SuperSmoother Session Breakout

Family: breakout · Regime: trending · Complexity: medium · Asset classes: FX, Equity Indices, Liquid Commodities · Timeframes: M15, H1

Thesis

This strategy hypothesizes that market breakouts are most likely to sustain when they occur during high-liquidity session overlaps (EU/NY) and are confirmed by low-lag trend filters. By using the SuperSmoother Filter to eliminate high-frequency noise and the Donchian Channels to define structural boundaries, the system aims to capture the 'meat' of an intraday trend while exiting at momentum extremes (RSI).

Components

• Ehlers SuperSmoother Filter (regime) — Functions as the primary regime filter to ensure trades are only taken in the direction of the low-lag trend.
• MACD & OSMA Cloud Hybrid (direction) — Determines trade direction based on momentum alignment (OsMA color) within the MACD cloud.
• Donchian Channels (DC) (entry) — Defines entry triggers based on breakouts of local highs/lows (market structure exhaustion or expansion).
• RSI Area (Histogram) (exit) — Used for momentum-based exits before a full trend reversal occurs.
• Average True Range (ATR) (risk) — Calculates dynamic stop-loss and position size based on current volatility levels.
• Momentum Oscillator (confirmation) — Confirms that the price expansion has sufficient velocity to justify the breakout.
• ATLS: Session Atlas (volatility_filter) — Filters out low-liquidity periods (Asian session) and identifies high-volatility overlaps (EU/NY).

Known failure conditions

• Prolonged sideways consolidation where the Donchian Channels narrow and produce multiple whipsaws.
• Price action that violates the SuperSmoother trend line immediately after a breakout.
• High slippage during news events that invalidates the ATR-based risk-to-reward ratio.

Explore the full interactive blueprint, parameter ranges and evidence on WOBR StrategyVerse, or generate this strategy as an MT4/MT5 Expert Advisor with QuantMogul AI Engine.