Reminder -The most important bits of a strategy are:
- directional bias - where to trade - where to risk - how to manage
There's one final piece that we didn't mention in the video - capital management. AKA - how much to spend, of all of your capital, on the risk in a given trade.
A great rule of thumb is that no trade should risk more than 3% of your capital at any one time. Breakout trading has a mixed win rate, and sometimes you can have lots of losses in a row. You need to control for this.
Thanks again and let us know how and where you think this strategy could be further improved.
Cheers!
(Again, none of this is investment advice, simply educational material about good trading practices - all our content is subject to our terms of service.)
If I can flip 30k to 600k with an ongoing SEC case and never track the updates of the case once, nor care to ever know what’s going on, I think you’ll be just fine ignoring all this bullshit as well.
PropNotes
⋅
@AndrenHowards, wat
true_Punisher
⋅
Our group will buy TSLA at the open. CUP and HANDLE breakout will come above 215 this week. Shorties game always fake. At this price , what a huge discount!. 300 will come in Q2 , Spring-Summer is huge for traveling, electric cars in huge demand
That strategy didn’t pan out so well for your group, this week anyway. Nevertheless, it’s almost impossible to lose from buying every dip in TSLA, and holding.
obsessedOwl14170
⋅
This is awesome! Will give it a shot. If I’m looking to trade on a smaller time frame, do I need to adjust the setting to a shorter length for the MA and Swing Indicator? Will the settings on the indicators you mentioned work with a shorter time frame?
PropNotes
⋅
@obsessedOwl14170, So the idea here is that this setup is highly customizable, but everything we mentioned are "solutions" to "questions" that all trading plans need to answer. In that way, nothing has been truly optimized. You can definitely play around with the settings, or even the indicators, on any timeframes, to figure out what you like best. Honestly though, it's probably best to try leaving it the way it is before deciding it needs to be changed!
lofihenny
⋅
Shorting a low right after it makes a new low is a great way to get trapped lol I’ve learned that the hard way