Grail Trading Formula

[Overnight]

The market tends to correct itself. If you are in a losing position and forgot to set a stop loss may as well let it ride until the market returns to a value close to your original position.

I have a journal which shows how this can bite you in the ass. It is not about "forgetting", it is about a plan. If yer a non-US resident, maybe that would work on a CFD, but I cannot trade those. Wish I could.

 

[schweiz]

If if goes for you take how much ever the market gives you.

That's the theory.
Now a practical question: how to you know how much the market will give you?

I mean in frontsight, not in hindsight.

 

[schweiz]

Hello volpri,

Thanks for the illustration and question.

Yes, for that chart, I would say price would go down more from what I see. I would go short at the close of that bar with light blue arrow.

View attachment 199600

OMG, it was wrong! LOL.