Strategies / Breakout / Second Breakout Candle Reward Ratio

Second Breakout Candle Reward Ratio

The system buys a second break above a swing high's breakout level within 20 bars, and sells the mirror setup short. The stop sits below the lowest low since the first break, and the target is 1, 2 or 3 times the risk.

BreakoutLong & shortSwingUSD/JPYDaily

1.84Profit factor

177,390Net profit USD

40.89%Win rate

1,389Trades

-5,070Max drawdown

128Avg trade

Best run of 19. USD/JPY, Daily, spread 1, from run pf:2026-10-04-USDJPY-D.tsv:15.

Entry rules, long

A swing high is confirmed when the high 2 bars back is the highest of the last 7 bars.
The close rises above that swing high, arming the setup.

Entry rules, short

A swing low is confirmed when the low 2 bars back is the lowest of the last 7 bars.
The close falls below that swing low, arming the setup.

Exit rules

The target is 3 times risk after an expansion candle, 1 time in low liquidity, otherwise 2 times.

Test conditions

Period	Up to 2026-10-04
Instrument	USD/JPY, Daily
Spread	1 points
Starting capital	1,000,000
Costs	Spread only. Commissions and overnight financing are not included.
Bars	Up to 200,000 bars, fewer where the instrument has less history
Last tested	2026-10-04

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
USD/JPYBest run	Daily	1.84	1,389	40.89	177,390 USD	-5,070
Silver	5 min	n/a	1,501	26.52	40,485 USD	-17,709
Silver	3 min	n/a	1,474	27.14	39,469 USD	-14,468
Silver	4 hours	n/a	252	32.14	34,945 USD	-19,257
Nikkei 225	Daily	n/a	148	35.14	33,621 USD	-18,058
Silver	30 min	n/a	1,644	28.83	31,321 USD	-16,946
Silver	1 hour	n/a	833	29.53	29,966 USD	-17,793
Silver	2 min	n/a	1,446	29.25	28,022 USD	-17,879
Dow Jones	1 hour	n/a	323	34.98	20,283 EUR	-10,803
Nikkei 225	1 min	n/a	1,626	29.40	18,373 USD	-10,711
Brent Crude	Daily	n/a	50	44.00	14,877 EUR	-11,848
Dow Jones	15 min	n/a	1,093	31.75	14,517 EUR	-11,174
DAX 40	15 min	n/a	1,464	31.08	11,837 EUR	-3,624
Nasdaq 100	10 min	n/a	1,433	31.89	11,042 EUR	-7,853
S&P 500	Daily	n/a	244	34.84	3,541 EUR	-1,306
Gold	1 hour	n/a	847	31.88	2,804 EUR	-904
Gold	30 min	n/a	1,304	32.13	2,208 EUR	-1,155
Gold	4 hours	n/a	272	33.46	2,039 EUR	-1,422
Gold	Daily	n/a	190	33.68	1,661 EUR	-1,230

Charts

Results by run

Top 10 of 19 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Second Breakout Candle Reward Ratio
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Breakout
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE lph = 0
ONCE hasph = 0
ONCE lpl = 0
ONCE haspl = 0
ONCE lstage = 0
ONCE lhtwo = 0
ONCE lpbl = 0
ONCE lbars = 0
ONCE sstage = 0
ONCE sltwo = 0
ONCE sbh = 0
ONCE sbars = 0

myAtr = AverageTrueRange[14](close)
body = abs(close - open)
barrange = high - low
avgbody = Average[50](body)
avgrange = Average[100](barrange)
recentbody = Average[10](body)
recentrange = Average[10](barrange)

123 more lines: the entry and exit rules.

Setup

How to load it

Copy the code with the copy button on the code block.
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".
Paste the code, give the system a name and save it.
Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

ATRSMA

Longer historyRe-run on up to 1,000,000 barsUSD/JPY · Daily · older data 0.00 USD

USD/JPY had no history beyond the standard run, so both runs used 12,000 bars.

USD/JPY · Daily

Bars available	12,000
Net, standard 200,000-bar run	177,390.00 USD
Net, long run	177,390.00 USD
Net on the older data alone	0.00 USD

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 Second Breakout Candle Reward Ratio 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 19 market and timeframe combinations. The best run was USD/JPY, Daily, with a profit factor of 1.84 over 1,389 trades.

How large was the drawdown?

The best run had a maximum drawdown of 5,070 USD at the tested position size, against a net result of 177,390 USD.

Does it trade long, short or both?

It trades both long and short.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

EMA 8 21 RSI Filtered Bracket

Best run on the same market, USD/JPY.

1.09 PF · 6,194 trades

Trend Filtered Breakout Short

Also a breakout strategy.

1.88 PF · 90 trades

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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.com Stats Docs