I can’t pretend I’m not getting really excited.
but it’s curious where some of the best ideas come from
- so often just out of the ether
Small lot sizes is key, then probably Frandlost is
right, knowing when to add on
I’ve figured the time to add on is when price goes
against you AND when it moves in your favour
using simple cross of MACD
I use a hypothetical screenshot example.
first, price diverges far below price. look for an entry
reason and quite honestly, it doesn’t matter what it
is and there is no need for confluence, but it might be
-
our Harmonic grey arrow ( never mind that it repaints )
-
Divergence to oscillator
-
Harmonic indicator ( ZUP or theharmonicindi, both free )
-
Engulfing candle pattern
-
Pinbar reversal pattern
-
Fib retracement level
-
Key Supdem zone
I don’t think it really matters what entry criteria you use,
providing it actually looks like price has moved
unsymmetrically away from bands
in the example below it might have been the simple
pinbar
enter very modestly here, there will be opportunity to add on
what ever happens
for me, maybe as little as 0.01% of equity ( sorry about confusion,
no I didn’t mean Lot size )
now what happens?
price starts to move up and we have a cross of MACD, enter
again with a further 0.1% of equity
now, with a little poetic licence, imagine we didn’t close
near top of bands, and price starts to move against us
quite badly, even hundreds of pips beneath our entry price.
we simple wait for another entry reason, which in this case
is grey harmonic arrow followed by engulfing pattern
we enter again at 0.1% of equity
now as we start to make up for lost ground we note a cross of
MACD, again, another 0.1% of equity
now we have 0.4% at risk which is more than enough
for a system that doesn’t use stops
as we see, price then hits upper distal band and beyond.
again. I like the idea of a 50 pip trail as we approach
the distal band
in this case, with a trail we would have made a good
profit with our 0.2 risk, closing much earlier, and with
no stress whatsoever.
but without the trailing stop, we would have had four positions
and made far more profit - but with considerable drawdown
first
but drawdown doesn’t have to equal stress
without stops, you simply can’t go in with 5% risk.
0.1% risk is far more realistic
and ditch the (loss) stops, risk is best controlled with a small lot size, slice your orders up!, where you are getting stopped out…MAKE that your ENTRY
