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Broker / Experienced Breakout trader feedback request.
In the book Trade Your Way To Financial Freedom by Van Tharp he says you
should know your system inside out and fully understand your concept.
He uses an example of trading breakouts. He says you should communicate
what
you are doing to your pit broker and what you expect from them.
So if you are a trend follower who trades breakouts, you want to trade
"real" breakouts and he says you should tell your broker that.
He says you can find someone who will act with a bit of discretion on
your
order and that if the market is really moving, your order will be
executed.
On the other hand if a few traders are just testing new high/low prices
then you do not want to be executed because there will not be any follow
through.
He says you can get that kind of service but if you do not communicate
what
you want then you obviously will not get that kind of service.
The example is given in the context of a trend following approach.
My questions:
Someone other than the trader would have to monitor the market as the
breakout level was approached , further someone (possibly a different
person
ie. a pit broker) would have to make the judgement as to whether or not
the
breakout was real.
Is this in fact possible or is it unrealistic ?
Even if it is possible I realize that their judgement as to whether or
not
the breakout was real will not be 100% correct but overall there may be
an
improvement. Difficult to quantify.
Does anyone know of a futures broker who offers such a service ? Broker
replies welcome.
If it is achievable, can someone please explain how this could be
achieved.
Anyone have any comments or additional questions that they think I
should be
asking ?
Thanks,
Chris
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