DislikedThanks for the advice hart. I did take a short from 1.0020 but the stop is only 12 so I'll take what comes.Ignored
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DislikedIn today's EUR/USD, the double-railroad tracks between 2:45amEST to 3:30amEST was a valid "W" to me and I took the long at 1.3255 with 20pips stop. Incidentally, pivot M2 and weekly R1 (not shown) were there.Ignored
DislikedA weak M is good for roughly 50 pips (or 3.75 X ATR on 15m), peak to peak, possible to grab relatively safe 30 - 40 pips there. A strong M should go at least 90 pips (or 6.75 X ATR on 15m).Ignored
DislikedDo you always target 3.75 x ATR and 6.75 x ATR, and move stop to breakeven after 1.5 x ATR? Is your stop loss at 1.5 x ATR also? Why "3.75" and not 3.0 or 4.5 or 6.0 (multiples of 1.5)?
The reason I'm interested in this subject is because I'm increasing my lot sizes now, and my default of 20pips for EUR/USD seems arbitrary so I want to reduce it to 18pips or even 16pips. With this method especially on second leg entries the stop doesn't matter, but other setups I might want a proper stop. Your method of using ATR readings might work for me.
I would like to discuss with you in private message so as not to go off-topic here.Ignored
DislikedThanks for the detailed reply. I still don't understand how to differentiate between "weak MW", "MW", and "strong MW", which you factored into your risk management. I have looked at all the pictures you showed as examples but no clear distinction in my view.
Can't pass your test question if we don't have idea how to differentiate, besides "looking" at the pattern or TDI. Has it got to do with measurements of the M or W height? You mentioned TDI readings 0 to 100 so what numbers are for weak M or strong M or regular M? Thanks.
(You...Ignored
DislikedA quick reply before we take this offline. Here are my current money management parameters.
I move stop to BE after 1.5 ATR (e.g. 20 pips on EU) only when trading a weak WM as a kind of safety belt. However, at the moment, I don't take these weak MWs anymore because I feel more comfortable trading with a higher win ratio. Nevertheless, taking all MWs with proper risk management can surely earn you a living.
For WMs, I would target 2.25 ATR (e.g. 30 pips on EU).
On strong WMs, the earliest I move my SL to BE is 2.6 ATR (e.g. 35 pips on EU).
My...Ignored
DislikedPure gold, thanks hart. Sometimes in just a few words you know that a guy has the "right stuff" - and you are one of them.Ignored