Gold Breakouts Filtered by Daily Trend and Candle Range
Summary
This strategy seeks long or short breakouts from a rolling price range, with direction gated by the daily close relative to its 50-period exponential moving average. A bullish signal requires a close above the prior bar’s rolling high, an up candle, and a candle range greater than a fraction of the recent range span. The short setup mirrors those conditions below the rolling low. The script places a stop at the opposite boundary of the rolling range and sets a profit target using a configurable reward-to-risk multiple.
The source shows adjustable range length and reward-to-risk settings, equity-based position sizing, and plotted range boundaries and signals. The accompanying description reports a claimed profit factor, but supplies no test period, instrument details, trade count, or full results with which to assess it. The daily filter’s higher-timeframe data handling and the changing stop and target levels also merit scrutiny in a separate backtest. The document presents a compact rule set, not evidence of robustness across markets or settings.
Key ideas
- The strategy uses rolling highs and lows as breakout boundaries.
- A daily close above or below its 50-period EMA determines the permitted breakout direction.
- A breakout candle must close in the breakout direction and exceed a threshold based on recent range size.
- Stops use the opposing rolling boundary, while targets scale the stop distance by a reward-to-risk setting.
- The stated performance claim lacks enough test details to evaluate its reliability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.