Strategies / Breakout / Squeeze Upper Band Breakout

Squeeze Upper Band Breakout

The strategy buys 1 contract when the close breaks above the upper Bollinger Band after a squeeze and above the 200 period EMA. It sells the long when the close breaks below the lower band and the average close position is 0 or below.

BreakoutLong onlyIntradayNikkei 22530 min

1.59Profit factor

47,620Net profit USD

49.83%Win rate

602Trades

-8,861Max drawdown

79.10Avg trade

Best run of 28. Nikkei 225, 30 min, spread 10, from run pf:2026-10-04-NIKKEI-30m.tsv:1.

Entry rules, long

A squeeze means 20 period Bollinger Bands (2 deviations) sit fully inside Keltner bands at 1.5 times the average true range.
A squeeze occurred on the current bar or one of the 3 prior bars.
The 20 bar average of the close's position within the bar's range is above 0.
The close is above the 200 period EMA and above its close 3 bars earlier.
Signals come only after bar 200 and more than 15 bars after the previous signal.

Exit rules

A recent squeeze occurred on the current or one of the 3 prior bars.
The average close position is 0 or below.
Exits also wait more than 15 bars after the previous signal, and apply only while a long position is open.

Test conditions

Period	Up to 2026-10-04
Instrument	Nikkei 225, 30 minutes
Spread	10 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
Nikkei 225Best run	30 min	1.59	602	49.83	47,620 USD	-8,861
USD/JPY	30 min	n/a	681	48.75	442,860 USD	-251,530
Nikkei 225	4 hours	n/a	78	48.72	36,674 USD	-9,021
Dow Jones	Daily	n/a	43	55.81	32,957 EUR	-11,142
Nikkei 225	Daily	n/a	22	45.45	28,591 USD	-23,427
Nasdaq 100	Daily	n/a	23	60.87	15,155 EUR	-5,914
Nasdaq 100	1 hour	n/a	423	52.48	14,963 EUR	-4,516
Nikkei 225	1 hour	n/a	298	45.64	14,798 USD	-14,665
DAX 40	Daily	n/a	21	71.43	14,099 EUR	-5,511
Nasdaq 100	15 min	n/a	657	49.92	13,539 EUR	-4,536
Silver	2 min	n/a	625	41.12	13,330 USD	-9,398
Nasdaq 100	4 hours	n/a	82	54.88	12,339 EUR	-4,421
Dow Jones	15 min	n/a	546	45.05	12,240 EUR	-7,132
DAX 40	15 min	n/a	678	45.87	7,680 EUR	-4,084
Nasdaq 100	30 min	n/a	590	48.64	7,491 EUR	-4,915
DAX 40	5 min	n/a	609	44.99	6,763 EUR	-2,332
DAX 40	30 min	n/a	633	45.81	5,249 EUR	-4,615
S&P 500	Daily	n/a	45	60.00	4,682 EUR	-1,190
Dow Jones	2 min	n/a	651	43.78	3,636 EUR	-2,483
S&P 500	30 min	n/a	586	51.37	3,227 EUR	-1,133
Gold	Daily	n/a	37	54.05	3,159 EUR	-809
Gold	4 hours	n/a	103	47.57	2,465 EUR	-962
S&P 500	4 hours	n/a	95	65.26	2,196 EUR	-920
Gold	15 min	n/a	724	43.65	1,525 EUR	-995
Gold	10 min	n/a	690	44.49	1,376 EUR	-879
S&P 500	1 hour	n/a	441	46.94	1,352 EUR	-1,348
Gold	3 min	n/a	721	41.19	1,222 EUR	-454
S&P 500	5 min	n/a	654	44.80	1,099 EUR	-545

Charts

Results by run

Top 10 of 28 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Squeeze Upper Band Breakout
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Breakout
// Direction: Long only
// Timeframe tested: 30 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE lastsig = 0

basis = Average[20](close)
dev = 2.0 * STD[20](close)
upperbb = basis + dev
lowerbb = basis - dev
trsma = Average[20](TR(close))
upperkc = basis + trsma * 1.5
lowerkc = basis - trsma * 1.5

30 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

Bollinger BandsKeltner ChannelEMATrue Range

Longer historyRe-run on up to 1,000,000 barsNikkei 225 · 30 min · older data 338.30 USD

Nikkei 225 had no history beyond the standard run, so both runs used 180,000 bars.

Nikkei 225 · 30 min

Bars available	180,000
Net, standard 200,000-bar run	47,620.30 USD
Net, long run	47,958.60 USD
Net on the older data alone	338.30 USD

Read this firstKnown weaknesses2 points

The code sets no stop loss, so a losing trade stays open until an exit signal arrives.
Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run Squeeze Upper Band 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 28 market and timeframe combinations. The best run was Nikkei 225, 30 minutes, with a profit factor of 1.59 over 602 trades.

How large was the drawdown?

The best run had a maximum drawdown of 8,861 USD at the tested position size, against a net result of 47,620 USD.

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

Rock Climber

Best run on the same market, Nikkei 225.

1.44 PF · 1,644 trades

Volatility Band Upside Breakout

Also a breakout strategy.

1.59 PF · 194 trades

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