Presentation of the indicator

What is the Ultimate Breaker?

The Ultimate Breaker is an indicator working on the Prorealtime platform. It detects the bullish and bearish breakouts on the main trading figures.

The indicator displays the buying and selling signals on the price chart. It also displays the targets and stoplosses. You can set the indicator to enhance the results.

What patterns does the indicator recognize?

The indicator recognizes the twelve most used figures by traders. They are derived from the four main patterns: channels, wedges, broadening, and triangles. These figures can be horizontal, descending, or ascending:

Indicator installation

The installation of the indicator on the Prorealtime platform is easy and quick. Here are the installation steps:

1. Get the Ultimate Breaker

The Ultimate Breaker is available on the Prorealcode Marketplace. You can get the indicator on this page:

https://market.prorealcode.com/product/ultimate-breaker

2. Get the license number

1. go into your “My Account” page
2. click on “My Products” tab
3. copy the license number

Note: Your license is also sent to you by email, check your “spam” folder if necessary.

3. Install the license in ProRealTime

Adding products to your trading platform is easy!

4. open the indicators & trading systems window and click on the “MarketPlace” button
5. paste or retype the license number in the text field and click on OK

Find your newly installed product in the “ProRealCode MarketPlace” indicators list.

Indicator starting

You can use the indicator on any asset as a stock, index, or ETF. The following steps show you how to start the Ultimate Breaker indicator:

1. Open the price chart of an asset

You need to open the price window of the asset on which you want to run the indicator. To do so, click on an asset in your list to open the price chart on the Prorealtime platform.

2. Click on the “Price” icon

The Ultimate Breaker will display data on the price chart. You must run it in the graphical mode. To do so, you must click on the “Price” icon on the top-left of the price chart window:

3. Click on “Add an indicator”

A drop-down list will appear after clicking the “Price” icon. Click on “Add an indicator“:

4. Type “ULTIMATE.BREAKER” in the search bar

A window will appear after clicking on “Add an indicator“.
Start to type “Ultimate Breaker” in the search bar on the top-right of the window:

Click on the “ULTIMATE.BREAKER” indicator to run it on the price chart.

Indicator setting

Setting panel

The setting panel will allow you to make sure the indicator meets your requirements. You will choose the figures you want to trade, tweak the signals, and define the target and stoploss levels.

Setting panel access

To access the setting panel, click on the tab with the indicator’s name on the top-left of the price chart, then click on “Configure…“:

Here is the setting window of the Ultimate Breaker indicator:

Description of the setting panel

The setting panel is made of several areas containing checkboxes and textboxes, allowing you to activate and set options:

1. Figures selection
2. Figures dimension
3. Signal filters
4. Risk Management
5. Additional options
6. Display setting

1. Figure selection

Figure selector

You can select the figures of your choice by clicking on the corresponding checkbox on the settings panel. You can select several figures:

Buying and sell-shorting

The figures on the left columns allow opening long entries, and those on the right columns allow sell-short entries:

• The right column figures will send buying signals when the price breaks up their resistances.

• The left column figures will send sell-short signals when the price breaks down their resistances.

2. Figure dimensions

You can set the dimensions of the figures, such as the length and height:

Figure size

The size of a figure is composed of the length and its extension.

Length

The length corresponds to the number of candles composing the figure. The algorithm will use this value to recognize the figures.

Extension

The length extension allows the figure to expand. The indicator will use this extended value to detect breakouts, which will extend the figure length without impacting the recognition.

Figure length

You can set the length of the figure with the “Figure Length” parameter:

Length Extension

You can expand the length of the figure with the “Length Exetension” parameter:

Figure height

The figure height corresponds to the difference between the highest and the lowest price along the length of the figure. The height is indicated by a segment separating the length of a figure with its extension:

You can set the minimum and maximum height of the figures. These values are defined in percentage of the context. The context corresponds to four times the length of the figure:

Minimum height

You can set the minimum height of the figures with the “Min Height (%)” option:

If you set 20 to the minimum height parameter for a 100-candle figure, the minimum height will be 20% of the height of the 400 last candles.

