For anyone that trades trendlines, how many times have you had a confirmed break of trend only to get stopped out right before the big move?
This has been a challenge for me for a long time.
My strategy works very well, but the market chops, leaving me losing more than I'm making. Even though my prediction's are spot on most of the time.
Take this image for instance, price breaks trend only to snap back inside grabbing orders before following through.
To avoid this you could:
Over time I have whittled away my account due to scenarios like this time and time again.
Going forward I am only trading bounces meeting certain parameters:
Risk management is crucial for any consistent winning strategy. With this I should be able to only enter trades when price is overextended, minimizing risk by having a tight stop outside these key trends. To where if price does go past, my strategy is actually invalidated and not just swept liquidity.
This has been a challenge for me for a long time.
My strategy works very well, but the market chops, leaving me losing more than I'm making. Even though my prediction's are spot on most of the time.
Take this image for instance, price breaks trend only to snap back inside grabbing orders before following through.
To avoid this you could:
- Have no stop loss, risk a margin call
- Have a very generous stop, more risk
- Have a tight stop, take many small losses
Over time I have whittled away my account due to scenarios like this time and time again.
Going forward I am only trading bounces meeting certain parameters:
- Minimum of 3 touchpoints per trendline
- Enter going towards the advantageous side
- Stop is outside the supporting trend
Risk management is crucial for any consistent winning strategy. With this I should be able to only enter trades when price is overextended, minimizing risk by having a tight stop outside these key trends. To where if price does go past, my strategy is actually invalidated and not just swept liquidity.
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Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.