- Change entry criteria to wait for a candle close
- Change stop criteria based on candle closing
- Give more room on stops
- Change criteria on which stocks to select
- Change criteria on entries based on timeframe
Assume you have a day trading momentum strategy and with Pheemu, you find that you’re simply getting stopped out a lot because of false breakouts. How do we fix this? What are some ways to stop false breakouts from happening?
1. Wait for confirmation
This can be used by waiting for a 5 min candle close before getting in to a position (or other time frame depending on your strategy)
2. Buy the pull-back
Instead of buying the breakout, wait to confirm that the breakout is actually happening. Then wait for a pull-back/dip to get into a position
3. Trade different products
If you notice certain stocks have more false breakouts than others, try changing the time or type of stocks you trade. Some stocks are naturally more choppy than others.