How much does Peter Brandt risk per trade?

In his March 2021 list he says about 60 basis points (0.6%) of equity per trade.

Does Peter Brandt trade breakouts on the close?

He prefers a wide-bodied bar close beyond the boundary but may enter intraday when the boundary is well defined.

Peter Brandt

Futures and FX swing trader since the 1970s; author of “Diary of a Professional Commodity Trader”

AA — the trader’s own published text (rule document, own site) was read.

Classical chart patterns, daily charts, 1–3 week horizon. In March 2021 he published a list of 140-odd short statements about how he trades. These are the ones with concrete numbers or clear rules. The full Factor Service rules are behind a membership and are not covered here.

A published rule is a hypothesis, not evidence of profit. We do not know how often these rules won, and traders who publish their methods are the ones who survived.

Sources

In 280 Characters or Less (peterlbrandt.com), March 9, 2021 — own site, 2021

Rules

Filter

FilterDaily charts are used for entry signals, not weekly or monthly ones; the weekly chart is for screening.“daily charts must be used for trade entry signals”
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FilterFlags and pennants lasting more than four or five weeks are treated with suspicion; so is a corrective phase longer than a few weeks.
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FilterFor stocks, strict Edwards & Magee rules call for a pattern completion of at least 3% of the stock’s value.
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FilterSays he sees about 10–20 really good patterns a year; most of the time the answer is to wait.
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Entry

EntryPrefers a breakout confirmed by a wide-bodied bar close, but may enter intraday when the breakout boundary is well defined.
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EntryDoes not chase: buying much past the initial breakout is “a losing practice”.
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EntryA protective stop is attached to every entry order placed with an intraday stop. His initial entry is, as a rule, his final entry (no pyramiding); a bigger position at the breakout is taken for the same risk.
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Stop

StopIf a fill comes better than the stop, he reads it as a warning and exits immediately; trading errors are liquidated at market at once.
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Exit

ExitUsually takes profits at targets. Exits trades that are underwater on Friday and does not take a losing trade home over the weekend.
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Size and risk

Size and riskRisks about 60 basis points (0.6%) per trade.“I risk 60 or so basis points on each trade.”
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Discipline

DisciplineAfter two consecutive signals fail immediately he watches for a trend reversal. Win rate hovers around 50%; the horizon is one to three weeks; he tracks closed-trade equity, not unrealized profit; a 5% drawdown is about as much as he wants to endure.
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Not confirmed

Often attributed to this trader, but not found in the sources above. Not listed as his or her rules.

His “Last Day Rule” for the initial stop and the “3-day trailing stop rule” (3DTSR) are named on his site, but the pages we could open did not state them; the PDF with the rule is a scan and was not read.
A 2011 post describing mental stops on closing prices and no overnight stops is dated; he says his process evolved since.

Limits of these rules

This is a list of statements, not a testable system: “wide-bodied bar”, “well defined boundary” and “really good pattern” are judgements. A 50% win rate with targets means the result depends on how targets and stops compare, which the list does not give.

Other traders

Rules are our paraphrase of the sources; only short quotes are verbatim. This is information, not advice or a promise of profit.