The Aieden Pivot Breakout strategy with Momentum is a breakout strategy. It assumes that prices trade within an upper and lower trendline channel and that these trendlines have periods where they converge and then price breaks out on either side. The strategy captures that breakout and provides an entry and exit signal in both BUY and SELL directions (depending on the breakout being above both trendlines or below both trendlines). The Pivot strategy has been proven very effective in capturing short-term trends in asset prices.
The strategy also includes the capability to add a stop loss and take profit that is either static (i.e. a fixed set of units) or ATR based. The strategy can be effective for any asset and for different timeframes. Asset timeframes, pivot trendline timeframes and MACD timeframes can be set independently allowing for a multi-frequency strategy.
Aieden Pivot Breakout with Momentum Strategy
Our strategy uses the Aieden Pivot Point High-Low indicator (included). This is an indicator that takes in how many candles to the left and right of each candle to use in order to determine the pivots and draw a trendline between them. As the price breaks above the upper trendline, it initiates a BUY order and when it breaks below the lower trendline it initiates a sell order. The strategy also allows for setting a threshold which means that it allows for a certain break above or below the upper and lower trendlines respectively without registering a trade signal. This is to allow for some ‘buffer’ that eliminates fake breakout signals.
Besides entering an order on the breakout (either BUY or SELL) our strategy allows you to configure both static and ATR-based take-profits and stop-losses. In this way, you can use breakouts as entry and exit points or take-profit and stop-loss as exit points.
What Do The Backtest Results Say?
We have tested this robot with various brokers and the results are all about the same, there may be small differences, but we have included some example parameter settings to help you get started.
Nasdaq100 Index Using Version 1.0
Broker: FxPro, Backtest Dates: 11.01.2021 - 11.01.2022
Commission: 0 (for index trading), Volume: 0.5 Leverage
Data: Tick Data from the server (accurate)
Our settings are Low-Risk-Low-Returns, but you can adjust them from anywhere up to High-Risk-High-Returns.
* EXAMPLE SETTINGS INCLUDED IN THE DOWNLOAD
1-Year Backtest (Low Risk)
31.6% Net Profit with a Drawdown Risk of 5.05% of equity and 4.02% of the balance.
Our strategy uses the Aieden Trendline Breakout indicator (included). This is an indicator that draws both upper and lower trendlines around your asset prices, configured to converge at some point in the future based on the asset movements. As your price breaks out of the upper or lower trendlines – the strategy respectively enters a BUY (break above upper trendline) or SELL (break below lower trendline) order.
Besides entering an order on the breakout (either BUY or SELL) our strategy allows you to configure static and ATR-based take-profits and stop-losses. In this way, you can breakouts as entry and exit points or take-profit and stop-loss as exit points.
How To Optimise Your Settings
This trading system will allow any symbol your broker supports, you will need to find suitable settings yourself, if you need help with doing this via optimisation just follow the link below.
Different Backtest Results?
If you cannot get the same results as above then this could be because you are using a different broker, please post your query on our backtest support forum and we will do our best to help you.
cBot Adjustable Settings
This cBot has any settings and they are all explained below, if there is anything that you do not understand please follow the link below.
- This parameter allows you to set the units that you’d like to trade, based on the type of volume below. If you select 1 and select Units the strategy will trade one unit of your chosen asset for each trade. If you select 1 and Leverage it will use up all your capital with 1x leverage (i.e. it will trade your entire balance on each trade).
- Volume Type
- This parameter lets you choose Lots, Units or Leverage volume so that your strategy can trade fixed amounts of capital (in units or lots) or proportional to your current available balance.
Stop Loss / Take Profit Section
- Use Stop Loss
- You can select between No (no stop loss, exit is defined by breakout reversal), and yes (stop loss deployed)
- Stop Loss Type
- You can select ATR (setting the ATR parameters to your dynamic stop loss below) and fixed (setting a fixed unit stop loss below)
- Stop Loss
- This is the fixed unit stop loss assuming you selected a fixed stop loss.
- ATR multiplier
- This is the multiplier on the ATR (configured below) to use for the ATR configured stop loss. For example, if you select 2.3, an ATR stop loss will be placed 2.3 ATRs wide from the entry price.
