Son of If You Can Draw a Straight Line . . .

Discussion in 'Journals' started by dbphoenix, Sep 19, 2013.

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  1. niko

    niko

    The reply was assuming one got filled on the trade at 96.25 and got stopped just a minute after. You are right about not placing trades at the open, not a good experience around here.
     
    #651     Oct 17, 2013
  2. niko

    niko

    Without considering the fact that placing the trade at the open is not wise. When you say is a non starter, you mean that it would have not been filled in real time or is it because of the move just before the open that went all the way to 92.75 invalidates the trade?

    In replay I got filled because my price was 96.25 that was touched before the market fell, so my stop limit was immediately executed at a "better" :mad: price.
     
    #652     Oct 17, 2013
  3. dbphoenix

    dbphoenix

    There's no reason to exit the trade if entered at 96.25 or .50.
     
    #653     Oct 17, 2013
  4. niko

    niko

    It would have meant at least a 3 point drawdown, shouldn´t I be trying to minimize this in testing.
     
    #654     Oct 17, 2013
  5. dbphoenix

    dbphoenix

    The next posts were as follows:

    0939: By now, a demand line can be drawn.

    0942: Price has gone parabolic, but a tighter demand line can be drawn.

    0945: Price tests the adjusted demand line and resumes its upmove.

    0947: If one entered correctly, the trade is now worth 8pts.

    0949: Price "breaks" the adjusted demand line. What does one do now?

    The accompanying charts were as follows:

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    [​IMG]
     
    #655     Oct 17, 2013
  6. dbphoenix

    dbphoenix

    Since price didn't drop below 95, the "drawdown" would only have been 1.5pts, if one exited at all. But, as I said, there's no reason to exit this trade other than fear, lack of confidence, and lack of understanding of the demand/supply balance.
     
    #656     Oct 17, 2013
  7. Gringo

    Gringo

    Price is currently at 97.5. What Db is saying is you're not going to put a stop-buy-limit at 96 or around there because price is already above that level. Your objective is to enter when price is moving in the direction of our trade not against it. So this 98.5 or thereabout is the only logical buy-stop-limit we can place.

    Placing a stop-buy-limit below current price would mean we are assuming and hoping price can get back down to 96 and then it hopefully goes up again taking us with it. This is too much of a hope trading.
     
    #657     Oct 17, 2013
  8. Gringo

    Gringo

    Now we are in a long and price has breached the first DL. Price is at 3207 currently. What now?
     
    #658     Oct 17, 2013
  9. llIHeroic

    llIHeroic

    Ah, this discussion about orders has cleared up my confusion. Thank you for the clarification. Forgive my ignorance, but I have one final question on the matter. Is there a slight spread that is generally placed between the stop and the limit price in order to get more regular fills?

    I have no experience with this, but it seems that one may have difficulty getting orders larger than a couple contracts filled if the stop and limit prices of the order are exactly the same.

    ---

    Back to the discussion at hand, with the recent break of the current demand line, I would hypothesize that such a strong up-move isn't likely to be derailed by this occurrence in any serious fashion yet, and if I had a single contract active, I would give price some room to fan out to a more sustainable demand line angle.

    The midpoint of the movement since the increase of demand seems to be about 3202.5, so I would be watching to see if the selling pressure is great enough to push price back down to that level, and exit if it is surpassed.
     
    #659     Oct 17, 2013
  10. niko

    niko

    I was reviewing where was it that I was not seeing things clear, my data feed would have trigger the trade at 9:30:07. Price then fell to 93.75 (2,5 ticks drawdown) I was confused with the 9:29 low (3.5 drawdown). My bad, sorry.

    Seeing the chart from investing.com, I see that 93,25 was not hit at 9:30, therefore the entry would have been triggered until 9:33. Now I understand.

    Thanks.
     
    #660     Oct 17, 2013
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