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

Quote from 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 :)
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Have you documented all your failed breakout trades versus the ones that succeeded ???

It shouldn't be difficult to see the commonalities in one category versus the commonalities in the other category.

If you don't see any commonalities...

That also implies you don't understand the price action involved with breakouts.

Last of all, a good breakout trader is also good at fading the breakout.

Simply, that's a trader that knows when (most of the time) to fade the breakout (take the opposite trade) or knows when to reverse their position.

Thus, they exploit the strength and weakness of the breakout trading approach.

Yep...I'm hinting that there are commonalities.

Good luck in your research because this is something you need to discover on your own.

Mark
 
Quote from 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 :)
More...

You might study longer term methods, say 1 1/2 year price breakouts.

Many breakouts fail. Infrequently prices show long continuing changes. I hold winners and exit the losers. The unusual winner can be so great that it pays for all the losers and shows a big profit. The idea is to hold the big performers and exit the losers.

I think the oil business works the same way. An oilman might drill a test well here, another one there. There is no way to know for certain which well will be a big oil producer. I recall reading most wells are losers, they do not find oil, maybe find salt water instead. Each test well might cost a million dollars. Perhaps one in 20 wells strikes a big oil deposit. The one big oil strike pays for all the losing test wells.

Maybe thinking in terms of a portfolio instead of individual stocks might clarify the price breakout trading concept. You might try thinking of the breakout system as a way to filter out the nonproductive deals.
 
Breakout trading is not just about Buying a new high or Selling a new low.

Breakout trading is more about getting on board BEFORE the actual breakout and milking the "RUN". BO trading is about working the possible legs of the "RUN". Working the "CONTINUATION" clues. Working the RETRACES of the previous "RUN", working the HOOKS, flags as CONTINUATION clues.

BO trading is working the OPENING RANGE BREAKOUT trades and being on board for the ONE-WAY TREND days. BO trading is working the BO of the first hours range if not on board from the ORB trade.

BO trading is working the all important levels, working the tests and the failures of those levels (support and resist).

BO trading is working the RANGE breakouts.

Many NEW traders do not understand the makeup of a "RUN", many do not understand about 3 possible legs per run. new blood in the game are always looking for a bargain from prices, they do not believw the screen and look more for a reversal, a reversion to the mean bs or other silly stuff to get them out and going the opposit way just before the previous "RUN" reestablishes itself.

Stay with the previous direction when the original signal is still VALID. Never go opposit until you get a GOLD reversal signal.

Now have fun. :D But in all honesty, thats the game in a nutshell. It takes time and maybe you have the "right stuff" to win at this game or not but it is gonna take a lot of hurt to find out.

look at Obama, he played a game against the odds and because he has the RIGHT STUFF it looks like he is gonna smash the one trick pony fools tomorrow. :D

PS: Many new traders get scared of BO trades because they are scared of FALSE bo's. There are ways to avoid or even profit from most false BO's but i will not get into that now. Just be assured, there are tactics to trade in any situation to avoid the fear OF PULLING THE TRIGGER BECAUSE THE SIGNAL IS NOT SET in stone. Be assured, false breakouts are part of the game because when the breakout happens, BINGO thats why you get up in the morning. Learn how to avoid whipsaws and false breakouts and the world is your oyster. DONE
 
Quote from bighog:

look at Obama, he played a game against the odds and because he has the RIGHT STUFF it looks like he is gonna smash the one trick pony fools tomorrow. :D
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Obama has money behind him. Money he said he would not accept. He is a liar. And you like him. I guess you like people that lie. And politics isn't a game. Neither is trading.
 
Quote from 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 :)
More...

in my investment experience, this is the only strategy that really works...
maybe you have difficulties in finding lows and highs?
 
know where your tl supp/res points are ,follow 2 or 3 correlating mkts,when we break support or res ,what the uvol/dvol comparison graph and volume spikes,these tl's are where you enter and exit ,or in case of BO go for the ride with trailing stops
 
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