Quote:
Originally Posted by kagein
i took the GU trade yesterday and didnt know where to set my profit target cause of the two grids in play. what would you do then? just take the 38% to be safe?
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If I enter at a 75% retrace, I move to B/E at 50% and take profit at 38%.
If i enter at 87% retrace, i move to B/E at 61.8% and take profit at 50%.
In either instance i'm still taking roughly 30-35% on any given setup worth of profit. My stops are place just above the swing high/low. So to answer your next question...
Quote:
Originally Posted by kagein
ok ive going through your risk management daedalus. lets say i have $1000, 100:1. if i trade a mini lot and the distance between the 61% level and the 100% is 100pips, when i get stopped out i would be down 10%. Am i right? is there a way of tweaking the risk a bit?
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Yea, you're right. If you don't want to take the 61.8%, take the same signal on a 75% or even 87% retrace. That should limit your maximum loss, and still yield the same gains.
And if you want to limit your risk on a grid... DON'T TAKE BIG GRID PLAYS THAT YOU CAN'T AFFORD TO LOSE ON. If the risk is too high for you, sit on the sidelines and wait for a setup that you can stomach. It will come.
I personally will play any of the grids for entry (61.8, 75, 87) as long as the grid holds and i see some signs of a reversal why not? I figure i'm just getting it at a discount up above.