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Strategies / Breakout / Smoothed Channel Breakout (long and short)

Smoothed Channel Breakout (long and short)

The strategy buys when price crosses above a smoothed 200-bar high band and sells short when price crosses below a smoothed 200-bar low band. Exits trigger when price crosses back through the band offset by 2 times ATR(14).

BreakoutLong & shortIntradayDAX 4030 min
n/aProfit factor
3,756Net profit EUR
38.87%Win rate
2,053Trades
-2,324Max drawdown
1.83Avg trade

Best run of 15. DAX 40, 30 min, spread 3, from run sweeps:2026-10-11-DAX40-30m-opt.tsv:81.

Entry rules, long

  1. The upper band is the 10-bar simple moving average of the 200-bar highest high

Entry rules, short

  1. The lower band is the 10-bar simple moving average of the 200-bar lowest low

Exit rules

  2. A short closes when the close crosses over the lower band plus 2 times ATR(14)
  3. An opposite entry reverses the position

Test conditions

PeriodUp to 2026-10-11
InstrumentDAX 40, 30 minutes
Spread3 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 tested2026-10-11

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
DAX 40Best run30 minn/a 2,05338.873,756 EUR-2,324
USD/JPYDailyn/a 13243.181,074,060 USD-474,100
USD/JPY4 hoursn/a 36538.63181,110 USD-154,000
EUR/USD4 hoursn/a 49340.3728,191 USD-27,117
SilverDailyn/a 10938.5325,424 USD-18,479
Brent CrudeDailyn/a 3865.7917,420 EUR-3,747
Silver4 hoursn/a 31639.5611,635 USD-11,336
GBP/USDDailyn/a 15145.036,958 USD-3,568
US Crude OilDailyn/a 11935.295,700 EUR-4,819
US Crude Oil4 hoursn/a 24847.985,304 EUR-2,907
DAX 40Dailyn/a 20742.034,910 EUR-3,513
Gold30 minn/a 1,94638.691,693 EUR-523
Gold4 hoursn/a 33141.691,571 EUR-437
GoldDailyn/a 13146.561,314 EUR-773
Gold1 hourn/a 1,25138.451,232 EUR-513

Charts

Results by run

Top 10 of 15 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Smoothed Channel Breakout (long and short)
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Breakout
// Direction: Long & short
// Timeframe tested: 30 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

myA = AverageTrueRange[14](close) * 2
hiband = Average[10](highest[200](high))
histop = hiband - myA
loband = Average[10](lowest[200](low))
lostop = loband + myA

16 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

SMAATR
Read this firstKnown weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 2,324 EUR is large next to the net profit of 3,756 EUR.
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Smoothed Channel Breakout (long and short) 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 15 market and timeframe combinations. The best run by trade count was DAX 40, 30 minutes, with 2,053 trades.

How large was the drawdown?

The best run had a maximum drawdown of 2,324 EUR at the tested position size, against a net result of 3,756 EUR.

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