DATE: Mon, 11 – 03 – 2019
Notice: Chandelier Colors have been switched.
Hoping this is just a rare incidence. This day is the 1st day of the year when daylight saving time being replaced back to the normal hours. So, schedules will be 1-hour sooner again. Most of Price movements were anticipated including the late-triggered OP on Candle 12:00, until what happened at Candle 16:00. Price already below 1.0 rrr when Candle 14:00 closed. Typically, it would be safe to trail stop using the upper Chandelier. But on Candle 16:00, Price crossed my SL at Candle 15:00’s Chandelier level, before proceeding to go lower and hit TP. I recalled using rrr-based trailing-stop method that I created for my H4 Strategy. I’m considering to replace the Chandelier method to that rrr-based one should the frequency of such price dynamics become too frequent in near future.
The on-time Reversal Setup on Candle 08:00 and 09:00 was not typical, but still within the predetermined definition in Rulebook. Late trigger of OP happened 3 Candles later. Candle 14:00 closed below 1.0 rrr, so, it was time to use Chandelier trailing stop. Unfortunately, Price hit it on Candle 16:00 before it goes further down to hit TP. So, my win was no more than 0.6 rrr in this Trade. As I recall, in the history of my back and forward tests of the strategy, this is the first time Price hit Trailing Stop first. Moving on, assuming I was still on the Trade, though TP was within upper half part of the Candle, the Candle itself formed a rejection price action against a Fractal Level; the Candle’s Lower Tail is much longer than its upper one. Hence, I then would close the Trade at its Close. Price later tested the Fractal Level again before bouncing and closed the day above TP.
1. May be I’m just shocked seeing for first time the Trailing Stop got hit first. Hopefully, this will be a rare occasion. But if not, I still have the rrr-based method as a backup.