Skip to main content

'Inside Bar Breakout' Strategy

Inside Bar Breakout for gold (Daily): detects consolidation, sets pending breakout orders both ways, with 1:5 R:R and lock-in management.

Trading Gold with Profectus.AI

The Inside Bar Breakout is a classic price action strategy that looks for market consolidation followed by a breakout.
​

When a candle forms fully inside the range of the previous candle, it signals reduced volatility and builds pressure for the next move.
​

This trading system detects those setups automatically and places breakout orders both ways, with built-in risk management.

Step 0: Access the Trading System Template [1 Min]

Click the button to load the trading system directly onto your canvas:

Your canvas should display 17 blocks as shown below. Check? Let's continue!

Step 1: Export the Trading System [1 Min]

Before diving into customization, export the trading system with the upper right 'DOWNLOAD' button.

Step 2: Upload to MetaTrader 5 [4 Min]

Don’t know how? Refer to our help article How to run your trading system live on your broker account.

Step 3: Understand the Logic [1 Min]

This strategy is built around the Inside Bar pattern, a classic sign of consolidation before breakout.

  • Candle ID 1 = the most recently closed candle.

  • Candle ID 2 = the candle before it.

  • The Inside Bar forms when:

    • High(1) < High(2)

    • Low(1) > Low(2)

This means candle 1 is fully “inside” candle 2’s range — a pause in price action often followed by a sharp move.

How the EA trades it:

  • Runs daily at 02:00.

  • Checks if it’s a weekday (split into Mon vs Tue–Fri for broker weekend candles).

  • Confirms Inside Bar logic with two trade rules.

  • Ensures no more than 5 trades are open.

  • Places a buy stop at the Inside Bar’s high and a sell stop at the Inside Bar’s low.

  • Stop-loss = 0.5% of current price.

  • Take-profit = 5x stop-loss (R:R = 1:5).

This way, whichever direction the breakout comes, the EA is ready.

Management Logic

The system includes a built-in lock-in profit management style:

  • Trades are selected and checked one by one.

  • Once profit reaches 1R, the stop-loss is moved to secure 1R.

  • Trade then plays out from there.

This ensures winning trades can’t turn back into losers.

Step 4: Make It Your Own [10 Min]

Here are a few ideas to test and adjust:

  • Change the start time (e.g. 01:00 instead of 02:00).

  • Adjust risk size (default = 0.5% per trade).

  • Modify the R:R ratio (e.g. 1:3 instead of 1:5).

  • Swap lock-in management for trailing stop or candle-high/low management.

  • Try it on other timeframes (e.g. 4H) or symbols (indices, forex majors).

👉 Always run a backtest in Profectus and compare the runs after each change. Outcomes will shift.

Conclusion

The Inside Bar Breakout strategy is a clean way to catch volatility after consolidation.
It’s simple: detect an inside bar, place breakout orders, cap risk, and let profit management handle the rest.
​

A great foundation to understand price action systems — and to customize further inside Profectus.AI.

Templates are for educational purposes only.

Now it's your turn—apply the template, tweak the logic, and make it yours. 🚀

Did this answer your question?