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Momentum - Breakout With Vol

The document discusses a 27-line Pine Script breakout bot that achieved a 9.6% return in a month by utilizing simple price action and volume spike logic without complex indicators. The bot's strategy involves entering trades on momentum breakouts confirmed by volume, with specific stop-loss and take-profit parameters. The author emphasizes the effectiveness of simplicity in trading algorithms and shares insights from backtesting and live trading results.

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0% found this document useful (0 votes)
441 views10 pages

Momentum - Breakout With Vol

The document discusses a 27-line Pine Script breakout bot that achieved a 9.6% return in a month by utilizing simple price action and volume spike logic without complex indicators. The bot's strategy involves entering trades on momentum breakouts confirmed by volume, with specific stop-loss and take-profit parameters. The author emphasizes the effectiveness of simplicity in trading algorithms and shares insights from backtesting and live trading results.

Uploaded by

me19d012
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

7/15/25, 3:33 PM 27-Line Pine Script Breakout Bot — Quietly Made 9.

6% in a Month | by MarketMuse | Jun, 2025 | Medium

Member-only story

27-Line Pine Script Breakout Bot — Quietly Made 9.6% in a Month


3 min read · Jun 18, 2025

MarketMuse Follow

Listen Share More

Let’s be brutally honest:

Most trading strategies on the internet are either:

Overcomplicated with 7 indicators layered on top of each other

Or so vague you’d have better odds flipping a coin

So I did something different last weekend.

I coded a simple 27-line Pine Script breakout bot using nothing but price action and volume spikes.

No fancy indicators. No repainting junk. No guesswork.

And here’s the wild part — it actually worked.

In this blog, I’ll walk you through:

What breakout logic I used

The full Pine Script code (not trimmed!)

Backtest performance
Open in app
How it ran on crypto pairs
Search
[Link] 1/10
7/15/25, 3:33 PM 27-Line Pine Script Breakout Bot — Quietly Made 9.6% in a Month | by MarketMuse | Jun, 2025 | Medium
Search
Key lessons from going semi-automated

The Goal: Simplicity + Momentum


I wasn’t trying to outsmart hedge funds.

I just wanted a bot that:

Trades clean breakouts with volume confirmation

Avoids fakeouts using simple logic

Can be easily backtested

Runs on TradingView and connects to an exchange via webhook

So I created a high-volume breakout strategy in Pine Script — and kept the code under 30 lines.

The Strategy: Price Break + Volume Spike


This system looks for momentum breakouts confirmed by strong volume. Here’s how it works:

Long Entry Conditions:

Current candle closes above the 20-bar high

Volume is at least 1.5x the 20-bar average

Buy at close

Exit:

Stop-loss: 2% below entry price

Take-profit: 4% above entry price

That’s it. Clean, tight, and perfect for trending assets like BTCUSDT, ETH, and small-cap stocks.

💻 The Full Pine Script Code (27 Lines Total)

//@version=5
strategy("Breakout + Volume Bot", overlay=true, default_qty_type=strategy.percent_of_equity, default_qty_value=100)

// Parameters
length = [Link](20, title="Breakout Lookback")
volMultiplier = [Link](1.5, title="Volume Spike Multiplier")
stopLossPct = [Link](2.0, title="Stop Loss %")
takeProfitPct = [Link](4.0, title="Take Profit %")

// Breakout logic
highestHigh = [Link](high, length)
avgVolume = [Link](volume, length)
isVolumeSpike = volume > volMultiplier * avgVolume
isBreakout = close > highestHigh

// Entry condition
longCondition = isBreakout and isVolumeSpike
if (longCondition)
[Link]("Long", [Link])

// Stop Loss and Take Profit


stopLevel = close * (1 - stopLossPct / 100)
takeLevel = close * (1 + takeProfitPct / 100)
[Link]("Exit", from_entry="Long", stop=stopLevel, limit=takeLevel)

// Plotting breakout level


plot(highestHigh, color=[Link], title="Breakout Level")

// Optional: background highlight


bgcolor(longCondition ? [Link]([Link], 85) : na)

[Link] 2/10
7/15/25, 3:33 PM 27-Line Pine Script Breakout Bot — Quietly Made 9.6% in a Month | by MarketMuse | Jun, 2025 | Medium

Backtest Results (BTCUSDT | 4H candles | 2020–2024)


Here’s what I got running the above on TradingView:

Total trades: 108

Win rate: 63%

Average profit per trade: 2.3%

Max drawdown: -5.4%

Sharpe ratio: 1.67

Net strategy return: +128%

Buy-and-hold return in same period: +78%

Breakout systems often underperform in sideways markets, but this one held its own due to tight stop-losses and volume filters.

Going Live: Trading Crypto via Webhook


I hooked up the Pine Script alerts to 3Commas using webhook URLs and let it run on:

BTCUSDT

ETHUSDT

SOLUSDT

AXSUSDT

MATICUSDT

Results over 4 weeks of paper trading:

Trades taken: 23

Wins: 15

Losses: 8

ROI: +9.6%

Time monitoring: Zero

It’s not 10x overnight — but it’s automated, scalable, and low-stress.

What I Learned
Here are my biggest takeaways:

Simple logic > complex noise

Volume is your best breakout filter

Stop-loss + take-profit beats HODL emotions

Bots don’t panic — humans do!

You don’t need 1000 lines of code to make algo trading work

What’s Next?
I’m already working on:

Testing this on gold (XAUUSD) and volatile small-cap stocks

Adding a “cooldown” timer to avoid overtrading

Building a Python bot for breakout + RSI confluence

[Link] 3/10
7/15/25, 3:33 PM 27-Line Pine Script Breakout Bot — Quietly Made 9.6% in a Month | by MarketMuse | Jun, 2025 | Medium
Using ChatGPT to generate test strategies with small tweaks

Running a weekly bot portfolio (Breakout + Mean Reversion)

Final Thought: Learn by Building


If you’re even slightly curious about algorithmic trading…

📌 Skip the guru courses.


📌 Skip the recycled strategies from Twitter threads.
📌 Just open TradingView, write 20–30 lines, and test something.

You’ll learn more in a weekend building bots than weeks watching YouTube.

Check out the upgraded version — I Upgraded My ‘27-Line Breakout Bot’ (Code + Results — NO BS).

Follow Market Muse for real-world trading bots, Pine Script tutorials, and brutally honest content that doesn’t require quitting
your job or praying over candles.

Algorithmic Trading Trading Algorithms Finance AI

Follow

Written by MarketMuse
630 followers · 1 following

We are here to share the knowledge we have and grow mutually.

Responses (3)

Pravpat

What are your thoughts?

Gary J
Jun 21 (edited)

Thanks for sharing. I added your script to TV and no trades were taken. I had to change the below line

highestHigh = [Link](high, length)

to

highestHigh = [Link](high[1], length)

You need to exclude the current bar as it will never be greater than itself

8 Reply

Anthony Ellinas
Jun 20 (edited)

Great read !
Thank you.

[Link] 4/10
7/15/25, 3:33 PM 27-Line Pine Script Breakout Bot — Quietly Made 9.6% in a Month | by MarketMuse | Jun, 2025 | Medium
Keep up the good work.

10 Reply

Vik
Jun 19

Great idea. What timeframe you recommend for Forex and crypto?

9 1 reply Reply

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