Range Breakout AFL Strategy

APIBridge, Amibroker 

This tutorial shows how Range Breakout AFL Strategy can be used on charts of Amibroker to Trade 

 
Strategy Premise 

This strategy uses only price action and no indicators. The range for last n periods is calculated by taking the highest high and lowest low value of last n periods. This range is also called Donchian Channels. 

Such trading strategy was suggested by trader Richard Donchian. Richard suggested to use the strategy on daily timeframe for a range of last 20 days. In our testing on 15-minute time frame, we use the 50 period window to avoid false signals. 

These are also called volatility bands because the expanding/contracting channels indicate the market volatility. The trading rules for this strategy are similar to the ATR Bands Strategy and Bollinger Bands Strategy. 

Strategy Logic 

Buy: When price cross above the 50 period range 

Sell:  When prices cross below the 50 period range 

Amibroker Settings 

Step 1: Make sure you have completed Jump Start setup 

Step 2: Download AFL from here. In Amibroker, Go to Formula editor and paste the AFL here.   

Step 3: Add Separate Entry Exit Automation AFL after the strategy AFL and hit Apply. 

Step 4: Right Click on the chart and go Parameters to adjust the inputs of the strategy.