Trend-Filtered VCP-Inspired Volatility Squeeze Breakout
Summary
The visible portion of this strategy combines a moving-average trend template with a volatility-squeeze and breakout setup. It defines a bullish trend using ordered 50-, 150-, and 200-period simple moving averages, with the slow average rising over time. A short-range compression measure is compared with its historical percentile, and a close-range threshold can also flag a squeeze. The script optionally requires breakout volume to exceed its moving average, and defines a recent-high lookback for a stop-entry trigger. Risk inputs specify a stop loss and three staged profit targets.
The supplied document ends partway through the entry logic, so the exact trigger, order management, and exit behavior cannot be fully assessed from the text. It includes parameters and assumed costs but no stated backtest results or market-specific evidence. The rules are therefore a strategy template, not evidence that the setup is profitable; the squeeze thresholds, trend filters, and risk settings would require testing for the intended market and timeframe.
Key ideas
- The trend filter requires price and moving averages to align bullishly, with the slow average rising.
- A squeeze is detected from compressed recent ranges relative to historical ranges or a close-range threshold.
- The strategy can require above-average volume and uses a recent high to define breakout entry context.
- Risk inputs include a stop loss and three profit-taking levels.
- The document is truncated during entry logic and supplies no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.