Breakout strategy teach you to be a better trader

Posted by on Oct 5, 2017 in Be a Trader | 0 comments

Life is a trading floor

TMT Reports, October 2017

 

What if you have empirical evidence of certain conditions that precede a major market peak. Do you need the have an idea of what price level the top will start its decline from and at what price the bottom will be reached Don’t you need these two critical numbers to calculate your risk/reward

If not and the conditions exist for a major peak, meaning there was going to be a substantial decline, does that forecast tell you to sell short at that moment What do you do, keep selling short until you no longer get stopped out or you are tapped out

Or is the idea of knowing being confident that a major peak is in the process simply fanciful talk Is it just bar talk over Black Label and water I mean no one knows with a capital K when a significant decline is about to begin, right Can they do they

The above is not a rhetorical question. I would suggest engaging trading systems that do as well or better in past bear markets like ’87 or ’97 or 01-02, or 07-09 or for that matter the short-term bears of ’11 and 15. Use the kitchen sink technique if you’re expecting the big bad bears.

True Over Nighter or TON with exit open next

This strategy is the essence of all volatility breakout systems
Please read my brief on this website for more information on the concept.

This is not a plug and trade ready system, but it was used by Larry William in the 80’s to turn 10k into 1 mill in ten months and wrote the book.

Ralph Vince programmed the systems for Williams and he gave it to me and his RSI filtered version of it called “wait and watch.”

The strategy was not traded by Larry as a day trader, as the name implies, it was over-night position on the big S&P ($500 bucks per full point) that exits on the first profitable open.

When you hear of V-breakout or range expansion systems today, they all got their start with this simple idea

Of course, TMTraders has trade ready breakout systems that are robust and other that are specialized.

Your TMTrader’s membership includes this essential trading strategy for either TradeStation 9.5 or NinjaTrader 7/8




 

Matthew 7:7 Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you. King James Bible.

 

Great and Many Thanks,

Jack F. Cahn, CMT
Since 1989, Thinking Mans Trader
Copyright 1989-2017

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