Trend and Breakout

vor 18 Stunden

This strategy is based on a trend-following philosophy, focusing on capturing strong directional moves by trading breakouts in the direction of the prevailing trend.

🔹 Core Concept

Markets tend to move in trends, and breakouts from key levels often signal the continuation of those trends.
Instead of predicting reversals, this strategy aims to follow momentum once price confirms its direction.

🔹 Breakout Entries

Buy setups occur when price breaks and closes above a key resistance level during an uptrend.

Sell setups occur when price breaks and closes below a key support level during a downtrend.

A valid breakout requires a candle close beyond the level, confirming acceptance rather than a false break.

🔹 Risk Management

Stop loss is placed beyond the most recent swing point or invalidation level.

Risk is predefined before entry, ensuring consistent risk control.

Early exits are applied when momentum weakens or price closes against the trend filter.

🔹 Trade Management

Positions may be scaled in as price continues to break new levels in the trend direction.

Profits are protected by trailing stops or exits triggered by trend weakness signals.

Trades are closed when the trend shows clear signs of exhaustion or reversal.

🔹 Strategy Objective

The goal is to capture large trend moves while accepting small losses during consolidations or false breakouts.
Over time, a few strong trends are expected to outperform multiple small losses, which is the core principle of trend following.

vor 18 Stunden

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