A 52-Week High Breakout Strategy with Wilder’s ARC Exits

Summary

This long-only stock strategy enters after price crosses above a threshold based on the prior 254 bars’ high and closing-price volatility. The entry condition adds a 3% buffer above that threshold. It sets a 15% loss stop and uses Wilder’s ARC as a trailing exit after the position has been open for more than ten bars. The code also includes an exit when price falls below a threshold set 3% under the entry reference, subject to the holding-period condition.

The author suggests applying the method to stocks with high CSI or ADXR readings and holding a portfolio, but provides no backtest results, sample, market, or parameter study to support the claim of strong performance. The ARC indicator is an external dependency, and details of its calculation are not included. The code fixes the order size in cash and does not describe portfolio sizing, transaction costs, slippage, or how signals behave across different bar frequencies. The described rules are a starting point for testing, not evidence that the strategy is profitable or robust.

Key ideas

• The entry uses a 52-week high adjusted downward by a volatility term, then requires a further price breakout.
• Wilder’s ARC supplies a trailing exit once the trade has lasted beyond the initial holding period.
• A fixed percentage loss stop and a threshold-based exit provide additional downside controls.
• The author recommends stocks with high CSI or ADXR readings but supplies no supporting performance analysis.
• The ARC indicator must be available separately, and its calculation is not explained.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.