Inside-Bar Breakouts Filtered by a 50-Period EMA and ADX
Summary
This strategy combines inside-bar breakouts with an exponential moving average direction filter. An inside bar is defined by a high below the prior bar’s high and a low above its low. After a qualifying bullish or bearish inside bar appears within the configured lookback, the strategy enters when the selected price source crosses the relevant inside-bar boundary, provided price is above the EMA for longs or below it for shorts. An optional ADX threshold can further screen entries.
The script includes directional controls, date limits, leverage-based sizing, a percentage stop, and staged profit exits, along with alerts and a performance dashboard. These are implementation features rather than reported findings: the document supplies no backtest results or evidence of profitability. The description mentions a four-hour timeframe, but the strategy logic can be applied to chart data and requires testing across instruments, timeframes, and realistic trading costs.
Key ideas
- An inside bar has a lower high and higher low than the preceding bar.
- Long entries follow a qualifying bullish inside bar when price breaks its high and is above the EMA.
- Short entries follow a qualifying bearish inside bar when price breaks its low and is below the EMA.
- An optional ADX filter, date range, and trade-direction setting control which signals can be taken.
- Percentage stops and multiple profit targets manage exits, but no performance results are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.