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2020issue C0418-21

Altcoin dual-stop breakout with a timed exit

A case study of a nondirectional altcoin procedure that pairs dual pending stops, a fill-and-cancel trigger, a coin-specific stop distance, and a two-week time stop instead of a take-profit target.

  • Dual pending stops place a buy-stop above the current price and a sell-stop below it so an altcoin entry does not need a directional forecast.
  • The fill-and-cancel trigger cancels the remaining pending order as soon as the opposite side is filled.
  • Coin-specific stop distance follows each altcoin's typical movement rather than one pip count copied from bitcoin.
  • The written rules use a four-hour chart, no take-profit target, and a two-week time stop.
Entries in this reading3 entries
Current trackBreakout system74 readingsStop-loss order160 readingsRule-based entry193 readings

A procedure, not a forecast

The archive treats a nondirectional altcoin setup as one written procedure. An altcoin here is any cryptocurrency other than bitcoin, handled as its own instrument with its own range and stop geometry.

The procedure places dual pending stops: a buy-stop above the current price and a sell-stop below it. An entry can then be taken without a directional forecast.

Fill, cancel, and hold

When one pending stop is filled, the fill-and-cancel trigger cancels the opposite pending order. A stop-loss is set with the entry and kept in force for the life of the position.

The written rules use a four-hour chart, no take-profit target, and a two-week close. That calendar close is the time stop.

Session, size, and coin-specific stop distance

Pending orders are to be placed only between 9.00 and 11.30 pm GMT.

Stated size is 0.02 per 5,000 USD, scaled to 0.04 at 10,000 USD and 0.08 at 20,000 USD.

Pending-order and stop offsets are coin-specific: 40,000 pips in the bitcoin reference, 4,000 pips on a four-hour ether example, and 500 pips on the litecoin example. Stop-loss distance is supposed to follow each altcoin's typical movement rather than one fixed pip count for every coin.

A litecoin path and bitcoin comparison

The litecoin worked example used a buy-stop fill at 118.50, a stop-loss at 113.50, a 12 April 2018 trigger, and a 25 April 2018 exit.

Many altcoins are described as often moving with bitcoin, while the same material also shows cases where an altcoin trend diverges from bitcoin.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
22 of 23 in the Breakout system track
202037-37 pp.Next on Breakout systemCritiquing required stops in mechanical breakout systemsA mechanical trading system can be written with or without a stop-loss; the order is not an automatic requirement of building one's own rules.
All readings on this track · 23 readings
  1. 1995Range breakout rules with an expansion filter and moving-average exits
  2. 1995Write a weekly breakout as one parameterized entry and exit
  3. 1995Combining a trend rule, a breakout trigger, and a seasonal filter
  4. 1996Constructing a two-bar clearance breakout from a twenty-session exponential average
  5. 1996Two-bar exponential-average breakout as setup, stop, and flatten
  6. 1998A noise-offset breakout judged after walk-forward re-estimation
  7. 1998Gating a weekly average crossover with stored support and resistance
  8. 1998Moving-average candidates gated by support and resistance
  9. 2000Constructing next-close envelope targets for breakout stops
  10. 2001February soybean high breakout and June trailing stop
  11. 2005Box-and-breakout states written as ordered entry and exit rules
  12. 2007Match trend and breakout rules to the market condition
  13. 2010How a JM internal band becomes long and short entry and exit rules
  14. 2013Constructing a three-average trend-aligned breakout system
  15. 2016Volume-confirmed breakout entry rules
  16. 2017How to construct exponential standard deviation bands
  17. 2017Four-day green candle breakout as one swing procedure
  18. 2018Constructing inverse ETF breakouts above a 200-day average
  19. 2018Evaluating trend, breakout, and regression rules by average robustness
  20. 2019A crypto pair breakout after a sideways range
  21. 2019Next-session breakout rules after a high-volume close
  22. 2020Altcoin dual-stop breakout with a timed exit
  23. 2020Critiquing required stops in mechanical breakout systems
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