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Strategies / Volatility / Squeeze Release Momentum Breakout

Squeeze Release Momentum Breakout

The strategy buys when Bollinger Bands move back outside Keltner Channels after a squeeze and a rising linear regression momentum value is positive, and sells short on the mirror setup. Each trade uses a 4% stop loss and a 6.67% profit target.

VolatilityLong & shortSwingGoldDaily
1.45Profit factor
1,924Net profit EUR
42.00%Win rate
619Trades
-307Max drawdown
3.11Avg trade

Best run of 7. Gold, Daily, spread 0.6, from run pf:2026-10-12-GOLD-D.tsv:10.

Entry rules, long

  2. The momentum value is above 0 and higher than on the prior bar

Entry rules, short

  2. The momentum value is at or below 0 and lower than on the prior bar

Exit rules

  2. A short closes when momentum is at or below 0 but not lower than the prior bar
  3. A stop 4% from entry and a target 6.67% from entry are set

Test conditions

PeriodUp to 2026-10-12
InstrumentGold, Daily
Spread0.6 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 tested2026-10-12

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
GoldBest runDaily1.45 61942.001,924 EUR-307
USD/JPYDailyn/a 56141.35768,080 USD-569,940
Silver4 hoursn/a 1,23439.5526,034 USD-7,475
SilverDailyn/a 50840.3519,736 USD-5,212
Dow Jones4 hoursn/a 41041.956,503 EUR-5,778
Brent CrudeDailyn/a 22044.556,323 EUR-5,194
Gold4 hoursn/a 1,33940.48886 EUR-711

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

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

DEFPARAM CumulateOrders = false

src = TotalPrice
maa = Average[12](src)
mab = Average[16](src)
rangema = Average[16](high - low)
dev = 2.0 * STD[12](src)
upperbb = maa + dev
lowerbb = maa - dev
upperkc = mab + rangema * 1.5
lowerkc = mab - rangema * 1.5

33 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 Regression
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 Squeeze Release 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 7 market and timeframe combinations. The best run was Gold, Daily, with a profit factor of 1.45 over 619 trades.

How large was the drawdown?

The best run had a maximum drawdown of 307 EUR at the tested position size, against a net result of 1,924 EUR.

Does it trade long, short or both?

It trades both long and short.

Related

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CCI Breakout

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Nested Bollinger Band Trend Entry

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1.47 PF · 531 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