Trading Breakouts from Record Recent Candle Ranges

Summary

This strategy compares each completed candle’s high-low range with the largest range among a user-defined number of preceding candles. When the new candle exceeds that reference range, it enters at the next candle’s open in the direction of the signal candle: long after an up candle and short after a down candle. If the range does not exceed the reference, the lookback reference is recalculated from the newest candles. The described settings include position size, stop loss, take profit, and lookback length. The example uses a ten-candle lookback, a 60-point stop, and a 30-point target; these are illustrative settings, not validated recommendations. The accompanying code also specifies that positions are only opened when the strategy is not already in the market, while allowing order cumulation. The source presents the system as a study framework with no instrument or timeframe-specific settings and provides no performance results. Traders would need to test parameter choices and account for execution, risk, and instrument differences.

Key ideas

• The signal compares a candle’s range with the largest range in a configurable prior-candle window.
• A range breakout triggers an entry at the next candle’s open in the signal candle’s direction.
• When no breakout occurs, the reference range is recalculated from the latest lookback window.
• Position size, stop distance, profit target, and lookback length are configurable.
• The document gives no performance evidence and cautions that settings are not tailored to a market or timeframe.

Tags

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