Pradeep Bonde (Stockbee)

1. How to use the 4% breakout scan to make money (Stockbee), 18 Nov 2015 — own site, 2015
2. What to look for in a good 4% or $ b/o (Stockbee), 16 Jan 2018 — own site, 2018

• FilterScan for a close at least 4% above the previous close, on volume above the previous day’s and at least 100,000 shares (the formula in his shorthand: c/c1 ≥ 1.04 and v > v1 and v ≥ 100000). It works best on small and mid caps and lower-priced stocks.
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• FilterThe stock should not be up three days in a row before the breakout; the day before should be negative or a range under 2%; the close should be within 20% of the day’s range from the high.
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• FilterPrefer an orderly pullback or base of 5 to 40 days with no 4% breakdowns inside it, a linear first leg if momentum is established, and avoid stocks whose past action was choppy.
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• EntryRun the scan from the market open and enter as soon as a good setup appears, to catch the rest of the day’s move; alternatively scan at the end of the day and enter the next session.
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• StopStop at the low of the entry day: the trade only makes sense if there is immediate follow-through.
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• ExitThe target is a 3–5 day momentum burst of roughly 8% to 20%. If follow-through is weak, consider exiting by day 3.
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• ExitOnce the stock is 4–5% above the entry, move the stop to breakeven intraday. After 3 to 10 days of consecutive gains sell into strength, preferably intraday, and keep a small portion with a tight stop (25% in his example).
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Often attributed to this trader, but not found in the sources above. Not listed as his or her rules.

• Position size and risk per trade are not stated on these two pages; a dollar-breakout variant for higher-priced stocks is mentioned in other posts that were not read.

A scan finds many candidates and the checklist is a judgement; with the stop at the day’s low, the stop distance depends on the entry time. No results are published on these pages.