hello everyone, i have python code for breakout strategies. strategy is simple. i run code at 10.00am. code will first fetch high and low of given stocks between 9.15am to 10.00am. whichever stock breaks its own high(High made during 9.15 to 10.00am), code will place buy order for that stock. similarly, whichever stock break its own low (low made during 9.15 to 10.00am) code will place sell order. codes works fine. issue is sometime it picks wrong stocks and SL got hit. i wanted to add Parabolic Sar based condition along with breaking its own high/low condition. so that it refines stock selection and probability of SL hitting stock will reduce. i am looking for suggestion of any indicator or condition that i can add in above said strategy so that performance would improove !
i guess you need more of filtering the stocks rather than parabolic SAR. Probably % change or volume based filters and apply some momentum based indicators to get conviction in the trade taken.. Example Breakout happened in XXX stock with buy signal.. but momentum index was too low or RSI is below 50, there are high chances of hitting SL.
