Float-Weighted Darvas Daily Breakout Strategy

Family: breakout · Regime: trending · Complexity: high · Asset classes: Equities, FX, Crypto · Timeframes: H1, H4, D1

Thesis

Breakouts of daily highs are frequently false signals (noise); however, when a breakout occurs during a phase of positive volume turnover (Float), positive momentum (MOM), and sufficient volatility (Frankenstein), it represents a structural shift in supply/demand balance rather than a liquidity grab. The use of Darvas Boxes ensures that risk is tied to the most recent consolidation area, providing a non-arbitrary stop-loss level.

Components

• Connect MACD (Azullian) (regime) — Establishes the medium-term trend regime and ensures the strategy only trades in the direction of momentum relative to the zero line.
• Float Indicator (direction) — Identifies whether the market has completed a 'turnover' of volume, ensuring that price action is backed by sufficient cumulative volume support.
• Daily High Low (entry) — Provides the execution trigger via high-timeframe breakout levels, reducing noise from intraday fluctuations.
• UT Bot Alerts (MQL5) (exit) — Acts as a volatility-adjusted trailing stop and trend reversal detector for dynamic exits.
• Darvas Boxes MetaTrader 5 (risk) — Used specifically for structural stop-loss placement based on the most recent consolidation range (box floor/ceiling).
• Momentum (MOM) (confirmation) — Confirms that the price expansion has sufficient velocity to overcome minor pullbacks at the breakout point.
• Frankenstein Ultimate Pro - ATM Logic (volatility_filter) — Filters out low-volatility 'fakeouts' using an ATR-based threshold and aligns the entry with a long-term LSMA trend.

Known failure conditions

• Momentum diverges significantly from price at the breakout point (momentum divergence).
• Daily High/Low levels become excessively wide due to news events, creating R:R ratios below 1:1.
• Float Indicator shows volume turnover is stagnant despite price movements.

Explore the full interactive blueprint, parameter ranges and evidence on WOBR StrategyVerse, or generate this strategy as an MT4/MT5 Expert Advisor with QuantMogul AI Engine.