Eminitrader's Breakout Journal

E

eminitrader007

This is my another attempt to keep track of my trading. It is an upside break-out method.

Here are the rules.

1) The cash market needs to open higher than yesterday's close and move higher from the open.
2) I'll wait for a pullback before 10.20 EST. The pullback cannot be below the open.
3)Anytime the market moves higher than the morning high between 10.20 to 11.30, I'll buy at market.

Stop

1) Initial stop is going to be placed below the intraday low.
2) If I buy because SP made a new high and in the next 5-10 mins Nasdaq cannot make a new high, I'll exit.

Target

We close the position at 12.00 EST.
 
Here is an example from 7/24.

At 1, SP and Nasdaq opened higher.
At 2, the pullback was above the Open.
At 3, SP makes a new high. Enter at market.
At 4, Exit.
 

Attachments

Here is another example.

This set-up occurs maybe twice a week. I have noticed that the profits have been anywhere from 6-12 points per trade. The initial stop loss could be anywhere from 6-10 pts. too, but that is the worst case scenario because if in the next 5-10 mins. another market doesnot make a new high, we'll exit at the market. So we could possibly exit anywhere from -2 to +2 points from our buy point.
 

Attachments

Usually in a Bull market the buyers are willing to buy at a higher price hoping that it will go much higher. In the last 2 weeks we have had couple of big up-days but the buyers came in at lower price only. Similarly, Sellers haven't come out in force either.

The current price action looks similar to the price action in the week of 05/08. I will look to sell tomorrow's open with the stop at 1310.
 
You must log in or register to reply here.
Back
Top