When to cut losses when trading 5min charts | Forex Factory

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When to cut losses when trading 5min charts

  • #1
  • First Post: May 30, 2013 6:16pm May 30, 2013 6:16pm
If your an intraday trader trading 5 min charts how much time should you consider cutting your losses? first 5 or 10 mins or just get out if a big volatile move goes against you cut your loss and get back in again sniper style.
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  • #2
  • May 30, 2013 11:44pm May 30, 2013 11:44pm
Quoting Pipanator
If your an intraday trader trading 5 min charts how much time should you consider cutting your losses? first 5 or 10 mins or just get out if a big volatile move goes against you cut your loss and get back in again sniper style.

I think the R/R is more important than time here.

Because the movements are high when it comes to much lower charts.
  • #3
  • May 31, 2013 5:08am May 31, 2013 5:08am
I get you. I think its a measure what percentage a move is going against you and setting a limit and getting out which makes the next trade easier and less pain from previous trade.
Find your Favourite Pattern
  • #4
  • May 31, 2013 7:48pm May 31, 2013 7:48pm
Quoting Pipanator
If your an intraday trader trading 5 min charts how much time should you consider cutting your losses? first 5 or 10 mins or just get out if a big volatile move goes against you cut your loss and get back in again sniper style.
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  • #5
  • May 31, 2013 8:58pm May 31, 2013 8:58pm
It depends pipanator... If you are overleverage, then it would only take a few pips against you before it hits your daily limit or stop loss if you like and the best course of action would be to take the loss but if you properly calculate your positions then you could average your position at a better price that is as long as your percieve trend is still intact if not then you would be averaging into losers.
  • #6
  • May 31, 2013 10:11pm May 31, 2013 10:11pm
Quoting sandycarrot
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or........i will do this.
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  • #7
  • Edited 11:33pm May 31, 2013 11:22pm | Edited 11:33pm
Quoting Pipanator
If your an intraday trader trading 5 min charts how much time should you consider cutting your losses? first 5 or 10 mins or just get out if a big volatile move goes against you cut your loss and get back in again sniper style.
In either case.

Not cutting losses in first 5 to 10 minutes is wasting time otherwise available for quickies. Similarly if a big move against your postion does not instantly reverse, pa may not come back to this level in days.

I many times experienced situations when trading let's say at x.xx35/55 level. Soon after my entry at this level, pa moves and starts shuttling between x.xx10 and x.xx25. Now I am stuck with my entry at x.xx35/55 level, cannot play x.xx10/25 range without booking a loss.
The Thief of Wall Street
  • #8
  • Last Post: Jun 4, 2013 8:37am Jun 4, 2013 8:37am
I would say it depends on your trading style and strategy, if you have built a system which is time dependent then the results from your back testing should tell you the average time you should be in and out.
If you are a bit more discretionary then it would be a combination of different factors, i.e how long price istrading at the level in relation to how long it was trading their before, how the market has digested any news releases etc etc. I personally trade discretionary so time inst necessarily a factor, its more to do with the markets reaction NOW in relation to what it did previously.

Hope this makes sense
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