General Trading Chat
- Thread starter timepass
- Start date
- Tags idle thoughts trading talk only
Trade 1: the first trade i took was at breakdown of morning range (marked by crosshair) shorted below 7768. It failed, and as soon it closed back within range, i covered at 7776 before it hit the SL.
Question 1: was it a legitimate trade, as it was a breakdown (failed finally) of morning range but with in yesterday's range?
Question 1: was it a legitimate trade, as it was a breakdown (failed finally) of morning range but with in yesterday's range?
Early entry using vwap bands can allow holding through chop and moving Stop when new lows are made, perhaps with partial profits to make it easier on mind.
But BO trading is different. Trailing position aggressively or conservatively around entry is your choice and both have tradeoffs. Perhaps with bar-by-bar you can check which one suits you better.
For your entry, the BO failed to move immediately, there is no momentum. In this case pivot high held and trade moved well later, but it can also hit PH in next trade and you will get bigger loss ( and then move well making it worse). To manage aggressively, in this trade you can say BO is not working, exit at BO bar or exit if bar closes above BO point and its high is taken or exit above VAL which is closeby. So you take small loss and look for rentry. if premise remains valid. With smaller losses you can take multiple entry attempts while taking same risk as 1 big Stop.
After exit, price kept drifting down. It consolidated just above same BO point, after breaking out of VAL. Here you can look for rentry. Else if missed, nevermind and look for another trade. Also, you can also look for entries using VWAP bands on such days if BO is not working.
So failure vs retracement for BO trades - decide whether you prefer aggressive or conservative entry management, understanding the tradeoffs.
I am also going through same and get frustrated with missed trades but it is what it is.
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Do you also get confused between impending failures and retracement?
You also must be entering on breakout/down bar. A retracement may mature into failure within a candle or two becoming 'entrapment'. Sometimes the preoccupation to save on stop loss takes toll on the mind especially in morning trades where failures is more a rule than exception.
Keeping high of breakdown bar as stop loss,saves capital on 90% of failed trades, other 10%may not fail finally and religiously honour pivot high stop.
But for good momentum breakdowns, I think breakdown bar stop is sufficient.
You also must be entering on breakout/down bar. A retracement may mature into failure within a candle or two becoming 'entrapment'. Sometimes the preoccupation to save on stop loss takes toll on the mind especially in morning trades where failures is more a rule than exception.
Keeping high of breakdown bar as stop loss,saves capital on 90% of failed trades, other 10%may not fail finally and religiously honour pivot high stop.
But for good momentum breakdowns, I think breakdown bar stop is sufficient.
Note - i am still learning trader - have not had a profitable month yet. Breakeven or loss.
I only use aggressive entry management for Entry. So wont sit through long retracement. I don't like big losses and multiple big losses in a row can be crippling. But Once it moves, you have to give space. Premise before every trade is to take small loss and you keep the ones that move well.
So ST-style BO entry is to keep some reasonable initial stop ( like BO bar) but exit if price closes beyond BO point and H/L of that bar is broken - ie exit if BO area is not holding. This is reasonable method when expecting momentum. You can also use other entry methods like P1/2 to get into trends.
Also other people are trading successfully with Stops at Pivot H/L and trail so maybe its also mindset thing.
I only use aggressive entry management for Entry. So wont sit through long retracement. I don't like big losses and multiple big losses in a row can be crippling. But Once it moves, you have to give space. Premise before every trade is to take small loss and you keep the ones that move well.
So ST-style BO entry is to keep some reasonable initial stop ( like BO bar) but exit if price closes beyond BO point and H/L of that bar is broken - ie exit if BO area is not holding. This is reasonable method when expecting momentum. You can also use other entry methods like P1/2 to get into trends.
Also other people are trading successfully with Stops at Pivot H/L and trail so maybe its also mindset thing.
Hello Friends,
I'm taking off for few days.My father is about to undergo a major operation.We'll be shifting to Mumbai for a month.
---
VWAP gives 65% accurate trades
AMA gives 55% Signals
And ADN gives 90% accuracy if mixed with VWAP and AMA Concept.Please go through Pratap Sir's thread.
Have Fun Trading.I will miss you all.
-Dinesh Batra
I'm taking off for few days.My father is about to undergo a major operation.We'll be shifting to Mumbai for a month.
---
VWAP gives 65% accurate trades
AMA gives 55% Signals
And ADN gives 90% accuracy if mixed with VWAP and AMA Concept.Please go through Pratap Sir's thread.
Have Fun Trading.I will miss you all.
-Dinesh Batra
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