Maximum height

You can set the maximum height of the figures with the “Max Height (%)” option:

If you set 40 to the maximum height parameter for a 100-candle figure, the maximum height will be 40% of the height of the 400 last candles.

3. Figures and signals filtering

The indicator provides several options allowing the filtering of figures and signals. You will enhance the quality of the signals and improve the success rate of your trades:

Figures breakout

This option will display the bullish and bearish breakouts, indicating the long and short entry openings:

You must check the “Breakout” checkbox to activate breakout detections:

Breakout validation

The indicator allows only keeping the validated breakouts:

• A bullish breakout is validated when the price breaks up the resistance and the next candle closes above it.

• A bearish breakout is validated when the price breaks down the support and the next candle closes under it.

You must check the “Validated Breakout” checkbox to activate the breakout validation:

Trend

You can filter the trend preceding a figure with the “Previous Trend” option:

Volumes

You can filter the signals depending on the volumes with the “Volume Trend” option:

Here are the available values to filter the volumes:

Market strength

The indicator implements a strength filter built on the Relative Strength Index (RSI). This indicator measures the velocity and amplitude of the price change. An RSI lower than 30 is considered oversold, and an RSI greater than 70 is considered overbought.

You can filter the market strength using the “RSI 14 Min” and “RSI 14 Max” options:

RSI Minimum

The RSI 14 Min option allows filtering signals having an RSI 14 greater than the set value:

RSI Maximum

The RSI 14 Max option allows filtering signals having an RSI 14 lower than the set value:

4. Risk management

The Ultimate Breaker provides risk management options. You can define the target and stop loss levels associated with each signal. The target and stop loss positions are calculated from the figure height:

Target level

The target corresponds to the price at which you want to close your position to concretize your latent gain. The indicator displays several target levels. Each level corresponds to one half-height of the figure.

You can define the number of targets with the “Target Level” option:

You must set 1 to the indicator prints the first level, 2 to display the two first levels, etc. You can turn off the targets by setting 0 to this option. The following example shows the four first target levels:

Stoploss level

The stoploss corresponds to the price at which you want to close your position to limit your latent loss. The indicator allows displaying one stoploss. Each level corresponds to one quart of the figure height.

You can define the number of stoploss with the “Stoploss Level” option:

You must set 1 to the indicator prints the first level, 2 to display the second stoploss levels, etc. You can turn off the stoploss by setting 0 to this option. The following example shows the third first target levels:

5. Additional options

The indicator provides additional options for displaying and returning the data:

Colours

You can set the colours of the displayed figures and texts with the “Colour (long)” and “Colour (short)” options. These two options accept positive and negative values. The positive values allow you to choose a colour, and the negative values a grey level. You have access to a palette of 15 colours and 5 grey levels.

Colour (long)

The “Colour (long)” option concerns the resistance and target colours:

Colour (short)

The “Colour (short)” option concerns the support and stoploss colours:

Example of colours

Standard colours (Green-Red)

Personalized colours (White) with dark them

Figure Thickness

You can set the figure’s thickness with the Figure Thickness parameter. The accepted values ​​for this parameter start from 1 until 5:

• Set 1 to display thin segments.
• Set 5 to display thick segments.

Thin figure segments

Thick figure segments

Font size

You can set the font size of the targets and stoploss with the ‘Font Size” option :

The font size impacts the segment’s weight, tracing the targets and stoploss. You can use a negative value to display the segment without text.

Light

You can increase or decrease the brightness of the figures, targets, and stoploss with the “Light” option. The available values come from -255 to 255:

Starting year

You can choose the year from which the indicator will start to search figures with the “Starting Year” option. That will alleviate your chart and reduce the calculation time:

Starting year example: 2020

If you set 2020 to the starting year option, the indicator will display the figure from the 2020 year:

Starting year example: 2024

If you set 2024 to the starting year option, the indicator will display the figure from the 2024 year:

Return of the Data

The return of the data is necessary to implement the indicator in a backtest or to create trading alerts.

You can activate the return of the data by clicking on the “RETURN” option:

I will show you how to use this option in the alert and backtest chapters.

6. Display setting

Data activation

The indicator natively displays figures, targets, and stop losses. You may need to activate data returns to create an alert system or a backtest.

