# Break-Out Strategy HL5min

### Idea/Strategy

This strategy focuses on breakouts. This means, strong pumps in our crypto top 40 market cap universe. The take profit is high, and the stop loss is close. The idea is to catch a break-out and then ride it for a huge win compared to a small loss in case the break-out wasn’t good or the market changes direction shortly afterwards.

It can take a few days till the first trade occurs. Trading is 99% waiting. If there are no opportunities in the market there are no ways to make a profit. As simple as that.

Minimum Allocation: BingX: 4k USDT; HyperLiquid: 400 USDT (SOON!)

### Results

Tradeable: 🟢

Performance fee and interval: 20% and monthly

<table><thead><tr><th width="305">Name</th><th>Value</th></tr></thead><tbody><tr><td>Backtest from/to (YYYY-MM-DD): 
</td><td>2020-01-01 to 2025-04-02</td></tr><tr><td>Total Days: 
</td><td>1866</td></tr><tr><td>Number of Trades: </td><td>4280</td></tr><tr><td>Winning Days: 
</td><td>72.56 %</td></tr><tr><td>Profit Factor: </td><td>3.24</td></tr><tr><td>Total ROI</td><td>2649.82 %</td></tr><tr><td>BTC/USDT Benchmark ROI </td><td>765.22 %</td></tr><tr><td>CAGR</td><td>142.01 %</td></tr><tr><td>Maximum Drawdown</td><td>16.18 % / 26.09% (compounding)</td></tr><tr><td>Sharpe</td><td>4.53</td></tr><tr><td>Max consecutive Winning Days</td><td>39</td></tr><tr><td>Max consecutive Lossing Days</td><td>11</td></tr><tr><td>Trading Universe</td><td>Crypto Futures; Top 40 by marketcap</td></tr><tr><td>Max Open Positions</td><td>10</td></tr><tr><td>Max. Leverage</td><td>1 (for now); no vol trageting yet</td></tr><tr><td>Strategy Description</td><td>Break-Out Strategy on the 5min timeframe: The idea is to catch coins that have a volatile break-out with take-profit and stop-loss. </td></tr></tbody></table>

### PnL Chart

This is the closed PnL chart with the non-compounding ROI, drawdown and the compounding drawdown. As we trade the Top 40 and don't simulate price impact (besides slippage and fees of 0.2%) for the liqudity constrains on the smaller coins we calculate the non-compounding ROI chart.&#x20;

<figure><img src="https://2124470125-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MaF_FdqA653li6L3r6W%2Fuploads%2Fv0ZaPNOUIdwBhMhlvV8j%2Fimage.png?alt=media&#x26;token=26ab2d84-98a9-427b-892a-1a2b10f38d3e" alt=""><figcaption><p>PnL Chart of the non-compounding PnL with the drawdown.</p></figcaption></figure>

### Stats

Statistics for the strategies.

<figure><img src="https://2124470125-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MaF_FdqA653li6L3r6W%2Fuploads%2FNneZpDH207uO9c0olKQF%2FTest_Trend_Rob_GapBetweenTrades_Test_Trend_Rob.png?alt=media&#x26;token=d156b687-ea56-4e73-9c03-dab12f6fb7ac" alt=""><figcaption><p>Time between entries</p></figcaption></figure>

<figure><img src="https://2124470125-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MaF_FdqA653li6L3r6W%2Fuploads%2FU3ZAyKnFHPlmITDyvacR%2FTest_Trend_Rob_EntryTimeTrades_Test_Trend_Rob.png?alt=media&#x26;token=a14a7f80-351b-42f4-9be3-8ac481012401" alt=""><figcaption><p>Entry and exit time visualisation</p></figcaption></figure>