Sugi Pulla System - UK Breakout Strategy: 370 pips in 2 weeks!

shadowninja

Legendary member
5,524 643
I've played with them. The thing is, breakouts tend to end up as fakeouts (whipsaws) so you'll take a few losses then have to let the winner run to cover the losses. A breakout should be immediate (otherwise is it a breakout or a general meandering in your direction?) so if it doesn't break out of a range immediately, should you close for minimal loss/profit. Another aspect is identifying a breakout vs a fakeout. I suppose you could look at the "price action" (whatever that means ;) ).

Oh, someone on here suggested that you only take trades in the direction of the trend as you're more likely to achieve target.
 

phreddyinbg

Member
84 3
Another aspect is identifying a breakout vs a fakeout. I suppose you could look at the "price action" (whatever that means ;) ).
Oh, someone on here suggested that you only take trades in the direction of the trend as you're more likely to achieve target.

I think that breakout is a misnomer anyway. The market doesn't tend to behave that nicely for us. I am thinking about trading when price has left the nest.

Some people suggest a buffer of 5 to 10 pips my experience is that price still peeps above the line, triggers then retreats again.

The 'with trend' idea is always good if price is going to behave when Frankfurt then London opens. I have seen it expressed that Frankfurt sets the direction and London follows. I don't know the data on that but directly I heard it, it turned out true. Next day it reversed.

Another idea is to use a moving average and trade when that 'leaves the nest'.

Phil Newton talks about a false breakout and trading the next move out.

Of course, all this leads on to the stop loss - how large bearing in mind that it might be hit with a false BO as the price goes the other way and triggers the opposite trade.

Too late for me to sit up any longer, time for bed.
Thank you for your contribution.
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock