Trading Breakouts of the Previous Period’s High and Low
Summary
VR Breakdown Level is a breakout strategy that records the high and low of a prior period, with the period length chosen in the trading robot’s settings. At the beginning of each new period, it saves those levels. If price crosses the prior high, it opens a long position; if price reaches the prior low, it opens a position in that direction. Position volume, stop loss, and take profit are user-configurable, and positions remain open until one of the exit levels is hit.
The description compares this approach with using buy-stop and sell-stop orders. Pending orders require canceling the opposing order after one side triggers, while monitoring levels internally avoids revealing intended entry prices to the broker through those orders. No backtest results, market assumptions, or guidance on false breakouts and position risk are provided, so the rules alone do not establish profitability.
Key ideas
- The robot tracks the previous period’s high and low, using a period selected in its settings.
- A move through either recorded boundary triggers a position in that direction.
- Users set position volume, stop loss, and take profit, and those exits close positions.
- Pending orders require timely cancellation of the opposing order after an entry triggers.
- Internal level monitoring does not expose intended entry prices through pending orders.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.