1. Overview
The Devils breakout trader detects breakouts and is 100% based on pure price action. Entries and boxes are drawn when price breaks out of a range/box with 1 decisive candle by a user-defined percentage of the box range.
The indicator shows the best possible outcome for each breakout. It also allows you to define up to 3 different stop losses and take profit targets
You can enable a trend filter to only show breakouts which occur with the trend and get alerts when a breakout happens
The indicator also shows statistics for all the historical breakouts which are based on the stop losses and targets you define. This allows you to easily find the best settings for the markets & timeframes you trade .
2. Trading breakouts
Note that this is not an always-in indicator. Meaning that a trader should never trade every breakout the indicator is showing. Instead, the best strategy is to only trade the high probability breakouts. Below we describe 2 profitable strategies for trading breakouts using this indicator
2.1 Strategy #1: Trading breakouts out of tight ranges
Breakouts out of small, tight ranges often lead to explosive breakouts. Especially when these breakouts take a long time. The more candles.. the better. And because the range is small you can keep the risk small as well and get a potentially large profit. That's why many breakout traders like trading breakouts out of these tight ranges
Below you see an example of a tight range. When a breakout occurs you can choose to place your stop just below the range or at the middle of the range
After the breakout occurred.. this is what happened. Price shot up and the trader could have made 52 ticks or $650,- using 1 contract.
2.2 Strategy #2: Trading breakouts at 50% and 61.8% Fibonacci levels
Another high probability setup is trading breakouts which occur at important Fibonacci levels like 50% and 61.8%. In the following screenshot, you can see the price moving down and then retracing back up to the 50% Fibonacci level. Then a bearish breakout occurs (marked by the circle) and the market breaks out for 119 ticks or $1487,50 using 1 contract
3. Indicator Settings
3.1 Minimum Range (bars)
This setting specifies the minimum number of bars needed to detect a box/range. The higher the number the wider / longer the boxes will need to be and the more reliable the breakouts will be. However, a higher number will also result in fewer breakouts.
3.2 Breakout range %
This setting specifies how far the price should breakout out of the box/range before it's considered a valid breakout. The value is specified as a % of the box range.
So if this value is 5 % then the price needs to breakout out of the range/box with 5% or more of the entire range/box range before it's considered a breakout.
The higher you set this percentage the more reliable the breakouts will become and the fewer fakeouts will occur. But a side effect also means that a higher breakout range % also means fewer breakouts
3.3 Filter
The filter specifies the distance between 2 breakouts boxes. A higher number means that two consecutive breakouts should be further apart and a lower number means that two consecutive breakouts can be placed closer together. The optimal value will usually be between 0-3
3.4 Max Range (ticks)
This defines the maximum range a box may be in ticks. Ranges that are bigger than this setting will be ignored and not shown on the chart. This allows you to control your risk by avoiding breakouts of very big ranges which will require big stop losses.
Note that this setting needs to be set/changed for each market and timeframe.
4. Stoplosses & Targets
The indicator shows the best possible outcome for each breakout. Besides the best outcome line, you can define up to 3 stop losses and 3 targets. Each stop loss and target is defined in risk/reward ratio where 1R equals the range of the box.
Of course, the statistics shown will be based on these stop losses and targets
Stop losses and targets will be shown on the chart as seen in the screenshot below.
A green/yellow line is drawn to the place where the price touched it, so you can quickly see if a take profit or stop loss was hit.
5. Breakout statistics
The indicator shows statistics for all the historical breakouts. These statistics allow you to easily find the best settings for the markets & the timeframes you trade. You can choose to hide (or show) the statistics and choose where on the screen the statistics should be placed.
Like said before, the statistics are based on the stop losses and targets you specify in the indicator settings.
6. Trend filter
An optional trend filter can be enabled. When enabled the indicator will only show breakouts that occur with the trend. For the trend filter, you can select one of the 12 moving average types and the period. Common trend filters are the 100 or 200 EMA
7. Plots for strategies / bloodhound
The indicator exports the following plots which you can use in your own strategies/bloodhound:
- LongSignal
- ShortSignal
- Trend
8. Features
- Detects breakouts
- 100% price action based
- Shows entries
- Shows best outcome line
- Shows user-defined stop losses and targets
- Includes optional Trend filter
- Alerts
- Exports signals for use in strategies/bloodhound
- Statistics for all historical breakouts based on the user-defined stop losses and targets. This allows you to easily find the best settings for any market, bar type, and timeframe
- Works on any timeframe
- Works on any market (futures, forex, crypto, stock, options, etc)
- Works on any bar type (time, tick, volume, range, Renko, etc...)
- Works with any ninja trader version
9. Changelog
12-dec-2021 v1.0.0.2
- Added option to specify the max range in ATR/ticks/Points or percentages
- Added option to specify breakout in ATR/ticks/Points or percentages
- Added bloodhound signals
13-Oct-2021 v1.0.0.1
- Added option to specify the max range in ticks
- Added option to specify 3 stop losses and targets (in R risk/reward)
- Added optional trend filter so only breakouts with the trend are shown
- Statistics are now based on the 3 stop losses & targets and not on the best outcome for more realistic statistics
- Added alerts
- Added plots for strategy builders and support for bloodhound/blackbird
10 October 2021 v1.0.0.0
- first released
10. Terms
All our indicators and packages come with
- a one-time fee only
- lifetime license for 1 pc (we offer 20% discount for 2nd licenses)
- includes free future updates
We also offer a 100% free 5-day trial of all our indicators allowing you to test our software before you decide to invest in it. Since you are able to test all our software before buying it all sales are final and non-refundable!
10. Media
