Prior-Candle Body Breakouts Filtered by Higher-Timeframe Structure
Summary
This strategy enters when a bullish candle closes above the prior bearish candle’s body, or a bearish candle closes below the prior bullish candle’s body. A market-structure filter tracks pivot highs and lows on a selectable higher timeframe and permits trades only in the direction of the most recent break of structure. The filter, session window, stop source, cash risk, contract cap, reward multiple, and daily limits are configurable.
Position size is derived from the distance between entry and a stop placed at recent candle wicks or the current candle open, subject to a maximum contract count. The strategy also applies daily profit and loss thresholds, a consecutive-loss limit, and a post-exit cooldown. The source describes these controls and a chart dashboard, but provides no performance results. Its higher-timeframe request uses lookahead enabled, which can expose future higher-timeframe values in historical calculations and make backtest signals unreliable; the daily limits and streak tracking also warrant careful validation before relying on results.
Key ideas
- Entries require a candle close beyond the previous candle’s body and in the opposite candle direction.
- A higher-timeframe pivot break sets bullish or bearish bias to filter lower-timeframe entries.
- Stop placement and position size depend on a selected stop source, cash-risk amount, and contract cap.
- Daily profit and loss limits, loss-streak controls, a session window, and a cooldown restrict trading.
- The source uses lookahead enabled for higher-timeframe data, so historical backtest behavior may be misleading.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.