breakouts, pullbacks and other

Discussion in 'Strategy Development' started by radolym, Apr 25, 2006.

  1. radolym

    radolym

    Is it just me or maybe you guys noticed this as well: wether it's a 5 min, 60 min or daily chart buying pullbacks work about 30% of the time and breakouts about 50% of the time? Did anybody noticed similar thing?
     
  2. good luck. this is not the market of 5-6 years ago. Big money is very reluctant to buy and keeps selling every rally screwing just about any breakout type stuff.
     
  3. Personally, I find breakouts considerably riskier to trade than buying or selling pullbacks. So much so, that I don't even consider breakouts anymore. Perhaps I'm missing something, but I'm fairly comfortable with that approach.
     
  4. radolym

    radolym

    How often do pullbacks work for you in % on average?
     
  5. For breakouts to work, you need a market with a lot of momentum, either up or down. This market moves once in a while but in a very sluggish way, rendering most breakouts unprofitable.
     
  6. Of late, I have a slightly better than 2/3 chance of having a profitable or scratch trade than I do of incurring a losing trade.
     
  7. Further, I also found that I needed a larger protective stop for breakout setups than I did for the pullback variety, at least in the case of my own setups. And I do so hate unnecessarily added risk.
     
  8. radolym

    radolym

    Prety good for pullbacks. What time frame do you trade?
     
  9. I only use 1-minute charts. I trade ES and, very occasionally, NQ.
     
  10. It changes all the time. Breakouts on an itraday basis have been working pretty well for me lately while the pullbacks have been harder. Go figure.
     
    #10     Apr 25, 2006