IgazI wrote:Jhx wrote:But can't really say how to translate it to the actual execution
Do you not remember the concept of 3 frame breaks separating down swings from up swings?
- price closed lower
- you are trading high swings in the down direction
- you are trading price closing lower than a range of prices
How do you trade it? You keep selling when price is going down. You keep buying when price is going up
How do you scale into a trade? What percent stake do you want in the current move?
- 10%?
- 20%?
- 50%?
If a business is generating profits then you want more of the business.
If a business is not profitable then you want less of the business.
That is how scaling in works. . .
swing.png
Well this took some time to chart, but I think this is how I would've traded it without complicating the math (this is probably not efficient or properly scaling in but maybe it serves as a starting point).
I would add shorts at the high swings, and wait for price to break the lowest range of the previous down swing before considering adding again.
The red lines are the 'end' of the down swings using the range.
The entries are done after a candle closes beneath the low (or around there) of the previous after going back up. I can't predict tops so I just wait to go down, back up and enter. Yes, it could go up after the entry.
- GU_Position_1.png (159.14 KiB) Viewed 1796 times
This cyan line is where I would consider exiting the whole position; over the top of that range to not give everything back.
- GU_Position_2.png (147.77 KiB) Viewed 1796 times
I think when adding it's also important to see where my average entry is to know where my breakeven line is (this took some time).
Each dotted line is the new entry, the thicker line is where the average entry moves to.
- GU_Position_3.png (148.76 KiB) Viewed 1796 times
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Result near the cyan line.
+76 pips from entry 1,
+61 pips from entry 2,
+55 pips from entry 3,
+47 pips from entry 4,
+19 pips from entry 5,
+10 pips from entry 6,
-26 pips from entry 7
Total +294 with the initial risk being
idontknowhowmuch . And the cyan line is 36 pips away from the average entry so it's well protected. And price might still drop.
I'm too used to simple risk management of % amount per trade; so I don't know how to tackle risk/money management with this yet.Meaning how to manage risk per trade (or per set of trades maybe?), and how much to add without being reckless, when to close if price moves against if have a large position going on, etc.