Strategies / Breakout / Smoothed Channel Breakout (long only)

Smoothed Channel Breakout (long only)

The strategy buys when the close crosses above an upper band, built from chained 21-period EMAs of typical price plus 1.414 times a matching smoothing of true range. It sells when the close crosses back below that band.

BreakoutLong onlySwingGoldDaily

2.40Profit factor

3,412Net profit EUR

22.32%Win rate

336Trades

-809Max drawdown

10.15Avg trade

Best run of 21. Gold, Daily, spread 0.6, from run pf:2026-10-04-GOLD-D.tsv:2.

Entry rules, long

Buys one contract at market when flat, after bar 120.

Exit rules

No stop or target is set.

Test conditions

Period	Up to 2026-10-04
Instrument	Gold, Daily
Spread	0.6 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
GoldBest run	Daily	2.40	336	22.32	3,412 EUR	-809
USD/JPY	Daily	n/a	351	23.08	902,040 USD	-369,300
USD/JPY	30 min	n/a	4,721	21.12	332,570 USD	-226,260
Nikkei 225	Daily	n/a	283	25.80	42,614 USD	-12,445
Silver	4 hours	n/a	706	20.54	34,572 USD	-15,454
Nikkei 225	4 hours	n/a	669	23.02	14,594 USD	-6,786
Nikkei 225	1 hour	n/a	2,371	20.50	14,107 USD	-11,169
Nasdaq 100	Daily	n/a	330	27.27	12,271 EUR	-3,468
Dow Jones	Daily	n/a	419	24.11	11,458 EUR	-5,402
Nasdaq 100	4 hours	n/a	851	23.03	10,087 EUR	-2,549
Nasdaq 100	1 hour	n/a	2,978	21.69	8,961 EUR	-4,563
Dow Jones	4 hours	n/a	264	25.76	8,791 EUR	-4,639
Dow Jones	1 hour	n/a	1,019	22.37	8,126 EUR	-7,098
DAX 40	4 hours	n/a	752	23.54	6,725 EUR	-3,538
DAX 40	1 hour	n/a	2,838	21.63	6,657 EUR	-2,863
DAX 40	Daily	n/a	405	26.17	5,961 EUR	-5,297
S&P 500	Daily	n/a	423	23.40	1,968 EUR	-835
Gold	1 hour	n/a	2,781	20.64	1,932 EUR	-940
Gold	4 hours	n/a	735	21.90	1,904 EUR	-1,257
Gold	30 min	n/a	5,042	23.03	1,755 EUR	-1,638
S&P 500	4 hours	n/a	853	23.68	1,152 EUR	-723

Charts

Results by run

Top 10 of 21 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Smoothed Channel Breakout (long only)
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Breakout
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

src = TypicalPrice
fa = ExponentialAverage[21](src)
fb = ExponentialAverage[21](fa)
fc = ExponentialAverage[21](fb)
filt = ExponentialAverage[21](fc)

myTr = TR(close)
ta = ExponentialAverage[21](myTr)
tb = ExponentialAverage[21](ta)
tc = ExponentialAverage[21](tb)
filttr = ExponentialAverage[21](tc)

upper = filt + filttr * 1.414

10 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

EMATrue Range

Longer historyRe-run on up to 1,000,000 barsGold · Daily · older data 0.00 EUR

Gold had no history beyond the standard run, so both runs used 13,000 bars.

Gold · Daily

Bars available	13,000
Net, standard 200,000-bar run	3,411.80 EUR
Net, long run	3,411.80 EUR
Net on the older data alone	0.00 EUR

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 Smoothed Channel Breakout (long only) 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 21 market and timeframe combinations. The best run was Gold, Daily, with a profit factor of 2.40 over 336 trades.

How large was the drawdown?

The best run had a maximum drawdown of 809 EUR at the tested position size, against a net result of 3,412 EUR.

Does it trade long, short or both?

It only takes long trades.

Reversal Pattern With Chaikin Volatility

Uses the same indicator.

2.26 PF · 6,872 trades

CCI Breakout

Best run on the same market, Gold.

1.08 PF · 6,065 trades

55 Day Breakout Long

Also a breakout strategy.

2.40 PF · 40 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