ATH and 52-Week High Breakout Strategy with ATR or EMA Exits

Summary

This long-only system enters when the closing price exceeds a prior all-time high, a prior 52-week high, or either enabled threshold. The premise is that a move into new highs can signal demand and momentum. It offers two exit choices: a stop set below the average entry price by a multiple of ATR, or a close when price falls below a selected EMA. Breakout selection and exit settings are configurable.

The document provides source logic but no backtest period, asset-specific results, or performance statistics. The ATR exit is described as volatility-adjusted, though the shown stop formula is based on average entry price and current ATR rather than a ratcheting trailing stop. The EMA option supplies a trend-based exit. The approach is designed for trend continuation and can be exposed to failed breakouts or drawdowns; its long-only rules also do not participate in falling markets. The stated rationale is conceptual rather than supported by reported empirical evidence.

Key ideas

• A long entry is triggered when price closes above an enabled prior all-time or 52-week high.
• The system can use an ATR-based stop or close a trade below a selected EMA.
• The breakout thresholds can be enabled independently, allowing either or both to drive entries.
• The strategy is long-only and targets continuation after price reaches new highs.
• No backtest results or performance evidence are included, and the described ATR stop is not shown ratcheting over time.

Tags

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