Doji Breakout Entries with Volume Filtering and Risk-Based Sizing

Summary

This swing strategy treats a small-body candle relative to its high-low range as a doji setup. It places opposing stop orders around the doji or, under a condition involving the prior candle, uses the prior bar’s extremes to define entry levels. The first triggered order cancels the other. A volume option requires current volume to exceed its moving average, and the description recommends higher chart timeframes to reduce noise in doji identification.

The script supports fixed stop-loss and take-profit distances, or exits tied to a close beyond the doji’s low or high while retaining a profit target. Position size is calculated from account balance and a user risk fraction, then rounded to contract increments with a minimum size. These rules are configurable, but the document supplies no performance results. The sizing formula’s conversion from price risk to contracts depends on instrument units, and the code’s behavior should be checked for the market and platform settings being used.

Key ideas

• A doji is identified by comparing candle body size with its full high-low range.
• The setup places stop entries above and below selected candle levels, with one entry canceling the other.
• A volume moving-average filter can require stronger activity before orders are placed.
• Trade size is derived from balance and a risk input, then rounded with a minimum size.
• The author favors larger timeframes, but the document gives no backtest evidence of an edge.

Tags

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