Breakouts With Timefilter Strategy

The Breakouts With Timefilter Strategy indicator captures breakout opportunities using pivot high/low levels while providing a comprehensive suite of risk management tools and session-based filtering. It aims to identify momentum shifts by detecting price closes above or below established pivot points, confirming entries with an optional moving average filter.

Usage

The indicator triggers a long entry when the price closes above a recent pivot high and a short entry when the price closes below a recent pivot low. Users can leverage the following features for strategy execution:

• Session Filtering: Use the time filter to restrict trading to specific hours (e.g., London or New York sessions). The chart background can be shaded to highlight these active windows.
• Trend Confirmation: Enable the MA Filter to ensure long trades only occur when price is above a chosen moving average and short trades occur when price is below.
• Visual Cues: Breakout levels are plotted on the chart, and users can toggle the "Show Last Breakout" setting to keep the interface clean by only displaying the most recent signal.

Details

The strategy calculates pivot highs and lows based on a user-defined length. Unlike static breakouts, this tool tracks the three most recent pivots to ensure relevant levels are monitored.

Position sizing is dynamic, calculating the quantity based on the "Risk %" of total equity and the distance to the stop-loss. This ensures consistent risk exposure regardless of market volatility. The stop-loss itself can be derived from three distinct methodologies: ATR-based volatility, recent candle extremes (highs/lows), or a fixed point distance.

Settings

Inputs

• Length: The number of bars used to detect pivot highs and lows.
• Show Last Breakout: If enabled, only the most recent breakout line is displayed.

Risk Management

• Risk %: Percentage of total equity to risk per trade.
• Risk:Reward: The multiplier used to set the take-profit level relative to the stop-loss distance.
• Stop Loss Type: Selection between ATR, Candle-based, or fixed points.
• ATR Settings: Includes length, smoothing method (RMA, SMA, EMA, WMA), and multiplier for volatility-based stops.

Filters

• Time Filter: Define a start and end time (24h format) for active trading.
• MA Filter: Toggle and select the type (SMA, EMA, WMA, VWMA, HMA) and length of the trend filter.

FAQ

How do I use the Candle-based stop loss?

Set the "Stop Loss Type" to "Candle" and adjust the "Candle Length". A length of 0 uses the current candle's extreme, while higher values look further back into previous candle highs/lows.

What does the MA Filter do?

The Moving Average Filter acts as a trend filter. When enabled, long breakouts are only valid if the price is above the MA, and short breakouts are only valid if the price is below the MA.

How can I access this strategy?

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