Last Updated on March 2, 2023 by Mark Ursell
Breakout strategies are one of the oldest and most powerful trading strategies.
A hundred years ago Jesse Livermore was writing (with Edwin Lefèvre in Reminiscences of a Stock Operator):
“Remember that stocks are never too high for you to begin buying or too low to begin selling.”
“Timid people don’t like to buy a stock at a new high record. But I had the history of such movements to guide me.”
Lefèvre, Edwin: Reminiscences of a Stock Operator
Video
In this video, I demonstrate my analysis of a classic price channel (Donchian) breakout.
I compare it to a variation that uses the price channel to trigger the entry but then waits for a pullback before entering.
The results were interesting and demonstrating that breakouts are an effective way to trade, but you can improve on the basic entry.
Stocks Tested
- Apple
- Microsoft
- Nvidia
- Berkshire Hathaway
- JP Morgan
- Bank of America
Membership
The backtest model shown in this video is exclusively available to Tradinformed Members.
Tradinformed Members get:
- A new backtest model including my results and analysis every month.
- Direct access to me through the Members Webinars.
- Exclusive tutorials so that you can quickly understand and use the models.