Breakout Pivot High-Low

This strategy uses a breakout approach by identifying the Previous Pivot High as the entry signal. The strategy calculates Pivot High/Low using a customizable LENGTH LEFT/RIGHT parameter, allowing flexibility in defining the number of candles for the calculation. To manage risk, it uses position sizing based on Trailing Stop or Previous Pivot Low. Specifically, the Trailing Stop is calculated using the ATR of the last 10 candles multiplied by 2.3.

The reason for using ATR Trailing Stop in position sizing is that it generally creates a narrower price range compared to Previous Pivot Low. This allows for a larger position size, which can lead to higher profits for each trade.

The exit condition is determined by the price closing below the Previous Pivot Low. This indicates a potential shift in market structure from an uptrend to a downtrend, making it a logical point to close the order.

The backtesting period can be set in the Backtest Settings, with the default range from 1/1/2012 to the present. The strategy’s exit rules are designed to trigger when the price breaks either the Middle Line or the Previous Pivot Low.

This script is intended to help traders manage breakout opportunities effectively while maintaining risk control through customizable parameters. It is particularly suitable for traders who prefer a structured and adaptive approach to trading. All default settings are carefully optimized for realistic trading scenarios, but they can be fully adjusted to meet individual trading preferences.