The Breakout Bible Ep. 1: Introduction & TC2000

Summary

The presenter introduces a multi-part swing-trading education series and walks through setting up TC2000. TC2000 is used for charting, stock discovery, scans, watchlists, and monitoring; trades are placed and managed through a separate broker. The next episode is planned to cover the breakout setup.

Trading workflow and tools

• Chart setup: The presenter primarily uses daily, hourly, and one-minute charts. Five-minute, four-hour, and weekly views are also available. The hourly chart is described as a closer view of the daily chart’s price action.
• Indicators:
  • Daily chart: 10-, 20-, 50-, and 200-day simple moving averages.
  • One- and five-minute charts: VWAP.
  • Volume is displayed on each timeframe. A volume moving average is used to gauge average daily volume over roughly the last month.
  • ADR (average daily range) is used to assess how much a stock typically moves. The presenter prefers stocks with an ADR above 5%; an example displayed value is 11.92%.
• Scanning and watchlists: The presenter uses TC2000’s custom scans and sorts a volume scan by dollar volume. Watchlists include a main list and a flagged “focus” list. Price alerts are monitored through an alert console.
• Risk calculator: The presenter’s sizing tool estimates shares and position cost using the distance between the current price and the low of day as the stop distance.
• Risk-management rule: The presenter says they never risk more than 1% of account equity per trade and advises viewers not to exceed that amount. The calculator may be imperfect, so the presenter describes rounding share quantities down in some cases.

Broker and account-type suggestions

• The presenter uses Webull to place trades, manage positions, and set stop losses, citing its mobile platform.
• For traders outside the US, including those in the UK and Europe, the presenter suggests Interactive Brokers.
• The presenter recommends a cash account at $30,000 or less, citing the $25,000 Pattern Day Trader threshold and a desire to leave a buffer. Above $30,000, the presenter recommends a margin account, while clarifying that using one does not require borrowing on margin.

Performance claims

The presenter reports that a Discord member reviewed trade alerts dating from November 2023 and compiled results covering approximately two years and several months:

• 246.93% gain on the reviewed alerts.
• A hypothetical $100,000 starting balance would have grown to about $346,000, before any unmentioned costs or other adjustments.
• 25.4% win rate: The presenter says roughly 75% of trades lost, but winning trades were substantially larger than losing trades.
• The presenter describes losing streaks and says the strategy can be mentally challenging. They also say their personal returns were higher than the alert-based results, but do not quantify those returns here.

These are the presenter’s claims and an alert-based review described in the video. The subtitles do not establish independent verification or provide detailed assumptions about costs, slippage, or compounding.

Assets, instruments, and platforms mentioned

• Assets and securities: Stocks; no specific company securities are discussed. UCT appears as an example in the flagged-list demonstration.
• Platforms and brokers: TC2000, Webull, Interactive Brokers, Finviz, and TradingView.
• Indicators: Simple moving averages, VWAP, volume, and ADR.

Disclosures and cautions

• The presenter characterizes the series as educational.
• No explicit “not financial advice” disclaimer appears in the subtitles.
• The presenter cautions that the approach involves frequent losses and can be psychologically challenging, and recommends keeping risk at or below 1% per trade.

Presenter and source

• Presenter: Morgan, from the Morgan Trades channel.
• Performance source described: A Discord community member who reviewed the presenter’s trade alerts.