DislikedJust catching up. Great input from you all, thanks! The last few weeks, before I arrived here, I have actually been going over a lot of data for another range break idea. I can see that for instance cable has a great success rate like you have, the problem I was facing when going over my idea was my stop loss placement, which would stop me out too often. It would still be profitable, but not have such a great success rate as you are having. For this reason I think your approach of trading without a stop loss and counter trading would probably work...Ignored
Hi Flexo. I see you've asked me a specific question since last I checked and I'll get back to that in a minute. First, I'll give you a quick run-through on this one.
The first thing I must point out is that you have made a fundamental error in your understanding of the purpose of the counter. We are not looking to break-even on this at all but to hold the bad trade in limbo. This means that we will carry a loss - but the loss will stay the same size no matter what happens next. After this is done, we can safely ignore those two trades. We then wait for the next trigger to unwind that hedge / nedge.
For me, this trigger will come via a Dead Zone trade and / or from Billy's Afternoon Delight. The goal is to end the day ahead. For others, or for those only using the one 04:00 set-up, the next trigger will come the next day.
Now, to backtrack a little, once the initial bad trade is locked in, you can also nibble away at that negative. Billy likes to use retrace trades, I use scalps off of price movements around Supply+Demand zones. If this isn't your style or forte, then leave well alone and wait for the main triggers.
It should also be pointed out that a counter is not used on the AU 04:00 set-up (usually).
I also need to say that I will often enter my counter earlier than Billy, as I trade using The Wick-Zone method if the candle shape warrants it. That is, instead of entering at the break of the opposite end of the candle, I enter as price moves back into the body of the candle.
This is why the AU 04:00 break is the best variant to start with on here. It is the most basic and simplest to run. (GU is next). Once you get a feel for how this all works, you can begin to add in other, more complex, methods.
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I have read it a few times, it is a lot to get my head around, but looks very interesting especially as this is a completely different approach of trading as I am used to. I need to study it in more detail, so will do this tomorrow. I am located in Holland, but have a broker in Australia so hedging is no problem. I have gone through a lot of the posts in the weekend, but it will take me some time to consume all of it in the right way. I can imagine my questions have been asked before, my apologies for this. I try to find out as much as I can from previous posts, but I will likely will have more questions soon, hope you don't mind.
Tech came to the rescue and I took the WZ move back up into the body. Job done. Was there ever any doubt? 
