Pitchfork Channel Breakouts with Slope Filters and Risk-Based Sizing

Summary

The strategy identifies alternating pivot highs and lows, then uses the latest three pivots to construct a median line and parallel channel boundaries. It enters long when price crosses above the upper line while the median line slopes upward, and short when price falls below the lower line while the slope is negative. The described risk plan places a stop at the median line, sets a target at an equal distance from entry, and sizes positions according to a stated share of account equity at risk.

The document gives a year-long hourly SOL futures test configuration but reports no performance metrics. Pivot confirmation requires subsequent bars, so signals depend on delayed identification of turning points. The described fixed risk fraction and one-to-one target do not establish profitability, and the text's claims about broad timeframe suitability and risk control are unsupported by comparative evidence. The strategy relies on channel geometry and stop distance, with no additional filters for false breakouts or changing volatility.

Key ideas

• Three alternating pivots define the median line and channel boundaries.
• Breakouts are traded only when the median line slope agrees with the direction.
• The strategy places stops at the median line and targets an equal price distance from entry.
• The published test setup contains no reported performance results.

Tags

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