Three-Day Range Volatility Breakout for EUR/USD and DAX

Summary

The document describes an intraday volatility breakout approach proposed for EUR/USD and the DAX on 30-minute and hourly charts. It compares a one-period average true range with an average daily high-low range calculated over the prior three days. When volatility reaches a chosen fraction of that range, candle direction determines whether the system enters long or short. The example uses market entries, a profit target scaled to the average range, and a time-based exit after a fixed number of bars.

The author says walk-forward results are attached and reports favorable results, but the document includes no performance figures or test details to assess that claim. It also gives no transaction cost, slippage, risk sizing, or drawdown analysis. The described thresholds and exit settings are optimized parameters, so the results may depend on those choices and require independent validation. The material presents a strategy concept and implementation sketch rather than evidence that it will generalize or remain profitable.

Key ideas

• The entry trigger compares one-period average true range with a multiple of a recent average daily range.
• A bullish candle signals a long entry and a bearish candle signals a short entry when the volatility condition is met.
• The profit target scales with the recent average range, while a bar-count rule closes positions after a set holding period.
• The author mentions walk-forward testing but supplies no results or methodology details in the document.
• Costs, slippage, position sizing, and risk metrics are not discussed.

Tags

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