Momentum Breakout Strategy with Profit and Loss Thresholds

Summary

This strategy uses price momentum over a configurable lookback to place stop entries above the current bar’s high for long trades or below its low for short trades. It requires both the lookback momentum and its one-bar change to point in the same direction, so entries follow sustained directional movement. Pending entries are canceled when those conditions no longer hold.

Open positions are closed when unrealized profit exceeds a configurable target or falls below a maximum-loss threshold. The script describes itself as a general-purpose long and short system, but it supplies no backtest results, asset-specific guidance, or evidence that the thresholds improve performance. Results may depend on instrument, timeframe, execution assumptions, and parameter choices; the stated performance caveat also applies.

Key ideas

• Long and short entries require lookback momentum and its one-bar change to share a direction.
• Entries use stop orders just beyond the current bar’s high or low.
• Pending orders are canceled when the corresponding momentum conditions fail.
• Profit and maximum-loss thresholds use the strategy’s open profit to trigger exits.
• The document provides no performance evidence or tested market context.

Tags

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