Higher-High and Lower-Low Breakout Strategy with Safety Filters

Summary

This strategy enters long when price rises above the highest level from a configurable lookback period, and enters short when price falls below the corresponding lowest level. The default lookback is 41 bars. A second check compares those prior extremes with shorter-term high and low guards, intended to screen some potential false breakouts before an order is placed.

The document describes the rule and includes source code, but supplies no measured backtest results, market-by-market evaluation, or evidence that the guard improves outcomes. The author recommends using other indicators to help choose entries and exits and cautions that Heiken Ashi bars can distort backtests because their values are averaged. Settings and chart timeframe affect behavior, and the script itself provides no explicit stop-loss, profit target, or position-sizing method. Its breakout signals should be treated as a basic entry framework requiring independent testing and risk controls.

Key ideas

• Long entries trigger when price exceeds the prior lookback high, subject to a guard check.
• Short entries trigger when price breaks below the prior lookback low, subject to a corresponding guard.
• The lookback and guard lengths are configurable.
• The author cautions that averaged Heiken Ashi bars can produce unrealistic backtest results.
• The document reports no performance evidence and leaves exits and risk controls unspecified.

Tags

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