Market Insights

When it comes to breakout trading, timing and preparation are everything. TradeStation’s Chart Trading feature can help make it simpler to plan and execute breakout strategies—directly from your charts—using OCO (Order Cancels Order) bracket orders. This approach empowers you to react to price action at critical levels without being glued to your screen. 

Why Use Chart Trading for Breakouts? 

Chart Trading allows you to visualize and interact with your trades right where the action happens: on the price chart itself. This context helps you spot key support and resistance levels and place orders exactly where you want them, based on both current and historical price action. 

Setting Up an Entry Breakout OCO Order 

• Activate Chart Trading
  Open your chart and enable the Chart Trading panel to access order tools.
• Choose the Entry Breakout OCO Template
  Select the breakout OCO template. This will let you set two entry orders—one above and one below the current price—so you’re ready for a breakout in either direction.
• Customize Order Placement
  Use the ellipsis (…) button to adjust how far above or below the current price your orders will be placed. Tailor this distance to fit your trading plan and market volatility.
• Place Your Orders
  With your levels set, submit the OCO bracket order. The two entry orders will appear on your chart, giving you a visual reference for your trade setup.
• Adjust Orders with Drag-and-Drop
  If the market shifts or you want to fine-tune your entries, simply drag the order lines to new price levels on the chart. This flexibility means you can adapt quickly as conditions change.

Managing Exits: Stop Loss and Profit Target 

Breakout trading isn’t just about getting in at the right moment—it’s also about managing your exits. Here’s how you can automate your risk management:

• Attach an Exit OCO Bracket
  Once you’re in a trade, add an exit bracket with both a stop loss and a profit target. This ensures you’re protected if the trade goes against you and positioned to capture gains if the move continues in your favor.
• Refine Exit Levels
  Just like with your entries, you can drag and drop your stop loss and profit target lines to adjust them as the trade develops.

Try Before Risking Capital

If you’re new to breakout trading or OCO orders, TradeStation’s simulator is a great place to practice. You can test your setups and get comfortable with Chart Trading tools—without risking real capital.

Potential Benefits at a Glance 

• Visual Order Placement: Plan and manage trades directly on the chart.

• Be Ready for Any Move: Place OCO entry orders at both breakout levels.

• Quick Adjustments: Modify orders instantly with drag-and-drop.

• Automated Exits: Attach OCO brackets for hands-off risk management.

• Risk-Free Learning: Use the simulator to hone your skills.

By using Chart Trading and OCO bracket orders in TradeStation, you can help prepare for breakout opportunities, manage your trades efficiently, and control risk—all with just a few clicks. This streamlined approach keeps you one step ahead in fast-moving markets.