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Attachments: Daylight Trading Strategy
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Daylight Trading Strategy

Here I exited before the stop loss manually, because the price broke through the channel in the other direction and the daylight showed the same direction (the slow MA crossed -50, and the fast one crossed the slow one).
Do you see what happened next? He mocked me. =))
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Here's another example, when I took less than the market gave.
It looks like I have normal inputs, but the outputs need to be honored.
Am I making the right conclusions?
1. I need to put further stop loss.
2. I don't need to wait for the runner, but get out on the first good move in my direction.
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Quoting taozen187
Here's another example, when I took less than the market gave. It looks like I have normal inputs, but the outputs need to be honored. Am I making the right conclusions? 1. I need to put further stop loss. 2. I don't need to wait for the runner, but get out on the first good move in my direction.{image}
Yes and No. How do you quantify "less than the market had to give" I am sorry to be blunt, however, that sentence doesn't make sense to me.

Do you expect to make every pip available? When you exit a trade you don't know what the next bars hold in store so you have every pip available to you at THAT POINT. Looking at the chart later in the day and feeling like you left pips on the table is an exercise in futility. STOP doing that, it will lead you down a long and counter productive hole.
Why did you get out there?
Was it fear of losing your profits?
Was there a technical or "method" reason for the exit or was it just a fly by the seat of the pants type deal?

Lastly but the MOST IMPORTANT BY A MILLION MILES

Where did your PLAN say to exit. If you did not have a plan prior to entering the trade then you probably need to re read a lot of this thread.
Laura has presented several different exit methods across the 2 threads. I would suggest start with one and stick with it for at least a dozen trades and see what happens. No cheating, stick to the plan, win lose or draw
Let us know how it works out for you
Plan, Prepare, Execute, Repeat
Having a go on the H4 charts as the M5 is killing me. Holding out for a runner
Using a bot to place the pending trades. Gonna wait on a cross to exit this
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Quoting swingtrade65
{quote} Yes and No. How do you quantify "less than the market had to give" I am sorry to be blunt, however, that sentence doesn't make sense to me. Do you expect to make every pip available? When you exit a trade you don't know what the next bars hold in store so you have every pip available to you at THAT POINT. Looking at the chart later in the day and feeling like you left pips on the table is an exercise in futility. STOP doing that, it will lead you down a long and counter productive hole. Why did you get out there? Was it fear of losing your...
Thanks for the answer. Don't apologize for being blunt. This is what I need. =)
I appreciate your opinion.
Perhaps my messages are clumsy and not very accurately interpreted, because I write through a translator. English is not my language.
I'm just at the stage of developing my plan. And I'm trying to understand the reality of the market, not my assumptions about it. Therefore, I share my thoughts with you, hoping to get feedback from more experienced participants, such as you, in order to better understand how you think while developing your plan.
Thanks again. I hope my thoughts are clear. =)
Quoting taozen187
{quote} I entered with two transactions. First, on a breakout, then on a pullback. I closed the first one with a small profit, securing a breakeven for the second one. Then he waited for a big movement. But it closed at the trailing stop. This happens all the time. I want more profit, but very often I give half back to the market. It seems that one should be content with less. =) In the meantime, it turns out that my profitable trades do not cover the losing ones. I put stop losses much closer than Laura, as I hope to provide myself with a more...
Similar is the situation with me.
Quoting swingtrade65
{quote} Yes and No. How do you quantify "less than the market had to give" I am sorry to be blunt, however, that sentence doesn't make sense to me. Do you expect to make every pip available? When you exit a trade you don't know what the next bars hold in store so you have every pip available to you at THAT POINT. Looking at the chart later in the day and feeling like you left pips on the table is an exercise in futility. STOP doing that, it will lead you down a long and counter productive hole. Why did you get out there? Was it fear of losing your...
He should read Laura's journal. Good section on physchology and a few exercises in discipline.
Yes, he needs to read all the threads after which, he will find most of his questions answered. And will not need to ask many more.
You need a point to get in and a reason to get out (levels etc) BUT you will NEVER take all available profit simply because you don't know, in advance, what the market will do. We make reasoned trades but the market is not a reason driven machine. Humans get in he way and emotions also. It is easy to spot a new or undisciplined trader: they seek to "improve" indicators; add more indicators and think indicators, algorithms etc are the way to profit. Think about it: if a plethora of indicators was all that was needed we would all be rich and the market frozen.YouTube is full of snake oil merchants selling dreams to the weak minded, greedy, or simply ignorant (in the nice sense). What I am trying to say is that your edge is "between your ears" and Laura's approach is your way into trading with an edge. Try her exercise , in her journal, of putting on a trade and letting price hit the other side of the channel before closing the trade. Yes -you will learn a lot about yourself. Remember, you can make good trades based on a reason or approach BUT many such trades will also lose because sh@t happens. But you keep going to let your edge work out.
You must realise that there are very few people like Laura who are willing to share with no expectation of financial reward. Therefore, I repeat, a close study of all her threads, and diligent application, will deliver its' own rewards ,to those willing study and test the given material in those threads.
every Saint has a past. Every Sinner has a Future
Quoting 40PipsAlan
Having a go on the H4 charts as the M5 is killing me. Holding out for a runner Using a bot to place the pending trades. Gonna wait on a cross to exit this {image}
Price hanging around the daily 200SMA. Closed all +203 pips. Just need the other trades to do the same.
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Quoting 40PipsAlan
{quote} Price hanging around the daily 200SMA. Closed all +203 pips. Just need the other trades to do the same. {image}
Good trade. If it's on the H4 frame, I think it's better to remove the MA lines,the chart would be nicer . Since it's large enough to reduce the noise of other lower timeframes,.I see that if we remove MA, we will see more deeply about the market with basic PA, right?If you look at my chart. you will not take profit at 203 pips. will add more. I still need to learn more. please share. Thanks
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Quoting mistdraw28
{quote} Good trade. If it's on the H4 frame, I think it's better to remove the MA lines,the chart would be nicer . Since it's large enough to reduce the noise of other lower timeframes,. what do you think ?
Who knows boss. Seems the common MA used by other traders like the daily 200 SMA create their own SR levels and possible turning points so I am happy to keep them on my chart just in case.
XAUUSD Price action speaks
Swing trade with trend continuation behavioural pattern
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I just had a plan and I followed it.
Both TPs worked.
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Quoting swingtrade65
{quote} This trade did not go lower and breach the 200. I grabbed about 3-4 pips. Although we did not get a real winner, we didn't get our pants scorched either because we had found a low risk entry. Now we move on to the next ones.
I'm sorry. Maybe I don't understand something.

