GBP/USD Bar Reversion Strategy with an EMA and FDI Filter

Summary

This proposed GBP/USD strategy uses four-hour bars and seeks reversals around a 40-period exponential moving average. It adds a 30-period Fractal Dimension Index filter, permitting entries only when the calculated value is below 1.5. The entry conditions also compare the current open with the prior close and use a crossing of price and the moving average to distinguish long and short trades. Positions are closed after four bars, with a fixed stop specified in the code.

The author says the system was placed in demo autotrading to observe its behavior and invites feedback on money management and stop-loss settings. No backtest, live results, rationale for the thresholds, or evaluation of transaction costs is provided. The rules are presented as an initial experiment, so their profitability and robustness remain unestablished.

Key ideas

• The strategy trades GBP/USD on a four-hour timeframe using reversals around a 40-period exponential moving average.
• A 30-period Fractal Dimension Index below 1.5 acts as an entry filter.
• Long and short entries use price crossings and a comparison between the current open and prior close.
• Positions are exited after four bars, and the code specifies a fixed stop.
• The author reports demo observation but provides no performance results or validation.

Tags

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