Breakthrough Tracking Strategy

Author: ChaoZhang, Date: 2024-01-05 12:00:25
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Overview

This strategy is designed for 5-minute K-lines of bank indices and indices to track breakthroughs. It can generate signals when breakthroughs occur for buy or sell operations.

Strategy Principle

This strategy calculates the highest and lowest price indicators to judge if the price breaks through the highest and lowest price range. If the price breaks through this range, it will generate buy or sell signals. To filter out some noise, it also uses auxiliary indicators for confirmation.

Advantage Analysis:

  1. This strategy responds quickly and can enter the market immediately when a breakthrough occurs.
  2. By double filtering through the high and low price range and auxiliary indicators, some false breakthroughs can be avoided.
  3. This strategy has no lagging as it has non-repetitive indicators.

Risk Analysis:

  1. If there is a huge swing in the market, this strategy may generate reverse signals, leading to losses.
  2. Simple breakthrough strategies are easy to fall into traps and need to be wary of breakthrough failures.

Optimization Directions:

  1. Trend indicators can be combined to avoid reverse operations.
  2. A stop-loss mechanism can be added to control single losses.

Summary

This strategy looks for trading opportunities by judging whether prices break through the high and low price range. It responds quickly and avoids lagging but also faces risks such as breakthrough failures and traps. Through optimization, this strategy can achieve better performance in trending markets.


/*backtest
start: 2023-12-01 00:00:00
end: 2023-12-31 23:59:59
period: 1h
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

//@version=4
strategy(title="MARKET DYNAMICS HH LL BREAKOUT", shorttitle="BREAKOUT STRATEGY", overlay=true)

////


//Higher High or Lower Low Entry Inputs
price = input(close)
LookBack = input(26)
Highest = highest(LookBack)
Lowest = lowest(LookBack)

long = price > Highest[1] 
short = price < Lowest[1]




//Safety Confirmation Inputs - Helps to thin out false breakouts or break downs
length = input(10)
High_Guard = highest(length)
Low_Guard = lowest(length)
length2 = input(1)

long1 = long == 1 and Highest[1] > High_Guard[length2]
short1 = short == 1 and Lowest[1] < Low_Guard[length2]


strategy.entry("Long", strategy.long, when=long1)
strategy.entry("Short", strategy.short, when=short1)


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