Week-range next-day breakout on bitcoin pairs

The bitcoin-pair case

The procedure is specified as swing trading of altcoins versus bitcoin on a four-hour chart. A bitcoin-pair is an altcoin priced against bitcoin rather than against a fiat currency.

Altcoin-versus-bitcoin pairs can stay in sideways balance for long stretches before a directional break. An instrument that has moved sideways for more than one week is treated as a candidate for a later breakout.

Range-eligibility

Range-eligibility is a sideways stretch longer than one week that qualifies an instrument as a breakout candidate. Until that stretch is complete, the name is not treated as ready for a later break.

The archive does not take the long or the short during that quiet balance. Editorial note: this is the minimum range clock. It is the abstention rule that the later delay clock depends on.

Next-day-entry

After a significant upward break from a sideways stretch of at least one week, the long is taken on the following day. After a significant downward break from a sideways stretch of at least one week, the short is taken on the following day.

Next-day-entry is the rule that waits until the day after that break before the long or the short is taken. The break is observed first. The position is not taken on the day of the break.

Editorial note: the delay is a second clock. A bitcoin-pair can already meet range-eligibility and still be stood aside until the following day.

Wide-stop and size

Stops are placed well away from the entry because bitcoin-pair prices differ widely across instruments. Price movement after the break is described as lasting days or, in some cases, weeks, which is why wide stops are required.

A wide-stop is a stop placed far from the entry so bitcoin-pair volatility has room after the break. Position size is specified as 0.02 per 5,000 USD of account, scaling to 0.04 at 10,000 USD and 0.08 at 20,000 USD.

Giveback-exit

The position is closed after two weeks or after about 30 percent of open profit has been given back. Giveback-exit is that pair of closes, whichever comes first.

Swing-horizon is a holding window of days to about two weeks, read on a four-hour chart. The two-week close sits at the far end of that window. The giveback close can end the hold sooner if about 30 percent of open profit is surrendered.

Three clocks in one procedure

Editorial reading. Range-eligibility is the clock that forbids entry. Next-day-entry is the clock that waits until the day after a significant break. Giveback-exit is the hold clock. The archive states each rule. The demand that the three clocks be written down together is a TradersWeek interpretation, not an archive claim.

A wide-stop and the stated size sit beside those clocks. They set how far the stop stands from entry and how large the position is while the swing-horizon runs. They do not replace the range clock or the delay.