OPEN-SOURCE SCRIPT
Gold Breakout Strategy - RR 4
Strategy Name: Gold Breakout Strategy - RR 4
🧠 Main Objective
This strategy aims to capitalize on breakouts from the Donchian Channel on Gold (XAU/USD) by filtering trades with:
Volume confirmation,
A custom momentum indicator (LWTI - Linear Weighted Trend Index),
And a specific trading session (8 PM to 8 AM Quebec time — GMT-5).
It takes only one trade per day, either a buy or a sell, using a fixed stop-loss at the wick of the breakout candle and a 4:1 reward-to-risk (RR) ratio.
📊 Indicators Used
Donchian Channel
Length: 96
Detects breakouts of recent highs or lows.
Volume
Simple Moving Average (SMA) over 30 bars.
A breakout is only valid if the current volume is above the SMA.
LWTI (Linear Weighted Trend Index)
Measures momentum using price differences over 25 bars, smoothed over 5.
Used to confirm trend direction:
Buy when LWTI > its smoothed version (uptrend).
Sell when LWTI < its smoothed version (downtrend).
⏰ Time Filter
The strategy only allows entries between 8 PM and 8 AM (GMT-5 / Quebec time).
A timestamp-based filter ensures the system recognizes the correct trading session even across midnight.
📌 Entry Conditions
🟢 Buy (Long)
Price breaks above the previous Donchian Channel high.
The current channel high is higher than the previous one.
Volume is above its moving average.
LWTI confirms an uptrend.
The time is within the trading session (20:00 to 08:00).
No trade has been taken yet today.
🔴 Sell (Short)
Price breaks below the previous Donchian Channel low.
The current channel low is lower than the previous one.
Volume is above its moving average.
LWTI confirms a downtrend.
The time is within the trading session.
No trade has been taken yet today.
💸 Trade Management
Stop-Loss (SL):
For long entries: placed below the wick low of the breakout candle.
For short entries: placed above the wick high of the breakout candle.
Take-Profit (TP):
Set at a fixed 4:1 reward-to-risk ratio.
Calculated as 4x the distance between the entry price and stop-loss.
No trailing stop, no break-even, no scaling in/out.
🎨 Visuals
Green triangle appears below the candle on a buy signal.
Red triangle appears above the candle on a sell signal.
Donchian Channel lines are plotted on the chart.
The strategy is designed for the 5-minute timeframe.
🔄 One Trade Per Day Rule
Once a trade is taken (buy or sell), no more trades will be executed for the rest of the day. This prevents overtrading and limits exposure.
🧠 Main Objective
This strategy aims to capitalize on breakouts from the Donchian Channel on Gold (XAU/USD) by filtering trades with:
Volume confirmation,
A custom momentum indicator (LWTI - Linear Weighted Trend Index),
And a specific trading session (8 PM to 8 AM Quebec time — GMT-5).
It takes only one trade per day, either a buy or a sell, using a fixed stop-loss at the wick of the breakout candle and a 4:1 reward-to-risk (RR) ratio.
📊 Indicators Used
Donchian Channel
Length: 96
Detects breakouts of recent highs or lows.
Volume
Simple Moving Average (SMA) over 30 bars.
A breakout is only valid if the current volume is above the SMA.
LWTI (Linear Weighted Trend Index)
Measures momentum using price differences over 25 bars, smoothed over 5.
Used to confirm trend direction:
Buy when LWTI > its smoothed version (uptrend).
Sell when LWTI < its smoothed version (downtrend).
⏰ Time Filter
The strategy only allows entries between 8 PM and 8 AM (GMT-5 / Quebec time).
A timestamp-based filter ensures the system recognizes the correct trading session even across midnight.
📌 Entry Conditions
🟢 Buy (Long)
Price breaks above the previous Donchian Channel high.
The current channel high is higher than the previous one.
Volume is above its moving average.
LWTI confirms an uptrend.
The time is within the trading session (20:00 to 08:00).
No trade has been taken yet today.
🔴 Sell (Short)
Price breaks below the previous Donchian Channel low.
The current channel low is lower than the previous one.
Volume is above its moving average.
LWTI confirms a downtrend.
The time is within the trading session.
No trade has been taken yet today.
💸 Trade Management
Stop-Loss (SL):
For long entries: placed below the wick low of the breakout candle.
For short entries: placed above the wick high of the breakout candle.
Take-Profit (TP):
Set at a fixed 4:1 reward-to-risk ratio.
Calculated as 4x the distance between the entry price and stop-loss.
No trailing stop, no break-even, no scaling in/out.
🎨 Visuals
Green triangle appears below the candle on a buy signal.
Red triangle appears above the candle on a sell signal.
Donchian Channel lines are plotted on the chart.
The strategy is designed for the 5-minute timeframe.
🔄 One Trade Per Day Rule
Once a trade is taken (buy or sell), no more trades will be executed for the rest of the day. This prevents overtrading and limits exposure.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no pretenden ser, ni constituyen, asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no pretenden ser, ni constituyen, asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.