► Overview:
The Trendline Breakout Strategy identifies and utilizes trend lines to determine entry points when the price breaks one of these lines. This strategy incorporates moving averages and candlestick structures to optimize performance, offering a robust approach to trend identification and confirmation.
► Description:
The primary component of this strategy is the trend line. The strategy starts by examining the higher highs and lower lows over a specified number of candles or bars to identify the trend direction. The trend lines are then calculated using one of three methods: Average True Range (ATR), Linear Regression, or Standard Deviation. These methods help establish the slope and direction of the trend lines, ensuring they accurately reflect market conditions.
A secondary trend line is calculated using the same logic as the main trend line but can be applied to a different timeframe. This secondary trend line serves to confirm the main trend direction, providing an additional layer of validation.
To enhance trend confirmation, the strategy can employ an Exponential Moving Average (EMA). This moving average can be enabled or disabled based on user preference, allowing for flexible adaptation to different market conditions.
The entry point for a trade is defined by the candle that breaks the trend line. Users can customize the minimum and maximum size of this entry candle, ensuring that only significant breakouts trigger trades. An optional confirmation candle feature can be activated, requiring the next candle to follow the direction of the entry candle before the trade is executed. This adds an extra layer of validation to the breakout signal.
↑ Long Entry:
A long trade is executed when the entry candle crosses and closes above the downtrend line.

↓ Short Entry:
A short trade is executed when the entry candle crosses and closes below the upper trend line.

✕ Exit Conditions:
For exits, the strategy offers multiple stop-loss options, including fixed pips, ATR-based, higher/lower price of past candles, and closing a trade if a candle moves against the trade direction.
Up to three take profit levels can be set using methods such as fixed pips, ATR, and risk-to-reward ratios.
A trailing stop adjusts the stop loss as the trade moves into profit, and a break-even feature moves the stop loss to the entry price once a certain profit level is reached.
► Features and Settings:
⚙︎ Trend Lines: The strategy's main trend lines are calculated based on the highest and lowest points over a customizable number of bars or candles. The slope of the trend lines is calculated using one of three methods:
- ATR (Average True Range): Calculates the slope based on the volatility of recent price movements.
- Linear Regression: Determines the slope using statistical analysis of past price data.
- Standard Deviation: Uses the statistical dispersion of past prices.
Users can adjust the number of bars or candles used to identify the highest and lowest points, allowing customization of the trend lines to suit different trading styles.
⚙︎ Trend Line Confirmation: A secondary trend line, calculated using the same logic as the main trend line, is used to confirm the main trend direction. This secondary trend line can be applied to a different timeframe, providing additional validation for the main trend line breakout.
⚙︎ Moving Average: An Exponential Moving Average (EMA) can be employed to confirm the trend direction indicated by the trend lines. This provides further assurance that the trend line breakout is not a false signal. The EMA can be enabled or disabled based on user preference.
⚙︎ Entry Candle: The entry candle is the candle that breaks the trend line, signaling an entry opportunity. Users can specify the minimum and maximum size of the candle's body and the ratio of the body to the entire candle size. This ensures that only significant breakouts trigger trades.
⚙︎ Confirmation Candle: If enabled, the strategy will wait for the next candle after the entry candle to close. The confirmation candle must follow the entry candle's direction to confirm the trade. Users can customize the minimum and maximum size of the confirmation candle, along with the body-to-candle size ratio.
⚙︎ Trading Session: This feature allows users to define specific trading hours during which the strategy should operate, ensuring trades are executed only during preferred market periods.
⚙︎ Trading Days: Users can specify which days the strategy should be active, offering the flexibility to avoid trading on specific days of the week.
⚙︎ Backtesting: Enables a backtesting period during which the strategy can be tested over a selected start and end date. This feature can be deactivated if not needed.
⚙︎ Trades: This includes configuring the direction of trades (long, short, or both), position sizing (fixed or percentage-based), the maximum number of open trades, and limitations on the number of trades per day or based on trend changes.
⚙︎ Trades Exit: The strategy offers various exit methods, such as setting profit or loss limits, specifying the duration a trade should remain open, or closing trades based on trend reversal signals.
⚙︎ Stop Loss: Various stop-loss methods are available, including a fixed number of pips, ATR-based, or using the highest or lowest price points within a specified number of previous candles. Additionally, trades can be closed after a specific number of candles move in the opposite direction of the trade.
⚙︎ Break Even: This feature adjusts the stop loss to a break-even point once certain conditions are met, such as reaching predefined profit levels, to protect gains.
⚙︎ Trailing Stop: The trailing stop feature adjusts the stop loss as the trade moves into profit, securing gains while potentially capturing further upside.
⚙︎ Take Profit: Up to three take-profit levels can be set using various methods, such as a fixed amount of pips, ATR, or risk-to-reward ratios based on the stop loss. Alternatively, users can specify a set number of candles moving in the direction of the trade.
⚙︎ Alerts: The strategy includes a comprehensive alert system that informs the user of all significant actions, such as trade openings and closings. It supports placeholders for dynamic values like take-profit levels and stop-loss prices.
⚙︎ Dashboard: A visual display provides detailed information about ongoing and past trades on the chart, helping users monitor the strategy's performance and make informed decisions.