You mentioned several times in this trade that you are entering it because it presents a small risk. You even specifically talked about the risk of 12 pips with a potential profit of 25 pips.

But in your last screenshot you can see that your stop loss is 45 pips. And the target is 70 points.
And in the end, you went almost into breakeven.

Do not misunderstand me. I am not nitpicking. I am trying to understand the course of your thoughts. How does your plan align with what you end up doing in reality. Have you deviated from the plan? Or are there some hidden details of the plan that you didn't mention?

Just trying to understand how successful traders who talk about trading according to some SYSTEM trade, I very often come across the fact that in the end they do not act as their SYSTEM says. And at the same time, they refer to the fact that they did so, because the STRUCTURE of the market or FUNDAMENTAL analysis says so. So shouldn't the SYSTEM include an understanding of the market STRUCTURE and some specific points of FUNDAMENTAL analysis (such as exiting trades at the close of a session or before important news)?

Please do not take it personally. I'm just trying to figure out the nuances and glue them together.

Many thanks to you and other members of the forum and this thread for sharing your thoughts and experiences. =)
Quoting taozen187
{quote} I'm sorry. Maybe I don't understand something. You mentioned several times in this trade that you are entering it because it presents a small risk. You even specifically talked about the risk of 12 pips with a potential profit of 25 pips. But in your last screenshot you can see that your stop loss is 45 pips. And the target is 70 points. And in the end, you went almost into breakeven. Do not misunderstand me. I am not nitpicking. I am trying to understand the course of your thoughts. How does your plan align with what you end up doing in...
No, I don't take anything personally. You are trying to learn using a translator app.
Yes, I talked about 12 pips risk. My stop was quite a bit above that. I use a stop as an emergency exit as most trades are exited manually, so the stop will be a ways off. I was only willing to give it about 10-12 pips of wiggle room based on where we were at sitting near the 200 SMA.
When I talked about 25 pips profit, I was looking for the easy pips. Yes, I thought it could go all the way down there to the 70 pip mark.
However, when we get stuck on a 200 SMA or something and won't go any lower, it is time to exit.

Just because I have a plan doesn't mean that the market gives one crap about what I think is gonna happen. If a trade is not doing what you thought it should, Exit, but if it is going your direction let it alone.

