This strategy is a response for a unique market EVENT called "Prematured trend reversal" against the trader's signal. The trader exits immediately and avoids loss by not waiting for the stoploss to hit. Then makes a new entry in the opposite direction to grab the trend reversal.
Understanding the market EVENTS i am introducing needs some visualisation and making the connections.
This is not a "strategy". It is just some snippet statement. This is more like .05% of a strategy. The other 99.5% of the parts makes this snippet look stupid beyond belief. Any person who runs a VERY simple backtest trying to isolate this "event" learns such a simplistic rule is a looser. Furthermore, there are so many other considerations, this just looks like a gross oversimplification and to present it otherwise is really dumb. So when this event does not occur you get whipsawed. I think the OP does not even trade any significant amount and has serious issue with self-worth.
Unfortunately for you and your upcoming ground-breaking eBook, there are people who have thought about your uber strategy waaaay before you ever set foot in the markets. In fact, many trading software platforms have the strategy built-into the trading interface with a simple button. See if you can spot it in the pic below. It may be hard to find for you, so I highlighted it with a giant red box. Here's a hint...It is short for a word. Can you puzzle out what that word is? Here's another hint...The remaining 4 letters of the word have two vowels and two consonants... Do you understand how painfully peevish you come across with all these threads repeating the same old shtick?
This market EVENT i call as "Premature Trend Reversal" First, there is a clear significant attempt by the market to establish a trend. Then the clear attempt fails and price returns back to the entry point. That is where the trader exits and re enters for reverse trend.
This strategy works BEST when trader made entry based on a solid market EVENTs! It means NO conventional indicators, levels, price actions, patterns, etc
Fundamental Market EVENTS of trend formation 1. Trend formation at market opening 2. Sideways market breakout 3. Trend Reversal Fundamental Market EVENT for Entry Support/resistance formation Fundamental Market EVENT for Exit Support/resistance formation fails Fundamental Market EVENT for repositioning stoploss Stoploss hits then immediately trend resumes Chain Reaction Strategy works BEST when trader enters trade based on the fundamental market EVENTS.
I am highly disciplined in market EVENTS hence i am confident in my Strategies. Is there anyone here who can say that?