Pros and cons of trading breakout system

Pros and cons of trading breakout system:

Like most systems, volatility breakout systems will clean up in volatile or runaway markets but tend to thrash when conditions are choppy or volume dries up. I believe they are still among the most profitable kind of trading system, and I also feel they will continue to be profitable in the long run. They are "durable" and "stable", although they tend to deteriorate when too large an order is placed (ie greater than 50 contracts). However, it does not get the impression that there is a Holy Grail of systems, the following considerations should be borne in mind:
Entries can be a nerve-racking, especially when the market is in runaway mode. The best breakouts will not give you retracements to enter. You're either on board or not! If you conceptualize that the best breakouts turn into trend days, and likely to close in high or low for the day, then it is not so hard to get into. Usually it is best to have a buy / sell stop already resting in the market.
Sometimes the market gaps open outside your initial entry level. These often turn into the best trades. They also can turn the most aggravating whipsaws. Big gaps test out that I still have to take the trade, but they will definitely add more volatility to your bottom line. If your trade gets stopped out and new signal is given in the opposite direction, this reversing trade usually is more than good for first loss.
Whipsaws are annoying, but they are also inevitable when trading a breakout system. Many times I bought highs and lows sold. It takes a great deal of trust in numbers "to trade this type of system. System testing should always be done at least 3 years, preferably 10th Be sure to then examine the sample data to see how the system performed.
On balance, the volatility breakout system can be traded on most all markets. However, the market could be very profitable year and still perform mediocre at best the next. A portfolio of 10 to 12 markets seem to work well. The problem with trying to trade too many markets at once is that it can become quite difficult to keep up with the activity level if your parameters are fairly sensitive. Many times in systems development, people overlook what one person can realistically manage.