Find a spot on a chart. Say to yourself “it doesn’t make sense for me to own the stock anymore if it goes under here.” Build your position size accordingly.
Ready to Test that DDog Trading Plan v1.0 out? Load up a 5-Minute MSTR chart. What's v1.0 do on Your 5-minute MSTR chart during trading sessions for Thurs Feb 18 and Fri Feb 19. Post a pic, it'll be interesting to see if it gives you any clues toward an exit strat. Break a Leg.
My humble system doesn't work as well on 5 min charts. Here's a couple entries and exits on the 1 min charts for 2/18 on MSTR. Green arrow is open and red arrow is close with a dotted line for stop loss. Don't understand why yet but when I use the 5 min chart, I miss too much of the move waiting for a trigger candle, and the risk/reward ratio shrinks enough to scare me off. .
Looking Good. Now it's time to go out and find ... Ten examples where your DDog v1.0 Entry / Stop prototype Setup Does NOT Work. Tally the number that Do Work, while you find those Ten Non-Working. You gotta Get You an Exit Strat, holmes. Your exit method - What would a written rule for that look like? And work outward from there.
"Entry on this short is around $922 exit is around $913 , so 1% move" Ok, and What is the Stop Loss's Price?
Stop Loss = 927 Entry Short = 922 Hypothetically, Assuming an Account Value of $100,000 for simplicity, For this Trade How many shares would you Enter?