Multi-Timeframe Breakout Entries with 1:3 Risk-Reward Targets

Summary

This breakout setup uses the previous completed 15-minute candle's high and low as reference levels and a faster two-minute close to time entries. A close above the high triggers a long with a stop at the reference low; a close below the low triggers a short with a stop at the reference high. The profit target is set at three times the entry-to-stop distance, producing a stated 1:3 risk-to-reward ratio, with position size specified as 10% of equity.

The document reports an approximate 30% win rate as a general claim, but supplies no trade count, equity curve, or other supporting performance evidence. Its published backtest configuration is for ETH/USDT futures across roughly two days using fifteen-minute bars, and does not demonstrate the described two-minute execution. The approach is exposed to false breakouts, slippage, and frequent trading costs; realized risk and reward can differ from planned levels. Trend filters, trade limits, and volatility-aware parameters are suggested as possible refinements.

Key ideas

• The strategy takes entries when a faster-timeframe close breaks the prior completed 15-minute high or low.
• Stops are placed at the opposite extreme of that reference candle.
• Targets are set at three times the initial risk distance.
• The document states an approximate 30% win rate but provides no supporting performance detail.
• The published backtest timeframe differs from the described faster entry timeframe.

Tags

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