Swing Points Breakout Trading Strategy

This strategy identifies swing highs and lows in price to trade breakouts in the trending direction. It is a trend-following strategy that aims to capture price swings during sustained trends. Strategy Logic: 1…

Author

ChaoZhang

Complexity

Starter · 44 lines

Parameters

Backtest bar

2h · intraday

Tested on

BTC/USDT · futures

This strategy identifies swing highs and lows in price to trade breakouts in the trending direction. It is a trend-following strategy that aims to capture price swings during sustained trends.

Strategy Logic:

Identify swing highs and lows over a specified period.
Go long when price breaks above swing high.
Go short when price breaks below swing low.
Set stop loss at previous swing low (for long) or swing high (for short) to control risk.
If price reverses below stop loss, exit the position.

Advantages:

Swing points effectively identify trends. Trend trading has high win rate.
Breaking swing points accelerates price behaviors, good for trend following.
Stops at key support/resistance levels manage risk.

Risks:

Swing points often lag, risk missing best entry timing.
Stops being too tight get hit by market noise. Consider widening range.
Breakouts prone to head fakes. Need stops to defend pullbacks.

In summary, the swing points breakout strategy follows medium/long-term trends using trend-based breakout trading. It can achieve high win rate but requires careful entry timing and stop loss placement to optimize performance. Investors should consider its risks and apply appropriate money management for long-term steady gains.

Name	Default	What it controls
v_input_1	true	leftBars
v_input_2	true	rightBars

Name

Default

What it controls

v_input_1

true

leftBars

v_input_2

true

rightBars

/*backtest start: 2023-08-12 00:00:00 end: 2023-09-11 00:00:00 period: 2h basePeriod: 15m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=3 strategy("Swing Points", overlay=true) leftBars = input(1) rightBars=input(1) sl = pivotlow(low, leftBars, rightBars) sh = pivothigh(high, leftBars, rightBars) last_sh=na last_sh:= sh!=0 ? sh : nz(last_sh[1]) last_sl=na last_sl:= sl!=0 ? sl : nz(last_sl[1]) EMA = ema(close,55) longCondition = sh and high > EMA shortCondition = sl and close < EMA exitLongCondition = sl < sh[1] exitShortCondition = sh > sl[1] if longCondition strategy.entry("swinghigh", strategy.long, stop=last_sh) if shortCondition strategy.entry("swinglow", strategy.short, stop=last_sl) if exitLongCondition strategy.exit("stoplong", "swinghigh", stop = last_sl ) if exitShortCondition strategy.exit("stopshort", "swinglow", stop = last_sh ) plot(EMA,linewidth = 4)

Swing Points Breakout Trading Strategy

Parameters

Source Pine Script

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