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'Swing Point Breakout' Strategy

Swing Point Breakout strategy for US500. Trades highs/lows breakouts with trailing stop management. Simple, clean, and adaptable.

Updated over 2 months ago

Trading US500 with Profectus.AI

Symbol: US500 (S&P 500 CFD, SP500)
Timeframe: Daily

The Swing Point Breakout Strategy is designed to detect turning points in the market and trade breakouts from recent highs or lows. By focusing on swing points, the system captures momentum after consolidation and trails profits automatically.

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

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

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

Step 1: Export the Trading Bot [1 Min]

Before diving into customization, export the bot with the upper right export button to download the file.

Step 2: Upload to MetaTrader 5 [4 Min]

Don’t know how? Refer to our help article "Exporting Your First Strategy".

Step 3: Understand the Logic [1 Min]

The algorithm checks swing highs and lows using the last three closed candles:

Buy setup:

  • Candle 2 (the middle candle) has the highest high compared to Candle 1 and Candle 3.

  • If no orders are open, a buy pending order is placed at the high of Candle 2.

Sell setup:

  • Candle 2 has the lowest low compared to Candle 1 and Candle 3.

  • If no orders are open, a sell pending order is placed at the low of Candle 2.

This ensures the bot only trades when a clear swing point is formed.


Trade Management

Once a pending order is triggered:

  • Every new candle close, the bot checks floating profit.

  • If profit ≥ 1R (1x the initial risk), the stop-loss is trailed to the low of the last 5 candles.

  • This process repeats, locking in gains as the market trends further.

Step 4: Make It Your Own [10 Min]

Want to adapt the bot to your style? Try:

  • Change the lookback window: Test 2 or 4 candles instead of 3 to define swing points.

  • Experiment with risk models: Use ATR-based stop-loss instead of fixed R.

  • Add filters: Only allow trades during certain sessions or with moving average confirmation.

  • Adjust trailing: Move stop-loss every 3 candles instead of 5 for tighter profit lock-in.

👉 After each tweak, EXPORT and test to see how results change.

Conclusion

The Swing Point Breakout Strategy is a clean, rules-based way to trade breakouts in US500. It’s simple enough for beginners yet flexible enough to adapt with filters, ATR stops, or session rules. As always, test thoroughly in demo before going live.

Templates are for educational purposes only.

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

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