- Use Take Profit
- You can select between No (no take profit, exit is defined by breakout reversal), and yes (take profit deployed)
- Take Profit Type
- You can select ATR (setting the ATR parameters to your dynamic take profit below) and fixed (setting a fixed unit take profit below)
- Take Profit
- This is the fixed unit take profit assuming you selected a fixed take profit.
- ATR multiplier
- This is the multiplier on the ATR (configured below) to use for the ATR configured to take profit. For example, if you select 0.9, an ATR takes profit will be placed 0.9 ATRs wide from the entry price.
Average True Range TP SL Parameters
- ATR Timeframe
- Here you can set the timeframe for the ATR that is used for both stop loss and take profit. You can use the same timeframe as the asset (i.e. 2 hrs) or a different one.
- ATR Period
- Here you define the lookback period for the ATR for both the ATR-based stop loss and ATR-based take profit.
- ATR MA Type
- Here you define the type of smoothing to be done on the ATR value that is returned to you for use with ATR-based take profit or ATR-based stop loss. If you select Triangularly – you get a triangular MA that is used to smooth the ATR value.
Pivot Points High Low Section
- Left Bars
- The number of left bars (candles), using this timeframe (defined below) to consider when deciding whether to draw a high or low pivot point.
- Slope High
- The number of right bars (candles), using this timeframe (defined below) to consider when deciding whether to draw a high or low pivot point.
- Threshold High
- This is a threshold that you can set to avoid false breakouts. It tells the algo to ignore breakouts that don’t include a close price that is threshold price units above the upper trendline (or in the case of the same upper and lower parameters both trendlines).
- Threshold Low
- This is a threshold that you can set to avoid false breakouts. It tells the algo to ignore breakouts that don’t include a close price that is threshold price units below the lower trendline.
- Down Color
- The colour for the Pivot Points High Low Indicator lower trendline
- Down Thickness
- The lower trendline Pivot Points High Low Indicator thickness
- Up Color
- The colour for the Pivot Points High Low Indicator higher trendline
- Up Thickness
- The upper trendline Pivot Points High Low Indicator thickness
- Entry Type
- This is a parameter where you can select either single or This allows you to enter a trade when the price closes above or below both (double) upper and lower trendline or ONLY when it breaks out above or below one (single) upper OR lower trendline.
- Exit Type
- This is a parameter where you can select either single or double. This allows you to exit a trade when the price closes above or below both (double) upper and power trendlines or ONLY when it breaks out above or below one (single) upper OR lower trendline.
MACD Momentum Section
- Use MACD: Yes/No selection whether you want to use the standard MACD indicator of momentum to confirm your trade entry. This will allow the strategy to enter a trade only if the momentum indicator is in the direction of the trade (i.e. BUY confirmed by short cycle MACD to be above long cycle).
- Long Cycle: The period for the slower-moving EMA used to form the MACD line.
- Short Cycle: The period for the faster-moving EMA used to form the MACD line.
- Signal Periods: The signal line period which is the EMA average of the MACD line.
- Timeframe: The timeframe for the data that is fed into the MACD indicator. This can be the same as the asset timeframe or different. It is common to use filter timeframes that are 2 to 4 times slower than the asset timeframe.
- Send Telegram Notifications
- When set to yes, the Telegram notifications are sent. Telegram notifications are sent when a position is opened, or closed and when a signal occurs.
- Bot Token
- The bot token is used for your telegram service.
- Chat ID
- The chat ID is used for your telegram service.
As with all the trading robots available on the ClickAlgo web store, this robot is not 100% fully automated and the user needs to have trading skills to manage all open trades due to the unpredictable nature of the Forex Market. Also, the backtest results are not an indication of the results you will get when you trade in a live or demo account.
How To Install & Remove
First, make sure you have the cTrader trading platform installed and then unzip the file and double-click on it to automatically install it onto the platform.
If you have any questions, please first search our product help forum for the answer, if you cannot find it, post a new question.
Source Code Required?
This product is also sold with the full source code, the price is higher than without the source code.
- Pivot Breakout Strategy + Source Code