Disliked{quote} I think RH means big enough swings to catch a decent RR. I am shooting for at least a 2R trade and for me that is too tight of a stop on lower time frames. The stops are way too close to intraday price action for my tastes. Even the 4 hour is getting close as there are 6 candles in each day but I like the swings on the four hour - plenty of 2R+ swings to be had. Plus, after years of trading lower time frames I can't deal with the stress and boredomIgnored
What do you mean with „stress“ here? Let’s consider the H1 or M15 as the lower timeframe you execute your trades, where does then stress is coming from?
Actually you can plan your trade the same way like you would do on any other time frame. If you see a valid setup according to the rules you enter within the open of the next candle, pre define your willing risk for that trade and set your stop loss and take profit either through a pending order in advance or execute a market order directly from there.
I agree with the point that you would have a much tighter stop loss but is that such a bad thing? Let’s say you aim for a 5% monthly return on average trading single entry exit positions each at 1 Lot.
If you calculate in dollars risking only 1% per trade for a 100k USD funded account this would mean putting $1000 at risk per trade or 100 pips on let’s say trading EUR/USD.
Now if you aim for 1:2 risk reward this would mean you average take profit target would be around 200 Pips.
Now are the signals this method’s rules provide are really that bad on anything lower than the H4 you cannot manage to find 5 x 40 Pips trades to hit you average 5% monthly goal?
If you say you get 2 decent setups a week per market with this method on H4 you would get plenty on M15, now the only „stress“ you would suffer may be patiently waiting to only pick the very best setups same as you would do on any other time interval isn’t it?
So not sure what you mean with stress here exactly. You can even pre-define / make it a rule to your own trade plan only looking for setups for nothing more than 2 hours per day so you won’t end up over trading, another rule would be not to take more than 2 trades per day no matter if they both get stopped out or won you quit and first start looking again the next day, and so on.
I mean i am going to test this soon my own anyways (I am currently too busy with other stuff) but I would like to hear your words where there should be problems in case of stress realizing this example plan.
I would also be interested in anyone could provide a manual backtest over a 6 month to 1 year period taking every valid signal on 4H compared to M15 no matter for what currency pair (only where market condition for the executed and next higher time frame both looked good).
And sorry if this is a bit off topic here, I don’t want to crash the party. Feel free to keep posting your charts screens of trades according to the method like introduced, there is nothing wrong with it, just trying to learn from the „pros“ if there are some here ;-)
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... Youre bang on about the over trading... so I've also learnt to limit my action.
