Mechanical Breakouts Above All-Time and 52-Week Highs

Summary

This long-only strategy enters when price makes a new high relative to either a rolling all-time-high proxy or a 52-week high calculated from weekly data. Each breakout condition can be enabled independently, and the strategy enters only when it has no open position. The script detects a move above the prior level using the bar's high, while the accompanying description characterizes the idea as trading strength in uncharted territory.

For exits, the default method trails a stop below the highest price since entry by a multiple of ATR, similar to a Chandelier stop. An optional alternative closes the position when price falls below an EMA. The document includes source code but no performance results or comparative evidence for the entry and exit choices. The all-time high is only approximated by a finite rolling lookback, and the written description's reference to a close above a level differs from the code's use of the bar high; these details can affect signals and should be checked for the intended market and timeframe.

Key ideas

• The strategy can enter on breakouts above a rolling all-time-high proxy, a weekly 52-week high, or either level.
• Entries are long-only and require the strategy to have no open position.
• The default exit trails a stop below the highest price since entry by an ATR multiple.
• An EMA-based close is available as an alternative exit method.
• The rolling high only approximates a true all-time high, and the document gives no performance evidence.

Tags

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