Breakout Trading Academy

Traders say “trade when ADX is high.” But in our hedge fund, we discovered something better: 📉 SHORTS → ADX > 30 = confirmation 📈 LONGS → low ADX = real edge Low ADX signals coiled volatility. It’s not chop. It's a buildup. So we built our model breakout strategy using: • Volatility = open–low difference • Breakout level = low + (3.3 × volatility) • Stop entries only • Entry filter: 8am–3pm • Exit: when ADX > 40 or after time limit This flip gave us a consistent edge in markets most traders avoid. Full breakdown + free resource in the comments.

@AlgoArchitects thank you for sharing!

@onlybreakouts In MQL5 EAs we use this same three-layer ATR approach. One thing we've learned: the short/long ATR ratio needs calibrating per instrument. ATR(5)/ATR(20) works on EURUSD but generates phantom signals on low-liquidity pairs at the open.

I use ATR in 100% of my hedge fund strategies. Most traders use it for one thing. That's a waste. Here's how we actually apply it. We use ATR three different ways, and the combination is what makes it work. For entries: take the open of the bar, add ATR(20) multiplied by 2.5, and you've got a precise breakout entry level. Not "it looks like it's breaking out." A calculated price that either gets hit or it doesn't. As a filter: compare ATR(5) against ATR(20). When the short-term reading is expanding relative to the long-term one, the market is waking up. When it's contracting, the market is chopping. Sit out. One comparison, and you cut a huge number of false breakouts. For exits: flip the entry logic. Use ATR multiplied by a fraction to set your stop loss distance. The market tells you how much room the trade needs based on what's actually happening right now. One indicator doing three jobs: Entry, filter, exit. A complete strategy. Most traders pick one of these and ignore the other two. They'll use ATR for stops but calculate entries with something else entirely. Or use it for entries but never filter with it. The real edge comes from letting it handle all three, because ATR is measuring the same thing across all three decisions: how much the market is actually moving. What do you currently use ATR for?

When I started trading, everyone told me to use Stochastics. So I did. For 25 years, I tried to make it work - discretionary trading, systematic trading, every variation possible. It never worked. I thought maybe I was doing something wrong. Then I ran the data. ✓ 100 indicators ✓ 3,500 breakout strategies ✓ 15 years of data The results were clear: ➝ Stochastics ranked among the worst performers. ➝ It made strategies worse, both in-sample and out-of-sample. The mistake wasn’t using it. The mistake was believing it had to work. Watch the video below to see how I discovered the truth.

@farangmeow I already shared a lot of details here on X. I use it for everything. Entries, exits, filters - just anything. On any market data timeframe. I also shared more than enough here already: @BreakoutTradingAcademy" target="_blank" rel="nofollow noopener">youtube.com/@BreakoutTradi…

@onlybreakouts How do you use ATR? Its not daily right?

When I started trading breakouts, I obsessed over ATR periods. Should I use 14? 21? 50? I thought the wrong choice would ruin my strategy. So I tested it. 18 years of E-mini S&P breakout data, across multiple ATR periods. The results surprised me. ATR is robust. Shifting the period doesn’t radically change results. It’s not fragile like moving averages. The best choices? 14–15, 25, and 40. Even 10 or 60 are fine. The lesson? Stop chasing “perfect.” Focus on building robustness. Watch the video and get the free resource in the comments.

@DenisVodchyts Indicator doesn't necessarily need to have/be an edge. It can also serve as a powerful filter, which is already more than enough of service!

@onlybreakouts Hmm... moving average is just averaged past price. Changing the formula does not suddenly create edge. If there is edge, it comes from the system around it... not from the line itself.

I wanted to know which moving average is actually worth using. So I tested 100 indicators using professional-grade analysis. Thousands of strategies. 15 years of Nasdaq 60m data. Measured with uplift and robustness indexes. The best results in the Moving Averages category came from: > Triple Exponential Moving Average (distance from price). > Moving Average Slope (20–50 periods). These filters consistently improved profits, reduced drawdowns, and held up across unseen data. The lesson: don’t guess. Test and trust what’s proven. Watch the video below.

@Mortetrade Yes

@onlybreakouts I am trying to understand the TEMA strategy....Are you saying the length to use is 77 ?

@timfemi14 Good point

@onlybreakouts Interesting results. A good reminder that testing beats assumptions. Curious how TEMA and MA slope perform across different market conditions.

@CryptoValueLabs I’m using BreakoutOS. You can check more details here: go-bta.com/breakoutos-exp…

@onlybreakouts Thanks - useful. How exactly do you run these tests? Have some automated system or software?

If you like this, check out my FREE mini-course on how to build breakout trading strategies fast using the "Mr Breakouts Formula" (includes a free example strategy). Get it here: go-bta.com/x-freeminicour…

Full breakdown with code examples: youtu.be/1Xc98g6A3fw

If you like this, check out my FREE mini-course on how to build breakout trading strategies fast using the "Mr Breakouts Formula" (includes a free example strategy). Get it here: go-bta.com/x-freeminicour…

Want to know more about the tools I use and how they can help your trading? Check it out here: go-bta.com/breakoutos-exp…

AI gave us a slope moving average. It looked promising on NASDAQ. But was it real… or just a coincidence? We ran it through 6 major indexes. No tweaks. No curve-fitting. Just one question: Does this slope condition actually work across markets? NASDAQ — big improvement S&P — sharp boost in avg trade + profit factor RTY & EMD — small but clear gains YM & Nikkei — worse Final score? ✅ 4 out of 6 showed improvement ✅ No optimization of MA length or lookback ✅ This wasn’t even stress tested yet Not magic but 70% success rate on a single filter? That’s worth paying attention to. Video + free strategy in the comments.

If you like this, download my FREE "Mr Breakouts Formula" to build breakout trading strategies fast. Grab it here: go-bta.com/x-breakoutsfor…

Want to know more about the tools I use and how they can help your trading? Check it out here: go-bta.com/breakoutos-exp…

You can also download my free indicator course below. go-bta.com/indicator-secr…