Would someone be able to help me w/ a breakout strategy

S

Sky123987

I've never been able to come up with a strategy (that's profitable) where you are buying highs and selling low's.

The only thing that I have found which works somewhat well for me is mean reversion.


Just looking for a lil' bit of help :)
 
the strategy never existed. I've tried to put several things together but could never come up with anything that at least somewhat consistanly is predictible
 
Quote from Sky123987:

the strategy never existed. I've tried to put several things together but could never come up with anything that at least somewhat consistanly is predictible
More...

Thats because the market isn't predictable.

I asked why the strategy didn't work because most trend following strategies buy the highs(at least the most recent ones) and sell the lows .
 
Each market is different. This one, buying breakouts will kill you.

That same style could make you a million.......... probably about two years from now.

I don't see a problem shorting the lows if you keep your stops in, and lower them when you're right.

Good time to size down, too. You need to be alive for the next day.
 
this kind of strategy for me atleast only works when i use tight stops but it's basically the same for mean reversion, ie morning breakdown wait a few minutes buy with a tight stop if it gets hit w/e vice versa for gap up. with breakout it would be like a range trading strategy where you might short at the top of the range or buy a breakout of the range once again with a stop somewhere that would make the breakout invalid i/e a lower low.
 
I usually like to fade big moves.......but it's been hurting lately. so I turned around and now, I buy into the big moves. Many traders with 'best month ever' spray basket in these big moves.....especially into the close. to me, it's a real scary thing to do since I can't keep track of individual stocks. same goes for reversion to mean.......don't even think about it unless you got plenty of capital to risk............
 
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