- Mar 18, 2002
If you've tested your entries and your records indicate the trade has a positive expectancy - then that's all that matters. However, looking at your chart, your entry is pretty unconventional (which may well be a good thing rather than a bad thing of course) . . .
1. Your entry is noticeably above your MA line which many traders would interpret as being an indication of poor value and, if anything, look for an opportunity to short rather than to buy. Or at least to wait for price to pull back to a more advantageous level.
2. Your entry is right into an area of resistance where many traders would look for an opportunity to short rather than to buy.
Had you bought when price was at or below the MA and below the upcoming resistance area, you'd have given yourself a little more room for manoeuvre to see if it burst through resistance or bounced off of it. If the latter, (as turned out to be the case), then you'd have an opportunity to close out for a smaller loss or, even, near break even.
All of the above is easy to say with the benefit of hindsight. As I say, if you were aware of these things at the time and it's part of a deliberate strategy to think differently to other traders - and your testing backs up your theories - then completely ignore these comments!