OPEN-SOURCE SCRIPT

Strategy 432 BTC - Donchian Breakout Continuation

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Strategy 432 BTC — Donchian Breakout Continuation

Strategy 432 is a BTC/USDT trend-following breakout strategy designed for the 4H timeframe.

The idea behind the system is simple: Bitcoin often rewards strong directional breakouts when they happen in a confirmed trend environment. Instead of trying to fade aggressive moves, this strategy attempts to follow them when momentum, volatility and macro trend alignment are present.

The strategy uses a Donchian Channel to detect breakouts above previous highs or below previous lows. A long entry is triggered when price closes above the previous Donchian high, the breakout distance is large enough relative to ATR, ADX confirms trend strength, and price is trading above the EMA 200.

By default, short trades are disabled because the original BTC research showed stronger results on the long side. However, the script includes an optional short mode for testing.

Main components:

Donchian Channel breakout based on previous candles
ATR-based breakout magnitude filter
ADX trend-strength filter
EMA 200 macro trend filter
Time-based exit after a fixed number of bars
Exit on opposite Donchian channel break
Optional short-side logic

This strategy is built specifically around the idea that, in BTC, large breakouts can lead to continuation when supported by trend strength. It is not designed to predict tops or bottoms, but to participate in directional moves once confirmation is present.

Best used on BTC/USDT 4H. Results may vary significantly across other assets or timeframes. Always backtest and validate before using it in live trading.

Penafian

Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.