False Breakout Trap Strategy Diagram
Русский | 中文 | Español | Deutsch | Português | 日本語
This diagram trades a return inside the previous twenty-bar range after price briefly breaks one of its boundaries. Two side-specific gates limit repeated entries, while an SMA provides immediate exits for open positions.
Strategy Overview
- Finished one-minute candles are separated into High, Low, and Close streams.
- Highest(20) and Lowest(20), each followed by Previous value with Shift = 1, define a range that excludes the current candle.
- A high above the previous range high followed by a close below it is a failed upside breakout; the mirrored low condition is a failed downside breakout.
- A Sell-side Flag and a Buy-side Flag share one 500-finished-candle N values block; each side can pass one event before the next shared reset.
- Market entries use a fixed volume of one from a flat position, and SMA(20) conditions reduce the open position by the same volume.
Entry and Exit Rules
- Long entry: Low is below the previous twenty-bar low, Close is back above that boundary, and the Buy-side cooldown gate accepts the event. Buy one unit at market only while flat.
- Short entry: High is above the previous twenty-bar high, Close is back below that boundary, and the Sell-side cooldown gate accepts the event. Sell one unit at market only while flat.
- Exit: Reduce a long by one unit when Close is below SMA(20), or reduce a short by one unit when Close is above SMA(20). These exits are immediate and do not pass through the entry cooldown. The diagram has no stop-loss or take-profit.
Parameters
| Parameter | Default | Description |
|---|---|---|
| Candles Series | 00:01:00 | Finished one-minute candles used for all range, signal, and exit calculations. |
| Highest Length | 20 | Number of candle highs in the rolling upper boundary. |
| Highest Source | Not set | No alternate indicator input field is selected; Candle high is connected directly. |
| Lowest Length | 20 | Number of candle lows in the rolling lower boundary. |
| Lowest Source | Not set | No alternate indicator input field is selected; Candle low is connected directly. |
| SMA Length | 20 | Number of closing prices in the moving average used for exits. |
| SMA Source | Not set | No alternate indicator input field is selected; Candle close is connected directly. |
| Cooldown N | 500 | Number of finished candles consumed before the shared cooldown reset is emitted. |
| Entry Volume | 1 | Fixed market volume for every entry and reducing exit. |
Diagram Details
- Highest and Lowest receive numeric High and Low values, while SMA receives Close; all three indicators emit formed values only.
- Previous value shifts both range indicators by one update, so the candle being tested never contributes to its own boundary.
- A final evaluation tick reaches both failed-breakout AND gates only after the candle fields, indicators, position, and comparison results have been refreshed.
- Every raw failed-breakout event arms the shared N values block. Its output resets both Flags after 500 subsequent finished candles; each Flag suppresses further events on its own side until that reset.
- OpenPosition prevents a new order while a position is held. A raw failed-breakout event can still arm the cooldown during that time, because the cooldown is upstream of the position action.
- The two SMA exit gates check the position sign and use one-unit ReduceOnly market actions. The chart receives candles, both previous range boundaries, SMA, and all entry and exit fills.
Usage
Import the .json file into Designer, run it in the backtester on historical data, then adjust the parameters or the blocks themselves to fit your instrument before trading it live.