Pivot Trendline Breakouts with HMA, RSI, and ATR Risk Controls

Summary

This strategy seeks breakouts from short-term trendlines built from recent pivot highs and lows. It projects resistance from the two latest highs and support from the two latest lows, then enters long when price crosses above resistance or short when it crosses below support. A 20-period Hull moving average filters trades by directional bias, while RSI blocks entries at specified overextension levels.

For risk controls, the strategy places a stop 1.5 times the 14-period ATR from the entry price and sets a profit target at twice the stop distance. The description recommends a four-hour chart and mentions major foreign exchange pairs and gold as possible markets. The document provides rules and code but no backtest results or comparative evidence for its claimed potential. Its stated default order size is a percentage of equity, which should not be confused with the separate suggested risk allocation; results may also depend on data quality, spreads, slippage, and implementation details.

Key ideas

• Recent pivot highs and lows define projected resistance and support trendlines.
• A close crossing a trendline triggers an entry only when price agrees with the Hull moving average filter.
• RSI thresholds filter out entries considered overextended.
• Stops use an ATR multiple, and targets use a fixed reward-to-risk multiple.
• The document describes a setup but supplies no performance evidence.

Tags

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