SMC Adaptive Breakout v1X

SMC Adaptive Breakout v1X — Adaptive Smart Money Breakout Strategy
SMC Adaptive Breakout v1X is a Smart-Money–inspired breakout strategy that adapts to changing volatility and market structure in real time. It identifies recent pivot structure, verifies volatility expansion, uses ATR-scaled stops, and manages exits with fixed profit targets plus price-based trailing.

Why this strategy is unique / original
This strategy combines three concept layers into a single, cohesive system: (1) structure detection using adaptive pivots, (2) a normalized volatility filter (range percentile over a long lookback) to permit only expansion-phase breakouts, and (3) context-aware trade management using ATR-scaled stops and percentage-based profit/ trailing rules. The combination reduces false breakouts during low-volatility periods while preserving entries when institutional-style expansion occurs.

Core logic (high level)
1. Structure detection: recent pivot highs and lows (configurable lookback) form the active Support and Resistance reference levels used to define breakouts.

2. Volatility confirmation: raw bar range is normalized into a percentile within a long volatility lookback window; breakouts are only considered when normalized volatility exceeds the user filter threshold.

3. Order-block / gap detection: the script detects large price gaps relative to ATR(200) and flags them as bullish/bearish gaps (order-block style footprints) to add confluence to entries.

4. Entry criteria: a long entry is signalled when price closes above the most recent resistance and the volatility filter is satisfied (or a bullish gap condition is met). Shorts mirror this logic below support. Debug/force flags allow manual/backtest forcing of trades.

5. Risk & exits: stops are ATR-based (ATR length configurable, multiplier configurable) giving context-aware stop distances. Each entry sets a profit target as a percent of entry and attaches a trailing exit (points and offset defined as percent of price) to protect profits. Exits are placed with one strategy.exit per entry so they are executed by the strategy engine.

6. Non-premature confirmation: entries are determined using closed-bar conditions (no intrabar triggers), consistent with strategy backtesting expectations.

Key inputs (and what they control)

1. Levels Period (length) — pivot lookback used to compute support/resistance structure; larger values = larger, fewer zones.

2. Volatility Filter (filter 0–100) — normalized volatility threshold (percentile) required to allow breakout signals. Increase to reduce signals during quiet markets.

3. Volatility lookback (volatility_len) — window length used to normalize the raw range into a percentile.

4. ATR length (atr_len) & ATR Stop Multiplier (atr_multiplier) — ATR parameters used for stop distance; ATR gives volatility-adaptive stop sizing.

5. Profit target (%) — target as percent of entry price.

6. Trailing points (%) & offset (%) — trailing stop size and activation offset, expressed as percent of price (converted internally to price points).

7. Visual & debug toggles — show/hide levels, entry markers, and enable debug/force entry flags for manual/backtest validation.

Practical Usage & Recommended Settings

Timeframes – Works efficiently across multiple time horizons.
• 5–15 minutes → Scalping setups.
• 15 minutes–1 hour → Intraday opportunities.
• 4 hours–1 day → Swing trading confirmation.
Adjust length and Volatility Filter parameters to match your timeframe and instrument behavior.

Default Sensitivity –
The default length = 20 offers balanced structure detection.
• Lower values → faster, more frequent signals.
• Higher values → smoother structure and fewer breakouts.

Volatility Tuning –
Modify the Volatility Filter (0–100) according to market conditions.
• Increase the filter during low-volume or choppy sessions to reduce false signals.
• Decrease it during trending or high-volatility markets for greater responsiveness.

Stop / Target Sizing –
ATR-based stop-losses automatically adapt to market volatility.
• Recommended starting point: ATR Multiplier = 1.5 and Profit Target = 1.5%.
• Fine-tune both based on each asset’s typical volatility profile.

Backtesting –
Use TradingView’s built-in Strategy Tester to analyze results over different symbols and timeframes.
The strategy executes only on bar close, ensuring accurate, non-repainting backtest results.

What the strategy plots / visual cues
•Forward-extended pivot lines for support/resistance (configurable color/transparency).
•Order-block / gap markers when large ATR-scaled gaps are detected.
•Entry labels (“LONG” / “SHORT”) at position changes if enabled.
•Strategy entries/exits are placed through strategy.entry and strategy.exit so performance reports are available in the Tester.

Risk management & notes
•This script is a discretionary tool — it automates entries and exits for backtesting and strategy simulation, but users should still confirm trades with broader market context and higher-timeframe bias.
•Always run thorough backtests (multi-symbol, multi-timeframe) and forward test on a paper account before any live deployment.
•Adjust position sizing externally; the strategy code sets orders and exits but does not enforce a specific money-management sizing rule. Use the strategy tester’s default position size controls or integrate a sizing method in your own workflow.

Technical details & behavior
•Pine Script v6 strategy.
•Uses closed-bar confirmation for signals (no repainting on close).
•Order-block / gap detection uses ATR(200) as a volatility reference to identify large structural gaps.
•Trail calculations convert percent-based inputs to absolute price units each bar to maintain consistent behavior across price levels.

Limitations & disclaimers
•Past performance is not indicative of future results. This strategy does not guarantee profits and will produce losing trades.
•Results depend on parameter choices, instrument volatility, market regime, and execution slippage. Always test on the exact symbol and timeframe you intend to trade.

Invite-only / Access note (for Publish window)
This strategy is invite-only. Please use the TradingView Request Access button on this page to request access.