Quote:
Originally Posted by wrtm_19
Hi monster trader!! How do you handle with your stop losses and take profit levels? I mean for the 4 hours patterns do you still go for the 30 pips? How many pips you willing to lose?
Thanks!
|
WRTM
What I've been noticing on the 4hr charts is that the best setups have a 'D' that forms at the 118%-161% Extension of the A-B swing.
So if 'D' forms between 118%-138%, I use 161% as my stop.
If the 'D' forms @ the 161%, I'll use the 200% extension as my stop.
I try to go for a 1-1 RRR, and then close out 1/2 - 3/4 of my position, and am letting the rest run until I get stopped out.
Although I am still demo-ing these patterns, and another possibility that I'd like to experiement with is to close out half after a 1-1 RRR is reached and let the rest run to either the 38% or 50% of the A-D swing (which is more like is taught in 'Trade What You See'.
Lot size is 1-2% of acct size, so I'll just adjust it depending on my stop and the currency that I'm trading.
Hope that helps!