Solar-Bulls Range Breakout
Family: breakout · Regime: trending · Complexity: medium · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4
Thesis
Price momentum is cyclical and tends to persist when volatility expands beyond standard deviation thresholds. By using a Fisher Transform (Solar Wind) to identify the momentum cycle and a fixed-range channel to define structural risk, we can capture the meat of a trend expansion while using Heiken Ashi-smoothed exits to filter minor noise. The edge relies on the assumption that volatility breakouts accompanied by cycle alignment have a higher probability of following through than random breakouts.
Components
- Solar Wind NRP (MQL5) (regime) — Establishes the cyclical regime; entries are only permitted when the Fisher-transformed momentum aligns with the trade direction.
- Bulls Power (direction) — Acts as a momentum filter to ensure that buyers (for long) or sellers (for short) have successfully pushed price beyond the recent EMA consensus.
- Bollinger Bands (Standard) (entry) — Provides the breakout trigger; price closing outside the bands indicates a volatility expansion consistent with momentum ignition.
- Chandelier Exit (Heiken Ashi) (exit) — A sensitive trailing stop that uses smoothed Heiken Ashi prices to lock in gains during momentum bursts and exit quickly on reversals.
- Constant Range Channel (risk) — Provides a non-lagging, structural price floor/ceiling for stop-loss placement and volatility-adjusted position sizing.
- BB edge cases (volatility_filter) — Used as a volatility filter: trades are void if Bollinger Band width is near zero or data is flat, preventing entries during illiquid periods.
Known failure conditions
- Prolonged sideways 'squeeze' where price oscillates across the SMA without reaching Chandelier exit targets.
- Solar Wind NRP producing alternating signals every few bars (cycle noise).
- Market volatility consistently lower than the Constant Range Channel step size.
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