed as a Breakout Strategy, leveraging historical price action and statistical validation across 30 years of data on multiple Forex pairs. It undergoes rigorous Out-of-Sample (OOS) testing, Holdout validation, Monte Carlo simulations, and Walk Forward analysis to ensure robustness. The strategy is also tested on different markets and timeframes to confirm its adaptability.

Automated Strategy Generation & Selection Process

• Every week, the algorithm generates and tests over 100 million randomly created strategies for a specific Forex pair
• After the one-week evaluation period, the best-performing strategy is selected and deployed for trading
• The following week, a new Forex pair is chosen, and the process repeats, ensuring continuous adaptation to market conditions

Breakout Entry Logic

• The strategy identifies potential breakouts by using Stop Orders:
  • Long trades are triggered when the price breaks above the highest level of a dynamically calculated number of previous candles, plus a predefined pip buffer
  • Short trades are triggered when the price breaks below the lowest level of the same calculated range, minus a predefined pip buffer
• The number of candles used for this calculation adapts to market conditions, ensuring optimal breakout detection
• Execution occurs exclusively on the H1 timeframe

Entry Conditions & Indicators

Before placing a trade, the strategy ensures that 1 to 3 conditions are met, all based on widely recognized technical indicators. These conditions act as filters to increase trade quality and avoid false breakouts.

Risk Management & Trade Protection

• Stop Loss (SL) & Take Profit (TP) are always applied to manage risk effectively
• Implements Trailing Stop or MoveSL2BE (Break Even) + Additional Pips to protect profits and optimize trade exits
• Automatic Exit on Fridays: The strategy ensures that all open positions are closed on Friday evening to avoid weekend risk and unpredictable price gaps