MightyOne wrote:TheRumpledOne wrote:
How often do you ask/answer that question?
Once per bar?
Once per tick?
Add or exit? Very simple!
Price moves, it sparks a question, & an action is taken based on a conclusion.
The first three entries add up to one unit and each additional entry is considered an addition; you don't need to
worry about moving your stop until trade 4, at which point you start moving your stop 25% closer to the current price
after each new entry.
1) because I can, BUY!
2) because price is higher than something, BUY!
3) because I am not getting out of this trade, BUY!
Trade 4+ you are simply thinking about your new stop location.
a) the new stop is acceptable, add.
b) the new stop is not acceptable, I cannot add, so I must exit.
You cannot take too many actions, it is self limiting.
Let's see if I understand.
Each entry is 1/3 of a position size. So if 3 lots is your PS, then you have put on 3 trades of 1 lot each.
But now I am lost as usual. Thought it was, add or exit. New stop? What stop? Didn't you call STOP LOSS a LESS PROFIT?