This method is not automatic and requires quite a bit of critical thinking.
If this answer is not what you were looking for, ask again
Plan, Prepare, Execute, Repeat
Quoting swingtrade65
{quote} No, I don't take anything personally. You are trying to learn using a translator app. Yes, I talked about 12 pips risk. My stop was quite a bit above that. I use a stop as an emergency exit as most trades are exited manually, so the stop will be a ways off. I was only willing to give it about 10-12 pips of wiggle room based on where we were at sitting near the 200 SMA. When I talked about 25 pips profit, I was looking for the easy pips. Yes, I thought it could go all the way down there to the 70 pip mark. However, when we get stuck on a...
Maybe one day we'll convince the world that emergency stops and manual exits are the way to go!
Quoting swingtrade65
{quote} no, i don't take anything personally. You are trying to learn using a translator app. Yes, i talked about 12 pips risk. My stop was quite a bit above that. I use a stop as an emergency exit as most trades are exited manually, so the stop will be a ways off. I was only willing to give it about 10-12 pips of wiggle room based on where we were at sitting near the 200 sma. When i talked about 25 pips profit, i was looking for the easy pips. Yes, i thought it could go all the way down there to the 70 pip mark. However, when we get stuck on a...

Yes, modern technologies allow us to overcome the language barrier and conduct this dialogue. =)

Thanks.

I understand what you mean. This is what I am leading to.

You say, "If a trade is not doing what you thought it should, Exit, but if it is going your direction let it alone."

But what are these thoughts based on? It is usually said that this is where the stop loss should be, where you think the trade is not going in your direction.

But, referring to the existence of a plan, it is implied that these thoughts, about this point of entry from the trade, where it is not going in your direction, should be determined BEFORE entering the trade. This is where the stop loss is placed.

You say that your big stop loss was an emergency, and your working stop loss would be a manual exit 12 pips in the wrong direction. But in reality, you went to +3 points, to breakeven. What was the reason for this?

Obviously, your thoughts have changed.

Is such a change in thoughts on an already open deal spelled out in your plan?

What is it based on? On the fact that the price did not break through 200 SMA (100 SMMA) for a long time? Long is how much.

I just saw this 200 SMA and thought that I would not enter this trade in the direction of 200 SMA.

But you have become. My question is if your plan included:
1. Watch if the price breaks through the 200 SMA quickly? (what does it mean - quickly, a certain number of bars, minutes, hours?)
2. If not, then exit because the transaction becomes unreasonably risky?

Or did you simply act on your own experience? And after what happened, did you find an explanation for your actions?

To be honest, I really like the approach - change with change.

It looks like I'm trying to connect it with an approach, to act according to a strict plan. And so that there are no contradictions in this. =)
Another trade, according to the plan, was closed in profit.


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Quoting taozen187
{quote} Yes, modern technologies allow us to overcome the language barrier and conduct this dialogue. =) Thanks. I understand what you mean. This is what I am leading to. You say, "If a trade is not doing what you thought it should, Exit, but if it is going your direction let it alone." But what are these thoughts based on? It is usually said that this is where the stop loss should be, where you think the trade is not going in your direction. But, referring to the existence of a plan, it is implied that these thoughts, about this point of entry...
Please see Lauras post above about stops. Stops are for emergencies....worst case possible, thats it.
Plans are made in advance and are based on what we "think" the market will do based on what we see. Whether it is "structure" or whatever we want to call it, we see and process the charts based on our experience. I don't make any excuses for losers after the fact.
I do this in order to make money. If I have money tied up in a position and that position is not making me money, then what good is it. Not only do I have the margin tied up, but I have to watch and babysit the position. Your stop and your exit are two entirely different things. Does that make sense?
I have trades that I enter on the daily chart. They are longer term positions (week or more) that have a stop but I will most likely exit all of them manually. Once again the stop is for emergencies.
Hope this helps
Plan, Prepare, Execute, Repeat
Thanks. I have clarified a lot for myself and thanks to your answers, and so far I have formulated my questions. Very grateful. =)
I'm glad this topic has come up.

It's perhaps no coincidence that brokers use the terminology 'stop loss' - I'd suggest giving it a different name in your heads, to frame things differently ... call it what it is: 'guaranteed loss'.

This isn't just semantics. If you take responsibility for managing your trades and close them out when price action deviates from your expectations, your guaranteed loss shouldn't come anywhere near to happening. I see more people losing due to bad stop placement than for any other reason.

One thing I tell my students is that the planning should take place BEFORE an entry is taken, not after you are in the position. You should have already played out the various possible scenarios in your head before pressing buy or sell. Then, when the market behaves in a certain way, you cannot possibly be surprised.

It's similar to what an elite sportsperson might do. Every possible scenario is played out in advance in their heads (and even in a physical sense in some cases), so that their muscle memory can kick in when reality starts to unfold.
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