ok this is the way is see it, please correct of wrong..i'm starting a 4 week try out of the three ducks, ive entered some trades based on pure ducks and for the most part they have come true.
the three ducks is a disrectionary entry, and mainly based on where you would like to place your stops. i like to work within stops that are a max of 30 pips, but somtimes i'll extend the stops while lowering my volume effectivly risking the same loss but also taking a hit on the reward.
so a bull buy
so i want to looks at the last low below the sma on the 1 hour and place my stop about 10 pips below. but this will always be +30 pips in a strong market trend, so i place stops based on r:r and s/r i never place a stop within the 5 min sma. The market will always retrace and move so for me putting stops inside the 5min sma is a death wish.
Also i wait for the 5min bar to break a short term high ideally on the one hour chart again this blows my 30 pip max stop out of the water more times then not, but based on s/r and r:r's i'll adjust.
I have a perfect trade entry plan but it would hardly ever set up so it has variables and rules - rules are not broken but varibles are just that they are discretionary on Price and fundimentals of the market at the time. my rules are (apart from strigent respect of the 3 ducks); trade in the london and NY sessions only, never enter a stop within the 5min sma and never risk more then 2% of my balance. your rules maybe different its ok - this is the great thing about the 3 ducks...
peace and pips
the three ducks is a disrectionary entry, and mainly based on where you would like to place your stops. i like to work within stops that are a max of 30 pips, but somtimes i'll extend the stops while lowering my volume effectivly risking the same loss but also taking a hit on the reward.
so a bull buy
so i want to looks at the last low below the sma on the 1 hour and place my stop about 10 pips below. but this will always be +30 pips in a strong market trend, so i place stops based on r:r and s/r i never place a stop within the 5 min sma. The market will always retrace and move so for me putting stops inside the 5min sma is a death wish.
Also i wait for the 5min bar to break a short term high ideally on the one hour chart again this blows my 30 pip max stop out of the water more times then not, but based on s/r and r:r's i'll adjust.
I have a perfect trade entry plan but it would hardly ever set up so it has variables and rules - rules are not broken but varibles are just that they are discretionary on Price and fundimentals of the market at the time. my rules are (apart from strigent respect of the 3 ducks); trade in the london and NY sessions only, never enter a stop within the 5min sma and never risk more then 2% of my balance. your rules maybe different its ok - this is the great thing about the 3 ducks...
peace and pips
