What is the difference between breakouts and episodic pivots?

Breakouts are stocks that already had a big move (30-100%+), pulled back orderly, and are now breaking out of a 2-8 week consolidation while surfing the 10/20-day MA. Episodic pivots are sudden gap-ups (10%+) on unexpected news in stocks that were previously flat. Both use ADR-based stops but have different entry triggers.

Qullamaggie Breakout Planner

Plan swing trades using the Qullamaggie momentum breakout methodology — validate ADR stops, check risk limits, and calculate position size

New! Test this strategy on real historical market data. Try Backtesting

Plan Your Breakout Trade

What is this tool? Enter your trade setup details and this calculator will validate it against Qullamaggie's rules — checking if your stop is within ADR, your risk is appropriate, and your position size is safe. It also calculates profit targets at 1R, 2R, and 3R levels.

How to use this planner:

1 Select your Setup Type (Breakout, Episodic Pivot, or Parabolic Short)

2 Enter Account Size and Risk % (start with 0.5%)

3 Input Entry Price, Stop Loss, and ADR%

4 Optionally add a Target Price for custom R:R

5 Review validation status — green = valid setup!

Setup Type

Select the type of trade you're planning. Each setup has different characteristics but uses the same risk management rules.

Breakout

Episodic Pivot

Parabolic Short

Breakout: Stock had a prior move of 30-100%+, pulled back orderly for 2-8 weeks, and is now breaking out while surfing the 10-day or 20-day moving average. Stop goes below the consolidation low.

Account & Risk Settings

Account Size

Your total trading capital. Only include money you can afford to lose.

Risk per Trade (%)

Qullamaggie risks 0.25-1%. Start with 0.5% until you're consistently profitable. Rarely go above 1%.

Trade Setup

Entry Price

Your planned buy price. For breakouts, this is typically the breakout level. For EPs, use the Opening Range High (ORH).

Stop Loss Price

Price where you'll exit if the trade fails. For breakouts: below consolidation low. For EPs: below day's low.

ADR % (Average Daily Range)

What is ADR? The average percentage a stock moves in a day. Find it on TradingView (ADR indicator) or calculate: Average of (High-Low)/Close over 20 days. Typical range: 3-8%.

Target Price (optional)

Your profit target. Qullamaggie aims for 3-5R or higher. Leave blank to auto-calculate targets at 1R, 2R, 3R.

Enter your trade setup and click Validate & Calculate to check if it passes Qullamaggie's rules

Position Size

— shares

$— total value

$—

Risk Amount

—%

Stop Distance

—%

Portfolio %

—

R:R Ratio

Qullamaggie Rules Checklist

Understanding the checklist: Green items pass Qullamaggie's rules. Yellow items are warnings but may still be acceptable. Red items indicate the setup violates core risk management principles.

Profit Targets

Qullamaggie's approach: Sell 1/3 to 1/2 of your position after 3-5 days or when reaching 2-3R. Move stop to breakeven, then trail the remainder using the 10-day or 20-day moving average.

Qullamaggie Scanner Settings for TC2000 & TradingView

Looking for stocks that match Qullamaggie's criteria? Here are the scanner settings you can use in popular charting platforms. Found a setup? Validate it with the calculator above.

Breakout Scanner

Price > $5
ADR > 4%
Price > 10-day SMA
Price > 20-day SMA
Volume > 500,000
Prior move: 30-100%+ in past 1-3 months
Consolidation: 2-8 weeks

Episodic Pivot Scanner

Gap up > 10% on open
Volume first 15 min > avg daily volume
Price > $5
Prior 3-6 months: relatively flat
Catalyst: earnings, news, FDA approval
Entry: Opening Range High (ORH)

Understanding the Qullamaggie Trading Strategy

The Qullamaggie methodology is a well-known momentum swing trading approach that focuses on risk management above all else. It targets stocks with exceptional relative strength using clearly defined entry, stop, and position-sizing rules.

The Three Qullamaggie Setups

Breakouts

Stocks that already had a significant move (30-100%+), consolidated orderly for 2-8 weeks while "surfing" the 10-day or 20-day moving average, and are now breaking to new highs.

Stop: Below consolidation low

Episodic Pivots

Stocks that gap up 10%+ on unexpected news (earnings, FDA approval, contract) with massive volume at the open. Best when the stock was flat for 3-6 months prior.

