Prior-High and Prior-Low Breakout Entries with Fixed Exits

Summary

This simple breakout approach enters long when price moves above a prior high and short when it moves below a prior low, then uses fixed take-profit and stop-loss distances. The prose specifies comparing the current candle with the previous candle and gives settings of 50 pips for profit-taking and 100 pips for the stop. It frames the method as a way to participate in emerging trends, while acknowledging the risk of false breaks and poor performance in ranging conditions.

The published settings describe a BTC/USDT futures backtest from January 2023 to January 2024, but no performance figures are supplied. There is also an important difference between the stated rule and the source: the implementation requests the prior daily high and applies its breakout function to both high and low inputs, rather than clearly comparing each side with the prior candle's matching extreme. The exit arguments likewise warrant verification because the code appears to pass price levels where the platform may expect distances. The backtest description therefore does not establish that the prose rule was tested as intended.

Key ideas

• The described entry rule buys above the previous candle's high and sells below its low.
• The stated profit target is 50 pips and the stated stop distance is 100 pips.
• False breakouts and sideways markets are identified as key risks.
• The source uses prior daily data and may not implement the prose's previous-candle comparison as written.
• The listed backtest period has no reported results, and exit parameter semantics should be verified.

Tags

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