Here is example scenario 10k account:
Open with $2000 position
Price: 7700 PT 7715 BUY LIMIT 7725 PT 7740 BUY LIMIT: 7750 and so on.
Let's say first position PT hit second not;
I now have 1 position at 7725 and current ATR(10) is 100
At 7625 price (1 atr(10) below average) I open $1000 position with PT +15 and buy limit + 25 (7650) etc.
If overnight first position at 7625 hits PT and only original 7725 position is open and price is 1 ATR(10) below average price, I open new position with PT 15 and new buy limits ( position sizes 1/2 original.
This method should only when hell freezes over have danglers I believe.
I hope this is all clear enough.[/quote]
ftraderx,
Thanks for sharing Your ideas.
Sorry, but I still don't get how You get rid of danglers in the way You described.
When the price hits Your BUY LIMIT order and then retraces down without hitting PT, You have a dangler. Thus 7725 is a dangler.
Next day at 7625 You open position with PT+15 and limit buy at +25. Let's say, price goes up to 7635 and then goes down again. Now You have another dangler at 7635.
This way You accumulate danglers easily on the carry unwinds. Of course, You can possibly kill them later, when price goes up more than ATR range, but until then You keep danglers.
Or am i wrong? please explain. Thank You.
Open with $2000 position
Price: 7700 PT 7715 BUY LIMIT 7725 PT 7740 BUY LIMIT: 7750 and so on.
Let's say first position PT hit second not;
I now have 1 position at 7725 and current ATR(10) is 100
At 7625 price (1 atr(10) below average) I open $1000 position with PT +15 and buy limit + 25 (7650) etc.
If overnight first position at 7625 hits PT and only original 7725 position is open and price is 1 ATR(10) below average price, I open new position with PT 15 and new buy limits ( position sizes 1/2 original.
This method should only when hell freezes over have danglers I believe.
I hope this is all clear enough.[/quote]
ftraderx,
Thanks for sharing Your ideas.
Sorry, but I still don't get how You get rid of danglers in the way You described.
When the price hits Your BUY LIMIT order and then retraces down without hitting PT, You have a dangler. Thus 7725 is a dangler.
Next day at 7625 You open position with PT+15 and limit buy at +25. Let's say, price goes up to 7635 and then goes down again. Now You have another dangler at 7635.
This way You accumulate danglers easily on the carry unwinds. Of course, You can possibly kill them later, when price goes up more than ATR range, but until then You keep danglers.
Or am i wrong? please explain. Thank You.