Long-Only Breakout Trading with Fixed-Cash Risk Sizing

Summary

The document describes a MetaTrader expert advisor that seeks bullish breakouts by entering at the opening of a new bar. It places the stop at the low of the breakout candle and calculates a profit target using a configurable reward-to-risk multiple. The system is intended for indices and other instruments with directional upward behavior, with NASDAQ exposure given as an example.

Position size is calculated from a chosen cash loss limit, the stop distance, and the instrument’s tick value and size, then adjusted for broker volume increments. If the calculated size is below the broker’s minimum, the trade is skipped. The document suggests optimizing a minimum stop-distance filter and reward-to-risk setting. It reports structural returns from one-minute OHLC testing, but says real-tick testing has not been done and recommends testing with broker-specific costs and contract details. No detailed performance statistics or independent validation are provided.

Key ideas

• Entries are made at a new bar after a breakout setup.
• The stop is set at the breakout candle low, while the target follows a configurable reward-to-risk multiple.
• Trade volume is sized to a fixed cash risk using tick value, tick size, and broker volume increments.
• The advisor skips trades when the required size falls below the broker minimum.
• Reported testing uses one-minute OHLC data; real-tick validation and broker-specific checks remain necessary.

Tags

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