Large Candle Range Breakout Strategy with Configurable Stops
Summary
The strategy looks for a candle whose real body is larger than the recent range of candle bodies, measured over a configurable lookback. If the condition occurs while flat, it enters long on a bullish candle or short on a bearish candle. The range comparison uses the previous bar’s computed range, and a risk-to-reward setting is provided for take-profit placement.
Risk controls offer three stop choices: the prior bar’s low or high, an ATR distance, or a recent swing level. The script also specifies initial capital, slippage, and commission assumptions for strategy evaluation. The supplied excerpt ends partway through its take-profit logic, so the exact exit implementation cannot be fully assessed. It includes no performance results or evidence that the approach is profitable. The swing-low calculation shown appears to call the pivot-high function, which may make that stop option behave incorrectly.
Key ideas
- A bullish or bearish candle triggers an entry when its body exceeds the preceding bar’s recent body range.
- The strategy enters only when no position is open.
- Stop placement can use the previous bar, an ATR distance, or a recent swing level.
- A risk-to-reward input is included, but the excerpt does not show the complete take-profit logic.
- The code excerpt has no reported backtest results, and its swing-low calculation may contain an error.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.