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> I would like a system that can also catch those large moves in addition
> to taking the small chunks. Maybe there is a different way to make a
> hybrid of a volatility breakout and a trend following system?
This is where trading mutiple contracts really helps. Trade Mid Am
contracts if need be.
The traders that I personally who I know make money all use this
approach. Psychologically it is much easier.
For example you could exit the first position at a profit target of some
kind.
Then you will still be in the trade on those occasions when the market
starts to trend.
Ray Barros has explained the rule of 3 ie. breaking your position down
into multiples of 3 contracts.
Another
> idea is to incorporate pivots so that the system takes volatility
> breakouts that exit with say the first profitable exit, unless they take
> out a pivot, in which case you hold for a longer period of time?
>
> Paul Cote
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