In my last post, we talked about channel breakouts, using the 20 day high/low. With this method, you will always be in the market, because once you hit your stop loss, it would automatically means you had a breakout/breakdown on the other side.
In a improved method, we use the 55 day high/low as entry points when it breaks, but keeping the 20 day low/high as our stop loss. This method reduces noise in the market. When using this method, there will also be periods when we are in no trade, when the market is flat. This is because you do not go in the trade till you break the next 55 day high/low, after you are stopped out by the 20 day low/high.
Techniques and methods are constantly being tried and test, put on the battle field and new improvments always being made to make the system more efficient and/or reduce risk while increasing profitablity.
P.S: Courtney Smith is indeed a great teacher.
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