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Hi, I have already watched almost all the Al Brooks tutorial videos and knowing my biggest weaknesses, which have been over trading, revenge trading and difficulty in taking losses. I decided to base my strategy on looking for a swing from the opening looking for a DT/DB or Wedge (I don't trade the first 12 bars) and see if it reaches the target.
According to Al, we should look for a swing that is 40% average day, which ultimately would be about 20-25 points (MES). But I see that it is practically impossible because of how the market is these last days, since we have had many days of range and the SL margin that we have is so big by itself that it is hardly impossible to reach that target of +20 points, and I decided to lower that % a little more and get 15 points instead of 20.
The problem with this is, that although there are days where the SL is 5 points up to the mayor high or low, there are many others where it reaches 15 points (100$ is the maximum I bet per trade), so if I look for a 15 points trade I would be aiming for a 1:1 RR and supposedly it is not the best.
Could you give me some advice to follow an optimal trade? I don't know if it's something of these last days or if I'm structuring things wrong from the beginning.
Thank you very much for everything
I understand, at the end of yesterday I only made 2 trades.
The first one I do not know if it is right or wrong, I guess not since lately I base my trading plan on trying to find a swing regardless of whether it is a trending day or range and get at least 15 points buying the lower part of the range or selling the high.
I bought the PB at bar 16 and my plan was to hold the trade until it reached the close of the big bar number 3, seeing that the trade was returned and came with two strong bearish bars 25 and 26, I decided that the target I had might not be viable and decided to closethe trade either in the next bullish bar closing at its highs or in the next bearish bar that gave me the feeling that the price would go down more, and finally I close the trade below bar 34.
The second trade was to sell the close of bar 46 putting as a target the close of bar 26, thinking that there could be people who had sold there and the price could reach it, in this case it was perfect and the trade was closed at bar 56.
I always used as SL the high or low of the whole range.
And thank you again Mr.Carpet for the help, I really appreciate it.
I wanted to share with you how I handled today's trade, I am practically new in trading (7months) and I still have a lot of doubts on how to have a good trade management.
There are 3 points on which I would like to have feedback if possible:
1.-Would you say that the trade is well executed or does it have flaws that could improve it? My point of view is the following:
-I take bar 8 as a breakout that closes high, but I don't want to jump into the trade to fast for BTC and I decide to place a STP order one pip above bar 8(I understand that many times it is better to wait to see what the next bar does, but I don't have much capital and sometimes that wait ends up being a major breakout that prevents me from taking the trade for capital), in the end bar 9 ends up activating my order and the trade begins.
-I have as a target the MM or retracement ( I do not know which is the right word xD ) of yesterday's trend, but I am aware that it does not have to arrive and as SL the LOD.
-BTC bar 11 as it did not have any retracement and closed at the top.
-After seeing what happened on bar 12, I am no longer so willing to BTC on bar 13 and put a LMT order at 50% of the same (a little above, maybe this entry was a little aggressive, but I tend to add positions if I see a possible strong trend and I have margin until the BE).
-Unfortunately the bar 15 is very large and generates me insecurity, as I had not seen anything before that made me think that I could have such an aggressive PB in a single bar, even so I waited for it to close and once closed if I saw that it went up again, I would put another order to try to average the position, because I thought, that like me, there could be more people who had bought the low of the bar 14 and were looking to leave with a BE in that area and some profit in the added position.
-The price did what I thought might happen and I decided to take out my entire position.
I don't know if it was a good decision or not, since there had only been one big bearish bar among all the bullish trend, it was probably a mistake to take out the trade, but I still don't read the market well enough to know if it was a strong enough bar to shake the trend, I was also afraid to think that we were just 1 hour after the opening and that there could be a reversal in short, I was attacked by all the doubts that I could lose the entire position if I did not act correctly and I left where it seemed logical, although I know that at that stage there was more fear inside me than logical analysis (I do not handle losses well).
2.-The line that I have painted as wedge, is it really a wedge? I have doubts with this, since I always see them well if they are given by bullish and bearish bars that create those 3 hits and make them visible to me, but being the 12 candle a PB being a pause, it would already be considered as the first touch of the wedge or on the contrary I should not have marked it?
3.-The last doubt is regarding the management of the trades.
If I risk 100$ per trade and the trade goes for 150$ profit, in the case that the trade is returned and touches my SL, I would be losing a total of 250$ instead of 100$ if we understand that "it is my money and not someone else's", in these cases do you reduce positions once you reach the 1:1 or continue with the whole lot? What is the premise to add or subtract positions and still maintain a commensurate risk? My biggest problem has always been the same and it is that I do not know how to manage the risk I think, I am able to make a small position can become very large, but in the same way I can make that position with benefits end up reducing to 0 if I lose sight of some clue of the market or simply I get the negative probability. Could you give me some advice to increase positions or profits without losing sight of the risk? I realized thanks to that quote from Al, that in my case, I am able to lose 100$ if I get the SL and see it as normal, but I should not see it as normal to have a position at +400$ and have it reduced to 0. On the one hand I think, well I had X in the account and I still have X, but the reality is that I had X+400 and in the end I lost those 400. It is something that I definitely have to improve, but I don't know how to do it correctly.
Thank you very much for taking the time to read all this text, I hope to be able to return this knowledge to the forum after a while.
Have a nice day!
Ok, so I should not be afraid of the opposite bars but see them as a discount to be able to add positions again and see where people have taken profits to add positions with a lower price, I have to learn to manage this to be able to take profits and scale without the risk of losing everything acquired.
Regarding the wedge, would it be ok to take bar 12 as a first push or on the contrary as it is still a bullish bar I should not consider it?
Thank you for all your answer Mr.Carpet
