Session-HMA Donchian Breakout System

Family: breakout · Regime: trending · Complexity: medium · Asset classes: FX (Majors), Indices (DAX, SPX), Gold · Timeframes: 15m, 1H

Thesis

Breakouts from established price ranges (Donchian Channels) during peak liquidity sessions (London/NY) are more likely to represent genuine institutional flow rather than noise, especially when confirmed by a low-lag trend filter (HMA). Price momentum exhaustion (MACD) serves as an objective exit signal to capture short-term volatility expansions.

Components

• Unsupported array.sort Order Test (regime) — Acts as a 'System Heartbeat' check; if the environment cannot process the array logic (returning V0 = 1), the strategy assumes data integrity issues and remains sidelined.
• Hull Moving Average (HMA) (direction) — Determines the immediate trend bias with minimal lag, ensuring breakouts are taken in the direction of the local momentum.
• Donchian Channels (entry) — Identifies the range boundaries for breakout entries, signifying a shift from consolidation to expansion.
• GoldenChart MACD (exit) — The histogram reversal provides an early exit signal before the HMA or Donchian Channel can react to a trend exhaustion.
• Price Line and Visible Range High-Low (risk) — Uses the 'Visible Range' Highs and Lows to define dynamic stop-loss levels based on what is currently on the trader's screen.
• Market Sessions (DarthBuddha) (volatility_filter) — Restricts trading to the London and New York overlaps to ensure sufficient liquidity and volatility for breakout success.

Known failure conditions

• Price remains range-bound within Donchian Channels for more than 50 bars during active sessions.
• The Visible Range High/Low narrows to within 1.5x the average spread.
• MACD Histogram flips frequently (whipsaw) while price is above/below the HMA.

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