Quickly re-setting stop to BE after slightly green does stop out more often. I tend not to do that because I ask myself has the fundamental reason for placing my trade changed. Your trade bounced back to BE has the reason you placed it in first place been negated? If the entry was good isn't it still good?
ES Journal Archive (2011)
- Thread starter Buy1Sell2
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Quickly re-setting stop to BE after slightly green does stop out more often. I tend not to do that because I ask myself has the fundamental reason for placing my trade changed. Your trade bounced back to BE has the reason you placed it in first place been negated? If the entry was good isn't it still good?
IMO,
Incorporating a trailing stop is how you really take advantage of the "fat tailed" events.
Whenever Price has been in low volatility mode for a while (consolidation) it most likely will resolve sooner than later. If I get a signal at that time , and have multiple units on, that is my favorite scenario. While volatility returns I can take nice profits on the majority of units and leave a runner on there to take advantage of that expanding volatility. Sometimes the market gives you a little, but those times when it treats dearly you are the best.
On the other hand if there has just been a lot of previous volatility and I get a signal, it will most likely be contracting or range bound soon. In those times I will most likely be all in all out without trailing anything.
Incorporating a trailing stop is how you really take advantage of the "fat tailed" events.
Whenever Price has been in low volatility mode for a while (consolidation) it most likely will resolve sooner than later. If I get a signal at that time , and have multiple units on, that is my favorite scenario. While volatility returns I can take nice profits on the majority of units and leave a runner on there to take advantage of that expanding volatility. Sometimes the market gives you a little, but those times when it treats dearly you are the best.
On the other hand if there has just been a lot of previous volatility and I get a signal, it will most likely be contracting or range bound soon. In those times I will most likely be all in all out without trailing anything.
You didn't say how you trail the stops did you? Or did I miss it
Quote from jackson222:
You didn't say how you trail the stops did you? Or did I miss it
Lets say I am long, If I am trailing the last "runner unit" , I will trail my stop at each successive low of a expanding volatility interval. Expanding volatility interval defined as an interval with a body greater than the previous three intervals.
I probably wouldn't have trailed in this instance but
Here is a quick example anyhow.
Ok. The "last runner unit" is an easiest one to pick the stop..by definition it's a "runner" or a longshot unit.
Where would you place your stop with the first unit or units when you're green a few points in the same 5min bar or the one after ..the bounces back on you ..at BE?
depends on the situation and context but in this situation my initial SL would be below the low of dark red hammer. Like to tighten stops up BE +1 after first volatility expansion. Sometimes I'm out of my whole position by the first vol expansion if I feel it will be rangebound market for a while.
Quote from Buy1Sell2:
Suggest that the trailing stop move to the 7th candle after the entry and then maintained there for the overnight session. At least until after the Frankfurt open.
Are you joking or serious, in either instance i don't get it
Quote from Buy1Sell2:
Suggest that the trailing stop move to the 7th candle after the entry and then maintained there for the overnight session. At least until after the Frankfurt open.
And yeah I mean sometmes I'll trail BE+1 and let er run for a long time without even tightning trail stops so its at my discretion and dependent on what I see at the time. Some days all my decisions are great , Others, I'm not as great at predicting but either way I like how I manage my risk.
to be honest Mins,i believe i know how to read the market,all the mind game stuff keeps me believing "I don't know how to trade"(that's always been the truth)this keeps me humble and learning because the game keeps changing,the charts are the same for decades,the swings just get larger,and the moves inside those swings become larger ,which means more money for a few good daytraders,and death by a thousand stops for the rest...and euda,you are right,when i was daytrading ,i was handcharting,i now use the larger computer driven charts and have not changed over to the miniscule moves that are obvious in the handchart method,thanks for the wake up
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