Darvas Intensity Breakout System

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

Thesis

Market trends initiate from periods of range compression (Darvas Boxes); a breakout is statistically more likely to sustain if it occurs during a period of expanding volatility (TDI) and high directional intensity (TII), provided the broader macro-basket (Dashboard) confirms the move.

Components

ProfitRobots Dashboard Template (regime) — Provides the macro-regime filter by checking if the majority of the basket is trending in the same direction on the H4/D1 timeframes.
Darvas Boxes (Multi-Mode) (direction) — Identifies the structural 'ceiling' or 'floor' of the current consolidation. The breakout of the box defines the trade bias.
Traders Dynamic Index (TDI) (entry) — Uses the RSI Price Line (Green) crossing the Trade Signal (Red) and Volatility Bands to time the momentum burst following the Darvas breakout.
Relative Strength Quality Index (RSX) (exit) — The Jurik-smoothed oscillator provides a low-lag exit signal when momentum begins to decay or reaches extreme overextension.
Chandelier Exit (Heiken Ashi) (risk) — Provides a volatility-adjusted trailing stop. While the default 0.75 is too tight, a 1.5x multiplier allows for trend development while protecting capital.
Trend Intensity Index (TII) (confirmation) — Ensures the breakout is backed by 'intensity' (price relative to its long-term MA) rather than a low-volume drift.

Known failure conditions

If TII remains flat near 50 while price breaks Darvas levels, indicating a lack of institutional backing.
If the Chandelier Exit stop is hit within 3 bars of entry more than 5 times consecutively (volatility expansion without direction).
If ProfitRobots Dashboard shows conflicting trends across >50% of the basket.

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