I remember that handle or nick but I don't remember what he said. However, the fact I remember his nick probably means I read some of his posts.
Hello Volpri, How are you doing today? Question please: 1. When do you make or consider the decision to stop BLSHS (Buy Low Sell High Scalp)? I been trading this TR, then I hesitated here at Resistance. I am thinking I just keep going until I see strength and follow through in the breakout. Thank you.
Yes, I would keep shorting at the top. As of yet in your chart no BO with follow thru. But over 40 bars. Usually in 40 to 60 bars due a BO if none had already happened. Sometimes the BO can happen right after making the established TR of 20 bars. However, at this time about 46 bars in. However, look to the far left before the TR started. That big bear move down. There is a lot of selling there. Any BO of the top where your chart ends will likely fail within 5 bars and price will go back towards the top or into the TR. If I were trading this, I would short around your last bars if not already short and keep shorting as it traded further north of the TR. If it did not go back toward the top for a scalp within 5 bars (there are times it may take 6 or 7 bars.) I have even seen it take more but usually 5 or 6 bars is enough (and very often 1 to 3 bars) for it to then head back towards the TR. But if it stayed above the TR after the BO with gaps holding between low of bars and the BO point (top of TR) and made a first leg up then started a second leg. I would do one of two things. 1) Exit my short with any averaged down positions double up and go north on the second leg getting back my loss and more. OR 2) I would keep my initial short position and begin whittling down my paper loss (on those initial shorts) by making successive short entries on rallies and cover capturing small profits on small declines and do this over and over all the while keeping my original losing short entries until at such a time as it probed back down enough to give my original shorts a profit. In this case it is of utmost importance to "grab" those small successive repeating profits as the market renders them unless there is a big momentum in my favor while in one of them. Maybe I didn't confuse you? Bottom line yes, I would still be shorting around your last bars. But I be cognizant of a coming BO and know how I would respond in the event the BO continued north unabated.
I tried, worked yesterday but not working today. Will keep working on it. Update: Tried a second time. It worked. 2 out of 3 is not a bad start. The key is the TR.
It is kind of a Martingale, I started with short 100 shares doubled to short another 200 shares then shorted another 600 shares when the market went against me. Eventually the TR held, reversed and I exited with a good profit. I am not sure I have the stomach for it when I trade live.
Here is MNQ today. I used whittling down with doubling up on that big move down after the opening move up. First, I went long two times 1c each time on the move up after the open. Then on a PB on bar 8:49 and 8:50 I bot two times again 1c each time. Then it started against me. What I did then and you don't see on the chart is I started whittling away at the loss by sliding down a stop entry order of 3cs. I would KEEP moving it down 1tick above the high of the previous bar until it got filled on bar 8:59. The idea is I want it moving in my favor when I start the whittling down process EACH time. I usually try to make my whittling down entries at least 1 tick above the previous bar as it moves in the direction I want to see it move in my direction. So, after it bottomed and started the probe back up I just kept whittling away on the loss of those entries on bars 8:49 and 8:50 as the move started back up. I would double on each whittling entry as price retraced that down move. I think I tripled up one time. Finally, by bar 9:14 I was completely flat having made a profit on those entries on the initial entries on bar 8:49 and 8:50 and on every single whittling down entry as it moved back up. You can see I didn't just average down on the move down. On bar 8:50 I did average down on the long entry of bar 8:49. I averaged down but the same size of 1c. So, by bar 8:50 I am long two contracts. When I was not able to get out of those two contracts on the next bar 8:51 Ithen swapped midstream to whittling down the loss. So on bar 8:51. I would keep placing a buy stop order of 3c and keep sliding it down a tick or two above the previous bar as price continued down. BUT it NEVER got filled until bar 8:59 when the down move ended, and the reversal back up (probe back up) started. It was at that point that the whittling down technique started because I needed to see it move in my favor. I continue whittling down from that point on grabbing small profits as it probed all the way back up to give me a profit on my two entries on bars 8:59 and 8:50. Why grab as I whittle? Simply because price can meandering back and forth as it works it wat back up to my entries on bars 8:49 and 8:50. IF it doesn't make it there my whittling down and grabbing entries and exits still reduce my paper loss on entries 8:49and 8:50 and often times I could just get flat BEFORE price ever makes it back up to these two initial entries AND still make a profit even after losing on 8:49 and 8:50. Why? Because I am doubling and tripling up on my whittling down entries and "grabbing". In summary whittling down is not just adding and averaging down. I want to use stop orders or market orders but ONLY when it breaks above the high of the previous bar. From bar 8:51 all the way down to bar 8:58 my stop order for 3cs NEVER got filled until bar 8:59 as the move back up started. I just kept sliding that stop order down above the previous bars high until it got filled. Then when it got filled, I jumped out on the same bar "grabbing" a little. Then from that point on it was rinse and repeat until it probed back up to give me a profit on bars 8:49 and 8:50 entries. Unfortunately, I did not make a video of this in action, but I am trying to now explain the procedure from this static chart. By the time I was flat bar 9:14 on all my entries and exits I was up 168 points or so. This was a 1m chart so from 8:42 until 9:14 (32 minutes) around 168 points captured. I hope I have not confused and muddied the waters with this explanation on the procedure for whittling down.