Desire To Trade Mechanical Volatility Breakout

Desire To Trade Mechanical Volatility Breakout at a glance

Kind of rule	Breakout
Buys or sells	It can buy, and it can bet on falling prices.
Built on	ATR, Donchian Channels, EMA, SMA
Where it was published	TradingView, by its author, as a Pine Script strategy
Tested on	35 cells: 15 coins, October 2021 to June 2026, no fee
Cells that placed a trade	8 of 35
Middle result before fees	−0.0%
Cells above zero	1 of 8
Middle drawdown before fees	0.0%
Page updated	2026-11-08

Desire To Trade Mechanical Volatility Breakout backtest results, every cell

Every cell is in the picture, not only the strongest. To the right of the black line is above zero. The orange line, when you see one, is the middle.

How Desire To Trade Mechanical Volatility Breakout works

Rules in this group usually work like this. It buys when price pokes above a recent high, and it bets on a fall when price pokes under a recent low. It is wrong often. It pays for those false starts with the few times price keeps going. How far back it looks decides how many pokes it takes. The next paragraph is this particular rule, which can be narrower than the group.

It can buy, and it can bet on falling prices. It acts only when several checks agree at once. It leans on ATR, EMA, SMA; those names are explained on their own pages, further down. The exact line is in the list below, in the author's names, and you can skip that list. When it enters, it also sets a stop or a target, so a trade can close without a new signal.

The author did not set a size, so each trade uses whatever amount the code assumes. It holds one trade at a time.

The exact condition, from the code

Same rule, translated from the code, in the author's names. You can skip this list if the paragraph above was enough.

• Enters long when Entry Mode (Close Breakout) equals 'Close Breakout' and not (Use Backtest Date Filter (off)) and allow longs and (range high − range low) is at or below (Max Range Size (x ATR) (2.5) × the 14-period ATR) and (not (Use Stock Trend Filter (on)) or the close is above the 200-period EMA of the close) and market bull and ATR expand ok and volume ok and the close is above the highest high of the previous 20 bars and no ….
• Enters short when Entry Mode (Close Breakout) equals 'Close Breakout' and not (Use Backtest Date Filter (off)) and Trade Direction (Long Only) equals 'Long & Short' and (range high − range low) is at or below (Max Range Size (x ATR) (2.5) × the 14-period ATR) and (not (Use Stock Trend Filter (on)) or the close is below the 200-period EMA of the close) and market bear and ATR expand ok and volume ok and the close is below the lowest ….
• Enters long when Entry Mode (Close Breakout) equals 'Stop Order Breakout' and no position is open and not (Use Backtest Date Filter (off)) and allow longs and (range high − range low) is at or below (Max Range Size (x ATR) (2.5) × the 14-period ATR) and (not (Use Stock Trend Filter (on)) or the close is above the 200-period EMA of the close) and market bull and ATR expand ok and volume ok.
• Enters short when Entry Mode (Close Breakout) equals 'Stop Order Breakout' and no position is open and not (Use Backtest Date Filter (off)) and Trade Direction (Long Only) equals 'Long & Short' and (range high − range low) is at or below (Max Range Size (x ATR) (2.5) × the 14-period ATR) and (not (Use Stock Trend Filter (on)) or the close is below the 200-period EMA of the close) and market bear and ATR expand ok and volume ok.
• Places a stop at active long range low, a target at ((the average entry price + (Full Exit Risk:Reward (2) × long risk)) when a long position is open, else undefined) when Take Profit Mode (1R Partial + Trail Runner) equals 'Full Exit At 2R' and a long position is open.
• Places a stop at active short range high, a target at ((the average entry price − (Full Exit Risk:Reward (2) × short risk)) when a short position is open, else undefined) when Take Profit Mode (1R Partial + Trail Runner) equals 'Full Exit At 2R' and a short position is open.
• Places a stop at active long range low, a target at ((the average entry price + (Partial Take Profit RR (1) × long risk)) when a long position is open, else undefined) when Take Profit Mode (1R Partial + Trail Runner) equals '…' and a long position is open.
• Places a stop at the larger of active long range low and raw long trail when Take Profit Mode (1R Partial + Trail Runner) equals '…' and a long position is open.

Buys or sells	It can buy, and it can bet on falling prices.
Tools it calculates	ATR, Donchian Channels, EMA, SMA
A second chart speed	Yes. It also looks at a second chart speed.
Only at certain hours	Yes. It only acts during set hours.
Adding to a trade	It holds one trade at a time.
How much it trades	The author did not set a size, so each trade uses whatever amount the code assumes.
Cost the author assumed	The author assumed a trading cost of 0.01 percent per side.

