Darvas Box Breakouts for Long Entries with Stop and Target Levels

Summary

This Darvas Box variation seeks long entries when price crosses above a recent resistance boundary. The explanation describes a box built from recent highs and lows, with a stop near the lower boundary and a profit target set at five times the stop distance. It is presented as a way to pursue breakouts selectively during bull markets, although the supplied entry rule itself does not include a separate bull-market filter.

The document provides a five-bar box parameter and published BTC/USDT futures settings for a one-month period, but no performance evidence. There are inconsistencies between the narrative and code: the source uses a multi-step Darvas-style box calculation, and its target is calculated as five times the stop price rather than five times the risk distance. The source also sets no independent exit signal, so exposure may continue until a stop or target is reached. False breakouts, pullbacks, prolonged holding, and market-specific parameter choices are noted as concerns.

Key ideas

• A close crossing above the Darvas Box top triggers a long entry.
• The description places a stop near the box bottom and defines the target as a multiple of the stop distance.
• The source code does not implement a separate bull-market filter or independent exit signal.
• The source target calculation differs from the narrative’s stated risk-multiple method.
• The short published BTC/USDT futures test has no reported performance results.

Tags

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