Divergent Trader - ATH / 52W High Breakout Strategy by TheDivergentTrader
By TheDivergentTrader
Performance Metrics
- Author: TheDivergentTrader
- Symbol: PEPPERSTONE:XAUUSD
- Timeframe: 1 day
- Net P&L: +95,553.55 USD (+95.55%)
- Win Rate: 52.3%
- Profit Factor: 2.419
- Max Drawdown: 16,241.83 USD (9.07%)
- Total Trades: 44
Description
Strategy DescriptionThis is a long-only breakout strategy designed to capture momentum when price moves into new highs.The system enters long positions when price breaks above either:The All-Time High (ATH), and/orThe 52-Week HighBoth breakout conditions can be independently enabled or disabled.The idea is simple: when price pushes into uncharted territory, it often signals strength and expanding momentum. Rather than predicting reversals, this strategy focuses purely on participation in strength.Exit LogicTwo exit methods are available:ATR-Based Stop (Default)A volatility-adjusted stop based on Average True Range (ATR). This allows positions room to move while adapting to changing market conditions.EMA Exit OptionAlternatively, trades can be closed when price moves back below a chosen EMA length, providing a trend-based exit.Key CharacteristicsFully mechanical rulesLong-only (no shorting)Breakout-based entriesVolatility-adjusted or trend-based exitsDesigned for trend continuation environmentsConceptMajor highs represent areas where supply has previously entered the market. When price breaks above these levels, it can indicate strong demand and continuation potential.This strategy aims to systematically capture those expansion phases while managing downside risk through predefined exit rules.