Breakout Method - Scalping Intraday Method

[vicky.bhatnagar]

Backtest AFL

Can some Amibroker coder post the AFL for the same so that it can be backtested.

 

[raviparakkal]

good post

continue the effort

thanks

 

[wisetrade]

How to identify breakout levels?

The most important is how to find the breakout levels. This section will tell how to find the breakout levels.
To find the breakout levels for any given day, we take into account previous days range. Based on previous days range and current days fluctuation, we find the breakout levels. Based on previous days range, we create 3 areas of trading.
These 3 areas are
1: Best possible Trading
2: Good Trading
3: Useless Trading
Follow the below steps to calculate the breakout levels.

Step 1: Find out the previous days high and low.
Step 2: Find out current days high and low at any point of time.
Step 3: Note down 2 fractions (0.45 and 0.75)
Step 4: Find the range of previous day. (Previous day high Previous day low)
Step 5: Multiply the range for previous day with the two fractions from step 3. (0.45 and
0.75). Mark this result as MF1 andMF2.
Step 6: Now find current days range (Todays high Todays low)
Step 7: Find out whether current days range is below MF1, between MF1 and MF2 or above MF2.
Step 8: If current days range is below MF1, then breakout levels are
Upside Breakout = Todays low + MF1.
Downside Breakout = Todays high MF1.
Step 9: If current days range is between MF1 and MF2, then breakout levels are
Upside Breakout = Todays low + MF2.
Downside Breakout = Todays high MF2.
Step 10: If current days range is above MF2, then DO NOT TRADE.
Step 11: Once we know the breakout levels, we can buy above Upside Breakout and sell below Downside breakout.
Step 12: Target should be 0.7%.
Step 13: Stop loss should be 0.8% or if the underlying is trading below our buy price or above our sell price for more than 10 min, then square off the position.
Step 14: This trading system is best suitable for those who can trade in multiple stocks and are very active in trading. One should not expect more than 1% from this system.
Step 15: You can find the breakout levels for free using the below website
Breakout Calculator
or
Breakout Calculator

Note: This system should be used till 2 pm (or 1 and half hour before market closes. Because there is no point finding breakouts in last minutes of trading session)

please explain step no 3,
thanks and regards
geeta

 

[radha55]

please explain step no 3,
thanks and regards
geeta

just use those decimals as it is.

 

[radha55]

Breakout Method Of Intraday Trading​

Profit for 31st Jan 2011. Nifty Feb Futures

Previous Day Today's Risk Reward
High Low High Low Profit % Stoploss %
5545 5438 5475 5438 0.7 0.8

Recommendation

Buy At 5486.11. Target = 5524.51. Stoploss = 5442.22
Sell At 5426.9. Target = 5388.91. Stoploss = 5470.32

We calculated this price at 9:25 am.

As per the above recommendation, buy triggered at 5486.11 and target achieved at 5524.

Total Profit = 0.7% = 35 points.

profit of 1700+ with one lot of Nifty

 

[ashwani chadha]

thanks for the strategy

 

[radha55]

Breakout Method of Intraday Trading​

Previous Day Today's Risk Reward
High Low High Low Profit % Stoploss %
5542 5411.20 5542 5490 0.7 0.8

Recommendation

Buy At 5548.86. Target = 5587.71. Stoploss = 5504.47
Sell At 5483.14. Target = 5444.76. Stoploss = 5527.01

We calculated this levels after 9:30 am today.
As per the recommendations given above, sell triggered at 5483.
Target 5444.76 achieved within 30 min.

Profit = 0.7% = 35 points.

Profit of 1700+ with one lot of Nifty.

 

[razx5]

Breakout Method of Intraday Trading​

Previous Day Today's Risk Reward
High Low High Low Profit % Stoploss %
5542 5411.20 5542 5490 0.7 0.8

Recommendation

Buy At 5548.86. Target = 5587.71. Stoploss = 5504.47
Sell At 5483.14. Target = 5444.76. Stoploss = 5527.01

We calculated this levels after 9:30 am today.
As per the recommendations given above, sell triggered at 5483.
Target 5444.76 achieved within 30 min.

Profit = 0.7% = 35 points.

Profit of 1700+ with one lot of Nifty.

its wrong..nifty futures did not make high of 5542 today at any point..day high only is 5510..even day low after 9.30 a.m is 5451.10..according to me it s like this..Breakout Method of Intraday Trading
Previous Day Today's Risk Reward
High Low High Low Profit % Stoploss %




Detailed Ebook on Breakout Trading


Recommendation

Buy At 5509.96. Target = 5548.53. Stoploss = 5465.89
Sell At 5432.39. Target = 5394.37. Stoploss = 5475.85
v got sell trade at fag end of day.. i gave 5491.25 at todays high(high of 9.15 a.m) and low of 5451.10 (9.35 bar low)

 

[cson]

Very Well, Radha.

Can you shed light on, some of the frequently used "intraday methods" by you.

I know there might be many methods you would be using, but there must some frequently used methods, and which have giving good success in past.

I'll be extremely thankful, if you can share your experience.

thanks,
C

 

[razx5]

for todays trading in mininifty..high was given as 5453.20(9.37 a.m high) and day low was 5425..v got recommendation like this
Breakout Method of Intraday Trading





Recommendat
ion

Buy At 5464.29. Target = 5502.54. Stoploss = 5420.58
Sell At 5413.92. Target = 5376.02. Stoploss = 5457.23
long above 5464 tgt achieved in 30 mins