Started out at open thinking short because of a potential gap n trap....not exactly part of AHG's method but I was able to get short with tight stops so figured risk was justified for potential large reward (as I have said before my method is mainly AHG but a lot of discretion in there as well if I 'see' a good r/r trade), as one can see it took one b/e and one small loss before the gap filled which gave me essentially +10 points (as I added and got +5 points on each position). So I basically ended up taking a b/e and -1.50 for +10....IMHO a good r/r and plan followed through nicely.
The final trade was more of a scalp, I would have normally held this for more and taken a b/e looking for my normal +4 or more target but I figured on a FOMC day that we may see more chop than trend so took the 2+ points on it.
Hope this helps.
Cheers
PS: This is a 1200VB chart, I find myself switching back and forth between 400VB and 1200VB throughout the day.
Hey, I try to place them at places I don't think price should go if the trade is to eventually go in my favour.....usually I don't like stops above 3 points and usually 2 points is the start and then I quickly move them smaller, 1.50, 1.00, .50, b/e.....once at b/e I usually look for 4+ points.
Hope this helps.
Cheers
Quote from tommi:
Thanks for the chart.
I switch between 500 and 1500 vb, mostly 1000 vb.
Where did you place your stops?