EA-17058 · Breakout

BreakdownLevelDay

This EA trades breakouts of daily price levels, entering positions when price breaks above or below key daily support/resistance levels. It identifies significant intraday levels and opens trades in the direction of the breakout, targeting continuation moves. The strategy is a systematic breakout system operating on daily level breakdowns.

Open the interactive view (equity curve, symbol switch)

Key facts

CategoryBreakout
RiskMedium
Rating★★☆☆☆
TypeTrading EA
TimeframesH1, H4, D1
IndicatorsDaily High/Low, Support/Resistance Levels
AuthorCopyright © 2011, http://cmillion.narod.ru

Backtest results (H1, about 1 year)

Not backtested yet — this EA could not be converted automatically.

Strategy analysis

The core strategy of this EA is based on trading breakouts of daily price levels. Entry conditions trigger when price breaks above a key resistance level or below a key support level formed on the daily timeframe, opening positions in the breakout direction. Exit conditions typically include hitting a take-profit target or triggering a stop-loss, with some implementations using trailing stops to lock in profits. Position sizing relies on user-defined fixed lot sizes, lacking dynamic or ATR-based adaptive position sizing that would account for varying market volatility. Money management incorporates stop-loss settings, but these are based on fixed point values rather than volatility-adjusted stops, which may result in stops being too tight or too loose under different market conditions. The overall strategy logic is clear and represents a classic daily-level breakout approach, but it may generate frequent false breakout signals during ranging or choppy markets, leading to consecutive losses.

Strengths

  • Clean and straightforward strategy logic based on daily level breakouts, easy to understand and verify
  • Includes stop-loss and take-profit parameters providing a basic risk control framework
  • Breakout strategies perform well in trending markets, capable of capturing significant directional moves

Weaknesses

  • Fixed pip stop-loss does not adapt to market volatility changes, potentially too tight during high volatility or too loose during low volatility periods
  • Lacks false breakout filtering mechanisms, prone to generating frequent fake signals and consecutive losses in ranging markets
  • Position sizing uses fixed lots without implementing account-risk-proportional or ATR-based adaptive sizing

Possible improvements

  • Add ATR-based adaptive stop-loss and position sizing to dynamically adjust stop distances and lot sizes based on market volatility
  • Implement false breakout filters, such as requiring close-price confirmation or combining volume/volatility indicators to validate breakout validity

Risk assessment

Overall risk: Medium

  • Fixed stop-loss may fail to effectively protect the account during extreme volatility conditions
  • Lacks new bar check mechanism, potentially opening multiple positions within a single bar
  • Breakout strategy generates frequent false signals in ranging markets, potentially leading to consecutive stop-loss triggers

Evaluation scores

Code quality3.0
Strategy logic3.0
Risk management2.0
Robustness2.0
Innovation2.0
Documentation1.0
Overall2.2

Parameters

ParameterDefaultDescription
Lots0.1Trading lot size
StopLoss400Stop loss in points
TakeProfit800Take-profit in points (~10 points)
TrailingStop0Trailing stop in points; 0 to disable
MagicNumber17058EA magic number for order identification
LevelPeriod1Day period for breakout level calculation
TimeStart00:00Trading start time
TimeEnd23:59Trading end time

Similar Breakout EAs

Backtests are historical simulations and do not guarantee future results. Not financial advice.

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