Volume-Confirmed Candle Strategy with Trend and Session Filters
Summary
This strategy for a gold futures contract combines candle structure, relative volume, a moving-average trend filter, and time-of-day restrictions. A long setup requires a bullish candle that encompasses the prior bar’s range, closes above the prior open, and accompanies volume greater than the prior bar’s volume by the configured threshold. The short setup applies corresponding bearish conditions. Trades are permitted only in selected Asia and New York sessions, with a cooldown intended to limit repeated entries.
The script enters a fixed quantity and places separate exits for two profit targets, each sharing a tick-based stop. The excerpt also defines state for trade tracking and alerts. It does not include completed performance results, a backtest report, or enough of the source to assess all position-management behavior. The stated settings and rules describe an implementation, not proof that the strategy performs well; execution costs, contract characteristics, and the selected sessions may affect results.
Key ideas
- Long and short entries require an engulfing-style candle pattern and a volume increase over the previous bar.
- An EMA trend filter aligns long trades with prices above the average and short trades with prices below it.
- The strategy restricts entries to selected Asia and New York periods and applies a cooldown.
- Each position is split across two profit targets with a shared tick-based stop.
- The excerpt offers no reported backtest performance or complete evidence of effectiveness.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.