So for the last 3 weeks I've been doing alot of back testing, and I am real close to my method being complete, it will include sla but also will include other ways of finding support and resistance along with a number of different trade set ups that will cover most of what the market delivers on a daily basis
Methodologies/ approaches; There are many like it…. but this one is mine Sweet!!!!! Random thoughts; One’s plan must absolutely be as simple as possible…, yet encompassing (when to get in.., more importantly when to get out / remain out) BUT it must also never be debilitating Mkt continually evolves - so must we Purposefully sitting on hands – observing / waiting on a signal…, or allowing a trade to work – is NOT debilitating ====================== Also…, and imo – initially one’s methodology / approach should focus on a very few set ups (signals) Then…, as one’s skills mature – allow these improving skills to ferret out additional set ups / signals Btw I’ll list the skills if you like… but I would include an understanding of mkt mechanics as one of them ============ We’ll get back to the rat killin whenever you say my friend RN
sounds good redneck. any information you want to send me would be awesome. the method I've been using isn't broken it's just for me to follow something i need it written down and defined and I am having trouble with the written plan part because with price action trading there is so much discretion involve!
"just for me to follow something i need it written down and defined" iow – you need to own it – live it – trade it - and stand by it when the mkt is attempting to F with your head ================== "I am having trouble with the written plan part because with price action trading there is so much (fill in the blank)" As does everyone it seems First let’s separate approach / methodology – from a trading plan Trading plan is what I’ve been pressing you to use 1.) Signal / Entry 2.) Initial Stop loss signal / Stop loss price 3.) Target / Method of managing trade Each trade must have one – each plan must be followed – and I’ve highlighted the most important aspects ======================================= Methodology / Approach – requires detail on The environment; S/R zones Up / Down / Sideways - and whether said environment is conducive to trading moves – a range – a swing The signal(s) appropriate to use within this environment The environment is established on a higher (or coupler of higher) TFs (higher than the one you trade) Context; The systematic / repeatable process used – in building the context defining the environment The tools used - to build context defining environment Trading criteria (examples only - as you need to fill this in); Longs only – in an up environment - which are entered on PB's Shorts only – in a down environment - which are entered on PB's Sit on hands OR range trading only – in a ranging environment - short the R / buy the S Signals(examples only - as you need to fill this in); DT/DB PB entries to LH / HL BO entries Trading is Looking for valid signal - within the environment - that was established by the context - built via our tools and repeatable process While knowing when / where - that signal would be invalidated - and the trade exited for a small loss And..., while also having insight in which direction the trade stands a better change of moving (a long in a down environment - is a scalp at best... OR..., expecting a long or short - to have a extended move - while price in a range - is nuts ) ======================= Add anything else you deem required – but do not over complicate it =================== I posted a straw man approach / methodology a few months ago – I think it was in Jas’ journal RN