Disclaimer - not an experienced trader.
If You have edge, scratch only when setup becomes invalid - dont micromanage too much for minor pivots/candles as market moves are generally a bit random.
It depends on context and setup expectations. A Breakout trade may warrant tighter management than a BOF.
Notes from an opentrader (free intro) seminar -
When does it make sense to scratch and when to hold
- Over long number of trades, scratching does not work, If SR is good and good R:R - missed returns overwhelm escaped losses
- Chopping around SR is normal, no need to scratch after small moves trace back
- Consider context, is setup still valid? Is S/R still good?
Also Look at this comment in NiftyNirvana
If You have edge, scratch only when setup becomes invalid - dont micromanage too much for minor pivots/candles as market moves are generally a bit random.
It depends on context and setup expectations. A Breakout trade may warrant tighter management than a BOF.
Notes from an opentrader (free intro) seminar -
When does it make sense to scratch and when to hold
- Over long number of trades, scratching does not work, If SR is good and good R:R - missed returns overwhelm escaped losses
- Chopping around SR is normal, no need to scratch after small moves trace back
- Consider context, is setup still valid? Is S/R still good?
Also Look at this comment in NiftyNirvana
