Three-Channel Breakout Trading with Static, Bollinger, and ATR Bands

Summary

This cryptocurrency perpetual-futures strategy offers three ways to set support and resistance boundaries: prior-bar highs and lows, Bollinger-style bands around the mean close, or an ATR-based channel. It evaluates only completed candles and excludes the signal candle from the channel calculation. A close above resistance opens a long; a close below support opens a short. Positions exit when a completed candle returns inside the entry boundary or when a fixed stop based on average entry price is reached. The described implementation manages one directional position and records state across restarts.

The document reports syntax checks and offline checks of channel calculations and chart elements, plus an earlier backtest chart. It explicitly says the latest label layout needs another backtest check and that no complete small-size live trade cycle has been verified on a specified exchange. Exchange order handling, partial fills, contract sizing, and error recovery remain untested. False breakouts in ranging markets and the amplified risks of leverage are also noted.

Key ideas

• The strategy can use static price ranges, standard-deviation bands, or ATR bands to define breakout boundaries.
• Signals use completed candles, with the breakout candle excluded from boundary calculations.
• A close outside the channel opens a position, while a return across the recorded boundary or a fixed stop closes it.
• The implementation stores position state and avoids taking over untracked positions found at startup.
• Backtest and offline checks do not establish live execution reliability or performance.

Tags

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