20-High Breakout System

Inspired by the Turtle and Darvas trading systems, the following is a simple yet effective breakout strategy based on 20-day breakout principles for positional trading.

Below is a possible strategy in the Momentify Trading setup.

Strategy Name: 20-High Breakout System

Stock Group: Your choice

Allocation: Your choice

Number of Stocks: Your choice

Rank Criteria: Return Percent or Volar

Position Size: Fixed

Ranking Period: 20 & 252

Retracement: Within 20% of 52-week high

Moving Average Filter: 200-EMA

TMA Trend: Bullish 20, 50, 100 triple moving averages trend

Trend Quality: Above 50%

Relative Strength: Above 200-EMA (Ratio chart)

Entry Condition: Price at 20-period high

Exit Condition: Price falls at 10-period low

Market Trend Filter: : Change the exit strategy to 20-period EMA or 20% target when Nifty turns bearish, or when X% breadth rises above 75, or X% breadth falls below its moving average

In the above template, position sizing is kept as fixed. However, you can also opt for ATR-based or Risk-based position sizing methods.

It is important to understand that the above rules are meant to help you understand the structure of the template. You are encouraged to tweak the parameters as per your comfort, and backtest across different time periods and stock universes to build your own customized trading template.

You can customize the exit strategy — including setting your preferred stop-loss percentage and target levels.

You can use this base template, make necessary adjustments, and save it in your Momentify Trading dashboard.

To backtest your strategy, go to: RZone → Backtesting → Momentum Trading Backtesting

The above strategy in the Momentify Trading Setup is a long-only (buy-only) strategy and can be applied across any market segment — cash or derivatives, across any timeframe or instrument.

The stock basket in Momentify is generated based on the previous session’s closing price. To scan stocks using live market prices, simply click the Scan button.