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Paul,
Sounds like the R-Breaker system from Richard Seidenberg, which works on
pretty much the same principles, although the calculation of the breakout
and reversal levels is different.
If you arrive at the correct levels, you'll have a decent system on your
hands. Drawdowns might be a problem, depending upon your psychological
make-up and the markets that you are trading. I think that a system like
this is best suited to volatile markets such as the index futures. If you're
trading this on the S&P, you'll probably want an account of no less than
$50,000.
Good trading!
Andrew Nopper
-----Original Message-----
From: Paul Cote <cote@xxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Tuesday, July 14, 1998 7:16 PM
Subject: volatility breakout, reversal system
>Realtraders:
>
>
>I have traded a volatility breakout system with a short term target,
>however, I am considering a volatility breakout using reversal. Has
>anyone ever tried or tested this?
>
>An example would be, when the market moves 120% of one day's range off
>the close in either direction, buy (if up) and sell(if down). Then, put
>in orders every day to reverse if the 120% of the day's range hits,
>otherwise, stay with the trade.
>
>If anyone has tried such a system, please let me know how it worked,
>what you liked about it or didn't like.
>
>thanks,
>
>Paul Cote
>
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