10-Day Breakout System Theory

Introduction

The 10-Day Breakout Trading System identifies entry points based on the price range of the last 10 days. When the price touches the volatility boundaries from top to bottom, an entry is made. This system is suitable for both daily and weekly charts, providing traders with reliable entry and exit points.

How It Works

Setup

The price range of the last 10 days is defined. When the price touches the volatility boundaries from top to bottom, an entry is made.

Evaluation

1 trading day of each month

Permanent Filters

• 50 % + X must tend in one direction
• Intermarket spread DJIA: Weekly basis
• 20-day average weekly basis
• Triple bar trend-following filter weekly basis
• Slope angle filter of 10-day high - 10-day low

Volatility Filter

0.5 % - 2.5 % daily basis

Entry

10-day high course ➔ Stop Buy Long Entry. 10-day low course ➔ Stop Loss Short Entry

Stops

• Initial stop for LONG position is the current 10-day low.
• Initial stop for SHORT position is the current 10-day high.
• Trailing stop is adjusted daily by the amount of the book profit.
• Time stop is 5 candles if no stop is triggered, then liquidation.

Position Size

1 % of the account volume: Point distance of the initial stop = number of shares

Loss Brake

After 2 consecutive losses, the system is blocked for the applied timeframe. The same block applies to the traded base value.

System Highlights

• Advanced AI algorithms designed to spot market trends.
• Real-time analysis to make quick and informed decisions.
• Customizable options for individual trading preferences.

Optimizing Your Strategies

Discover techniques to maximize your trading success with our detailed guide on using the 10-Day Breakout System effectively.

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Conclusion

The 10-Day Breakout Trading System is more than a set of rules; it is a comprehensive trading framework that integrates technical analysis, psychology, and rigorous risk management. It equips traders with the knowledge and tools necessary to navigate the complexities of the market, maximizing opportunities while controlling risk. By applying this system, traders of all experience levels can enhance their market presence, making informed and profitable trading decisions.