#105: [PODCAST] HOW TO REDUCE THE DAMAGING IMPACT OF FALSE BREAKOUTS

Breakout trading is a very popular style of trading, however it does have some challenges which can really damage your trading account if you don’t know how to handle them.

And one of the BIGGEST challenges for breakout traders is false breakouts.

Yes, it sucks getting into a trade only to see it reverse and hit your stop-loss soon after, but it’s a part of breakout trading.

So, what can we do about it?

In today’s episode, we cover some tough questions about breakout trading, including:

Does breakout trading really work?

The impact false breakouts can have on trading and traders,

Why false breakouts usually come in long streaks,

The 4 different types of breakout timing and how they impact the number of false breakouts in your trading strategies,

And much more.

Do you have any trading questions you’d like answered? Submit them here, and we may cover them in a future episode!

Click here to play the episode now.

Happy Trading,

Tomas

This article was originally published on the Better Trader Academy blog!

#podcast

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What others are saying

"Tomas is one of the most creative traders I know. He is able to generate unique trading ideas and elegant solutions to system development challenges."

Andrew Swanscott, BetterSystemTrader.com

"Tomas has been a professional trader for more than a decade and I have had the privilege of monitoring his accounts in action since 2006. His systems are performing as some of the best I have ever monitored and executed. I have been in the trading industry since 2002 and worked with many developers from all over the world. Tomas is definitely the one to consider."

Martin Lembak,

Systems Trading Expert,

MFRM, CAIA

"Tomas is a professional trader, who for the last 10 years has specialized in developing trading systems. We have been tracking his trading systems for about 5 years and they generally show very robust, stable and above average performance. Striker is pleased to work with someone like him - a real professional with enthusiasm and deep knowledge of trading."

William Galwas, President Of Striker Securities, Inc

"Personal consultation with Tom helped me to re-evaluate the complexity of my robustness testing and optimization processes. Plus, it has helped me with a specific plan on how to take things forward. It has given me some great ideas on how to avoid overfitting and make my testing more robust and provided tips on low hanging fruit in terms of the best markets to trade for intraday/short-term breakouts."

Craig Peters,

semi-advanced trader,

United Kingdom

"Tom's approach to Automated Trading Strategies design, tests of robustness and portfolio diversification is really unique. He has been a professional trader for many years and the depth of his understanding of Breakout strategies and Market Internals is hard to find elsewhere."

Antonin Fisher,

Hedge Fund Manager,

Czech Republic