R-Breaker: Combining Breakout Entries with Intraday Reversals

Summary

This article explains R-Breaker, a commodity futures strategy that uses the prior day's high, low, and close to calculate a pivot and three support and resistance levels on each side. With no position, it enters long above the upper breakout level or short below the lower one. After a position is opened, intraday price extremes and reversal thresholds can trigger closing and reversing the position, combining breakout trend entries with reversal trades.

The article gives the level formulas and a sample implementation, along with a reported backtest period and an assertion about the strategy's historical recognition. It does not provide enough performance detail here to independently assess those claims. The example is explicitly a demonstration: it is not optimized for instruments or parameters, and the author says a complete version needs stop-loss logic. Contract handling, execution assumptions, and position management would also need scrutiny before practical use.

Key ideas

• R-Breaker calculates a pivot and six surrounding levels from the previous session's high, low, and close.
• Breakout entries use the outer resistance and support levels when no position is held.
• Intraday observations and reversal levels can prompt exits and position reversals.
• The approach combines trend-following entries with reversal logic.
• The sample lacks stop-loss logic and does not establish that its results generalize across instruments or settings.

Tags

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