Stochastic Breakout Strategy (C#). StockSharp

Author: StockSharp
N: 1776
v5.0.1 (7/30/2025)
Downloads: 62

This breakout approach monitors the Stochastic oscillator for sharp moves away from its recent average. When the %K line breaks above or below a volatility-adjusted threshold, it signals a burst of momentum that may start a trend.
A long position is triggered when %K crosses above the upper threshold after a period of contraction. A short position is taken when %K breaks below the lower threshold. The trade is closed when the oscillator drifts back toward its average or hits a protective stop.
The strategy is designed for intraday traders who want early entry into momentum swings. Using volatility-based bands helps filter noise so only decisive moves create signals.

  • Entry Criteria:

    • Long: %K > Avg + DeviationMultiplier * StdDev
    • Short: %K < Avg - DeviationMultiplier * StdDev

  • Long/Short: Both sides.
  • Exit Criteria:

    • Long: Exit when %K < Avg
    • Short: Exit when %K > Avg

  • Stops: Yes, percent stop-loss.
  • Default Values:

    • StochasticPeriod = 14
    • KPeriod = 3
    • DPeriod = 3
    • LookbackPeriod = 20
    • DeviationMultiplier = 2.0m
    • CandleType = TimeSpan.FromMinutes(5)

  • Filters:

    • Category: Breakout
    • Direction: Both
    • Indicators: Stochastic Oscillator
    • Stops: Yes
    • Complexity: Intermediate
    • Timeframe: Intraday
    • Seasonality: No
    • Neural networks: No
    • Divergence: No
    • Risk Level: Medium