Click on the “RETURN” option to activate data return. Then, you have to check the checkboxes of the data you need:

The targets and stop losses will printed on the chart:

Displaying issue after the installation of the indicator

Sometimes, the installation of the indicator flattens the price chart. This issue results from the price adjustment to the indicator’s returned data, which can be small values such as the signals (-1, 0, or 1) or the figure height.

The scaling will flatten the price chart:

If you meet this graphic issue after the indicator installation, please uncheck the “Signal” checkbox. If the problem persists, uncheck the “Height” checkbox:

Create an alert system

The Prorealtime platform provides trading alert services. You can use the Ultimate Breaker to create alerts on the figure breakouts. I will present the steps to build trading alerts with the Ultimate Breaker indicator.

1. Configure the indicator

You must set up the Ultimate Breaker indicator before creating an alert. The Prorealtime platform will take your settings as input to send you alerts.

For example, if you have set a figure length of 100 candles with breakout validation and volume increase, the platform will send you alerts only for this configuration.

Configuration example

Here is an example of settings for what I want to receive alerts:

• Figure: Descending Channel and Falling Broadening
• Length: 100 candles
• Extension: 4
• Height Min: 20%
• Height Max: 50%
• Trend: Bullish on 100 candles
• Breakout: Validated
• Volume: Bullish on 5 candles
• RSI Min: 20
• RSI Max: 80
• Data Return: Activated

Here is the running of this setup on the Nasdaq in the 4-hour time unit:

2. Open the alert window

After you defined your setup, you must open the alert window. To do that, right-click on the price chart, then click on “Create a new alert“:

3. Select the Ultimate Breaker indicator

You must select the Ultimate Breaker indicator to make the Prorealtime alert system use the indicator’s signals. Select the line containing the “Signal” word:

4. Set the values

The Ultimate Breaker indicator returns 1 for bullish breakouts and -1 for bearish breakouts.

Select the “equal” sign and set 1 to the value to receive alerts on bullish breakouts.

It is preferable to select the current bar closing for the validity checking. You only receive validated signals, which will reduce the resources of your computer:

Note: you can write a message describing the signal in the comment area.

5. Trigger management

The triggers allow you to manage the temporality of the triggerings. In this example, the platform will send an alert for each bullish breakout:

6. Create the alert

You only have to click on the “Create Alert” button to finalize the process:

7. Alert management

You can manage your trading alerts from the alert window. Click on the top main menu, then click on “Display“, then click on “Alert Status“, or type “Ctrl a“:

You only have to click on the alert of your choice to modify it.

You can remove an alert by clicking on the red cross on the alert Status window:

Backtest & Automated Trading

You can implement the Ultimate Breaker indicator in a backtest or an automated trading system. The indicator returns all the data you need to create a strategy.

Indicator implementation in a backtest

The CALL instruction

The CALL instruction allows the indicator implementation in a backtest:

mySignal, myTargetLong, myStopLossLong, myTargetShort, myStopLossShort, myHeight = CALL "ULTIMATE.BREAKER"[1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 100, 2, 20, 50, 1, 1, 0, 0, 0, 100, 4, 3, 2, 1, 3, 14, -25, 2015, 0](close)

You can use the function insertion tool to implement an indicator in a backtest. Click on the “Insert functions” button on the code editor window:

Later, type “Ultimate Breaker“, select the indicator, and click on “Add“:

The indicator will be integrated into the source code with the default parameters:

Code of the indicator integration

I created a source code to help you implement the Ultimate Breaker indicator into a backtest.

The backtest will open long entries if the price breaks up ranges, symmetric broadening, or ascending triangles. The system will also open short entries if the price breaks down descending triangles:

DEFPARAM CUMULATEORDERS = False

// * Figures Selector
// Long Figures
ONCE RangeUp = 1
ONCE DescendingChannel = 0
ONCE SymmetricWedgeUp = 0
ONCE FallingWedge = 0
ONCE SymmetricBroadeningUp = 1
ONCE FallingBroadening = 0
ONCE SymmetricTriangleUp = 0
ONCE AscendingTriangle = 1

