This article explains in detail a trend trading strategy based on breakout entry and trailing stop loss exit. It builds long positions on upside breakouts and utilizes swing lows for stop loss trailing.

I. Strategy Logic

The main trading logic is:

1. Use pivot points to calculate swing highs and lows.

2. Take long positions when price breaks above swing highs.

3. The most recent swing low is used as the aggressive stop loss.

4. When a higher swing low appears, trail stop loss levels upwards.

This allows the strategy to capture strong trend moves after bullish resistance breaks. The trailing stop also locks in profits as the trend extends.

II. Advantages of the Strategy

The main advantages are:

1. Breakout entry accurately captures trend starting points.

2. Trailing stop maximizes profit capturing and reduces drawdowns.

3. Stop loss levels have a buffer to prevent invalidation.

4. Moving average filters can be added to avoid counter-trend trades.

III. Potential Risks

However, some potential risks also exist:

1. Breakout signals may lag, causing missed early opportunities.

2. Aggressive stops risk premature exit on normal retracements.

3. Drawdown pressure needs to be endured.

IV. Summary

In summary, this article has explained a trend following strategy based on price breakouts and trailing stop loss. It effectively maximizes profits by trailing trends but needs to manage risks like stop loss invalidation. Overall it provides a simple and intuitive trend tracking methodology.