Momentum Alpha V2
Strategy Overview
A trend-following strategy that captures high-volatility breakouts on major pairs. It uses a combination of Donchian Channels for entry and ATR Trailing Stop for risk management. Designed to catch big moves while keeping losses small.
Logic Flow
ADX Trend Filter
Checks if ADX > 25 to ensure market is trending.
Donchian Breakout
Enter Long when price breaks 20-day High.
ATR Trailing Stop
Trailing stop set at 3x ATR from High.
Trend Reversal
Exit when price closes below 10-day Low.
Backtesting Performance
Win Rate
42.5%
Max Drawdown
18.2%
Profit Factor
1.85
Total Trades
1240
Disclaimer: Past performance does not guarantee future results. Backtest Period: 2020-2024.
Risk Management & Position Sizing
Rec. Risk %
Recommended risk per trade
Min Capital
Minimum capital required
Broker Execution & Order Handling
Strategy FAQ
Is this strategy suitable for beginners?
This strategy requires some understanding of market structure. We recommend paper trading for at least 2 weeks before live execution.
Which broker is best for this strategy?
Due to the tight stop losses, an ECN broker with raw spreads is highly recommended to minimize transaction costs.