Trading Breakouts of the Previous Period’s High and Low

Summary

This document explains a simple breakout strategy that records the high and low of a user-selected prior trading period. When price crosses above the recorded high, the robot opens a long position; when it reaches the prior low, it opens a position in the direction of that level. Position size, stop loss, and take profit are set by the user, and the strategy exits only when one of those protective or profit-taking levels is reached.

The method can be implemented with broker-side pending stop orders or by monitoring levels internally. The document notes that pending orders require timely cancellation of the opposite order after one side triggers, while internal level monitoring keeps the intended entry prices from being disclosed through those orders. It provides no market, timeframe, or parameter recommendations, and reports no backtest or live performance evidence. Outcomes therefore depend on the selected period, risk settings, and execution conditions, which the description does not evaluate.

Key ideas

• The strategy records the prior period’s high and low at the start of each new period.
• A break above the high triggers a long entry, while reaching the low triggers a trade in that direction.
• Position volume, stop loss, and take profit are configured by the user.
• Pending stop orders require cancellation of the opposite order after an entry is triggered.
• The document gives no performance evidence or guidance for choosing settings.

Tags

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