02-13-2006, 03:41 AM
How do you handle recommended trades which keep moving stop loss from 150 to 200 to 300, dollars or points, and so on…? In the end highest stop loss is either hit or trades disappear from screen.
02-13-2006, 11:12 AM
This is a good question.
The Profile screen is used to qualify trade setups. It is designed to always monitor for new trades (if any). If it detects a new trade setup in any room, it will automatically display it in that room. Regardless of what is happening in that room. If there is an active trade, it will erase it and display the new trade. If there is a completed trade, it will erase it and display the new trade.
The question is, how to handle when a trade in a room changes to a new trade. There are a couple of ways to deal with this.
I recommend to right click on any trade you take in the Profile and send it to the Watch Window. This way you will have a copy of the trade with all of the parameters (entry, trigger stop,...).
1. You can follow the trade parameters exactly from when you took the trade. This means to no longer look at the Profile and complete the trade with money or time management. This is the basic way to handle a trade in the profile. This is exactly how we performed the back testing. Take the trade and follow through with money management.
2. You can keep a watch on the room that you took the trade in and monitor if there are any changes to that room. (RI, Timing Boxes, RF) If a parameter goes out of range, then exit the trade or move your stop tighter.
3. If the change to the trade includes entry, stop or target, then the whole trade is considered new. Again, you can either follow your original trade parameters or consider the new parameters. If you plan to consider the new parameters, then you have to take some things into consideration.
Remember if you are in a trade and the stop changes (meaning new trade) then you have to consider the risk or risk to reward. If it does not meet your risk criteria, then follow the original parameters or tighten the stop or exit the trade completely.
There are many reasons why a trade in a room changes or resets. You have to look at it as a new setup. You can use the new parameters in the new setup if they make sense to you. If they don’t you either have to follow the original or make a decision to get out of the trade.
It is tough for me to answer because sometimes the new setup makes your trade better and sometimes it makes it look worse (higher risk).
If the new setup makes your trade better you can adjust the trade settings. If they make your trade worse then you must consider the risk.
If any trade or setup has more risk then you would like to handle, do not take it. Preserving capital should be job #1.
The Profile screen is used to qualify trade setups. It is designed to always monitor for new trades (if any). If it detects a new trade setup in any room, it will automatically display it in that room. Regardless of what is happening in that room. If there is an active trade, it will erase it and display the new trade. If there is a completed trade, it will erase it and display the new trade.
The question is, how to handle when a trade in a room changes to a new trade. There are a couple of ways to deal with this.
I recommend to right click on any trade you take in the Profile and send it to the Watch Window. This way you will have a copy of the trade with all of the parameters (entry, trigger stop,...).
1. You can follow the trade parameters exactly from when you took the trade. This means to no longer look at the Profile and complete the trade with money or time management. This is the basic way to handle a trade in the profile. This is exactly how we performed the back testing. Take the trade and follow through with money management.
2. You can keep a watch on the room that you took the trade in and monitor if there are any changes to that room. (RI, Timing Boxes, RF) If a parameter goes out of range, then exit the trade or move your stop tighter.
3. If the change to the trade includes entry, stop or target, then the whole trade is considered new. Again, you can either follow your original trade parameters or consider the new parameters. If you plan to consider the new parameters, then you have to take some things into consideration.
Remember if you are in a trade and the stop changes (meaning new trade) then you have to consider the risk or risk to reward. If it does not meet your risk criteria, then follow the original parameters or tighten the stop or exit the trade completely.
There are many reasons why a trade in a room changes or resets. You have to look at it as a new setup. You can use the new parameters in the new setup if they make sense to you. If they don’t you either have to follow the original or make a decision to get out of the trade.
It is tough for me to answer because sometimes the new setup makes your trade better and sometimes it makes it look worse (higher risk).
If the new setup makes your trade better you can adjust the trade settings. If they make your trade worse then you must consider the risk.
If any trade or setup has more risk then you would like to handle, do not take it. Preserving capital should be job #1.