Failed Breakout Reversal Backtest in Crypto: Fees, Slippage and Break-Even Costs
When a breakout fails and price closes back inside the range, some traders fade it. The rule needs a precise definition of 'failed'.
Short answer
A failed-breakout reversal rule enters against a breakout after price closes back inside the range within N bars, with a stop beyond the breakout extreme. Trapped breakout traders may add fuel, but in trends many 'failures' are just pauses. Define the failure window and the close-back condition, use next-bar fills, compute break-even cost and test by regime. Results are often good in ranges and poor in strong trends.
Break-even cost
| Item | Value (illustrative) |
|---|---|
| Trades | 120 |
| Gross avg per trade | +0.44% |
| Fees (2 × 0.05%) | −0.10% |
| Slippage (2 × 0.04%) | −0.07% |
| Net avg per trade | +0.27% |
| Break-even round-trip cost | 0.44% |
Definition matters
| Failure definition | Trades | Net avg (illustrative) |
|---|---|---|
| Close inside within 3 bars | 120 | +0.30% |
| Within 1 bar | 60 | +0.41% |
| Any close inside within 10 | 190 | +0.08% |
Conclusion
Related: Range Breakout Retest Backtest in Crypto: Fees, Slippage and Break-Even Costs, Unfinished Auction Candidates in Crypto: What Price Response Adds to the Reading.
Backtest the failed breakout reversal rule with costs in ChartsPod.
Open the ChartsPod terminalResults are often good in ranges and poor in strong trends.
Check Failed Breakout Reversal Backtest in Crypto against a live market before relying on it.
Try it in ChartsPodQuestions readers ask
What is a failed breakout?
A breakout followed by a close back inside the range.
Where's the stop?
Beyond the breakout extreme.
When does it work best?
Usually in ranges; test by regime.
Sources and methodology
Backtest cost logic follows TradingView's Pine Script strategy documentation; indicator definitions are standard. All performance numbers are illustrative examples of the method, not results of real tests.
- TradingView Pine Script: Strategies — simulated fills and assumptions.
- TradingView Pine Script: Repainting — live vs historical calculation.
- ChartsPod documentation — guides for order flow, derivatives, alerts, backtests, journal and workspaces.
This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.
CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.