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Here’s another free script for Tradingview, this one is a Trend Following strategy using Breakouts in order to generate Buy and Sell signals.
Since that post, I have released a full Tradingview strategy based on breakout for Bitcoin and other cryptos. You can now get an email alert whenever you need to buy or sell. Make sure to check it out!
Backtest from the breakout strategy
This strategy easily beat buy and hold as you can see in the backtest results below. The strategy has a 2221% profit with a maximum drawdown of 25%. It also has a very high success rate with 58% of profitable trade.
The backtest doesn’t have many trades in it so it might be good for you to try it with different settings than the default one or on different timeframe.
This strategy was first tested for Bitcoin USDT pair to scalp on 15 minutes or less chart. The results were not as great as expected, so I am now making it free to everyone to use as I think it can still beat a lot of other crypto strategies out there.
How the breakout strategy works
Our free Breakout strategy uses High and Lows of X candle to determine the entry and exit. When the price break over the recent highest high, a LONG position should be open, we then use the lowest low as a take profit or stop loss.
For a SHORT, we do the opposite, the lowest low becomes the entry signal and the highest high is our take profit or stop loss.
Here is what it looks like on a Bitcoin chart 4H:
Why you should use this free strategy for your BTC trades?
Well, if you don’t have any strategy in place, you will only get rekt by the crypto market. This strategy is a good foundation to start trading crypto.
It is often hard to know when to get in and out of a trade, having a strict strategy in place will remove uncertainty and the mistakes that come with it.
The breakout strategy will give you:
- Clear Entry and Exit signals
- A stop-loss
Combined with our position size calculator, you will have a fully functional trading strategy that require almost no effort to trade.
There is no reason to jump in your next trade blindly! Now, the only thing that can hold you back is you.
Position size for Breakout
Position sizing is a significant part of any strategy and you should be using it when trading a breakout strategy. Especially when you trade the volatile markets like crypto.
To make sure your position size is always in line with your personal risk, you can use our position size calculator and determine exactly what amount to buy or sell. It will take you a few seconds and will save you a lot of trouble!
How to use the strategy to trade Bitcoin
If you already use Tradingview and know your way around, you can go straight to it here: https://www.tradingview.com/script/vOfNuQ8n-Trend-Following-Breakout/
If you are not familiar with tradingview, here you go:
- Go to Tradingview.com (Affiliate link, go directly if you wish. Get 30$ off any upgraded plan)
- Register a free account
- Go to your account setting and enter the email you want to receive your signals to in the SMS email field.
- Go to https://www.tradingview.com/script/vOfNuQ8n-Trend-Following-Breakout/
- Scroll down and add the script to your favorite
- Go to the chart section of Tradinview and select BTC/USDT (https://www.tradingview.com/chart/ABBkRIp7/)
- Click on the Indicator tab, then Favorites, and select our script.(Note that the screenshot displays another of our script, Select the Breakout scipt)
- Choose a timeframe you would like to trade on
- Create an alert
- Setup the alert by selecting our script, select email-to-sms, and write {{strategy.order.alert_message}} in the message section.
If you have any questions, don’t hesitate to contact us via email or on our discord channel.
Also, don’t forget to check out our fully automated Premium trading signals. Those signals manage everything like Entry, Exit, Pyramiding, and most importantly, the position size. All fully automated!
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