WMA30 / SMA60 + Valid FVG — Strategy by gilad1987
By gilad1987
Performance Metrics
- Author: gilad1987
- Symbol: BITSTAMP:BTCUSD
- Timeframe: 1 hour
- Net P&L: +55,886.00 USD (+5.59%)
- Win Rate: 41.7%
- Profit Factor: 1.524
- Max Drawdown: 13,352.00 USD (1.32%)
- Total Trades: 168
Description
Strategy DescriptionThis strategy combines:Trend confirmation using moving averagesFair Value Gap (FVG) momentum entriesFixed Risk-to-Reward executionThe goal is to enter trades only when:A new directional trend is confirmed.Market imbalance (FVG) appears in the same direction.Risk is clearly defined using the moving average crossover zone.Strategy Logic1. Trend ConfirmationThe strategy uses:WMA 30 (Weighted Moving Average)SMA 60 (Simple Moving Average)Bullish TrendA bullish setup begins when:WMA30 >SMA60 Specifically after:WMA 30 crosses above SMA 60.Bearish TrendA bearish setup begins when:WMA30 High[2] Meaning:The current candle's low is above the high of the candle two bars earlier.This creates an imbalance / liquidity gap.Bearish FVGA bearish FVG is detected when:High<Low[2] Meaning:The current candle's high is below the low from two candles ago.This creates bearish imbalance momentum.3. Entry ConditionsLong EntryA long trade is executed when:WMA 30 crosses above SMA 60.A bullish FVG appears afterward.Entry occurs at the close of the FVG candle.Short EntryA short trade is executed when:WMA 30 crosses below SMA 60.A bearish FVG appears afterward.Entry occurs at the close of the FVG candle.4. Stop Loss LogicThe stop loss is positioned at the midpoint between the moving averages during the crossover:Stop=2WMA30 +SMA60 This creates:Dynamic stop placementTrend-based invalidationStructured risk management5. Take Profit LogicThe strategy uses a fixed:2 Risk-to-Reward ratio (2R)Risk calculation:Risk=Entry−StopTake profit calculation:TP=Entry+(Risk×2)For short positions:TP=Entry−(Risk×2)Additional FeaturesValid FVG VisualizationBullish FVGs are displayed in green.Bearish FVGs are displayed in red.Filled FVG RemovalThe strategy automatically removes FVG zones once price fills the imbalance.Dynamic Trade ManagementReal position entry price is used via:strategy.position_avg_pricePrevents incorrect TP calculations caused by TradingView order execution timing.Strategy PhilosophyThis strategy attempts to combine:Trend directionMomentum imbalanceLiquidity displacementStructured risk managementThe idea is:Trade only after confirmation of directional strength.Enter only when aggressive displacement appears.Use clearly defined invalidation and reward targets.Best Market ConditionsThis strategy generally performs best in:Trending marketsStrong momentum environmentsPost-breakout continuation phasesHigh-volume sessionsIt may perform worse during:Sideways/choppy marketsLow volatilityFake breakoutsRanging conditions