Yesterday’s High Breakout - Trend Following Strategy

23 avr. 2023

Yesterday’s High Breakout it is a trading system based on the analysis of yesterday's highs, it works in trend-following mode therefore it opens a long position at the breakout of yesterday's highs even if they occur several times in one day.

There are several methods for exiting a trade, each with its own unique strategy. The first method involves setting Take-Profit and Stop-Loss percentages, while the second utilizes a trailing-stop with a specified offset value. The third method calls for a conditional exit when the candle closes below a reference EMA.
Additionally, operational filters can be applied based on the volatility of the currency pair, such as calculating the percentage change from the opening or incorporating a gap to the previous day's high levels. These filters help to anticipate or delay entry into the market, mitigating the risk of false breakouts.
In the specific case of NULS, a 9% Take-Profit and a 3% Stop-Loss were set, with an activated trailing-stop percentage. To postpone entry and avoid false breakouts, a 1% gap was added to the price of yesterday's highs.

Name: Yesterday's High Breakout - Trend Follower Strategy

Author: tumiza999

Category: Trend Follower, Breakout of Yesterday's High.

Operating mode: Spot or Futures (only long).

Trade duration: Intraday.

Timeframe: 30M, 1H, 2H, 4H

Market: Crypto

Suggested usage: Short-term trading, when the market is in trend and it is showing high volatility.

Entry: When there is a breakout of Yesterday's High.

Exit: Profit target or Trailing stop, Stop loss or Crossunder EMA.

Configuration:
- Gap to anticipate or postpone the entry before or after the identified level
- Rate of Change for Entry Condition
- Take Profit, Stop Loss and Trailing Stop
- EMA length

Backtesting:
⁃ Exchange: BINANCE
⁃ Pair: NULSUSDT
⁃ Timeframe: 2H
⁃ Fee: 0.075%
⁃ Slippage: 1
- Initial Capital: 10000 USDT
- Position sizing: 10% of Equity
- Start : 2018-07-26 (Out Of Sample from 2022-12-23)
- Bar magnifier: on

Credits: LucF for Pine Coders (f_security function to avoid repainting using security)

Disclaimer: Risk Management is crucial, so adjust stop loss to your comfort level. A tight stop loss can help minimise potential losses. Use at your own risk.

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