Stock Breakout Momentum Strategy With Trend and Volume Filters

Summary

This stock strategy enters after a confirmed close breaks above the recent high or below the recent low, using a configurable lookback. A simple moving average filter aligns long entries with an upward trend and short entries with a downward trend; a volume filter requires activity to exceed its own moving average by a chosen multiplier. Shorting can be disabled.

Trade size is calculated from a user-set share of account equity. The script initializes stops using an ATR multiple, then updates them as trailing stops; an ATR-based profit target and a time-based exit are also configurable. The source excerpt ends before the full exit logic, so the precise order handling and interaction among exits are not fully visible. It provides implementation settings for commission and slippage but no backtest results or evidence of profitability. The method therefore describes a testable rule set, not a validated edge, and outcomes may vary with instrument, parameter choices, execution, and market regime.

Key ideas

• Entries require a confirmed close beyond the prior lookback high or low.
• Trend and relative-volume filters can qualify breakouts, and short entries are optional.
• Position quantity is based on a configurable proportion of account equity.
• ATR sets the initial and trailing stop distances, with an optional ATR profit target and time exit.
• The provided excerpt omits part of the exit logic and reports no strategy performance.

Tags

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