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Sorry for being a little cryptic with my previous post on vegetables.


One trader can buy on a breakout for his / her system, whilst another sees the stock in a trading range. It all depends on timeframe.


There are many possibilities (infinite??) in terms of breakout systems when possible strategies (including exit criteria), markets traded and timeframes are taken into account.


Some people were suggesting that the entry (breakout or otherwise) is irrelevant and that it is the exit that is important. The previous link I posted showed that a random entry underperformed a simple breakout entry using a random exit. Think of a random exit as a randomly timed exit (random nbars exit in Amibroker) within certain range parameters.


Following from this concept it is possible to design a very tradeable system that has a fixed trade length and a breakout entry. For example enter on price breaking predefined timeframe dependent criteria and sell 6 hours, 6 days, or 6 weeks later - depending on the time frame you want to trade. Add in a relatively wide trailing stop and you have a potential system. It could also be a fairly easy system to trade, depending on how good your broker is, because the timed exit is clearly defined on entry.


There are so many possibilities when it comes to trading systems - think it, code it, test it, do it!;)


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