That concept would work if you had a 100% guarantee the trend would continue in that direction. Unfortunately such a guarantee doesn't exist.
Reverse the trade to get back loss ----> Reverse the trade to double the losses After a loss, You should stop trading for 1 day/week/month. After that, if you are still angry/vengeful, you should stop trading for at least a year. After that, if you are still angry/vengeful, you have to give up trading totally. Perhaps change your career to be a front-line soldier or wrestler
I just use the same ORB setup. Anyway, I don't want to divulge into my setup. It's really a dumb strategy, an autistic monkey can program it. I say we close this thread and forget stop and reverse. Just stick to "keep your losses small and let your profits ride." That's the holy grail. Focus on that.
Hello doubledoubledoublecup, Now imagine making $0.00 or less than $0.00 year after year trying to figure it out too and here is year 10, and you still have not figure out how to make alot of money trading. Just going round and round and circles. At least he made money and he is not poor. I rather make $100,000 and lose it all the next day, then never make any money at all trading. No such thing as right or wrong in the ES futures market. There is only one thing, Making alot of money and hurry up too. You have to do whatever it takes to make money even if that means risking your entire account on one trade or 50% of your account on one trade. Who cares, you have to do what you gotta do to get paid in the futures market with the tools and resources you have to get paid. No-one is not giving out trading edges for free. lol, so you have to do what you have to do with your own confidence level and personality. We are gambling traders, not engineers.
Yeah, it's not really advisable. It actually does work well the problem is it takes a lot of skill and mental discipline to do it. If you have that much skill and mental discipline to quickly flip, than it's better to just wait and identify the setup and take it straight up. It's basically just an additional tool that a strong trader can "potentially" learn to use. In other words it works for people who already know how to trade at a high level and are consistent, strong mentality and properly funded. If you're just flipping it because you're down "x" and had no edge to begin with, than it's pointless. The reason is clear because you need the first edge to be one, because once you see that edge failing and you know it normally doesn't than you can flip because you expect an outsized move in the opposite direction due to that setup failing. Here's an example though: Let's say the overnight low hasn't been broken yet and you take a short position based upon your entry vehicle, stats, probability, confluence and whatever else you have. We head toward the low multiple times but never get to it. You notice on a smaller chart that we're breaking micro lows by only a tick or two and immediately reversing up. This can be a sign of people being trapped short and also potentially stopping out weak longs. This can be an indication that your setup isn't going to work and market is getting overloaded to one side. So you would have a point where we get above that it's likely going to squeeze any shorts and also attract new buyers. If we cross that threshold than you would flip your short long.
So at the core, it comes down to this: Is your reversed trade better than a random entry? As was already pointed out, your stop is a mostly random artifact (notwithstanding aggregate behavior of retail traders, where the casual claim is that retails are forced out at the worst possible time... which is opposite to this idea). HOWEVER as a discretionary trader there can be value in understanding that something has happened that's driving a big market move, and if that move is opposite to your initial trade, you better correct your trade. But then you indeed have a reason for thinking you're better than random. Back to your OP: Just drop the idea of "recovering" a loss, nothing productive lies in that way of thinking.
Saw thread title a second time and realize the premise is wrong. Once a loss is taken don't think about ... getting it back. Think about the next trade as another opportunity possible to make a gain. A gain that may or may not cover prior loss. Each trade is separate. Done. Move on.
I wasn't going to jeopardize my free Big Mac. Of course only tried new stuffs in Sim. 1-tick is hard, ended up made way too many trades within 1 minutes and slippages killed profit.