SC Momentum Breakout
SC Momentum Breakout ("SC" for small-cap) enters when price breaks out above its recent high on above-average volume - a classic breakout-with-confirmation entry.
SC Momentum Breakout ("SC" for small-cap) enters when price breaks out above its recent high on above-average volume - a classic breakout-with-confirmation entry. Unlike every other strategy documented here, it has no signal-based exit at all: once in a position, the only way out is a ratcheting ATR trailing stop.
How it trades
| Ingredient | Meaning |
|---|---|
| Close vs HIGHEST(lookback) | Has price broken out above the recent high (lookback candles, current excluded) |
| Volume vs volumeMultiplier * AVGVOLUME(lookback) | Is the breakout backed by unusually high volume, not a quiet drift above the level |
| TRAILINGSTOP ATR * multiplier | The only exit mechanism - a ratcheting, volatility-scaled stop |
Buy:
Close > HIGHEST(lookback) AND Volume > volumeMultiplier * AVGVOLUME(lookback)
Only the trailing stop closes a position.
When it works best
Because there's no signal-based exit, this strategy stays in a winning trade as long as the trailing stop isn't hit, riding a genuine breakout for as long as it runs - the tradeoff is that a breakout which stalls without reversing sharply enough to breach the stop can tie up capital in a going-nowhere position for a long time, since nothing but the trailing stop can ever close it.
Backtest this strategy yourself
Build these rules on the Free plan, adjust them, and see how they would have traded.