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The problem with Donchian-type entries and exits is that they usually
introduce way too much slippage into your system. It is visible to everyone
trading the same market.
I would suggest systems that use a "percent-up"/"percent-down" OR "multiples
of true range".
The key, I think to making these systems work is to introduce a close stop
somewhere, otherwise you can get chopped pretty good. Even so, I would still
only use this type of system in trending markets.
Depending on the market traded, you could have 1 type of profit-taking stop
and a smaller, stoploss type of stop in case your trade does not initially
work out.
Can someone suggest other types of breakouts?
Good trading to all,
Carlos
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