Qullamaggie Breakout V2

The Qullamaggie Breakout V2 indicator is a comprehensive trading tool that identifies breakout entries using swing highs/lows and manages exits through a multi-stage trailing stop mechanism. It combines trend-following entry logic with a dynamic stop-loss strategy that adapts as a trade moves into profit, allowing winners to run while protecting capital.

Usage

The script is designed for traders who favor momentum and trend-following strategies. It operates using two primary phases:

• Entry Phase: Users set buy stop orders at the recent swing high (marked by the blue horizontal line). The script calculates the distance to the recent swing low (orange line) to ensure the risk-reward profile is favorable.
• Initial Stop Phase: Once a position is opened, the initial sell stop is placed at the recent swing low. The script will automatically move this stop up as new swing lows are formed until the position reaches a profit threshold.
• Trailing Stop Phase: After reaching profit, the script transitions to a moving average trailing stop. When price crosses the user-selected moving average (e.g., 10 MA or 20 MA), the stop is moved to the low of that specific candle (marked by the blue stop line).

Details

This tool is an optimization of the original Qullamaggie Breakout methodology. It introduces tighter risk management by incorporating ADR (Average Daily Range) filtering to avoid entering trades that are already overextended. By utilizing higher timeframe moving averages on lower timeframe charts, it provides a "bridge" between long-term trends and short-term execution. The script supports stop-order based execution, making it suitable for part-time traders who cannot monitor charts continuously.

Settings

Backtest and Visuals

• Backtest Range: Sets the start and end dates for historical performance tracking.
• Show Historical Pivot Points: Toggles the visibility of the swing highs and lows used for historical calculations.

Moving Averages

• Timeframe of Moving Averages: Defines the period (e.g., Daily) for the trend filters and trailing stops.
• MA Type/Length: Customize the type (SMA/EMA) and lengths for the three integrated moving averages.
• Use 3rd Moving Average for Filtering: When enabled, ignores buy signals if the price is below the slowest MA (default 50).

Stops

• Trailing Stop: Select which moving average (1st or 2nd) acts as the profit-taking trigger.
• Trailing Stop Timeframe: Choose whether the exit candle low is based on the chart timeframe or the higher MA timeframe.

ADR Filtering

• Use ADR for Filtering: Enables a volatility filter to ensure entries occur during consolidation.
• % of ADR Value: Sets the threshold for how "tight" a setup must be relative to its daily volatility.

FAQ

How do I access Qullamaggie Breakout V2?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Can I use this on intraday timeframes?

Yes, the script is designed to find entries on intraday charts while using higher timeframe (like Daily) moving averages to manage the overall trend.

What do the blue and orange lines represent?

The orange lines represent the initial support and stop levels based on swing lows, while the blue lines represent the breakout entry levels and the subsequent moving average trailing stop levels.