I was wondering if I could get some opinions on a trading idea that I had. Would it be possible to trade off a small timeframe chart, and as the trade progresses scale out the timeframe further and further?
Say you entered on a 5 min chart. You set a stop based on S/R levels on the 5 min. The trade starts going in your favor and at 15 minutes in, you start looking at the 15 min chart. The trade goes past your break-even and you continue to scale out timeframes like this, using the logical stop points that become higher and higher. You could eventually be trailing a position on the daily by a 200 hundred pips that you started by trading on the 5 min trailing by 20 pips.
It seems in this way, you could compound your risk/reward, ultimately allowing you to make trades in excess of 50-100R. Obvioiusly it wouldn't work every time, but the wins seem like they would far outweigh the losses.
Say you entered on a 5 min chart. You set a stop based on S/R levels on the 5 min. The trade starts going in your favor and at 15 minutes in, you start looking at the 15 min chart. The trade goes past your break-even and you continue to scale out timeframes like this, using the logical stop points that become higher and higher. You could eventually be trailing a position on the daily by a 200 hundred pips that you started by trading on the 5 min trailing by 20 pips.
It seems in this way, you could compound your risk/reward, ultimately allowing you to make trades in excess of 50-100R. Obvioiusly it wouldn't work every time, but the wins seem like they would far outweigh the losses.