MAX FUSION

Strategy Analysis: MAX FUSION – Previous Day Breakout

This strategy is a quantitative trend-following system designed to capture the volatility expansion that occurs when price breaks the previous day’s high.

1. Entry Engine (Triple Confirmation)

The algorithm does not enter on a simple price touch. It requires the fusion of three key factors to avoid false signals (fakeouts):

Institutional Breakout:
Price must close above the Previous Day High (PDH).

Volume Filter:
Entry is allowed only if volume is increasing and above its average (SMA 9), confirming participation from “smart money.”

Trend Confirmation (Donchian + SMA):
Price must be above the 20-period SMA, and the Donchian Channel must confirm an active bullish trend.

2. Intelligent Risk Management

The strategy includes a dynamic exit system designed to protect capital:

Fixed Take Profit & Stop Loss:
Clear percentage-based levels to maintain a consistent risk/reward profile.

Active Trailing Stop:
Once the trailing distance is reached, the stop moves to protect profits, allowing large trends to develop without exiting too early.

Anti-Overtrading Logic:
The code limits execution to one trade per day, preventing profit erosion during high volatility.

3. Automation-Ready Architecture (Bot Ready)

The code is built with No-Repaint logic and includes:

Webhook Alert Management:
Custom alert messages to instantly send commands to bots such as 3Commas, Cornix, or Telegram signals.

Real-Time Statistics:
An internal module automatically tracks how many trades hit Take Profit, Stop Loss, or were closed by the Trailing Stop, ensuring full transparency on performance.