EUR/USD Fractal Breakout Strategy with Trailing and Donchian Stops
Summary
The document describes a two-sided intraday strategy that enters when price crosses levels derived from Bill Williams fractals. Its example is configured for EUR/USD on a one-hour chart, with trading limited to a stated daily time window. The strategy also outlines parameters for experimentation, including the fractal lookback, separate long and short trailing distances, a Donchian stop, and a profit target.
Position exits combine a trailing stop that follows favorable price movement with a stop based on the prior Donchian-channel boundary. The document provides sample platform code and parameter ranges, but no reported backtest results, performance statistics, or comparison against alternatives. It says the approach may generalize across markets and timeframes, but supplies no evidence for that broader claim. The example's settings and results should therefore be treated as a starting point for testing, with costs and implementation details checked for each instrument and timeframe.
Key ideas
- Entries are triggered when price crosses above a stored fractal high or below a stored fractal low.
- The example is configured for EUR/USD on a one-hour chart and restricts entries to a specified time window.
- A trailing stop tracks favorable price movement separately for long and short positions.
- A Donchian-channel boundary supplies an additional stop level, alongside a fixed profit target.
- The document gives tunable parameter ranges but reports no evidence of profitability or robustness.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.