Entry: ORH. Stop: Day's low

Parabolic Shorts

Extended stocks due for mean reversion. Large caps: 50-100%+ move in days/weeks. Small caps: 300-1000%+ move. At least 3-5+ consecutive up days.

Stop: Above the high

The ADR Rule: Why Your Stop Must Be Tight

Qullamaggie's most important rule: your stop loss should never be wider than 1× the ADR. If a stock has an ADR of 5%, your stop should not be more than 5% away from your entry.

ADR %	Max Stop Distance	Example ($50 stock)
3%	3%	Stop at $48.50
5%	5%	Stop at $47.50
8%	8%	Stop at $46.00

Position Sizing: The 0.5-1% Rule

Qullamaggie risks between 0.25% and 1% of his account per trade. He rarely exceeds 1% even on high-conviction setups. This means:

Account Size	0.5% Risk	1% Risk
$10,000	$50	$100
$50,000	$250	$500
$100,000	$500	$1,000

Profit Taking & Trailing Stops

Qullamaggie's exit strategy is systematic:

Sell 1/3 to 1/2 of your position after 3-5 days or at 2-3R profit
Move stop to breakeven after taking partial profits
Trail the remainder using the 10-day MA (beginners) or 20-day MA
Exit completely on a close below the trailing MA

Pro Tip: Combine Qullamaggie's technical setups with AI-powered predictions. SharePreds analyzes 5,000+ stocks daily and can help confirm whether a breakout candidate has bullish momentum.

Frequently Asked Questions

Qullamaggie is a well-known momentum swing trading methodology. It focuses on breakouts, episodic pivots (gap-ups on news), and surfing the 10-day or 20-day moving average. Key rules include keeping stops within 1× ADR and risking only 0.5-1% per trade.

ADR (Average Daily Range) measures a stock's typical daily price movement as a percentage. It's calculated as the average of (High - Low) / Close over 20 days. Qullamaggie uses ADR to validate stop losses: your stop should never be wider than 1× ADR, as this ensures you're trading within normal volatility.

An episodic pivot (EP) is when a stock gaps up 10%+ on unexpected news or earnings with massive volume. Qullamaggie trades these by buying near the opening range high (ORH) with a stop at the day's low. The best EPs occur in stocks that were flat for 3-6 months before the catalyst.

Qullamaggie recommends risking 0.25% to 1% of your account per trade. Beginners should start at 0.5%. He rarely risks more than 1%, even on high-conviction setups. This conservative approach protects capital during inevitable losing streaks.

For breakouts: ADR > 4%, price above 10-day and 20-day MA, prior move of 30-100%+ in past 1-3 months, consolidation of 2-8 weeks. For episodic pivots: gap up > 10%, volume > 2× average in first 15 minutes. These settings work in TC2000, TradingView, and Finviz.

Qullamaggie sells 1/3 to 1/2 of his position after 3-5 days or when the stock reaches 2-3R profit. He then moves his stop to breakeven and trails the remainder using the 10-day or 20-day moving average. A close below the trailing MA triggers an exit.

Qullamaggie typically limits single positions to 10-20% of his account, and never more than 30% overnight. This prevents any single stock from devastating the portfolio if it gaps down. Position size is calculated based on risk amount and stop distance.

Qullamaggie Daily Signals

See today's detected setups — breakout, EP & parabolic signals before market open.

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Related Tool: Qullamaggie Backtester

Backtest the Qullamaggie breakout strategy on real historical data for any US stock.

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Related Tool: Position Size Calculator

Calculate position size using multiple methods including ATR and Kelly Criterion.

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Disclaimer: This calculator is for educational purposes only. It does not provide financial advice. Trading involves substantial risk of loss. Qullamaggie's strategy is shared publicly but results vary. Always do your own research and never risk money you can't afford to lose.

Important Disclaimer

Not investment advice. This tool and its output are for educational and informational purposes only. Nothing on this page constitutes a recommendation to buy, sell, or hold any security.

No guarantee of accuracy or results. Our algorithmic interpretation of Qullamaggie-style patterns may differ from the original methodology. Past performance does not guarantee future results. All trading involves substantial risk of loss.

Trade at your own risk. You are solely responsible for your own investment decisions. Always conduct your own research and consult a qualified financial advisor before making any trading or investment decisions.

Qullamaggie Breakout Planner