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Trend Following Breakout System

  • #1
  • First Post: Apr 5, 2025 10:30pm Apr 5, 2025 10:30pm
This breakout system is based on this post. The original version of the system, can be found here. The thread is long, and the original poster expects users to read all of it. For new users, it can be difficult to follow, and asking questions may not always be received well.

If you want a more direct place to ask questions or learn without dealing with that, this thread is available for that purpose.

A simple way to begin testing is to place a pending stop order at the breakout or breakdown level.
  • #2
  • Apr 5, 2025 10:32pm Apr 5, 2025 10:32pm
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  • #3
  • Apr 5, 2025 10:32pm Apr 5, 2025 10:32pm
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  • #4
  • Apr 5, 2025 10:33pm Apr 5, 2025 10:33pm
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  • #5
  • Apr 6, 2025 2:04pm Apr 6, 2025 2:04pm
Again, bro, where's the system? Setup, entry, target, SL?..
Just an opinion. Based on research
  • #6
  • Apr 6, 2025 2:31pm Apr 6, 2025 2:31pm
it will do you good if you stop any prediction, because nobody can.
it will do you good that you spend more time on observation of price action as it is in the process of unfolding.
price can bounce and break upward or downward or ranging.
you only decide at the moment when you see it happening, not before.
Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 17 KB
ITB - Seeing Orderliness amongst 'Randomness'
  • #7
  • Apr 6, 2025 7:18pm Apr 6, 2025 7:18pm
Quoting Inthebox
it will do you good if you stop any prediction, because nobody can. it will do you good that you spend more time on observation of price action as it is in the process of unfolding. price can bounce and break upward or downward or ranging. you only decide at the moment when you see it happening, not before. {image}
It’s not really a prediction. It’s just that the structure in your screenshot has finished forming. Breakout or breakdown levels basically mean that if price hits those points, it’ll probably keep moving that way. The safest way to enter is to wait for it to break those levels. But if someone feels confident in the setup, they can start trading in that direction earlier. In my case, I saw that the structure in your screenshot is complete, so I’ve already started to DCA. I attached a trade explorer for testing.
  • #8
  • Apr 6, 2025 7:24pm Apr 6, 2025 7:24pm
Quoting since80808
Again, bro, where's the system? Setup, entry, target, SL?..
I can give suggested SL and TP levels here, but entries and exits are pretty personal since everyone has their own way of entering and exiting the market. I personally use equity based SL and TP, not fixed price levels. But I’ll work on some reasonable levels using Fibonacci and post them here.
  • #9
  • Apr 6, 2025 10:15pm Apr 6, 2025 10:15pm
Quoting Th3W1z4rd
{quote} It’s not really a prediction. It’s just that the structure in your screenshot has finished forming. Breakout or breakdown levels basically mean that if price hits those points, it’ll probably keep moving that way. The safest way to enter is to wait for it to break those levels. But if someone feels confident in the setup, they can start trading in that direction earlier. In my case, I saw that the structure in your screenshot is complete, so I’ve already started to DCA. I attached a trade explorer for testing.
when you first put a line on the charts above, you did not state your intention.
what are you looking at, what are you waiting for?
so many traders, me included can say that you are waiting for a break down because your charts are showing strong down trend with hardly any pullback.
state your intentions clearly first to avoid any speculations by others later.
ITB - Seeing Orderliness amongst 'Randomness'
  • #10
  • Apr 6, 2025 10:49pm Apr 6, 2025 10:49pm
Quoting Inthebox
{quote} when you first put a line on the charts above, you did not state your intention. what are you looking at, what are you waiting for? so many traders, me included can say that you are waiting for a break down because your charts are showing strong down trend with hardly any pullback. state your intentions clearly first to avoid any speculations by others later.
I assumed it was clear, but you're right to point that out. I’ll explain it more clearly.

There is an underlying structure that repeats, as shown in your screenshot.

  1. If this structure goes in the same direction as the trend, it is considered a trend-following breakout. In this case, the line drawn is the breakout level. If price moves through that level, it confirms the breakout. The blue line represents a pending stop order, which means the order is placed on the other side of the current price, expecting price to continue through it. This is different from a pending limit order, where the expected price direction is the opposite.
  2. If the structure goes against the trend, there is no trade setup.

There is also a variation in the structure. If the original form is called Type I, this variation can be referred to as Type II. In item #1 above, if the variation is present (Type II), then it suggests a reversal rather than a trend-following breakout. That is currently what is happening with AUDNZD and a few other pairs, which I can go over if anyone is interested.

  • #11
  • Apr 7, 2025 7:47am Apr 7, 2025 7:47am
Quoting Th3W1z4rd
{quote} I can give suggested SL and TP levels here, but entries and exits are pretty personal since everyone has their own way of entering and exiting the market. I personally use equity based SL and TP, not fixed price levels. But I’ll work on some reasonable levels using Fibonacci and post them here.
Where is a setup? Where is the trading system???
Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 3 KB
Just an opinion. Based on research
  • #12
  • Apr 7, 2025 7:27pm Apr 7, 2025 7:27pm
Quoting since80808
{quote} Where is a setup? Where is the trading system??? {image}
Okay just take it easy, we're just sharing what we can, when we can, with no benefit other than the reward of being helpful. All the setups from yesterday worked, but the lot sizes on the demo account were too big, so I made a new demo. I’ll try to explain the setup and target more clearly.
  • #13
  • Apr 8, 2025 7:11am Apr 8, 2025 7:11am
It's not about clearly or not clearly. You start topic in the Trading systems forum: where are the rules? Only random pictures with random line and link to some other's system known to everyone.

Where is your system?
Just an opinion. Based on research
  • #14
  • Last Post: Apr 8, 2025 11:17am Apr 8, 2025 11:17am
Quoting since80808
It's not about clearly or not clearly. You start topic in the Trading systems forum: where are the rules? Only random pictures with random line and link to some other's system known to everyone. Where is your system?
This thread was created to be a space for identifying setups for the other system and asking questions about them. If you try asking in that other thread, you're likely to get dismissed. This thread is intended for that purpose, to post setups, check if they make sense, and ask questions without that kind of reaction. I mentioned that in the first post.
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