// Short Figures
ONCE RangeDown = 0
ONCE AscendingChannel = 0
ONCE SymmetricWedgeDown = 0
ONCE RisingWedge = 0
ONCE SymmetricBroadeningDown = 0
ONCE RisingBroadening = 0
ONCE SymmetricTriangleDown = 0
ONCE DescendingTriangle = 1

// * Figure Properties
ONCE FigureLength = 100
ONCE LengthExtension = 2
ONCE MinHeight = 20
ONCE MaxHeight = 40

// * Filters
ONCE Breakout = 1
ONCE ValidatedBreakout = 1
ONCE PreviousTrend = 0
ONCE VolumeTrend = 0
ONCE RSIMin = 0
ONCE RSIMax = 100

// * Risk Management
ONCE TargetLevel = 4
ONCE StoplossLevel = 3

// * Display Options (Unuseful for backtest)
ONCE ColourLong = 2
ONCE ColourShort = 1
ONCE FigureThickness = 3
ONCE FontSize = 12
ONCE Light = -25

// * Additional Option -> IMPORTANT!
ONCE StartingYear = 1998//2000
ONCE ReturnData = 1

IF NOT ONMARKET THEN
  mySignal, myTargetLong, myStopLossLong, myTargetShort, myStopLossShort, myHeight = CALL "ULTIMATE.BREAKER"[RangeUp, RangeDown, DescendingChannel, AscendingChannel, SymmetricWedgeUp, SymmetricWedgeDown, FallingWedge, RisingWedge, SymmetricBroadeningUp, SymmetricBroadeningDown, FallingBroadening, RisingBroadening, SymmetricTriangleUp, SymmetricTriangleDown, AscendingTriangle, DescendingTriangle, FigureLength, LengthExtension, MinHeight, MaxHeight, Breakout, ValidatedBreakout, PreviousTrend, VolumeTrend, RSIMin, RSIMax, TargetLevel, StoplossLevel, ColourLong, ColourShort, FigureThickness, FontSize, Light, StartingYear, ReturnData, 0](close)
ENDIF

// Conditions pour ouvrir une position acheteuse
IF mySignal= 1 THEN
BUY ROUND(10000/close, 2) CONTRACTS AT MARKET
  Set Target Price myTargetLong
  Set Stop Price myStopLossLong
ENDIF

// Conditions pour ouvrir une position en vente à découvert
IF NOT ShortOnMarket AND mySignal = -1 THEN
  SELLSHORT 1 CONTRACTS AT MARKET
  Set Target Price myTargetShort
  Set Stop Price myStopLossShort
ENDIF

Example of a long entry

Here is an example of a long entry opening on a symmetric broadening breakup:

Example of a short entry

Here is an example of a short entry opening on a descending triangle breakdown:

Backtest setting

The indicator’s parameters are the same as those used with the interface. You will find the same options. Please refer to the “Indicator setting” section for the variable explanations.

Figure selector

Thanks to the figure selector, you can select the figures you want the indicator to recognize. It is composed of two parts: the first contains bullish figures, and the second contains bearish figures.

You must set 1 to activate a figure and 0 to inactivate a figure:

// * Figures Selector
// Long Figures
ONCE RangeUp = 1
ONCE DescendingChannel = 0
ONCE SymmetricWedgeUp = 0
ONCE FallingWedge = 0
ONCE SymmetricBroadeningUp = 1
ONCE FallingBroadening = 0
ONCE SymmetricTriangleUp = 0
ONCE AscendingTriangle = 1

// Short Figures
ONCE RangeDown = 0
ONCE AscendingChannel = 0
ONCE SymmetricWedgeDown = 0
ONCE RisingWedge = 0
ONCE SymmetricBroadeningDown = 0
ONCE RisingBroadening = 0
ONCE SymmetricTriangleDown = 0
ONCE DescendingTriangle = 1

Figure properties

You can set the figure properties. The available parameters are the length, the length extension, the minimal and maximal height:

// * Figure Properties
ONCE FigureLength = 100
ONCE LengthExtension = 2
ONCE MinHeight = 20
ONCE MaxHeight = 40

Filters

You can filter the figures and signals, which can enhance the quality of the buying and selling signals:

// * Filters
ONCE Breakout = 1
ONCE ValidatedBreakout = 1
ONCE PreviousTrend = 0
ONCE VolumeTrend = 0
ONCE RSIMin = 0
ONCE RSIMax = 100

Note: the “Breakout” and “ValidatedBreakout” variables only accept 1 to be activated and 0 to be inactivated.

