I am getting many questions related to Breakout Trading.
I have mentioned all the rules in this book
https://t.co/UIwiwggEUg
More from Indrazith Shantharaj
4 factors to measure the performance of a trading system:
1 - Accuracy
There is no such thing as 90% Accuracy without compromising on other factors (like profit factor, etc)
Fact - A good trading system will have only 35-60% accuracy without compromising other factors.
(1/n)
2 - Profit Factor (PF)
It is similar to risk-reward. It is derived using the below formula:
Profit Factor = Total Profit by winning trades / Total loss by losing trades
Fact - A trading system above 1.2 PF is good if it scores well with other factors.
(2/n)
3 - Maximum Drawdown
The maximum drawdown also plays a vital role psychologically while picking a trading system.
Fact - Maximum Drawdown in any trading system should not exceed 20%. I suggest picking only the techniques which have less than 10% maximum drawdown.
(3/n)
4 - Maximum Consecutive Losers
We all feel bad even if we lose only Rs.1,000 in a trade. Because it is not only about the money, it is emotionally difficult to accept the failure.
Fact - A good trading system will have less than 15 consecutive losing trades.
(4/n)
TRADE LIKE CRAZY
10 Profitable Intraday Trading Systems, which are backtested against 10-years of Banknifty Historical Data!
(n/n)
https://t.co/BuUie17Ish
1 - Accuracy
There is no such thing as 90% Accuracy without compromising on other factors (like profit factor, etc)
Fact - A good trading system will have only 35-60% accuracy without compromising other factors.
(1/n)
2 - Profit Factor (PF)
It is similar to risk-reward. It is derived using the below formula:
Profit Factor = Total Profit by winning trades / Total loss by losing trades
Fact - A trading system above 1.2 PF is good if it scores well with other factors.
(2/n)
3 - Maximum Drawdown
The maximum drawdown also plays a vital role psychologically while picking a trading system.
Fact - Maximum Drawdown in any trading system should not exceed 20%. I suggest picking only the techniques which have less than 10% maximum drawdown.
(3/n)
4 - Maximum Consecutive Losers
We all feel bad even if we lose only Rs.1,000 in a trade. Because it is not only about the money, it is emotionally difficult to accept the failure.
Fact - A good trading system will have less than 15 consecutive losing trades.
(4/n)
TRADE LIKE CRAZY
10 Profitable Intraday Trading Systems, which are backtested against 10-years of Banknifty Historical Data!
(n/n)
https://t.co/BuUie17Ish

More from Screeners
How was the trap set in USA Small-Cap index
Russell 2000
It is better if you spend considerable time learning these concepts. https://t.co/caBHOO4Owa
Russell 2000
It is better if you spend considerable time learning these concepts. https://t.co/caBHOO4Owa

TRAPS? In a false breakout, the price breaks out of the range & comes back within the range. A trap is one step ahead, price not only comes back within the range but breaks down in the opposite direction. It traps the initial longs who didn't close their positions
— The_Chartist \U0001f4c8 (@charts_zone) January 22, 2022
Russell 2000 pic.twitter.com/txzjdnStzc