Module # 1

How to build advanced swing breakout strategies

Disclaimer

Government Required Disclaimer - Commodity Futures Trading Commission states:

Futures and Options trading has large potential rewards, but also a large potential risk. You must be aware of the risks and be willing to accept them in order
to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures,
stocks or options on the same. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this
document. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD,
SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-
OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL
ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT
WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Data, information, and material (“content”) are provided for informational and educational purposes only. This material neither is, nor should be construed
as an offer, solicitation, or recommendation to buy or sell any securities. Any investment decisions made by the user through the use of such content is solely
based on the user’s independent analysis taking into consideration your financial circumstances, investment objectives, and risk tolerance.

TRADING INVOLVES A SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS,
2
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
Lesson #2
The Key Differences
Understanding the key differences between daytrading and swing trading

Daytrading Swing Trading

Being in a position just a few hours max Being in a position a few days, usually 3-10
A position is never open overnight A position is open overnight
Daytrading margin applied Full margin applied
No risk of overnight gap Risk of overnight gap
Average trade usually lower Average trade usually higher
For some markets very challenging Easier to build a strategy on most markets
Can work with reasonably small stop-losses Needs larger stop-losses
Requires relatively smaller trading capital Requires bigger trading capital
Uses the existing Breakout Masterclass process Requires additional steps and techniques
TRADING INVOLVES A SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS,
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PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
Timeframes
Very unstable
Under 5 minutes We are avoiding completely
Looks great in a backtest, performs poorly in live trading

Sometimes ok
5-10 minutes
But in most cases higher timeframes provide better stability

Best for daytrading BO strategies

In general works very well for swing BO trading too
15-60 minutes
Most of our strategies use this range
TIMEFRAMES for BOS strategies
Mainly futures, but suitable for stocks or ETFs as well

Mainly for Swing trading

> 60 minutes Usually used 1/4, 1/3 or 1/2 of the regular trading session
Good for stocks and ETFs too

We have found that X-minute timeframes are more stable than daily timeframes for BO
In the past, I‘ve had very little success with daily timeframes
Daily Although it is very easy and fast to build a BO strategy on the daily timeframe,
in my case they were also pretty unstable, with a weak live/OOS performance
However, we found out this can be a BRILLIANT secondary timeframe for
BO strategies (and we will work with it as a second timeframe quite a lot)

TRADING INVOLVES A SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS,
5
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
Example of timeframes from our hedge fund DB

Soybeans (S) 15 mins

TRADING INVOLVES A SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS,
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PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
Example of timeframes from our hedge fund DB

Soybeans (S) 120 mins

TRADING INVOLVES A SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS,
7
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
Example of timeframes from our hedge fund DB

Soybeans (S) 30 mins

TRADING INVOLVES A SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS,
8
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
Example of timeframes from our hedge fund DB

10-years T-NOTE (TY.D) 95 mins

TRADING INVOLVES A SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS,
9
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
Example of timeframes from our hedge fund DB

High Grade Copper (HG) 30 mins

TRADING INVOLVES A SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS,
10
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
Example of timeframes from our hedge fund DB

Japanese Yen (JY) 30 mins

TRADING INVOLVES A SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS,
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PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS