Impulse, Compression, and Breakout Confirmation Futures Strategy

Summary

The available script describes a breakout system built around a sequence of an unusually large directional bar, a tight range of small candles, and a close beyond that range. A breakout must meet a minimum candle-body fraction, then the following bar must confirm the direction with its own up or down close. Longs also require price above both a slow EMA and VWAP; shorts require price below both. Entries use a fixed quantity, with optional stop loss and staged profit targets for multiple contracts, plus a trailing stop for the remaining position.

The inputs set an ATR length, impulse threshold, compression width, minimum stall duration, and breakout body threshold. Risk settings are expressed in NQ points, and the stop is disabled by default. The supplied text ends partway through the exit code, so the complete runner management and any additional safeguards cannot be assessed. It shows no backtest settings, performance report, or evidence that the thresholds work across sessions or market conditions. The entry logic is therefore a rule description to investigate, not evidence of trading performance.

Key ideas

• The setup looks for a strong directional bar followed by a compact candle range.
• A close beyond the compression range must pass a minimum candle-body filter.
• The next bar must confirm direction, and EMA and VWAP conditions filter entries.
• The script uses fixed contract quantity and configurable staged targets, trailing stop, and optional stop loss.
• The excerpt is truncated before the complete exit logic and supplies no performance evidence.

Tags

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