Volatility Breakout Strategy

Script from: TradingViewIntradayBreakoutMomentumTrend followingVolatility

Volatility Breakout Strategy, credited to Larry R. Williams, triggers a long position when the price exceeds the daily volatility level calculated as 'close + k * (high - low)'. The entry is placed at the next day's open with a stop loss at the midpoint between the previous day’s low and the entry price. All positions are exited at the end of the trading day, indicated by the session's background color.

Audit verdict

Not rankedUpdated Jul 28, 2026

No reliable edge found

Its average result can't be told apart from chance, so it stays out of our rankings. The script itself passed our repainting audit.

2,036backtests3 markets

18robust scoreranked median 50

0.14p-valueranked median 0.24

10/184pass quality gatebacktests >15 trades

Audit details

How we decide whether a strategy enters our rankings. Read the methodology →

✓

Repainting audit

7 of 8 checks passed.

✓

Script availability

Open-source, still published on TradingView.

✓

Statistical edge

Average t-statistic 2.63 (p = 0.14), above the median of 2.02 (p = 0.24) for ranked strategies.

✓

Quality gate

10 of 184 backtests with more than 15 trades pass our quality gate.

Robust score

18/100, below the median of 50 for ranked strategies.

How its evidence compares

The t-statistic measures how far the average result sits from zero relative to its noise. Below about 2, it is within what random entries produce.

2.63

avg. t-statistic

2.02

median, ranked strategies

Best 5 of 2,036 backtests

Shown for transparency.

Symbol	Timeframe	Net profit	Profit factor	Trades	Max drawdown
CleanSpark, Inc. NASDAQ:CLSK	1H	+93,103%	1.09	736	71%
Advanced Micro Devices, Inc. NASDAQ:AMD	2H	+8,391%	1.14	1,897	46%
Riot Platforms, Inc. NASDAQ:RIOT	1H	+3,536%	1.07	1,075	65%
Palantir Technologies Inc. NASDAQ:PLTR	1H	+3,094%	1.42	574	35%
Bank of America Corporation NYSE:BAC	2H	+2,726%	1.14	1,997	46%

⚠Selected after the fact: these are the best 5 of 2,036 runs, not what to expect from this strategy.

Is Volatility Breakout Strategy profitable?

Not reliably, based on our tests. Across 2,036 backtests, 10 of 184 with more than 15 trades pass our quality gate. The best result is +93,103% on CleanSpark, Inc. (1H, 736 trades). On average, its results are statistically indistinguishable from chance (p = 0.14).

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