A breakout should take price 8-10 ticks in your favor pretty quickly (pre-market may be a little less). If it fails, I personally close out very quickly at break even or close to it and if conditions are right (like a failure at an extreme such as the high or low of the day) and I'm alert (haha) I will quickly put on a new trade in the opposite direction. How you do this most easily on your platform I don't know. I use a DOM (price ladder) and just click in the price with a marketable limit order, or sometimes if I'm fast enough I use a double-size stop order to exit one position and enter the opposite.
CL Redux
- Thread starter schizo
- Start date
A breakout should take price 8-10 ticks in your favor pretty quickly (pre-market may be a little less). If it fails, I personally close out very quickly at break even or close to it and if conditions are right (like a failure at an extreme such as the high or low of the day) and I'm alert (haha) I will quickly put on a new trade in the opposite direction. How you do this most easily on your platform I don't know. I use a DOM (price ladder) and just click in the price with a marketable limit order, or sometimes if I'm fast enough I use a double-size stop order to exit one position and enter the opposite.
Quote from NoDoji:
Do you ever see a high and wonder what idiot bought that high tick?
It happens to the very best and it's certainly bound to happen every once in a while when you buy breakouts.
The important thing is the expectancy over time.
So for you, that's just another anecdote.
Quote from dejavu8:
shorted with a quick exit
I reversed short and was trailing my profit target after the 20-tick minimum by 10 ticks at a time and couldn't move it lower fast enough because my DOM didn't re-center the price, then I didn't want to chase a re-entry cause it looked "too low" :eek:
By the way, my trades this morning are a good example of don't give up till you catch a damn fish!
