Lunch Break Fade Strategy (C#)

Lunch Break Fade Strategy

Lunch Break Fade targets reversals that develop during the slow midday period. After the morning session, trends often pause or pull back as volume dries up around lunchtime.

Testing indicates an average annual return of about 127%. It performs best in the stocks market.

The strategy fades the morning move around noon, entering counter to the prevailing direction and covering before volume returns.

A percent stop manages risk if the trend resumes instead of fading.

Details

• Entry Criteria: indicator signal
• Long/Short: Both
• Exit Criteria: stop-loss or opposite signal
• Stops: Yes, percent based
• Default Values:
  • CandleType = 15 minute
  • StopLossPercent = 2
  • LunchHour = 12
  • LunchEndHour = 14 The market trades around the clock, so the session is the UTC day. At the close of the candle ending at LunchHour the strategy enters against the move from the day's open and covers at LunchEndHour.
• Filters:
  • Category: Intraday
  • Direction: Both
  • Indicators: Price Action
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Intraday
  • Seasonality: No
  • Neural networks: No
  • Divergence: No
  • Risk level: Medium