Ok, are you using that as an absolute stop or just as an exit level
I find the strategy quite interesting though, who made it?
Strategy on stops. Just figure if lh/hl's continue the stop at the previous swing should be good most times.
Higher low, lower high system
- #3,902
- Feb 15, 2011 10:47am Feb 15, 2011 10:47am
When in a trade, at what point would you consider moving your stop to b/e, Vantage? Do you use a fixed no. of pips in profit, or do you trail your stop in some form? Some other method? Just wondering, if you don't mind. 
It's not about how much you make, it's about how much you don't lose.
- #3,903
- Feb 16, 2011 1:35am Feb 16, 2011 1:35am
- Joined Mar 2007 | Status: Trader | 7,195 Posts
When in a trade, at what point would you consider moving your stop to b/e, Vantage? Do you use a fixed no. of pips in profit, or do you trail your stop in some form? Some other method? Just wondering, if you don't mind.
There are a couple of small variations, if 2nd or 3rd entry, if price has been knocking on door of key area I'll protect entry very quickly. I posted a 2nd trade entry a few days back, I remember a doji that failed at RN. I exited at BE after getting to about +10. Reason being pa can easily bounce and hit my stop and then carries in direction of main trend after that.
This does mean I get taken out of some moves but it works for me. The other option may be to use much bigger stops to allow more wiggle room for trades.
- #3,909
- Feb 16, 2011 7:34am Feb 16, 2011 7:34am
When I have a mental image of a trade its quite clean and when it goes it tends to go. Price will though often have another hl/lh ie test after entry. So general rule if we get to +10, back to BE and hit +10 again on closed candles I'll generally start moving stops, if not to BE a lot closer.
There are a couple of small variations, if 2nd or 3rd entry, if price has been knocking on door of key area I'll protect entry very quickly. I posted a 2nd trade entry a few days back, I remember a doji that failed at RN. I exited at BE after getting to about...
So if I understand correctly, when not taking 2nd or 3rd entries like the doji you referred to, you tend to allow your trade to go from +10 back to b/e before you will start to reduce/eliminate your initial risk, is that right? If so, do you often get that what you initially perceived to be a pullback turns out to be a reversal that stops you out for a loss (or that makes you decide to kill the trade manually)?
It's not about how much you make, it's about how much you don't lose.
- #3,910
- Feb 16, 2011 7:35am Feb 16, 2011 7:35am
Don't know if its old age or what but lately I'm getting more and more happy to take 1 or 2 trades a day and if I get my 20-30 pips quite happy to largely sit back and watch.
Also quite happy like today if I'm not going moggie for a set up to walk away wait for news and see what happens later. If I don't get a trade also not fussed.
It's not about how much you make, it's about how much you don't lose.
- #3,911
- Feb 16, 2011 7:59am Feb 16, 2011 7:59am
- Joined Mar 2007 | Status: Trader | 7,195 Posts
Interesting stuff. Thanks for sharing!
So if I understand correctly, when not taking 2nd or 3rd entries like the doji you referred to, you tend to allow your trade to go from +10 back to b/e before you will start to reduce/eliminate your initial risk, is that right? If so, do you often get that what you initially perceived to be a pullback turns out to be a reversal that stops you out for a loss (or that makes you decide to kill the trade manually)?
This will give good idea.
Left arrow down on both charts. 15 min turned around with neg close back to trend. The 5 min is just above 50 and could be a bounce area as there is a W pivot and general supp area on D chart. IF we had gotten 1st move down (which we didn't it was a news spike) we'd have entered that sell. We'd be watching stops closely.
OK that move doesn't really work out and then 15 min starts having a lot of lower wicks, stopping ideas of selling.
15 min then has a neg close and 5 min lh see arrow right. Again IF we had gotten pips this am we would consider this sell as stop above last swing high would be relatively small.
However as we DID not get the move this am and as it was getting close to US news we left. If we miss out we avoid trades getting close to news as you never know what will happen.
OK that may make us more conservative than many, fine no problem. We haven't decided to change those written trade rules which are basically we'll risk profits if up, if we've missed we are cautious in and around news.
Having said ALL that, we have reduced trades and are happy with fewer chosen trades rather than more.
Also we are considering a method to say exit a portion at a psych level eg exit half at +15 (or whatever), we'll leave balance at say -10 to give trade room to move. The left arrow down is a clear example. The earlier pre UK news moves also a good example of this idea, see the x. Mrs V is still 20 pips bank.
On a separate note Mrs V doesn't like 2b's at all so we haven't been trading that many of those lately. She's much more of in trend trader and we are playing around with set ups to suit her more (ie what she sees). Thats why macd is appearing on 3 time frames, ma's, and cci. She must decide what set up SHE prefers.
- #3,912
- Feb 16, 2011 8:16am Feb 16, 2011 8:16am
- Joined Mar 2007 | Status: Trader | 7,195 Posts
Seems to me you're just fully comfortable with your current method.
Its after LO so we are following 1hr and 15 min just looking to sell.
Mrs V's options:
Trade hl/lhs as normal with 5 min 21 sma and 8 ema to help ie 8 ema below 21 to sell and above to buy.
Trade direction of 15 min ma's with good angle + sep, 5 min entry hl/lh's OR break of 2 point on 1 2 3 set ups.
Trade 3 time frames macd all red or all green.
She is at the mo leaning towards normal follow 1hr and 15 min with 1st option above entry 5 min hl/lh 8 lwma + 21 sma agreeing.
- #3,913
- Feb 16, 2011 11:43am Feb 16, 2011 11:43am
Thanks again for taking the time to give such elaborate answers, Vantage.
It's nice to learn how other people manage their trades. I'm currently applying a mechanical method, i.e. when risking 10 for 20 pips, go to b/e when at +10. But as you've mentioned before, you often get a retrace back to your point of entry, after which price takes off, leaving you on the sideline. On the upside, you're out without any drawdown. But it's still somewhat annoying.
It's nice to learn how other people manage their trades. I'm currently applying a mechanical method, i.e. when risking 10 for 20 pips, go to b/e when at +10. But as you've mentioned before, you often get a retrace back to your point of entry, after which price takes off, leaving you on the sideline. On the upside, you're out without any drawdown. But it's still somewhat annoying.
It's not about how much you make, it's about how much you don't lose.
