DislikedPosition sizing and risk management were the topics that made me think these days. I had this inner fight between trading a smaller position size and thinking about getting a more precise entry? I noticed when there appears a breakout candle (#1 TMS) then in most cases the 2nd candle touches the 38-50% Fibs of the #1-candle. I just want to know from you guys if I can just place limit orders to get a better fill, reduce risk and make more pips. I backtested it on different timeframes and currencies and saw that the mean of 38-50 ( ~ 44 % ) gives...Ignored
I trade the H1, what I and have noticed is that this particular formation goes very well when the market print a bullish or bearish engulfing candle, If I don't get on the breakout of the first candle, I go to a lower time frame, ie 5M chart and draw fibs on the previous candle which will be some candles on M5 and wait PA to retrace back to previous structure level which convergence with 38.5 - 50 fibs and if PA signal a get go candle formation from that level , I enter the market
Its not limit order, it wont work this way, I wait candle confirmation on lower time frame signal the entry, because entry on limit order is an entry against order flow at the moment when PA retrace back where PA could never goes back into the direction of the trade
Test it your self, I cant comment on other topic as MM
I hope this is what you thought of
I Have Learned to Take Some Losses to Make Profits