Configurable Breakout Analysis with Combined Long and Short Tests

Summary

This indicator update analyzes breaks of recent highs and lows. Users set the number of past bars used to establish those levels and the forward period used to detect breaks and close a hypothetical trade. Separate percentage adjustments move each threshold above or below its reference high or low. The tool excludes cases where an adjusted threshold falls on the wrong side of the starting bar’s open, which can leave few or no observations if the adjustments are too large.

The analysis can report individual and combined outcomes for long and short positions triggered by high or low breaks. It provides profit-and-loss series with an optional spread deduction, counts of break events, closing-location statistics, and percentage summaries. A level-stakes option halves the stake in combined series to make them comparable with individual series. The document describes configurable historical analysis, not a proven profitable strategy: it gives no results, market-specific validation, or guidance on selecting parameters. The indicator’s conclusions depend on the chosen lookback, holding period, thresholds, spread assumption, and the quality of the underlying data.

Key ideas

• The indicator defines breakout levels from recent highs and lows over a user-selected lookback.
• Separate percentage offsets adjust the high and low breakout thresholds.
• A forward holding window sets how long breaks are evaluated before hypothetical positions are closed.
• The tool compares individual and combined long or short breakout outcomes and can deduct spread.
• Reported statistics describe historical behavior and do not establish future profitability.

Tags

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