hi michael, seems to me that you would be spinning your wheels with the stop and reverse feature? my point being that if your initial direction was off and you got stopped out re-entered the market you could very easily become a victim of the intraday phenominon of low volatility price congestion i.e. you could get stopped out a second time only to have the market finally breakout into trend. you would make $$$ on the 3rd entry but would only be making up for the 2 previous losses.
GA, This is what I am afraid of. Your wisdom is appreciated. Lets watch. Michael B. P.S. BUT, Money management could be key to the probability of the third trade getting the direction straight and showing the net profit for the day. (lol, one could even just take those trades and trade infrequently)
The more I think about what you are saying, the more sense it makes to me. All this testing and thinking and NOT trading better produce results or it will be yet again another waste of my time. Michael B. P.S. Not to say that this experience in ET is wasting my time. But face it, I am using my time to make a profit, not to chit-chat.
This example to discover how to use this system to scalp with and set YOUR OWN brackets is a keeper. Michael B. u da manz
If I were to get enough data to prove that the NATURE of the levels would indicate the prevailing trend, could I intepret these comments you made another way? Example, small size only when going against the overall trend. Normal size when in consolidation. Large size when its a high probability trade signal for you with the overall trend Like this: entry after a win= 1 unit first losing reversal = 2 units second losing reversal = 3 units Michael B.
1/2 bracket no target ----------------NO UPPER BRACKET REVERSAL OR TARGET(awaiting new session) 10026 L Entry 10006 S H3 Michael B. P.S. This is a trade following a loss which so far indicates a higher probability of success. The new brackets will be interesting. Even though one-contract trading is showing a nice profit so far, can you see where money mangement can improve results? I know I need more data, and thats what this journal is collecting. Just make note of this and lets see what happens ok?
Carried long trade* into new session from 10026 (performance bond requirement $2,500 per contract) Old short bracket -----, 10006 New short bracket 9932, 10114 This is what it looks like: 10114 S H3 10026 L* Entry 9932 S L4 Michael B. P.S. *=proposed higher probability trade (work in progress).
This is simply the position size managment of 1, 2, 3....that I discussed earlier. entry after a win= 1 unit first losing reversal = 2 units second losing reversal = 3 units Michael B. P.S. Do you want $2,185.00 or do you want $5,060.00 with a smoother equity curve (in 12 trading days) ? You choose.