Dual-Timeframe SQM Signals with Progressive Take Profit and Stops

Summary

This strategy combines Squeeze Momentum (SQM) signals with a multi-timeframe check and progressively adjusted exit levels. It enters long when the lower-timeframe SQM rises and the main-timeframe SQM turns upward from a recent negative range, alongside a money-flow pattern; short entries use the mirrored conditions. After entry, an initial target and stop are set, then each target reached advances the target and tightens the stop relative to the average entry price.

The published settings describe a BTC/USDT Binance futures backtest using 15-minute bars with 5-minute base data over a one-week period. No performance statistics are provided, so the material documents a rule set rather than evidence of profitability. There are also discrepancies between the prose and code: the prose describes an auxiliary higher timeframe filter, while the shown entry conditions leave those higher-timeframe checks disabled. The source uses lookahead-on data requests, which can introduce future-data bias in historical signals. The document itself flags sensitivity to indicator and timeframe settings, and notes that a wide stop can permit large losses.

Key ideas

• The strategy combines SQM direction with a lower-timeframe confirmation and a money-flow pattern to trigger entries.
• Long and short signals use mirrored conditions based on SQM movement and recent indicator extremes.
• The initial target and stop are updated after each target is reached, progressively locking in gains.
• The published description and code differ on the role of higher-timeframe confirmation, and the code's lookahead settings raise backtest reliability concerns.
• The document provides test settings but no performance results, so it does not establish profitability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.