Why Breakout strategy?

● Enter the market before the crowd.

With this strategy you will be able to predict breakouts before the momentum traders arrive.

● MagicBreakout is a conservative trading strategy

It's safe. You risk a small amount of money on every trade.

● Mechanical.

Trade by following a set of simple rules.

● Easy to implement.

Convince yourself that trading is really easy!

● Profitable.

If you stick to the rules and go through a series of losing trades, you will finally become

profitable.

● Scalable.

Our MagicBreakout strategy has become a key of the top traders.

An improved Breakout+ strategy can make +67% in one month.

Our student made 5400% in one year using his own exit rules.

What is really a “breakout”?

A breakout occurs when the price breaks a significant high and makes a new high. This is the

definition. Let's give an example.

Another breakout occurs when the price breaks a significant low and makes a new low.

It looks simple. Most traders are trying to catch these breakouts and to make money on the accelerated price move. A so-called momentum trader places his buy-stop order just above the significant high. He is waiting for this high breakout. If the breakout didn't happen, he cancels his buy-stop order and prepares for the next trade. If the breakout happens and his buy-stop target is filled, his trading platform automatically opens a long position. The same holds for a low breakout (in that case, trader would place a sell-stop order). Why traders are doing that? Because the price action typically accelerates after a breakout and results in a nice profit. But it's not so sweet every time. There is a risk of significant loss. The nightmares of momentum traders are “false breakouts” and they often happen. Let's explain why.