Swing Breakout Signals with a Rolling Trailing Stop

Summary

This indicator-based system uses the highest high and lowest low over a configurable lookback to define a trailing stop level. A close above the prior bar’s range high switches the system to an upward state; a close below the prior bar’s range low switches it downward. The stop then follows the corresponding range boundary, and crossings of the close through that level generate buy or sell signals. The example uses a lookback of three bars and is configured for BTC/USDT futures on four-hour bars over a one-year period.

The source also plots the stop, colors bars according to the active direction, and submits long or short entries on signals. The document gives no performance statistics or comparison, so the settings alone do not establish profitability. It does not describe explicit position sizing, slippage, fees, or other risk controls; these would need review before interpreting a backtest or applying the method live.

Key ideas

• The system tracks recent range extremes to set a direction-dependent trailing stop.
• A close crossing above or below the stop triggers a directional entry signal.
• The lookback parameter controls how quickly the range-based stop can respond.
• The published configuration specifies a market and bar interval but reports no performance results.

Tags

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