M1 Countertrend Scalping Strategy

A few jobs to do to keep the Mrs happy then will get back to you.

Seabreeze,
Its Sunday, enjoy, laters.
cpfleger

A question often asked in this forum and just as often overlooked is how to manage a drawdown or runaway trend
Aside from the extremely detailed advice already provided by Abade on how to stay safe using KoF's strategy, consider
the following as a way to formalise YOUR method of handling this situation in your risk and money management plans


MANAGING DRAWDOWNS

Two modes of drawdown management are required

SHORT TERM
Aggressive mode, risk management is the focus, profits are not considered, and neither is a loss, exit points are
constantly revised until they are hit, either with a small loss if conditions are not favourable, or with a small profit,
but will always aim to maximise profit if conditions change and the drawdown returns to profit

LONG TERM
Investment mode, returns are the focus, longer term outlook for determining targets, acceptable length of time to return and maximum drawdown once all options are exhausted as per the money management plan are to be respected

MANAGING SHORT TERM DRAWDOWN

Risk: An unexpected short term reversal against an open position

Cause: Incorrect read of PA, entry suffers slippage or is late, target is missed due to slow reaction or is unfilled

Mitigation: Continue reading PA to assess potential for recovery using cost averaging via EMA's or closing position

Notes: Manage aggressively and stay focused to avoid a mid to long term drawdown, failure to mitigate successfully
will generate a need to employ strict money management moving forward


MANAGING LONG TERM DRAWDOWN

Risk: An open position enters into mid or long term drawdown, or a "runaway" trend

Cause: Short term drawdown mitigation fails, mid term drawdown provides no reasonable recovery opportunities

Mitigation: Use higher timeframe analysis and cost averaging management techniques to maintain a manageable break even level at all times, monitor closely and ALWAYS set and adjust TP's accordingly, maintain lot sizing, margin levels and gaps between orders according to the money management plan of the pair being traded

Notes: Remain objective, apply deeper fundamental analysis, continually project target, drawdown, margin level, number of orders left for recovery, and time left for recovery using EMA's on higher timeframes


CONCLUSION

You could just leave a bad position open and hope for the best, that will work, but its the time it doesn't that will
BLOW your account, or you could use a risk AND money management plan to back your decisions with sound reason and logic based on your own experience to give yourself a better chance at survival

Sent a message to you rather than pollute the thread and divert attention from your good work.

Last one for today. Time for friends and family.

Pre setup...

Nice even for Bitcoins silly spread....

Bouncing Bitcoin...

Sunday Comments
What KoF Video's does not talk about much at all is The Account Balance....
Anyone trading with less than 100 usd Balance is in a high risk situation and I trade this type of account every week for the wife. Its hard.
So my Sunday preparation to the week comment is - use a Stop Loss (SL), do not be afraid to secure a portion of your balance per trade. Its Okay.
Add a Trailing Stop Loss (TSL) of 3 Pips too to ensure some profitability and confidence to your trading Business.
I believe in performance makes profitability, so practice and do not fear the Market.
Have a great day...
cpfleger

Thank you again cpfleger
Chris

Setup

yup

the beauty of discretionary trading is trading at your discretion!

there was something about that unfilled gap from both a swing high AND swing low that was calling out for attention

at this stage i thought wtf is going on with that gap, it doesn't want to be filled!

but of course, instincts prevail and the gap was filled as expected


now stay focused, is it a good time to buy?


you bet it was! time for a break...

One before work, could have had a few more pips.

Seabreeze,
Your Pipometer Indicator settings are incorrect, see screenprint.
cpfleger

Quick 5 pips exit ema 9 ,5min tf,

charli86,
Wait for the RSI Line to change color - red to blue and then jump on the market. Reduce the risk / waiting.
good trade though.
cpfleger

Beautiiii ful....

Cpfleger,thanks,now I am focusing on m1 and entering on m5 ,but I am focusing to hit ema 9 first than targeting ema 20,if ema 9 get hit I skip setup even if rsi change color,even on strong trends ema9 will be hit in one moment so good to exit without big risk ,to be sure ,as market can run more and got trader stuck in big dd...

charli86,
Good strategy, add a TSL and journal your trades, learn from the Market.
cpfleger