Scored Volatility Breakout Entries for High-Beta Equities
Summary
This long-only strategy scores potential squeeze setups using relative volume, the latest close-to-close price change, alignment between short and medium exponential moving averages, price relative to the short average, Bollinger Band width, and five-day momentum. A trade is opened when price is above the short average, RSI remains below a ceiling, and the combined score reaches a minimum threshold. The examples identify high-beta equities as intended instruments.
Open positions use a percentage-based trailing exit, with an additional close condition when price falls below the short average and five-day momentum turns sufficiently negative. The script shows signal and indicator values in chart annotations and a dashboard. The supplied document contains no backtest results or evidence of profitability; its thresholds, sizing assumptions, and trailing behavior require independent testing across instruments and market conditions.
Key ideas
- A weighted score combines volume, price change, moving-average alignment, band compression, and momentum.
- Long entries require price above the short average, RSI below a ceiling, and a sufficient score.
- A trailing exit and a negative-momentum fade condition manage open positions.
- The document describes intended use on volatile equities but provides no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.