ADX Breakout (Python)

The ADX Breakout strategy monitors the ADX for strong expansions. When readings jump beyond their typical range, price often starts a new move. A position opens once the indicator pierces a band derived from recent data and a deviation multiplier. Long and short trades are possible with a stop attached. This system fits momentum traders seeking early breakouts. Trades close as the ADX falls back toward the mean. Defaults start with ADXPeriod = 14.

• Entry Criteria: Indicator exceeds average by deviation multiplier.

• Long/Short: Both directions.

• Exit Criteria: Indicator reverts to average.

• Stops: Yes.

• Default Values:

• ADXPeriod = 14

• AvgPeriod = 20

• Multiplier = 0.1m

• CandleType = TimeSpan.FromMinutes(5)

• StopLoss = 2.0m [*]Filters:

• Category: Breakout

• Direction: Both

• Indicators: ADX

• Stops: Yes

• Complexity: Intermediate

• Timeframe: Short-term

• Seasonality: No

• Neural Networks: No

• Divergence: No

• Risk Level: Medium