My second demo trade is bugging me.. alot!

[Scotty2Cues]

Three days later you are stopped out. (see chart)

The advantage of this exit management strategy is that it is pretty mechanical so takes the emotion out.

The disadvantage is that, yes, from time to time you see something get to your first level and then come back and stop you out. When you have been doing this for a few weeks or months you inevitable think "WTF, I was 150 ticks up and now I've taken a loss, I'm a d*ck, etc etc etc". But it depends what you are trying to do. Since, in trending markets, they usually follow a step pattern (s becomes r) and vice versa, I have found it is the best compromise between protecting your profits and catching the bigger move.

The other technique I like to employ is dividing your position into two or three (or even four or five) depending on how far you think the market can go and then just exiting some at each level and trailing the stop on the rest in the way I have outlined. This is a little more comforting since you are getting some out and this often diminishes your loss if it should get to the first level and come back.

thanks! will try it on next one.
1) So you leave your stop above the pin until it closes below first taget area?
2) Where/when do you enter the trade- sell order just below the pin or wait for retracement of the pin?

 

[trader_dante]

thanks! will try it on next one.
1) So you leave your stop above the pin until it closes below first taget area?
2) Where/when do you enter the trade- sell order just below the pin or wait for retracement of the pin?

Yes. I never moved the stop until I got a close above/ below.

I used to enter just below the pin. 1 pip infact. The retracement entry is more aggressive - I know people that preferred it but it wasn't something I felt comfortable with.

 

[Scotty2Cues]

I think my biggest problem with BE is that it is common knowledge that one should trade the markets and not their P&L.

Using a BE stop in this strategy is trading your P&L in 99% of cases.

If you think it's going to turn, get out! But moving to BE is basically relying on HOPE.

E.g. I HOPE it will go further but I don't want to take a loss if it doesn't.

And once again, hope is a killer in trading.

Anyway, I've said enough on the subject. Sorry if it's been a bit of a rant but honestly, this BE thing is the one issue that just keeps coming back in most of the people I speak with. People can see it destroys their performance but they just can't deal with not using it because it's comfortable and makes them feel safe.

Guess you all have to make your own decision.

also it makes sense that if correct money management is used and great setups chosen then it does seem a bit dumb to move to BE, hopefully the times a runner is caught more than makes up for the times when we get stopped out for 3% of account

appreciate the advice-thanks

i really appreciate the advice

 

[rathcoole_exile]

I placed my sell order just below this zone at 125.65 and went to bed. I overslept and looked at the chart about 9am GMT next day.

nobody else seems to have tackled the bigger, more serious issue, so let me have a stab at this one, if I may ?

if you have a trade on,
(even a demo one if you're going to whinge like a baby),

DON'T EFFING OVERSLEEP !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[trader_dante]

Seen some absolutely fantastic trades royally f*cked up by the breakeven move recently.

Here is my personal favourite.

Great pin right at the top of the Dow.

It goes 214 ticks into profit.

Comes back to 29 ticks offside hitting all the break evens.

Goes 355 ticks into profit.

Someone actually said to me "but my reasoning was that it shouldn't have come back once I was that much in profit...and if it did I was wrong."

If you think this, you haven't obviously watched these enough.

They come back almost every single time. This was probably the first thing I ever discovered which is why there is a phrase coined to explain it (see MMT).

Either get out in profit or keep your stop in its original place and go for the bigger move.

Moving to breakeven DOES NOT PROTECT ANY PROFIT.

It will simply lose you money with this strategy (and most others).

 

[rathcoole_exile]

Tom,
a re-entry is only a commission away.
In the above example, why not simply re-enter once price made it's way back from negative 29 ?

 

[Scotty2Cues]

Tom,
a re-entry is only a commission away.
In the above example, why not simply re-enter once price made it's way back from negative 29 ?

Ive been looking at that with the trades where I end up BE then watch it shoot off.
Think it has 2 advantages. If Im getting to BE quickly then I can have a smaller stop and so a larger $ per pip. I can take a small profit, wait for it to come back, then re enter, gettin two bites of the cherry?

risking 3% and using 30pip SL I only need 100 pips to make 10% return on account a month.

 

[Scotty2Cues]

Seen some absolutely fantastic trades royally f*cked up by the breakeven move recently.

Here is my personal favourite.

Great pin right at the top of the Dow.

It goes 214 ticks into profit.

Comes back to 29 ticks offside hitting all the break evens.

Goes 355 ticks into profit.

Someone actually said to me "but my reasoning was that it shouldn't have come back once I was that much in profit...and if it did I was wrong."

If you think this, you haven't obviously watched these enough.

They come back almost every single time. This was probably the first thing I ever discovered which is why there is a phrase coined to explain it (see MMT).

Either get out in profit or keep your stop in its original place and go for the bigger move.

Moving to breakeven DOES NOT PROTECT ANY PROFIT.

It will simply lose you money with this strategy (and most others).

If it always come back then we could have two attempts? Take profit, watch it come back, then re enter?

 

[trader_dante]

Ive been looking at that with the trades where I end up BE then watch it shoot off.
Think it has 2 advantages. If Im getting to BE quickly then I can have a smaller stop and so a larger $ per pip. I can take a small profit, wait for it to come back, then re enter, gettin two bites of the cherry?

risking 3% and using 30pip SL I only need 100 pips to make 10% return on account a month.

Take profits on the initial move can work. But I would risk 100% of those profits the next time back. That time if it fails, you end up with the same result as if you had moved to BE in the first place. If it works, you clean up.