Avoid false breakout

[Kam Yuk Wong]

I am developing an EA to trade breakout, the risk- reward is 1:1 (I have tried different RR ratio  but they almost got the same result in the long term.)

How to avoid false breakout ?

It mainly work on XAUUSD, US500 on timeframe M5.

Thanks

Peter

[Conor Mcnamara]

There's a few things, you can either enter the trade and close it when false breakout is detected, or else use smart money concepts to detect institutional liquidity sweeps. Either activate a breakeven trigger if the price retraces by a certain number of points (or by a certain ATR volatility). or build a system which detects when the position went into profit by 8 - 10% and then back into loss. 

Sometimes a strategy is not about avoiding it, but going in it, and then intelligently closing in a small loss.