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Picking tops and bottoms

  • Post #1
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  • First Post: Jan 20, 2016 10:01pm Jan 20, 2016 10:01pm
  •  tankokjian
  • | Joined May 2010 | Status: Member | 2,442 Posts
Anyone who uses very very very tight SL , do you factor in some market expectations , like you feel the entry limit is 123 , sell . to achieve this perfectly , , i did my zeroing and sell only at 133 because i got kissed/stopped out too much by randomness like 1-10 pips then price go in my way 100 pips ..
  • Post #2
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  • Jan 20, 2016 11:49pm Jan 20, 2016 11:49pm
  •  GnWFx
  • | Joined Aug 2014 | Status: Member | 101 Posts
Trying to pick tops and bottoms can be very risky unless you have a very good idea of how to identify the exact top or bottom on any given timeframe. Momentum indicators, along with a good idea of reversal patterns can be handy. 10 pips SL are an invitation to losses in my opinion.
I am perfect, I don't make mistaeks, misstaks, misteaks, miskates...
 
 
  • Post #3
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  • Jan 21, 2016 1:11pm Jan 21, 2016 1:11pm
  •  Benevolent
  • Joined Mar 2010 | Status: Member | 173 Posts
Using tight stop losses is not the proper way of approaching accumulation/distribution of tops and bottoms (imo). You'd be better off determining the risk you want to associate within a range, say 10-20 pips, and scale in accordingly. I know I've touched on the subject before on other threads, but I am a huge advocate of not using hard stops. *waits for incoming flaming*
 
 
  • Post #4
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  • Edited at 7:18pm Jan 21, 2016 5:10pm | Edited at 7:18pm
  •  maximumguita
  • Joined Apr 2015 | Status: Member | 1,055 Posts
Quoting tankokjian
Disliked
Anyone who uses very very very tight SL , do you factor in some market expectations , like you feel the entry limit is 123 , sell . to achieve this perfectly , , i did my zeroing and sell only at 133 because i got kissed/stopped out too much by randomness like 1-10 pips then price go in my way 100 pips ..
Ignored
Sorry, but i dont understand the question. 1 pip + Spread is enough if you are able to pick the Top or Bottom excatly.
So the question would have to be: How can i pick Tops and Bottoms excatly, right? The answer: If you can absolutly not, than you need a farther Stopp and the better you do it, the more tide is your stopp. It depends on your skills not on randomness of the market. The second point is your strategy. Tide stopps and several tries or one try with expanded stopp or somthing like price is coming down and you buy buy buy till the price reverses or what? So the real question is: has anyone a strategie that works with low risk/ tide stopps and i can grap huge winner. My Tipp. Work on a strategy or trading style (why are you go in a trade in random moving markets?) that works for you and than look what kind of stopp is needed and than calculate your risk. Just my view
Btw: why is everybody talking about stopploss? The question should be: why i get stopped out or better, why has my strategie does not worked here and if you have the answer improve the strategy not the Stopploss!
(.)(.) think first ...
 
 
  • Post #5
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  • Jan 21, 2016 10:56pm Jan 21, 2016 10:56pm
  •  tankokjian
  • | Joined May 2010 | Status: Member | 2,442 Posts
like you said, it depends on ones skill . like i see a reversal/retracement. the R:R is great. if i accertain PA has a good 50% chance of making it since my R:R is above 3 times , i should not lose any money even if my Win/lose ratio is 1/2 right.
 
 
  • Post #6
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  • Last Post: Jan 22, 2016 2:43am Jan 22, 2016 2:43am
  •  maximumguita
  • Joined Apr 2015 | Status: Member | 1,055 Posts
Quoting tankokjian
Disliked
like you said, it depends on ones skill . like i see a reversal/retracement. the R:R is great. if i accertain PA has a good 50% chance of making it since my R:R is above 3 times , i should not lose any money even if my Win/lose ratio is 1/2 right.
Ignored
well said but it has nothing to do with your first post
(.)(.) think first ...
 
 
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