Risk management

You can define target and stop loss levels:

// * Risk Management
ONCE TargetLevel = 4
ONCE StoplossLevel = 3

Displaying options

The displaying options have no impact on a backtest. You can keep the default values:

// * Display Options (Unuseful for backtest)
ONCE ColourLong = 2
ONCE ColourShort = 1
ONCE FigureThickness = 3
ONCE FontSize = 12
ONCE Light = -25

Additional options

The additional options are critical for the smooth functioning of the trading system. They determine the starting year and the data return:

• The starting year determines the year from which the algorithm will begin to search figures. You must be sure the starting year covers your backtest.
• The data return allows the indicator to send data such as signals, targets, stop losses, and figure heights. You absolutely must set this variable to 1.

// * Additional Option -> IMPORTANT!
ONCE StartingYear = 1998
ONCE ReturnData = 1

The returned variables by the indicator

Here is the description of the six variables returned by the Ultimate Breaker indicator:

Source code example

Example of a long backtest

Here is a code of a backtest calling the Ultimate Breaker indicator, which opens only long entries. In this example, all the bullish figures are activated:

DEFPARAM CUMULATEORDERS = False

// * Figures Selector
// Long Figures
ONCE RangeUp = 1
ONCE DescendingChannel = 1
ONCE SymmetricWedgeUp = 1
ONCE FallingWedge = 1
ONCE SymmetricBroadeningUp = 1
ONCE FallingBroadening = 1
ONCE SymmetricTriangleUp = 1
ONCE AscendingTriangle = 1

// Short Figures
ONCE RangeDown = 0
ONCE AscendingChannel = 0
ONCE SymmetricWedgeDown = 0
ONCE RisingWedge = 0
ONCE SymmetricBroadeningDown = 0
ONCE RisingBroadening = 0
ONCE SymmetricTriangleDown = 0
ONCE DescendingTriangle = 0

// * Figure Properties
ONCE FigureLength = 100
ONCE LengthExtension = 2
ONCE MinHeight = 20
ONCE MaxHeight = 40

// * Filters
ONCE Breakout = 1
ONCE ValidatedBreakout = 1
ONCE PreviousTrend = 1
ONCE VolumeTrend = 0
ONCE RSIMin = 30
ONCE RSIMax = 70

// * Risk Management
ONCE TargetLevel = 7
ONCE StoplossLevel = 5

// * Display Options (Unuseful for backtest)
ONCE ColourLong = 2
ONCE ColourShort = 1
ONCE FigureThickness = 3
ONCE FontSize = 12
ONCE Light = -25

// * Additional Option -> IMPORTANT!
ONCE StartingYear = 1998//2000
ONCE ReturnData = 1

IF NOT ONMARKET THEN
  mySignal, myTargetLong, myStopLossLong, myTargetShort, myStopLossShort, myHeight = CALL "ULTIMATE.BREAKER"[RangeUp, RangeDown, DescendingChannel, AscendingChannel, SymmetricWedgeUp, SymmetricWedgeDown, FallingWedge, RisingWedge, SymmetricBroadeningUp, SymmetricBroadeningDown, FallingBroadening, RisingBroadening, SymmetricTriangleUp, SymmetricTriangleDown, AscendingTriangle, DescendingTriangle, FigureLength, LengthExtension, MinHeight, MaxHeight, Breakout, ValidatedBreakout, PreviousTrend, VolumeTrend, RSIMin, RSIMax, TargetLevel, StoplossLevel, ColourLong, ColourShort, FigureThickness, FontSize, Light, StartingYear, ReturnData, 0](close)
ENDIF

// Conditions pour ouvrir une position acheteuse
IF mySignal= 1 THEN
  BUY ROUND(10000/close, 2) CONTRACTS AT MARKET
  Set Target Price myTargetLong
  Set Stop Price myStopLossLong
ENDIF

Long backtest result

Here is the result of the backtest run on the Nasdaq in the 4-hour time unit:

To go further

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