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
This strategy combines moving average trend confirmation with the first Fair Value Gap (FVG) that appears after a trend shift.Strategy Logic1. Trend Detection Using Moving AveragesThe strategy uses:30-period Weighted Moving Average (WMA 30)60-period Simple Moving Average (SMA 60)Bullish Trend ShiftA bullish setup begins when:WMA 30 crosses above SMA 60This signals potential bullish momentum.Bearish Trend ShiftA bearish setup begins when:WMA 30 crosses below SMA 60This signals potential bearish momentum.At the moment of the crossover:A STOP label is placed at the crossover price level.This crossover level becomes the risk reference point (stop-loss area).2. First Fair Value Gap (FVG) After the CrossAfter the moving averages cross, the strategy waits for the first valid FVG only.Bullish FVGA bullish FVG is detected when:Current candle low > high from 2 candles agoThis creates an imbalance zone where price moved aggressively upward.Bearish FVGA bearish FVG is detected when:Current candle high < low from 2 candles agoThis creates a downside imbalance zone.Only the FIRST FVG after the moving average crossover is considered valid.After the first FVG is detected:A trade signal is generatedThe FVG zone is lockedAdditional FVGs are ignored until the next MA crossover3. FVG VisualizationWhen the first FVG appears:A gray box is drawn around the imbalance zoneThe box extends 30 candles into the futureThe box contains:FVG text labelA dashed midpoint lineThis helps visualize:institutional imbalancepotential retest zoneliquidity area4. Entry SignalsLong EntryTriggered on:First bullish FVG after bullish MA crossoverA green Long label appears.Short EntryTriggered on:First bearish FVG after bearish MA crossoverA red Short label appears.5. Risk Management (2R)The strategy calculates:Entry priceStop price (MA crossover level)Risk distanceThen projects a:2R TargetMeaning:Reward = 2 × RiskA TP 2R label is placed automatically at the calculated take-profit level.Strategy PhilosophyThis strategy attempts to combine:Trend confirmationMomentum shiftsSmart money imbalance zones (FVG)Structured risk managementThe core idea is:Wait for trend change →Wait for first imbalance →Trade only the first expansion moveThis helps avoid:late entriesovertradingweak continuation setupsnoisy FVGs during consolidation