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Strategies / Breakout / Squeeze Momentum Breakout

Squeeze Momentum Breakout

Buys when a volatility squeeze releases with rising momentum above the 100-period EMA, and sells short when a squeeze forms with falling momentum below it. Longs close on any momentum decline and shorts on any momentum rise.

BreakoutLong & shortSwingNasdaq 1001 hour
n/aProfit factor
3,754Net profit EUR
38.92%Win rate
1,809Trades
-3,420Max drawdown
2.08Avg trade

Best run of 10. Nasdaq 100, 1 hour, spread 3, from run sweeps:2026-10-04-NAS100-1h-opt.tsv:85.

Entry rules, long

  2. Momentum (linear regression of 20 periods) is higher than on the previous bar and above its lowest value of the prior 100 bars.
  3. The close is higher than the previous close and above the 100-period EMA.

Entry rules, short

  2. Momentum is lower than on the previous bar and below its highest value of the prior 100 bars.
  3. The close is lower than the previous close and below the 100-period EMA.

Exit rules

  2. Short: momentum rises above its previous value, closing the short.
  3. An opposite entry signal reverses the position.

Test conditions

PeriodUp to 2026-10-04
InstrumentNasdaq 100, 1 hour
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 tested2026-10-07

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Nasdaq 100Best run1 hourn/a 1,80938.923,754 EUR-3,420
USD/JPYDailyn/a 19345.60530,670 USD-196,950
Nikkei 2254 hoursn/a 37944.8514,962 USD-5,343
DAX 40Dailyn/a 15848.104,685 EUR-1,567
US Crude Oil4 hoursn/a 31543.493,729 EUR-2,617
DAX 401 hourn/a 1,57840.943,344 EUR-1,473
GBP/USDDailyn/a 18939.683,137 USD-2,076
Brent Crude1 hourn/a 93840.093,014 EUR-2,460
Gold4 hoursn/a 44643.50988 EUR-461
GoldDailyn/a 21644.91719 EUR-273

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Squeeze Momentum Breakout
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Breakout
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

basis = Average[20](close)
dev = 1.5 * STD[20](close)
upperbb = basis + dev
lowerbb = basis - dev

rangema = Average[20](TR(close))
upperkc = basis + rangema * 1.5
lowerkc = basis - rangema * 1.5

27 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

Bollinger BandsKeltner ChannelLinear RegressionEMASMATrue RangeStandard Deviation
Read this firstKnown weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 3,420 EUR is large next to the net profit of 3,754 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 Squeeze Momentum Breakout 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 10 market and timeframe combinations. The best run by trade count was Nasdaq 100, 1 hour, with 1,809 trades.

How large was the drawdown?

The best run had a maximum drawdown of 3,420 EUR at the tested position size, against a net result of 3,754 EUR.

Does it trade long, short or both?

It trades both long and short.

Related

Strategies like this one

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

Volatility Spike Regression Long

Best run on the same market, Nasdaq 100.

1.22 PF · 1,850 trades

Big Candle Breakout

Also a breakout strategy.

n/a PF · 4,636 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.comStatsDocs