{"id":1276,"date":"2025-07-16T19:30:17","date_gmt":"2025-07-16T14:00:17","guid":{"rendered":"https:\/\/www.definedgesecurities.com\/trading-strategies\/?p=1276"},"modified":"2025-07-16T21:33:53","modified_gmt":"2025-07-16T16:03:53","slug":"20-high-breakout-system","status":"publish","type":"post","link":"https:\/\/www.definedgesecurities.com\/trading-strategies\/20-high-breakout-system\/","title":{"rendered":"20-High Breakout System"},"content":{"rendered":"\n<p>Inspired by the <a href=\"https:\/\/shelf.definedgesecurities.com\/indicators-simplified\/turtle-method-darvas-box-simplified\/turtle-trading-method\/\">Turtle<\/a> and <a href=\"https:\/\/shelf.definedgesecurities.com\/indicators-simplified\/turtle-method-darvas-box-simplified\/darvas-box-theory\/\">Darvas<\/a> trading systems, the following is a simple yet effective breakout strategy based on 20-day breakout principles for positional trading.<\/p>\n\n\n\n<p>Below is a possible strategy in the Momentify Trading setup.<\/p>\n\n\n\n<p><strong>Strategy Name:<\/strong> 20-High Breakout System<\/p>\n\n\n\n<p><strong>Stock Group:<\/strong> Your choice<\/p>\n\n\n\n<p><strong>Allocation:<\/strong> Your choice<\/p>\n\n\n\n<p><strong>Number of Stocks:<\/strong> Your choice<\/p>\n\n\n\n<p><strong>Rank Criteria:<\/strong> Return Percent or Volar<\/p>\n\n\n\n<p><strong>Position Size:<\/strong> Fixed<\/p>\n\n\n\n<p><strong>Ranking Period:<\/strong> 20 &amp; 252<\/p>\n\n\n\n<p><strong>Retracement:<\/strong> Within 20% of 52-week high<\/p>\n\n\n\n<p><strong>Moving Average Filter:<\/strong> 200-EMA<\/p>\n\n\n\n<p><strong>TMA Trend:<\/strong> Bullish 20, 50, 100 triple moving averages trend<\/p>\n\n\n\n<p><strong>Trend Quality:<\/strong> Above 50%<\/p>\n\n\n\n<p><strong>Relative Strength:<\/strong> Above 200-EMA (Ratio chart)<\/p>\n\n\n\n<p><strong>Entry Condition:<\/strong> Price at 20-period high<\/p>\n\n\n\n<p><strong>Exit Condition:<\/strong> Price falls at 10-period low<\/p>\n\n\n\n<p><strong>Market Trend Filter:<\/strong> <strong>:<\/strong> 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<\/p>\n\n\n\n<p>In the above template, position sizing is kept as <em>fixed<\/em>. However, you can also opt for ATR-based or Risk-based position sizing methods.<\/p>\n\n\n\n<p>It is important to understand that the above rules are meant to help you understand the structure of the template. <strong>You are encouraged to tweak the parameters as per your comfort<\/strong>, and backtest across different time periods and stock universes to build your own customized trading template.<\/p>\n\n\n\n<p>You can customize the exit strategy \u2014 including setting your preferred stop-loss percentage and target levels.<\/p>\n\n\n\n<p>You can use this base template, make necessary adjustments, and save it in your <strong>Momentify Trading dashboard<\/strong>.<\/p>\n\n\n\n<p>To backtest your strategy, go to:<br><strong>RZone \u2192 Backtesting \u2192 Momentum Trading Backtesting<\/strong><\/p>\n\n\n\n<p>The above strategy in the Momentify Trading Setup is a long-only (buy-only) strategy and can be applied across any market segment \u2014 cash or derivatives, across any timeframe or instrument.<\/p>\n\n\n\n<p>The stock basket in Momentify is generated based on the previous session\u2019s closing price.<br>To scan stocks using live market prices, simply click the <strong>Scan<\/strong> button.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 &#8230; <a title=\"20-High Breakout System\" class=\"read-more\" href=\"https:\/\/www.definedgesecurities.com\/trading-strategies\/20-high-breakout-system\/\" aria-label=\"More on 20-High Breakout System\">Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":1305,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,23,17],"tags":[],"class_list":["post-1276","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breakout-trading-strategy","category-investment-strategy","category-momentum-trading-strategy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>20-High Breakout System - Trading Strategies<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.definedgesecurities.com\/trading-strategies\/20-high-breakout-system\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"20-High Breakout System - Trading Strategies\" \/>\n<meta property=\"og:description\" content=\"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 ... 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