In this journal, I started the discussion with the overactivity of a failed countertrend daytrader who needs to add to positions to bring in profits. (Note--I would then let them run to capture full reward, not just one point per contract). Then I moved through divergences and grails. Then, we discussed profit targets versus letting it run as well as the disadvantages of scaling in/out. After that, I then introduced filtering out one side of the equations ie long or short based upon longer term analysis, regardless of whether or not longer term is weekly, monthly, hourly or 5 minutes. As we went along, I always advocated stops that would not reduce your account my more than 2 percent of a trader's total liquid net worth and included discussion about stops being outside of noise.
What I am getting at here, is that my method has been described fairly well inside of this journal if you discount the initial premise of trading countertrend and adding, which is not the way to go. It should be apparent to all by now that I identify a trend, and I then exploit that trend by using full position in the direction of the trend with entries on shorter frame charts.
Suffice it to say, that the trend was down all day Friday until the long signal at 3 PM EST which then allowed me to take long signals .
Finally, I would tell you that we are currently in an uptrend today which can change at any time.
