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Strategies / Breakout / Channel Break With SMA Trend

Channel Break With SMA Trend

In an uptrend above SMA(200), buys when close breaks below the prior 7-bar low, and in a downtrend sells short when close breaks above the prior 7-bar high. Exits break the opposite 7-bar level.

BreakoutLong & shortSwingUSD/JPYDaily
8.83Profit factor
1,652,860Net profit USD
4.61%Win rate
933Trades
-108,020Max drawdown
1,772Avg trade

Best run of 8. USD/JPY, Daily, spread 1, from run pf:2026-10-13-USDJPY-D.tsv:8.

Entry rules, long

  1. The close is above the 200-bar SMA.
  3. Entries start after bar 210 and only when flat.

Entry rules, short

  1. The close is below the 200-bar SMA.

Exit rules

  2. The short closes when the close breaks below the prior 7-bar low, unless a long setup is also true.
  3. A protective stop sits 2 times the 10-bar SMA of true range from the fill.

Test conditions

PeriodUp to 2026-10-13
InstrumentUSD/JPY, Daily
Spread1 points
Starting capital1,000,000
CostsSpread only. Commissions and overnight financing are not included.
BarsUp to 200,000 bars, fewer where the instrument has less history
Last tested2026-10-13

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest runDaily8.83 9334.611,652,860 USD-108,020
Nikkei 225Dailyn/a 46652.5821,092 USD-13,051
Dow JonesDailyn/a 52056.5415,400 EUR-5,206
Dow Jones4 hoursn/a 36247.515,582 EUR-5,074
Nasdaq 100Dailyn/a 47149.475,545 EUR-4,663
FTSE 100Dailyn/a 46152.713,972 EUR-3,399
S&P 500Dailyn/a 57755.113,059 EUR-986
S&P 5004 hoursn/a 1,15247.661,041 EUR-712

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Channel Break With SMA Trend
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Breakout
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

hi = highest[7](high)
lo = lowest[7](low)
ma = Average[200](close)
myTr = TR(close)
myAtr = Average[10](myTr)
dist = 2 * myAtr

20 more lines: the entry and exit rules.

Setup

How to load it

  1. Copy the code with the copy button on the code block.
  2. In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
  3. Paste the code, give the system a name and save it.
  4. Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

SMATrue Range
Read this firstKnown weaknesses2 points
  • Results include the spread only. Commissions and overnight financing are not included.
  • The code is published as it was backtested and has not been compiled again since.

Questions

About this strategy

Can I run Channel Break With SMA Trend in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 8 market and timeframe combinations. The best run was USD/JPY, Daily, with a profit factor of 8.83 over 933 trades.

How large was the drawdown?

The best run had a maximum drawdown of 108,020 USD at the tested position size, against a net result of 1,652,860 USD.

Does it trade long, short or both?

It trades both long and short.

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Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.comStatsDocs