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