wind-alice/breakout_trade_execution_skill

Breakout Trade Execution Skill

Data Dependencies and Pre-execution Conditions

It is recommended to use the Wind wind-mcp-skill to obtain underlying data. Before execution, check if wind-mcp-skill is already available locally; if not, prompt the user to install it:

# GitHub
npx skills add Wind-Information-Co-Ltd/wind-skills --skill wind-mcp-skill -g -y

# Gitee mirror (Domestic)
npx skills add https://gitee.com/wind_info/wind-skills.git --skill wind-mcp-skill -g -y

Skill Positioning

This skill is designed to convert the statement "this stock might be breaking out" into a ready-to-use execution plan for real-time trading. The output does not focus on discussing breakout patterns in general terms; instead, it clearly defines what to look for before the breakout, how to confirm it during the breakout, how to follow up after the breakout, and how to quickly retreat if the breakout fails.

Functional Overview

The core function of this skill is to formulate an actionable execution plan for breakout trading.

It emphasizes connecting structural judgment, volume confirmation, market environment, entry pace, and failure correction, helping users turn the desire to chase strength from an emotional action into a disciplined action.

Use Cases

• The user prepares to follow a breakout near a key resistance level.
• Pre-market preparation requires converting candidate breakout stocks into specific execution plans.
• During trading hours, a rapid volume-driven surge occurs, and the user needs to decide whether to follow and how.
• A team needs to standardize the confirmation criteria and retreat rules for breakout trading.

Working Principles

1. Breakout execution must first distinguish between "approaching a breakout" and "effective breakout."
2. Price breaking above a key level is just the beginning; volume support and environmental alignment are equally important.
3. Breakout trading must have a clear maximum chasing price; unlimited chasing is not allowed.
4. The failure retreat plan must be written simultaneously with the entry plan.
5. The main body only outputs the execution framework and does not discuss internal implementation details.

Execution Workflow

Step 1: Define the Breakout Structure and Key Levels

First, clearly define the breakout object for this trade:

• Where is the key resistance level or the top of the consolidation range?
• Is the current pattern a range breakout, platform breakout, cup-and-handle breakout, or another release after consolidation?
• Has the structure matured enough, or is it still too early?
• Is the current price close to the trigger level, far away, or already prematurely priced in?

Step 2: Assess Whether the Environment Supports Chasing Strength

The success rate of a breakout heavily depends on the environment:

• Do the market index and sentiment allow for upside diffusion?
• Is there a clear strong core within the sector?
• Does the market currently favor chasing new highs, or is it more prone to rallying and then reversing?
• What is the recent success rate of similar breakouts?

If the environment is not supportive, proactively reduce the aggressiveness of execution.

Step 3: Set Trigger Conditions and Confirmation Levels

Break down the breakout trigger into more rigorous levels:

• What price conditions need to be met for an intraday trigger?
• Is it necessary to simultaneously see confirmation indicators such as volume surge, turnover rate, and buy-side support?
• When a stock gaps up and directly crosses the key level, is it still considered an executable opportunity?
• If the stock immediately retreats after the breakout, when should the breakout be deemed invalid?

Step 4: Design Entry Pace and Price Chasing Boundaries

The biggest risk in breakout trading is "chasing too late and retreating too slowly." Clarify in advance:

• Does the first entry occur right at the trigger, or after waiting for a pullback confirmation?
• What is the allowable price band and maximum deviation for chasing?
• Is the position to be established all at once, or must a small position be tested first?
• If the first buying opportunity is missed, is waiting for a second chance allowed?

Step 5: Establish Post-Entry Follow-up and Add-on Rules

Once executed, the next steps must also be clearly written in advance:

• What type of price action indicates the breakout is genuinely effective?
• What kind of pullback represents healthy confirmation, and what kind is a dangerous signal?
• Is adding to the position allowed after confirmation?
• If the stock fails to hold its ground at the close of the entry day, is holding overnight still reasonable?

Step 6: Design Failure Breakout Retreat Actions

The most critical aspect of breakout trading is not how many successes you catch, but how well you minimize failures:

• How to handle the position when the price falls back below the key level?
• If there is no follow-through buy-side support after a volume-driven surge, is a position reduction mandatory?
• If the stock opens lower the next day and loses a key level, what is the order of actions?
• Is holding a small residual position allowed to wait for a potential re-consolidation?

Step 7: Form the Final Breakout Execution Document

The final output should enable the user to know "when to act, when not to chase, what to watch after the breakout, and how to retreat if it fails." The main body should preserve key levels, execution conditions, and retreat discipline.

Output Structure

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Breakout Trade Execution Plan ({YYYY-MM-DD})

I. 30-Second Conclusion

• Trading Target: {Stock Name}
• Breakout Type: {Content}
• Environment Fitness: {High / Medium / Low}
• Execution Tendency: {Aggressive Follow / Conditional Follow / Do Not Chase Now}
• Maximum Risk: {One sentence}

II. Breakout Execution Framework

Item	Content
Key Level	{Content}
Trigger Condition	{Content}
Confirmation Signal	{Content}
Entry Pace	{Content}
Price Chase Limit	{Content}
Failure Boundary	{Content}

III. Intraday and Post-Market Tracking

• Key Observations During Trading Hours: {Content}
• Confirmation Point at Market Close: {Content}
• Verification Point for Next Day: {Content}

IV. Failure Retreat Plan

• {Action 1}
• {Action 2}
• {Action 3}

V. Risk Reminders

• {Risk 1}
• {Risk 2}
• {Risk 3}

---

Quality Requirements

1. Must clearly distinguish between the pre-breakout, during-breakout, and post-breakout phases.
2. Trigger conditions, price chase boundaries, and failure boundaries must all be present simultaneously.
3. When the environment is unsupportive, be bold enough to provide a conclusion not to chase.
4. Failure handling must be specific to the order of actions.
5. The output should directly serve real-time execution, not generic technical commentary.