Repeat entry signals

tomorton

Legendary member
8,127 1,209
Two situations I don't remember seeing covered well or at all in trading books. I have these situations, they are not just theoretical.

1. you have a long trade open in your chosen market ABC, the risk is at the usual default 2%, and the trade is currently in the money. Your TA has not indicated an exit and price has not reached your target. Your system generates another buy signal. What would you do?

2. Same set-up with a long in XYZ, but now your system generates a short entry signal. What would you do?


I can tell you up till now I have always ignored secondary entry signals in the same direction as my primary trade. And likewise short entry signals if my original exit points have not been reached. But I'm sure nobody ever told me to do this so it needs to be questioned.

Happy to hear members' actual responses to these scenarios - i.e. what you have actually done, not just what you think I should do,
 
M

member275544

0 0
Two situations I don't remember seeing covered well or at all in trading books. I have these situations, they are not just theoretical.

1. you have a long trade open in your chosen market ABC, the risk is at the usual default 2%, and the trade is currently in the money. Your TA has not indicated an exit and price has not reached your target. Your system generates another buy signal. What would you do?

2. Same set-up with a long in XYZ, but now your system generates a short entry signal. What would you do?


I can tell you up till now I have always ignored secondary entry signals in the same direction as my primary trade. And likewise short entry signals if my original exit points have not been reached. But I'm sure nobody ever told me to do this so it needs to be questioned.

Happy to hear members' actual responses to these scenarios - i.e. what you have actually done, not just what you think I should do,
my timeframe is more longer term in case it makes any difference, in scenario 1 I always add more (capital allowing). I would generally do this for the 2nd or 3rd signal only depending on how good the trend was looking.

as for the second, i can't comment unfortunately. My strategy would have taken me out of any trades I was in before a short signal could occur.
 

dbphoenix

Legendary member
6,952 1,251
Two situations I don't remember seeing covered well or at all in trading books. I have these situations, they are not just theoretical.

1. you have a long trade open in your chosen market ABC, the risk is at the usual default 2%, and the trade is currently in the money. Your TA has not indicated an exit and price has not reached your target. Your system generates another buy signal. What would you do?

2. Same set-up with a long in XYZ, but now your system generates a short entry signal. What would you do?


I can tell you up till now I have always ignored secondary entry signals in the same direction as my primary trade. And likewise short entry signals if my original exit points have not been reached. But I'm sure nobody ever told me to do this so it needs to be questioned.

Happy to hear members' actual responses to these scenarios - i.e. what you have actually done, not just what you think I should do,
1. Add to the position.

2. I don't have "exit points", so if a short were signaled, I'd exit the long and take the short. This of course depends on what one considers to be a short signal. It's very easy to get trapped into SAR if one is thrown by the unexpected.
 

tomorton

Legendary member
8,127 1,209
Added to No.1 (had another repeat buy on a FTSE100 share today so doubling that one as well).

Closed No.2.

Cheers guys. I think I knew what I had to do but good to get some moral support.
 

Jason101

Experienced member
1,372 215
Horse bolted now but-

1. Secure b/e then pyramid.

2. Change my system so two contradictory signals would not occur.
 

tomorton

Legendary member
8,127 1,209
Don't worry, its a new horse now Jason.

I am using the move stop to b/e rule. Almost all trading experts say run your winners, but the longer you hold a position, especially if its a trend-following trade, the more likely it is that new entry signals will be generated. They don't get into this issue. I'm determined to taking these extra signals up to the point of the original risk capital each time, I can't rationalise not taking them.
 
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