A very good reason to write a journal is to optimize your stop loss settings (if you use any).
The best SL settings are there where in fact a SL is not used. But this could be a expenlsive
journey. Where is this place and can we optimize it?
Using the journal which states when your SL was hit or the max. points the trade would
go OVER your SL can give you some very good insight.
If you make some statistics over time to see how much you should have "moved" your SL
can make your overall result looking amazingly better. This can be THE factor to
going to be a consistent winner!
For my trading system I have found a fix stop for normal days is useful to prevent a huge
loss if the trade goes really against me. A wider stop is set for special days like Roll-over
day or if the day before was a very trending day. This is to take out the noise and waiting
patiently to see the trade going to the TP or in my case the previewed exit time.
Easy - isn't it?
So lets find the optimal settings for our SL in our trading plan.
to be continued
The following user says Thank You to GFIs1 for this post:
The down movement was supported in the 6820 region.
Result: system was too late to take the down move with positive effect.
For those who are still in the trade - I think the down move has not
Today we had a downmove in the DAX which exceeded 150 total points.
Several supports were melted down.
GFIs1 system normally takes on Wednesday a short.
A special rule says to avoid any trade the following day by the system AFTER
a rally of more than 150 points (up or down).
So with todays move we omit a system trade tomorrow (with this
rule set) and we expect the DAX bouncing back a bit.