Qullamaggie Breakouts with Trend Filters and Moving Average Exits

Summary

This strategy enters long when price breaks above a recent pivot high, using a smaller chart timeframe for entries and moving averages calculated on a selectable higher timeframe for trend context. A slow moving average can filter out signals when the breakout level is below it. The initial stop is based on recent lows, with a lookback setting that can make it tighter than a pivot-low stop.

Positions can exit at the initial stop or after price closes below a selected higher-timeframe moving average. An optional filter compares the breakout-to-stop distance with a percentage of daily ATR to favor more compact setups. The document describes the intended mechanics but supplies no performance results. It also notes that entries near the moving averages can produce whipsaws, and the ATR and trend filters are optional parameters rather than evidence of an advantage.

Key ideas

• The strategy buys a break above a recent swing high when trend filters permit it.
• A selectable higher-timeframe moving average can filter entries and guide exits.
• The initial stop uses recent lows, with a configurable lookback for stop placement.
• An optional daily ATR filter screens setups by the distance between breakout and stop.
• The author notes that trades entered near the moving averages may be vulnerable to whipsaws.

Tags

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