Swing-High Breakouts Filtered by Higher-Timeframe Trend

Summary

This long-only breakout strategy enters when price breaks above a recent pivot high and places its protective stop at the latest pivot low. As new swing lows form, the stop can rise, allowing a position to remain open while the trend structure holds. Pivot highs and lows are calculated on the chart timeframe and on two configurable higher timeframes. The higher-timeframe structure can filter entries, with options to use one timeframe, both, or neither. The script also plots support and resistance levels and a table showing trend direction, and lets users select a backtest date range.

The author compares this structure-based filter with a moving-average filter and reports a qualitative trade-off: it generally took fewer trades and had higher win rates and profit factors, but lower net profit. No specific test period, market, or numerical performance figures are provided in the description, so the comparison cannot establish robustness. The supplied strategy enters long only; the short-side behavior discussed in the script’s comments is not implemented in its shown entry and exit rules.

Key ideas

• The strategy enters long when price breaks above a recent pivot high.
• The latest pivot low acts as a stop and can trail upward as higher lows form.
• Higher-timeframe pivot structure can filter trades using one or two timeframes.
• The author reports fewer trades and higher win rates and profit factors, alongside lower net profit, than a moving-average version.
• The document provides no numerical results or details sufficient to establish robustness.

Tags

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