This is what I was looking towards, reducing risk as no.1 priority, get most to break even, even a 50% winners would be huge since most losers are break even.
Hardly a problem, the gist is you have to find what works for you. Study and take feedback form others but ultimately, you have to trade your own plan.
On the other hand and 38 years of trading, I use "Time Stops" from one minute bars to monthly bars. So this shows we all have different ways to trade, plus I am a Scalper, which I don't recommend, it takes much much longer to learn how to trade the trees instead of the forest. Since I never go for more than 2.00 points trading one minute bars, I have to dance often of adding more often to make much less than most experienced trend traders, but it my way. I ave down, another huge violation that I DO NOT ever recommend others to do, this is only after much back testing, forward testing and trading and now automation. There are so many way to skin a cat and still profit from trading it is insane, but here is the thing and I think others might agree. Find what makes sense with you, figure out the risk and work on that first instead of building numerous entry signals, use no more than one sma if that and then work on all the ways the market is going to hurt you, thank goodness there are only about a dozen patterns to the left of now that set up and they keep most experiences traders from taking otherwise good signals, you have to study and papertrade dispositions/outcomes of whatever signal you might see as good. Many will say they use trailing stops, I don't believe in that much, if I start thinking I need a trailing stop, I should get out, but again, you have to record how long you are in your trades as well. I use to trade 5 minute bars long ago, got tired of sitting there all day.
I only like to use 15M or 30M entries ... but it should start to move quite soon after I get my signal or something is wrong ... but I need mtf analysis to back me up ...
You hit the nail on the head, nice to see someone with intelligence in these forums! A trade will take however long it takes, the markets couldn't care less what any opinion is, but to give everyone a break, it often stalls because a higher timeframe move is in play!
I agree with both concepts above. I think a certain amount of time will often cause the chart/price to change in such a way that the ENTRY signal is no longer there. If you enter on a signal and the signal disappears you should bail. But sometimes you enter and the signal is still valid and things just need to churn/chew through the market a bit longer before the market agrees with me. I find about 50% of the time when I lose on a trade it's because I was too early. If I waited long enough I would have a winner. It's just that waiting for the market to drop and recover is also time value and you never know for sure it will recover. But bailing on a losing position giveso you the chance to reenter at a better price when the market proves you right. So I stay in until my signal is invalidated regardless of time. If that's before my stop is hit then I bail out early.
Yes and today was a good case in point. I entered the ES long at 81 3/4, 12:41, stop was 80 1/4 (tested twice without breaking) and target of 84 1/4. The only thing that would have had me bail would have been a double divergence on the higher takeout of the high prior to my entry, 83 1/2. After nearly 2 1/2 hours of watching YouTube videos and playing guitar, I got filled at 2:59.
Price should take off after you enter __________________________________________________ This is in my opinion the most important aspect of each trade - it should leap in the direction anticipated right way - otherwise I exit or at least tighten the stop way down. Every big time trader will say their best trades where profitable right out of the gate - never showing a loss and rocketing on to a significant profit.
Your hypothesis is way too ambiguous Factor in environment - which includes.., but not limited to Time of day Which players present How much pressure has built up to propel the reversal Where is price in the overall Where in the month / quarter / year - is it Does the current / recent PA support a reversal Side note Part and partial to most reversals (shtf events notwithstanding) there will be a concerted effort to shake out the weaklings / balance out the risk - before price allowed to move off Just the way it is ================ So should price take off after one has entered - no..., yes..., maybe We all certainly like it to - but what we like..., has absolutely nothing to do with trading RN
My years of testing has also showed no performance improvements using time stops. I just dissect the market into risk:reward levels and just place the bets. They may work depending on styles and time frames, but I stopped investing time into them.