Choppiness Index Breakout (Python)

The Choppiness Index gauges whether the market is trending or ranging. When the indicator drops below a threshold, it signals the start of a trend from a choppy environment. This strategy enters in the direction of price relative to its moving average when choppiness falls. It exits if choppiness rises back above a high threshold or a stop-loss hits. The goal is to catch new trends emerging from consolidation periods.

• Entry Criteria: Choppiness below ChoppinessThreshold with price above/below MA.

• Long/Short: Both directions.

• Exit Criteria: Choppiness above HighChoppinessThreshold or stop.

• Stops: Yes.

• Default Values:

• MAPeriod = 20

• ChoppinessPeriod = 14

• ChoppinessThreshold = 38.2m

• HighChoppinessThreshold = 61.8m

• CandleType = TimeSpan.FromMinutes(5) [*]Filters:

• Category: Breakout

• Direction: Both

• Indicators: Choppiness, MA

• Stops: Yes

• Complexity: Intermediate

• Timeframe: Intraday

• Seasonality: No

• Neural Networks: No

• Divergence: No

• Risk Level: Medium