Gaussian/Stoch-RSI Breakout Strategy

🧠 Overview
The Gaussian/Stoch-RSI Breakout Strategy is a trend-following breakout strategy that combines a Gaussian Moving Average Channel with a Stochastic RSI filter. It identifies bullish breakouts when price exceeds statistically significant volatility bands and momentum confirms the move.

This strategy is best suited for trend initiation points and works across various asset classes (e.g., Forex, indices, crypto) and timeframes.

⚙️ Strategy Logic
🎯 Entry Conditions (Long Only)
A long position is triggered when both of the following conditions are met:

• The closing price crosses above the upper Gaussian channel.
  
• The Stoch RSI K line crosses above the D line (indicating bullish momentum).
  

❌ Exit Conditions
The long position is closed when:
The closing price falls back below the upper Gaussian channel.

🧮 Indicators & Calculations
📈 Gaussian Moving Average Channel

• A Gaussian-weighted moving average is used to smooth price.
  
• Standard deviation is computed using Gaussian weights to construct a volatility-based channel.
  

The channel is defined by:

• Midline: Gaussian-weighted moving average
  
• Upper Band: Midline + (Standard Deviation × Multiplier)
  
• Lower Band: Midline − (Standard Deviation × Multiplier)
  

🔁 Stochastic RSI

• Combines RSI with a Stochastic calculation to identify momentum shifts.
  
• Used as a filter to confirm the strength of a breakout.
  

The following plots are displayed on the chart:

• Gaussian Midline – Red line: core trend anchor
  
• Upper & Lower Bands – Blue lines: breakout thresholds
  
• Stochastic RSI is not plotted by default but used internally
  

🛠️ Notes & Best Practices

• Timeframe: Strategy can be used on intraday or higher timeframes. For reduced noise, consider using it on 1H or higher.
  
• No Short Trades: This version is long-only.
  
• No Stop Loss / Take Profit: The strategy relies on a trailing exit via the Gaussian channel.
  

📌 Disclaimer
This strategy is intended for educational and research purposes only. Past performance does not guarantee future results. Always test strategies in a simulated environment before deploying them on a live account. This is not financial advice.