ATR-Scaled Zigzag Breakouts with Stop-Loss and Reward Targets

Summary

This strategy uses an ATR-scaled Zigzag structure to identify candidate breakout levels. It sets the structural threshold as ATR multiplied by a configurable factor, then places stop-market entries at the most recent Zigzag high or low when the structure direction and trading-window conditions permit. Opposite-side pending orders are canceled when the Zigzag direction changes.

For each entry, the strategy places a stop-loss at a configurable ATR distance and a take-profit at a specified multiple of that distance. It limits pyramiding and can restrict trading to a session window. The excerpt describes inputs and order logic, but provides no market, backtest results, or discussion of realized performance. It relies on a Zigzag library whose calculation details are not included here, and the supplied text ends during the visualization section, limiting what can be inferred about additional rules or displays.

Key ideas

• The breakout threshold is based on ATR multiplied by a configurable factor.
• Long and short stop entries are placed at recent Zigzag swing levels when direction and session conditions allow.
• The strategy cancels pending orders on the opposing side when Zigzag direction changes.
• Stops and profit targets are set using ATR distance and a configurable reward multiple.
• The excerpt gives no performance results and omits the imported Zigzag library’s internal details.

Tags

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