Faytterro Bands Breakout

The Faytterro Bands Breakout indicator provides a comprehensive visual framework for identifying and analyzing trend breakouts using dynamic deviation bands and centered regression smoothing. It aims to offer traders a non-repainting method for detecting volatility-based entries while simultaneously tracking historical performance directly on the chart.

Usage

The tool is primarily used to identify trend shifts when price action breaks through the upper or lower boundaries of the calculated bands.

• Bullish Breakout: Triggered when the price crosses above the upper band. The signal remains active as long as the price stays above the midline.
• Bearish Breakout: Triggered when the price crosses below the lower band. The signal remains active as long as the price stays below the midline.
• Performance Tracking: The indicator automatically plots trade entries, exits, and profit/loss lines. It calculates the percentage return for each individual trade and displays a cumulative performance summary in a dashboard located at the top-right of the chart.
• Equity Curve: A built-in equity curve (plotted on the price scale) allows users to visualize capital growth based on a compounded return model.

Details

The indicator utilizes a custom smoothing method known as centered regression (CR) to calculate both the moving average midline and the volatility bands. This approach offers a balanced perspective on price action compared to standard simple or exponential moving averages.

Unlike traditional "repainting" centered averages, this specific implementation is designed to be fully stable on closed candles, making it suitable for real-time analysis and historical review. The breakout logic focuses on price momentum escaping the standard deviation bands, while the exit logic is determined by the price crossing back over the midline (breakout invalidation).

Settings

• Source: Determines the price data used for the calculations (e.g., HLC3, Close).
• Length: Sets the lookback period for the centered regression moving average and standard deviation calculations.
• StdDev: Adjusts the multiplier for the bands, controlling how far the upper and lower boundaries are from the midline.

FAQ

How do I interpret the dashboard on the top-right? The dashboard provides key performance metrics including Total Return (cumulative), total number of trades, Win Rate percentage, and a breakdown of Wins vs. Losses based on the indicator's signal logic.

Is this an automated strategy? No, this is a visual indicator. While it calculates performance metrics and displays trade labels, it does not use "strategy.*" commands. This allows it to remain lightweight while still providing backtest-like insights and supporting standard alerts.

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