The mantra of a conservative breakout day trader

My strategy is taking ‘cautious’ breakout day trader signals, but within that, I trade any valid break that comes along.

I aim to determine the nature of a break and to always think in probabilities.

I take note of the context, pace and harmony of the market.

I favour trades that are in the direction of the current dominant pressure.

With a neutral view, I let a break build up ‘properly’.

I pay attention to magnets such as a double zero or fifty price level.

I want obstructive elements between entry and stop but not between entry and target.

I monitor significant financial news and do not trade their effect.

My entries are from near or on the 25 exponential moving average in association with a squeeze setup in a direction appropriate to the context.

A signal bar is highly desirable, a break of which is my entry which in turn becomes my entry bar.

I wait for an actual break, patient to avoid false and tease break traps.

In a trend, I swing my trade and exit at the target (at least 2R) or resistance, a technical or a reversal point.

In a range, I scalp my trade and exit at the target (at least 1R) or resistance, a technical or a reversal point.

But I do not need a trade; therefore, I do not search for one. I spot my bets rather than find them.

My goal is to trade at (?) amount per pip at 50 per cent of margin.

Published by Day Trader

I flew fast jets for 30 years of my life. I've traded full-time, more or less, for the last ten years, initially from fundamentals and over the last few years as a dedicated day trader. I live on the North Norfolk coast.

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