So does it matter what timeframe you use for trend trading?Quote from NoDoji:
I don't use a bracket order in this situation. I place a limit and a stop and manually cancel the other. If I get a fill at the limit price and it immediately flies through the stop as well before I can cancel, that's fine with me, if the "buy bots" are that excited may as well ride the move with extra size.I think Al Brooks says somewhere in his book, there's no bad entry in a strong trend. The important thing is to get in because missing a strong move can place a discretionary trader at a psychological disadvantage. At least it used to place me at a disadvantage because I'd then be afraid to get into the trend anywhere (it's gone too far...) and I'd end up waiting for a reversal signal to trade the other way. A turning point came for me one day when I watched a trend in progress for 2 hours and had no part in any of it.
Now I will trade in the direction of a strong trend over and over again until I either have several scratch trades or a losing trade. This tells me the trend is getting tired (at least for a while).
Thursday in CL (oil) was a good example of a solid trend day in my 5min trading time frame. Shortly after 10:00am ET price had tested near the 94.00 round number twice and found ready buying off a higher low. I had no idea whether this signaled a reversal of the previous down trending move or not, but a setup appeared on a smaller time frame and allowed for a comfortable .10 stop so I assumed the risk and the break through previous resistance was quite strong, offering me twice the profit I expected. This was a sign that buyers were clearly in control and I continued to trade profitably long for the next 3 1/2 hours.
Steve, I know that you were just adding and adding, while I was just scalping and scalping, but the important thing is we weren't trying to guess based on our opinion when price was "too high" to keep buying!
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What is your edge ?
- Thread starter oilfxpro
- Start date
I'm just thinking of why one of by best strategies that I had where I turned 150$ to $300 in a week failed...I risked maybe 20% a trade and R:R was 1:1. 1 trade a day. But If I risked only 2% would it of been successful? I think maybe that the R:R would need to be better also in order for it to be successful or no?
Quote from zbojnik:
I'm just thinking of why one of by best strategies that I had where I turned 150$ to $300 in a week failed...I risked maybe 20% a trade and R:R was 1:1. 1 trade a day. But If I risked only 2% would it of been successful? I think maybe that the R:R would need to be better also in order for it to be successful or no?
Risk reward ratio of 1 to 1 is no good , as spreads will eventually eat up profits.When you catch a move , cut your losing trades and run your profits , it is those big winning moves which makes profitable traders .