Default settings

The test used the defaults in the middle column. Nothing was turned to help a coin.

Setting	Default	Group
Trade Direction	Long Only
Entry Mode	Close Breakout
Breakout Lookback Bars	20
ATR Length	14
Min Range Size (x ATR)	0.75
Max Range Size (x ATR)	2.5
Use Stock Trend Filter	on
Stock Trend EMA	200
Use SPY Market Regime Filter	on
Market Regime Symbol	AMEX:SPY
Market Regime EMA	200
Use ATR Expansion Filter	on
ATR Average Length	50
Use Relative Volume Filter	on
Volume Average Length	20
Min Relative Volume	1.2
Take Profit Mode	1R Partial + Trail Runner
Partial Take Profit %	50
Full Exit Risk:Reward	2
Partial Take Profit RR	1
Runner Trail Mode	EMA 20
Runner EMA Length	20
Runner ATR Trail Multiple	1
Exit If Stock Closes Below Trend EMA (Longs) / Above Trend EMA (Shorts)	on

and 4 more settings, left at the author's defaults.

How the backtest was run

Every strategy was tried the same way, on the settings the author published.

The years are October 2021 to June 2026. The prices are from Bybit, for 13 widely traded coins, mostly on hourly, 4-hour and daily charts, with some faster charts. That was 47,242 tries. The window stored in the files is 2021-09..2026-06.

599 rules produced a finished try. A rule that finished above zero on at least 12 cells, before any fee, was tried again with a fee of 0.12 percent per side. Only buys are counted in that second try. 273 rules got it.

The method, the aggregate results and a downloadable table are on the study page. What the desk does with the results beyond these pages is its own.

Before any fee, it was tried on 35 cells. It placed a trade on 8 of them. 1 of the cells that traded finished above zero (12.5%).

It was not run a second time with a fee. That second pass happens only when at least 12 cells finished above zero before fees. 273 rules got that pass.

Cells tried	35
Cells that placed a trade	8
Finished above zero	1 (12.5% of the cells that traded)
Middle result, before fees	−0.0%
Strongest cell, the top of the range	AVAX hourly: +0.0%
Weakest cell, the bottom of the range	BTC 4-hour: −0.0%
Middle drawdown, before fees	0.0%

Label: backtest · old prices, zero commission · Oct 2021 – Jun 2026. Hypothetical results; see the risk disclosure.

How to read the result

How to read the number

The median of every cell that traded is the result. No fee has been taken off, so the number is a ceiling. A fee comes off each trade, and this page does not guess that cost, because this rule did not get the second pass where the fee is applied. The weakest and the strongest cells are not a result on their own.

The middle drawdown, on the cells that traded, was 0.0%.

What this does not show

The useful question is what the false starts cost. Count the trades, not the one that kept going.

Nothing on this page was fit to the cell that finished highest. One coin, one chart speed, or one strong stretch is a single row. It is not the rule. Other years, another exchange, or another fee would be a different measurement.

Questions about Desire To Trade Mechanical Volatility Breakout

Words used on this page

Backtest

The rule was tried on old prices. No real money moved.

Cell

One coin on one chart speed. Bitcoin every 4 hours is one cell. Bitcoin once a day is another.

Chart speed

How often a new price bar is drawn. 15m means every 15 minutes, 1h means hourly, 4h means every 4 hours, 1D means once a day.

Fee, per side

A cost taken each time the rule trades. Per side means once on the way in and once on the way out.

Median

Line the cells up from the biggest loss to the biggest gain. The median is the middle one. Half the cells did better and half did worse.

Drawdown

The deepest fall from a high point along the way, as a percent of the account at that high.

Above zero

The account finished with more than it started.

The indicators Desire To Trade Mechanical Volatility Breakout uses

Each has its own page: what it measures, how it is read, where it misleads.

• ATR (average true range): the volatility number behind most stops
• Donchian Channels: the highest high and lowest low, and the breakout rule they define
• Exponential moving average (EMA): what it measures and where it misleads
• Simple moving average (SMA): the plainest average, and why it still runs half the strategies

"Desire To Trade Mechanical Volatility Breakout" was published on TradingView by its author, under the author's own license. This page is an independent reading of those rules and of what they did on these old prices. It is not written with the author, and it is not a recommendation. Not every detail survives the translation onto this page, so read the original before you rely on it.