Session Breakouts with Risk-Based Position Sizing

Summary

This strategy seeks breakouts during configurable London and US trading windows. A bullish signal occurs when a rising candle closes above the prior high; a bearish signal occurs when a falling candle closes below the prior low. After a signal, the source places stop entries at highs or lows from a three-bar lookback and calculates trade size from account equity, a chosen risk percentage, and the entry-to-stop distance. Stops are placed beyond the signal candle, while profit targets use a configurable risk-reward ratio.

The document lists BTC/USDT futures backtest settings from December 2019 to December 2024, but provides no performance metrics. It warns about false breakouts, volatility, slippage, and session liquidity, and suggests volatility or trend filters. The source and description also diverge on order handling: although automatic cancellation after a set number of bars is advertised, the order-tracking array is not populated in the provided source, so that mechanism is not evidenced there. Session timing and position sizing require validation against the traded market and execution conditions.

Key ideas

• Breakout signals are restricted to configurable London and US trading hours.
• The source defines bullish and bearish signals using candle direction and closes beyond the previous bar’s high or low.
• Position size is based on account equity, a risk percentage, and the distance to the stop.
• Stop entries use levels from a three-bar lookback, with exits set by stop loss and a configurable risk-reward ratio.
• The document reports backtest settings but no performance results, and the source does not demonstrate its advertised pending-order cancellation mechanism.

Tags

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