Still I ask why didn’t you exit at the top of the range after your long entry near the bottom? What were you thinking by holding your position?
I would have shorted it at the yellow arrow with a stop at the high....but hopefully would have exited quicker for a small loss.
I thought you were going to say you took 6 months off from trading to design a trade method and then backtest it to determine if its profitable or not profitable. Instead, you played golf and discovered in your mind that there's a connection between golf & trading and now you've discover that your "intuition trading style" (I didn't say discretionary) is not easy to explain. Yet, you're able to explain your trading plan via a "keep it simple" application by saying you're using a 5min chart, try to manage the trade and getting out at the first sign of trouble. Several Variables to your Trading Plan: 1) 5min chart 2) Manage the trade 3) Getting out at the first sign of trouble 4) Look for two leg movements 5) Use a strong bar because it results in another strong bar after a retracement Why you're so afraid to backtest something before wasting your time, energy and possibly your money in using ??? Why refer to it as an "experiment" when there's no statistics ??? For example, you say a strong bar results in another strong bar after a retracement...what stats do you have to support that statment ??? wrbtrader
If you wrote down beforehand why you are going to enter a trade....becomes quite simple to explain afterwards why you entered it!
Why? In case it's all a lot of bullshit! He thought he had it sussed, but no, it didn't actually work. Can you imagine the downgrade to his ego? Do u think he can take that chance?
Discretionary does not mean improvisational. You still need defined recognizable signals. It's discretionary because signals don't always look the same, especially in the context of multiple time frames but you still must determine if a signal is valid as to your trade plan.