Volatility Breakout works better than anything I have ever used however more important that that is this:
(and I realize this is somewhat of a duh..no shit sherlock statment)
Try and understand going into the trade what behavior (price action) you are looking for. If you know what to look for you can design exit strategies around that price behavior that will maximize the gain and loss. Exits are far more important than the entries even though 90% of most novice traders focus on the entries.
I posted one of my setups to another thread where if a particular setup occurs, I am always looking for an intraday trend to develop and I go into the trade expecting more than a scalp, or in actuality I approach the trade with two exits, a discretionary scalp and an attempt to hold the other half based on the statistics of how I expect the pattern to play out. Because the "setup" is rare, when I see it, or when my program gives it to me, I know what I think it is supposed to do and therefore I try and maximize the profit by holding it longer than I would for a normal trade because the trade is not "normal" it is rare (the setup) and therefore I expect certain price action to accompany it.
That is different from a lot of the discretionary trades I might take where maybe I buy something because I see the index that the stock trades in weakening or the spoos are starting to ralley and a buyer seems to be lurking, etc, etc.
What I'm saying is, trades (setups) where you know what your looking for often work the best because you can anticipate what your gonna do better to make the best of the situation.
Like on Fridays in Atlanta, I am looking for mad traffic in the afternoon, therefore I alter my driving behavior because I anticipate the "congestion" and allow for more time which allows me to accomplish my goal....to get to the bar. LOL. I don't drive well or trade well in congestion.
