Looking For Breakout or Trend following strategy

Take with grain of salt. This is AI response, not mine:

Here's a position trading breakout strategy that aligns with your criteria. This strategy can be implemented on either TradingView using Pine Script or TradeStation using EasyLanguage. If neither platform works for you, I’ll explain the core formula so you can adapt it as needed.

### Strategy Overview

**Strategy Type:** Breakout / Trend Following
**Criteria:**
- **Win Rate:** At least 40%
- **Reward-to-Risk Ratio:** Average winning trade is at least 2x the average losing trade
- **No Take Profit Feature:** Trades are exited based on a trailing stop or opposite signal
- **Trade Frequency:** Approximately 5-35 times a year (depends on market conditions)

### Strategy Logic

1. **Entry Condition (Breakout):**
- Enter long when the price breaks above a defined resistance level.
- Enter short when the price breaks below a defined support level.

2. **Exit Condition (Trailing Stop):**
- Use a trailing stop to manage exits, allowing profits to run without a set take profit.

3. **Indicators Used:**
- **ATR (Average True Range):** Used for dynamic stop placement.
- **Breakout Levels:** Typically based on previous highs/lows or price channels.

### Pine Script for TradingView

Here's a basic implementation of the strategy in Pine Script for TradingView:

```pinescript
//@version=5
strategy("Breakout Trend Following", overlay=true)

// Parameters
atrLength = input.int(14, title="ATR Length")
atrMultiplier = input.float(2.0, title="ATR Multiplier")
lookbackPeriod = input.int(20, title="Breakout Lookback Period")

// Calculate ATR
atrValue = ta.atr(atrLength)

// Calculate Breakout Levels
breakoutHigh = ta.highest(high, lookbackPeriod)
breakoutLow = ta.lowest(low, lookbackPeriod)

// Entry Conditions
longEntry = ta.crossover(close, breakoutHigh)
shortEntry = ta.crossunder(close, breakoutLow)

// Exit Conditions (Trailing Stop)
trailStopLong = breakoutLow - atrMultiplier * atrValue
trailStopShort = breakoutHigh + atrMultiplier * atrValue

// Execute Trades
if longEntry
strategy.entry("Long", strategy.long, stop=trailStopLong)

if shortEntry
strategy.entry("Short", strategy.short, stop=trailStopShort)
```

### EasyLanguage for TradeStation

Below is an EasyLanguage script for TradeStation that follows similar logic:

```easyLanguage
Inputs: ATRLength(14), ATRMultiplier(2), LookbackPeriod(20);

Vars: ATRValue(0), BreakoutHigh(0), BreakoutLow(0), LongStopLevel(0), ShortStopLevel(0);

// Calculate ATR
ATRValue = AvgTrueRange(ATRLength);

// Calculate Breakout Levels
BreakoutHigh = Highest(High, LookbackPeriod);
BreakoutLow = Lowest(Low, LookbackPeriod);

// Entry Conditions
If Close > BreakoutHigh Then Buy Next Bar At Market;
If Close < BreakoutLow Then SellShort Next Bar At Market;

// Trailing Stop Logic
If MarketPosition = 1 Then
LongStopLevel = BreakoutLow - ATRMultiplier * ATRValue;
Sell Next Bar At LongStopLevel Stop;

If MarketPosition = -1 Then
ShortStopLevel = BreakoutHigh + ATRMultiplier * ATRValue;
BuyToCover Next Bar At ShortStopLevel Stop;
```

### Explanation of Formula

1. **Breakout Detection:**
- The strategy identifies breakouts using a lookback period (e.g., 20 periods) to set high and low breakout levels. A trade is triggered when the price crosses these levels.

2. **Stop-Loss and Exit:**
- Stops are dynamically set using the ATR, which adjusts the stop distance based on recent market volatility, providing more flexibility during different market conditions.

3. **Trailing Stop:**
- The trailing stop moves with the price, allowing winners to run while limiting losses. This feature aligns with your requirement to have no fixed take profit, as it lets the market dictate exits.

### Entry and Exit Examples

- **Entry (Long):** The price breaks above the resistance level calculated over the last 20 bars, triggering a long position.
- **Exit (Long):** The trailing stop, calculated as the breakout low minus 2x ATR, is hit, closing the position.
- **Entry (Short):** The price breaks below the support level calculated over the last 20 bars, triggering a short position.
- **Exit (Short):** The trailing stop, calculated as the breakout high plus 2x ATR, is hit, closing the position.

### Additional Tips

- Adjust the ATR multiplier and lookback period to match desired trade frequency.
- Consider backtesting on different assets to refine parameters for optimal performance.

If you need further customization or assistance in implementing this strategy on a specific platform, let me know!
 
