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I share your interest in break out systems. And also what I sense to be a
certain level of frustration. Trading ranges are so tempting and easy to
identify, yet so maddeningly difficult to predict which way they will break.
The only thing my simple mind has found that seems to have promise is to
wait for a low volatility period, then trade in the direction that the close
appears to be going once the range begins to expand. Knowing that most of
these breakouts will be false, you immediately reverse your position when
the trade starts to go against you. This isn't perfect by any stretch, but
at least it gets the percent profitable figures into the double digits.
I hope other more knowledgeable people will join in this thread.
Clint
-----Original Message-----
From: Peter Iovanella <ivo1@xxxxxxxxx>
To: Omega List <omega-list@xxxxxxxxxx>
Date: Tuesday, March 02, 1999 11:00 AM
Subject: Best filters for a breakout system?
>Any of you out there who are trading range breakout systems - what do you
>find are the best filters to use to pick a false breakout when it occurs?
>Or, better yet, to keep you from making a trade when your filter indicates
a
>breakout is more likely to prove a fake-out when it occurs?
>
>Peter
>
>
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