Hey Jeff,.. would you mind discussing your money management principles that you apply to the 10 range chart, ie profit targets, where you place your stop after entry and so forth.. Thanks.. I have never traded Range charts so this looks interesting anyway..
I prefer range bars because they reflect price alone and are not tanited by any other factors. (Time or the number of transactions) just price. On top of that I personally prefer the way a range bar chart looks. To each his own, I guess. I still keep a minute chart up just to keep my bearings. I'll toggle between a 5,15,30 minute chart through out the day.
As far as money management goes. Risk assessment first.... Stop goes 3 ticks beyond swing high/low (remember I trade the YM) this needs to fall in line with risk parameters set up in your trading plan. (this is usually no more than 2% of your account per trade max) If the risk is too great consider trading fewer contracts or passing on the trade.
Targets.... first target 7 ticks.... move stop to -7 from entry. Once your first target is hit and your stop moved this insures a breakeven trade at the very worst. Second target.....
11 ticks.... move stop to breakeven +1. Final portion of position exit is discretionary. Have a target in mind, like the next support/resistance or key number. But bottomline, when the momentum slows close the trade or trail the stop.
There may be times when you don't want to go "full boat." How often do you get a "runner" anyways? The market only trends 15% of the time. So, you may want to just take your first and second target and that's it.
As far as charts go.... if your trading a 10 range bar you should use a 15 range bar chart as an anchor chart.
Hope that answers your question.
The following 17 users say Thank You to Jeff Castille for this post: