Stop and Reverse Traders

[bugra01]

Hi all,

I have a daytrade plan via NinjaTrader ATM that reverses on each small stoploss until catch a trend. It is in profit generally. But, some ranging conditions, covering losses from over reverses may a hardness.

Is there anybody have an edge to avoid from over-reverse losses or management approach for cover them ?

 

[tomorton]

I use bracket orders, a buy above and a sell below, on forex pairs which are not smoothly trending. But I only enter these orders following an Inside Bar on the D1 chart - this often suggests an energetic break-out.

With no Inside Bar I might bracket the same pair using a Donchian Channel break-out set-up.

I don't apply stops or TP's to the bracket orders. My market access does allow me to simultaneously hold long and short positions.

 

[GuerrillaTrading]

I also like bracketing the market. I try to stay out of reversals and wait for the next setup, start clean.

 

[bugra01]

I use bracket orders, a buy above and a sell below, on forex pairs which are not smoothly trending. But I only enter these orders following an Inside Bar on the D1 chart - this often suggests an energetic break-out.

With no Inside Bar I might bracket the same pair using a Donchian Channel break-out set-up.

I don't apply stops or TP's to the bracket orders. My market access does allow me to simultaneously hold long and short positions.

I also like bracketing the market. I try to stay out of reversals and wait for the next setup, start clean.

thanks so much for replies dear friends. Could you please explain difference of bracketing from stop and reverse loop (1 point stoploss on ES for example)

 

[tomorton]

thanks so much for replies dear friends. Could you please explain difference of bracketing from stop and reverse loop (1 point stoploss on ES for example)

My bracket orders comprise a buy order a pip or two above the Inside Bar's high (D1) and a sell order a pip or two below the bar's low. These are only placed if the chart does not show a trend: I don't trouble to verify a range, just the absence of a trend.

The two orders have no stop-losses so if the buy is triggered first and then price falls all the way back the entire range of the Inside Bar and out through the bottom it will trigger the sell order - but both positions, long and short will run side by side. This is not permitted in all market access arrangements but I am spreadbetting in the UK and this is not prohibited.

At some point, assuming price continued to fall strongly, I manually close the long position and place a trailing stop-loss on the short. If price rallies I would regard this as voiding the Inside Bar's validity as a signal and manually exit both positions.