Daniel Hakimian said:
I'm in search of a position trading breakout or trend following strategy for either TradingView or TradeStation. If neither, I will need the formula explained. The strategy must meet the following conditions:

  • Win rate is at least 40%.
  • Average winning trade is at least 2x the average losing trade (or more).
  • No take profit feature.
  • I need examples of entries and exits.
  • Preferably trades between 5-35 times a year (This is not a full requirement)
If you have a strategy that fits these criteria, feel free to message me here, or reach out via email at danielhakimianbusiness@outlook.com or on Discord: danielhakimian. I'm willing to buy if it aligns with my requirements.
More...
Good Evening Daniel Hakimian,

@Baron Am I allowed to offer Daniel an trading system for a purchase on the ET website?

I do not want to get banned from the site for breaking any rules?

Thank you sir,
 
Last edited:
SimpleMeLike said:
Good Evening Daniel Hakimian,

@Baron Am allowed to offer Daniel an trading system for a purchase on the ET website?

I do not want to get banned from the site for breaking any rules?

Thank you sir,
More...
You’re giving up on your #1 ES master strategy ?!

That’s a joke.
I am not paid by SML to facilitate a transaction

I think Baron already warned you about selling stuffs on ET as a regular user.

IMG_1336.jpeg
 
Last edited:
Daniel Hakimian said:
I'm in search of a position trading breakout or trend following strategy for either TradingView or TradeStation. If neither, I will need the formula explained. The strategy must meet the following conditions:

  • Win rate is at least 40%.
  • Average winning trade is at least 2x the average losing trade (or more).
  • No take profit feature.
  • I need examples of entries and exits.
  • Preferably trades between 5-35 times a year (This is not a full requirement)
If you have a strategy that fits these criteria, feel free to message me here, or reach out via email at danielhakimianbusiness@outlook.com or on Discord: danielhakimian. I'm willing to buy if it aligns with my requirements.
More...
Hello Daniel Hakimian,

It is against the ET website rules to sale or request payment for trading products and services.

Talk to @Baron if you want to buy something from traders here.

No-one can offer you services unless you go through @Baron first.

Thank you,
 
SimpleMeLike said:
Hello Daniel Hakimian,

It is against the ET website rules to sale or request payment for trading products and services.

Talk to @Baron if you want to buy something from traders here.

No-one can offer you services unless you go through @Baron first.

Thank you,
More...
Maybe in Private Message IDK
 
Trend Following: An EMA in forward-reverse mode (makes a true zero lag)

Parameters:
alpha = 0.5

Long Condition:

1. price[0] < price[1]
2. Reverse MA[0] > Reverse MA[1]
3. Reverse MA[1] > Reverse MA[2]
4. Reverse MA[2] < Reverse MA[3]

Note: Reverse MA[0] is today's value, not the interpolated value one day into the future.

Sell Condition:
1. price[0] < price[1]
2. price[1] > price[2]

or

3. price[1] < price[2]
4. price[2] > price[3]

Reverse MA intialization algorithm: (ie interpolate one day into the future to provide the reverse MA with an initial value.)

if Forward[x]>Forward[x-1],1.001*Forward[x]

else if Forward[x]<Forward[x-1],0.999*Forward[x]

Note1: I do not short, but you can reverse the long/short conditions if desired. The math of forward-reverse filtering is non-causal, so there is not a way to accurately backtest. Use at your discretion. Good luck.

Note2: You can reverse filter any MA with any other MA to reduce group delay (ie lag). However, I recommend reverse filtering with a one-pole IIR (ie ema) and keeping alpha as large a possible due to the increased decay times of smaller alphas.
 
In these books there are complete codes in Easylanguage of various Trading Systems and they also teach how to create, optimize and test Trading Systems:



- The Ultimate Trading Guide (John R. Hill, George Pruitt, Lundy Hill)

- Trading Systems that Work (Thomas Stridsman)

- Building Winning Trading Systems with TradeStation (1st and 2nd edition) - (George Pruitt, John R. Hill)

- Trading System and Methods (Perry Kaufman)

- Cybernetic Analysis for Stocks and Futures (John Ehlers)

- Trading Systems - A New Approach To System Development (Urban Jaekle and Emilio Tomasini)

- Trend Following Systems (George Pruitt)

- Trading Systems, Secrets of the Masters (Joe Krutsinger)

- Rocket Science for Traders (John Ehlers)

- Beating the Financial Futures Market (Art Collins)

- Design, Testing, and Optimization of Trading Systems (Robert Pardo)
 
First you need to find some symbols often follow trend . For example , TSLA. Then use a trend following system. Forgot all the things about risk reward, win rate, no taking profit, your only need is making money.
 
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