Breakout-Retest Entries with Initial and Trailing Stops

Summary

This strategy description presents a breakout and retest approach using historical pivot levels as support and resistance. It looks for price to move above resistance or below support, then waits for a return to the broken level as confirmation before taking a long or short position. Users can choose to trade long only, short only, or both directions.

Positions use an initial stop set as a percentage of entry price. Once a trade reaches a specified profit threshold, a trailing stop follows the highest price for longs or the lowest price for shorts, with the stated aim of retaining some open profit after a reversal. The document describes the setup and intended exit logic but gives no quantitative test results, parameter values, or comparison against entering on the breakout alone. Retests may fail, and the effectiveness of pivot lookbacks, thresholds, and stop settings will depend on market and timeframe; the description alone does not establish an edge.

Key ideas

• Pivot levels from historical prices define the support and resistance reference points.
• A trade requires a break of a level followed by a valid retest.
• The strategy allows long-only, short-only, or two-way trading.
• An initial percentage stop is paired with a profit-triggered trailing stop.
• The document provides no performance evidence or parameter validation.

Tags

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