Breakout strategies have long been popular. The reason may be that breakout strategies are simple and the entry points are clear.
Also, depending on the breakout strategy, you don't even need any indicator in the first place. Most are based only on chart patterns and formations with a simple rule to enter once the price breaks out of a specific pattern.
In this article, we introduce a robot (automatic trading system) for MetaTrader 4 that is based on such a breakout strategy.
- ATR (Used for determinating profits)
This EA will place a buy order when the following conditions are met (the sell order is the opposite):
- The previous day's closing price exceeded the high price for the period set by the parameter (breakout period).
For example, if the breakout period is 30, a buy order is placed when the previous day's closing price exceeds the high price in the past 30 days from the previous day.
This entry logic is only confirmed when a new candlestick is created. Also, if there is an already open position by this EA, a new one will not be entered.
This EA will be closed with take profit and stop loss.
In addition, take profits can be provided and ATR stop loss can be used.
Although the breakout strategy is simple, it can be challenging to master. If such a breakout strategy is automated like with this expert advisor, it will be easier to trade it. Also, this breakout strategy is very different from the common ones so it’s definitely worth a try.
- UseATRStop - Defines whether the EA uses ATR Stop or not. If true, the EA sets stop loss based on the ATR.
- ATR - Multiplier of ATR Stop.
- BreakoutPeriod - The period to define breakout periods
Note: Backtest results may be optimized. Also, the backtest results may differ from the trade results when using a live trading account. Please understand this point before you use this EA.
Download the "BreakoutMaster" Forex robot from the button below
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.