Yes I understood. effectively you're trailing your stop below the 15min low (for a long). I was just saying that trailing a stop is always a good idea and one can trail it under any timeframe - 15min, 5min, 1min.. Just not too tight, got to give it plenty of room.
I put on a long trade in ES during the noon session.
Reasons for the trade
After the strong down move, I expected that the correction would show a second leg up (also see methods of Al Brooks). See 15 min chart below. Also price was above my linear regression filter. So when an inside bar formed, I took the breakout to the upside.
After the inside bar had formed, entered long at 1080.25 high of the inside bar.
Stop-Loss: 6 ticks below entry
Target 1 : 4 ticks above entry (low volatility during noon)
Target 2 : 8 ticks above entry (two ticks below resistance, no trailing because of noon session)
Reward-to-risk: 2:3 for target 1, 4:3 for target 2
- Both targets met
- Preference for an upward breakout correctly established
- Reward-to-risk was bad (because the second profit target was not appropriate)
- Took the trade to early, could have waited for a second entry. However, the inside bar suggested an early entry.
- Trade went 4 ticks against me
- Trading ES during the noon session is as rewarding as watching paint dry. I had to walk away several times, because otherwise I would have exited to avoid the pain of boredom
- As often I exited ways too early. Could have made 28 ticks and closed out the second half of the trade with 8 ticks of profit.
This shows again that a good exit of the trade is the most difficult to achieve.
The following 3 users say Thank You to Fat Tails for this post:
Looks like my post-news IB worked out. I knew it would explode in one way or another after so much consolidation. I had 3 winning IBs that could have all hit their 2x targets if I was trading 2 cars. I'm sticking with 1 car though until I increase my account size and I trade these in a more sophisticated manner.
Not near my charts now, but got the corner of my eye on CL on ToS while I get some work done. Sort of wishing I could turn my bots off and not risk today's profit anymore, but I'm taking every signal, regardless of daily profits/losses.
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).
Last edited by shodson; July 15th, 2010 at 02:22 PM.
The following 4 users say Thank You to shodson for this post:
If using the two legs up theory do you think it would be helpful to consider the second leg equal to the first. Like an ab=cd thing. Also, after such a strong decline would a fib retrace of 50% be valid. I'm not second guessing your decisions by any means. Just trying to be thought provoking.
The following user says Thank You to David_R for this post: