A Non-Pivot ZigZag Breakout Strategy with Separate Directional Levels

Summary

This trend-following strategy derives separate long and short trigger levels from turns in smoothed price. It applies a sequence of exponential moving averages, detects changes in the direction of the final smoothed series, and uses recent lows or highs to set levels. Stop orders placed at those levels seek to enter when price breaks through them. Long and short calculations have separate length and detection settings, and the strategy can enable either direction independently.

Position sizing can use a percentage of equity or fixed lots, and the script includes a date range, a commission assumption, and an optional virtual-position filter to avoid entering in a direction the strategy already considers active. The description says it is intended mainly for four-hour charts and higher, and warns that sideways conditions and sharp V-shaped reversals can produce losses. The document gives the mechanics and configurable assumptions but no comparative backtest results, robustness analysis, or evidence that its stated non-repainting behavior holds in all settings.

Key ideas

• Smoothed price turns define recent-high and recent-low levels for long and short stop entries.
• Long and short trigger calculations have independently configurable settings.
• Orders can reverse an existing position when the opposing level is triggered.
• Position sizing supports equity-based percentages or fixed lots, with an optional virtual-position filter.
• The description warns about losses in sideways markets and sharp V-shaped reversals.

Tags

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