Billytt Die happy trading e/j daily breakout
- #55,743
- Jan 15, 2021 6:15am Jan 15, 2021 6:15am
- Joined Sep 2006 | Status: Trader | 10,704 Posts
{quote} Blame William ! Speaking of he seems to be awol
every Saint has a past. Every Sinner has a Future
- #55,744
- Jan 15, 2021 6:19am Jan 15, 2021 6:19am
- Joined Feb 2009 | Status: Trader | 25,867 Posts
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
- #55,745
- Jan 15, 2021 6:20am Jan 15, 2021 6:20am
- Joined Feb 2009 | Status: Trader | 25,867 Posts
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
- #55,746
- Jan 15, 2021 6:31am Jan 15, 2021 6:31am
I am trying to get some practical experience with countering, doing this at small size.
Example.
My initial buy moved south. I then opened a sell position to keep this loss locked / limiting the further risk on it. (forget the second buy order, mistake).
While I was locked for 1 x 0.01 lots (distance between buy/sell) and price quickly shot down south i then added 2 additional sell positions (2 x 0.01 lots) and closed them with some more profits already.
If i wouldīt have opened the second buy position by mistake i could have exited the hole trade sequence at break even i think.
However this is what is called averaging down right? So if price would have spiked up again at the moment i opened my additional sell positions my total loss would even have increased.
Maybe that is some way of countering? Still the two more trades i opened i could have opened getting out of the buy position separately, so basically no advantage here in keeping the initial buy order locked in with the sell order unless i canīt exit from them with a profit or less loss WITHOUT doing separate new trades (adding to it).
I am out for a walk now, please donīfeel stressed by all my questions
. I really want to learn and improve.
Have a nice weekend all, cheers.
Example.
My initial buy moved south. I then opened a sell position to keep this loss locked / limiting the further risk on it. (forget the second buy order, mistake).
While I was locked for 1 x 0.01 lots (distance between buy/sell) and price quickly shot down south i then added 2 additional sell positions (2 x 0.01 lots) and closed them with some more profits already.
If i wouldīt have opened the second buy position by mistake i could have exited the hole trade sequence at break even i think.
However this is what is called averaging down right? So if price would have spiked up again at the moment i opened my additional sell positions my total loss would even have increased.
Maybe that is some way of countering? Still the two more trades i opened i could have opened getting out of the buy position separately, so basically no advantage here in keeping the initial buy order locked in with the sell order unless i canīt exit from them with a profit or less loss WITHOUT doing separate new trades (adding to it).
I am out for a walk now, please donīfeel stressed by all my questions
. I really want to learn and improve.Have a nice weekend all, cheers.
- #55,751
- Jan 15, 2021 10:08am Jan 15, 2021 10:08am
- Joined Feb 2009 | Status: Trader | 25,867 Posts
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
- #55,752
- Edited 11:10am Jan 15, 2021 10:34am | Edited 11:10am
{quote} Why were you buying when your chart clearly indicates the market is going down ?
Regarding direction, if trading the BillyBar you often see the market going in another direction, but you trade the line it says... So you probably could ask the same question then, why going long if market often is moving the other way...
In this case i had no line but i also didīt plan to make a profit here nor trying to guess direction right. I actually donīt care where the market is going as long i am able to end up net positive by the end of the day, week, month, year.
So i think its even more important to have some kind of volatility to see the market moving while you trade so you can make a profit.
Back to my example, leaving out the second buy order here (which was an executional mistake) i would have fixed for my initial buy order at -3,72, with one further sell order to have it locked at that sum, two second sell orders while it moved south + letting one side of the countered position moving back in my favor again so also reducing the loss on that.
So -3,72 + 3,21 + 0,37 + 0,35 = 0,21 EUR. So not at all break even because i paid 0,26 on commissions. But its not about the mathematical example, just would like to know if this is one way of what to do if i am locked in through what folks here call countering.
