Swing-High and Swing-Low Breakouts with Percentage Exits

Summary

This breakout method tracks swing highs and lows over a configurable lookback window, with a stated default of 20 bars. A close crossing above the swing high generates a long entry, while a close crossing below the swing low generates a short entry. The document describes a percentage-based stop level and suggests tuning the lookback, timeframe, and filters such as volume or volatility to change signal frequency and quality. It also discusses adding trailing exits and other risk controls.

A BTC futures backtest period and settings are supplied, but no returns, drawdown, or other test findings are reported. There is a notable mismatch between the explanation and the source: the code calculates exit limit prices from the current close and labels them as stop targets, which may not behave like protective stops or fixed profit targets. The displayed entry logic also uses crossovers rather than simply checking whether the close is beyond a swing level. The method should be validated as implemented, including its exits and execution assumptions, before its results can be interpreted.

Key ideas

• The strategy identifies swing highs and lows using a configurable lookback window.
• A close crossing above a swing high opens a long, and a cross below a swing low opens a short.
• The lookback controls how sensitive the system is to breakouts and can affect trade frequency.
• The document suggests filters and trailing exits as possible extensions.
• The supplied backtest settings include no performance results, and the code’s exit logic merits verification.

Tags

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