Works to Profit in Volatile Markets
When you find markets experiencing higher volatility, the TOP Ultimate Breakout can be used in volatile markets to capture sizable profits in day trading. In the TSLA example below, you can see several trade examples using 15-minute price bars.
In the above TSLA example, after experiencing an initial loss of $0.98 per share on the first trade, the TOP Ultimate Breakout had four winning trades in a row. Including the first losing trade and the four winning trades, the TOP Ultimate Breakout generated gross profits of $35.67 per share (not including commission and trading costs). Not bad for a volatile rally in TSLA stock!
The TOP Ultimate Breakout can also be used to trade bonds and futures contracts. As stated previously, the best way to trade the TOP Ultimate Breakout strategy is to combine this strategy with high probability trade setups.
In the example below, we are displaying the last 10 trades from the 30-year bond futures on a 15 minute price chart. The chart below shows that bonds were extremely choppy and drifting downward, which makes this market a challenging candidate for buy signals.
Again, this is not a good example of a strategic trade entry based on high probability trade setups. This serves as an example to showcase the TOP Ultimate Breakout capabilities by taking all of the past 10 trades from the 30-year bonds, which demonstrates the effectiveness of the TOP Ultimate Breakout strategy even in tough, choppy market conditions.
As you can see, there are a number of losing trades mixed in with a few winning trades. The resulting profits or losses from each trade and for the combined total trades are displayed below in the bar chart. Notice that the winners, on average, were larger than the losers. The TOP Ultimate Breakout is designed to limit losing trades, which is key for long-term trading success.
There were five winning trades and five losing trades in the 30-year bond trading example above. Profits were calculated by using the max profit exit between Profit Target #1, Profit Target #2, or the Trailing Stop. If only Profit Target #1 was hit, we used this exit level. If the Trailing Stop was most profitable, we used this exit level.
If no profit targets were hit, then trades were automatically exited at the Trailing Stop level. We did this to showcase the profit potential of the TOP Ultimate Breakout strategy. This example is a good reminder that there will be losing trades when trading in the markets.
In the 30-year bond example above, the TOP Ultimate Breakout was able to generate a total net profit of $3,158 per contract (not including commissions and trading fees) from the 10 trades. Again, this is not the way we recommend trading the TOP Ultimate Breakout strategy.
However, because the TOP Ultimate Breakout is designed to cut losses short and offer multiple exit options for profitable trades, even in difficult markets, the TOP Ultimate Breakout strategy demonstrates its effectiveness.
It is important to remember that there is a risk of loss when trading and past performance is not necessarily indicative of future results. Be sure to read the hypothetical disclaimer at the bottom of the page.