So this was the reasoning, for now this is the simplest way to place a stop that I can find. Highs were price has been rejected or highs from larger swings. Not really know if it's the best thing to do but at least I'm not getting whipsawed within the zone. Yes, it might be obvious because I'm having a wider stops and the reason might not really matter but I'm trying to do it in a way that makes sense to me.
So price in fact went up first (making a new high) and then down. As I said yesterday, as long as that range isn't hit (the 60~ pip range because I like the stats on it) I'll try to go for it. So I get 2 entries (total +21.3
net pips or +0.84%
) and I don't take the third because we made it past that range.
Also I adjust the position size based on the stop size, so pips aren't as "descriptive" as before, maybe I'll start showing it in %. I'm risking the same % (1%) on every trade, not sure if there's a better way.
---New observations / ideas:
- The stops might be to loose now and the returns are on average might be smaller than the potential stop. Yes a third entry would've made me go to 0.16% (thus eating the previous profits).
- Maybe I could use that stop placement and find a way to "cut losers short" now that I have more room to work with? I just fear that I might add more unnecessary steps and go a step backwards
Open to suggestions as well. Please don't take this last part as a "I want to change everything all the time or if I see a losing trade", that's not it. I'm just trying to build my exit playbook and having in mind what could happen in a worse scenario that I could be at.
Hope you all had a great week!