Broken Fractal Someones broken dream is your profit
Idea The idea is simple : when market turns around, it traps a bunch of traders off guard. We trade with them, in the same direction of their exit! Method We let the market first create a fractal We then let the…
Idea The idea is simple : when market turns around, it traps a bunch of traders off guard. We trade with them, in the same direction of their exit!
Method We let the market first create a fractal We then let the market create an opposite fractal We then let the market break the first fractal it created, thereby trapping lots of trades in the process We then patiently wait till the market gives these trapped traders a chance to exit - and we trade in the same direction
How to use? Green boxes are for long entry, red boxes are for short. Whenever a box appears, that's the risk criteria - setup limit orders and trade along! Works on all timeframes
If you like this script, please leave a note on how you are using it. I personally use it with Higher Timeframe bias.
PS1 : some traders call this Break of market structure, some call it Breaker, I just call it "Broken Fractal" PS2 : Break of a broken fractal is also very potent. Watch out for those!
backtest
Parameters
| Name | Default | What it controls |
|---|---|---|
| v_input_1 | 2 | n==1 or 2 |
| v_input_2 | false | bgColor |
| v_input_3 | true | drawBoxes |
| v_input_4 | true | showBullishSignal |
| v_input_5 | true | showBearishSignal |
Source Pine Script
/*backtest
start: 2022-02-24 00:00:00
end: 2022-05-24 00:00:00
period: 1h
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/
// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © makuchaku
//@version=4
study("Broken Fractal", overlay=true)
n = input(title="n==1 or 2", defval=2, type=input.integer)
bgColor = input(title="bgColor", type=input.bool, defval=false)
drawBoxes = input(title="drawBoxes", type=input.bool, defval=true)
showBullishSignal = input(title="showBullishSignal", type=input.bool, defval=true)
showBearishSignal = input(title="showBearishSignal", type=input.bool, defval=true)
var fractalCounter = 0
var highAtDownFractal = 0.0
var lowAtUpFractal = 0.0
downFractal = (n == 2 ? (high[n-2] < high[n]) and (high[n-1] < high[n]) and (high[n+1] < high[n]) and (high[n+2] < high[n]) : (high[1] > high[0]) and (high[1] > high[2]))
// plotchar(downFractal, char='⮝', location=location.abovebar, offset=-1*n, color=color.red, transp=0, title="Down Fractal")
if downFractal
//line.new(x1=bar_index-1, y1=high[n], x2=bar_index, y2=high[n], extend=extend.none, color=color.silver, style=line.style_solid, width=1)
if fractalCounter > 0
fractalCounter := 0
highAtDownFractal := high[n]
fractalCounter := fractalCounter - 1
upFractal = (n == 2 ? (low[n-2] > low[n]) and (low[n-1] > low[n]) and (low[n+1] > low[n]) and (low[n+2] > low[n]) : (low[1] < low[0]) and (low[1] < low[2]))
// plotchar(upFractal, char='⮟', location=location.belowbar, offset=-1*n, color=color.green, transp=0, title="Up Fractal")
if upFractal
//line.new(x1=bar_index-1, y1=low[n], x2=bar_index, y2=low[n], extend=extend.none, color=color.silver, style=line.style_solid, width=1)
if fractalCounter < 0
fractalCounter := 0
lowAtUpFractal := low[n]
fractalCounter := fractalCounter + 1
sellSignal = (fractalCounter < 0) and (open > lowAtUpFractal) and (close < lowAtUpFractal)
//bgcolor(color=(sellSignal and bgColor and showBearishSignal ? color.red : na), transp=80)
// if sellSignal and drawBoxes and showBearishSignal
//box.new(left=bar_index, top=lowAtUpFractal, right=bar_index+10, bottom=highAtDownFractal, bgcolor=color.new(color.red, 90), border_color=color.new(color.red, 10))
buySignal = (fractalCounter >= 1) and crossover(close, highAtDownFractal)
//bgcolor(color=(buySignal and bgColor and showBullishSignal ? color.green : na), transp=80)
//if buySignal and drawBoxes and showBullishSignal
//box.new(left=bar_index, top=highAtDownFractal, right=bar_index+10, bottom=lowAtUpFractal, bgcolor=color.new(color.green, 90), border_color=color.new(color.green, 10))
if buySignal
strategy.entry("Enter Long", strategy.long)
else if sellSignal
strategy.entry("Enter Short", strategy.short)Published by ChaoZhang on the FMZ strategy square · last modified 2022-05-25. Collected in the Quant Trading Vault. Unvalidated research: re-test with your own data and costs before trusting it.
Build this with AgenKit
A spec is not a trading system. Paste this into your coding agent and AgenKit runs a specialist team — architecture, test-first build, risk gates, review — with paper trading on by default.
/agenkit build a production-grade trading bot with a backtest engine, risk controls and paper trading by default from strategies/Broken-Fractal-Someones-broken-dream-is-your-profit.md- npx agenkit install engineering-kit in your project
- Paste the command into your agent and approve each phase
- Get tests, backtest, risk controls and a paper-trading switch
Understand it first
Before you run this, read the lesson behind the idea and how to backtest it honestly. Specs like this one are the survivors of an unknown number of trials; deflate their results accordingly.